Social Responsibility Examples of Campaigns by NGOs to stop unethical business practices.
Social Responsibility and NGOs€¦ · Chapter 6: SOCIAL RESPONSIBILITY AND NGOs Fundamentals of...
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Chapter 6: SOCIAL RESPONSIBILITY AND NGOs Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - CHAPTER 6: Social Responsibility and NGOs
Transcript of Social Responsibility and NGOs€¦ · Chapter 6: SOCIAL RESPONSIBILITY AND NGOs Fundamentals of...
Chapter 6: SOCIAL RESPONSIBILITY AND NGOs
Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.
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CHAPTER 6: Social Responsibility and NGOs
Homework Review
§ How important is it to you to buy products from socially responsible companies? Are you willing to pay more for these products?
§ Are you willing to pay more for shade grown, organic, fair-trade coffee? Why or why not?
Chapter 6: SOCIAL RESPONSIBILITY AND NGOs
Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.
Chapter 6: SOCIAL RESPONSIBILITY AND NGOs
Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.
Ethical Issues in International Business
Ethical issues in international business arise in the following areas:
§ Environmental issues § Sweatshops § Corporate corruption § Dumping § Poverty
Chapter 6: SOCIAL RESPONSIBILITY AND NGOs
Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.
Ethical Issues in International Business
Environmental issues § Sustainable development—the ability to meet
human consumption while maintaining the environment—is a critical issue for businesses
§ Many companies have been responsible for pollution and resource depletion
§ Companies and governments often resist environmental plans that will impede economic growth
Chapter 6: SOCIAL RESPONSIBILITY AND NGOs
Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.
Ethical Issues in International Business
Sweatshops Factories in underdeveloped and developing countries in which employees work in unsafe environments, are treated unfairly, and have no chance to address those conditions.
Why do sweatshops exist? Global competitiveness, corporate greed, and consumer expectations of low prices.
Companies that own factories in developing nations must ensure that workers are paid a living wage and are able to speak up against abuses.
Chapter 6: SOCIAL RESPONSIBILITY AND NGOs
Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.
Ethical Issues in International Business?
Corporate corruption The involvement in illegal activities, such as bribery and fraud, to further one’s business interests.
Chapter 6: SOCIAL RESPONSIBILITY AND NGOs
Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.
Ethical Issues in International Business
Dumping Selling products in a foreign country below the cost of production or below the price in the home country.
Predatory dumping
An anti-competitive business practice in which foreign companies price their products below market value to increase sales and force domestic competition out of business, then raise their prices.
Chapter 6: SOCIAL RESPONSIBILITY AND NGOs
Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.
Ethical Issues in International Business
Poverty § Over one-quarter of the world’s population lives in
intense poverty—accompanied by hunger, lack of shelter and medical care, limited access to education, high rates of disease, etc.
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Chapter 6: SOCIAL RESPONSIBILITY AND NGOs
Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.
Ethical Issues in International Business
Microcredit § Microcredit—the granting of very small loans to
spur entrepreneurship—is one way that poverty is being addressed
§ Microcredit loans are mainly granted to women, who use the loans to start small businesses and their earnings to support their families
Chapter 6: SOCIAL RESPONSIBILITY AND NGOs
Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.
Ethical Issues in International Business
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Chapter 6: SOCIAL RESPONSIBILITY AND NGOs
Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.
Non-Governmental Organizations (NGOs)
Non-governmental organizations (NGOs) Non-profit organizations with a service and development focus that are composed mostly of volunteers, and are predominantly funded through charitable contributions.
NGOs may centre on trade, education, youth, improving the environment, human rights, or other issues.
Homework
§ Read p163-177 § On page 170 answer Q1-3.
Chapter 6: SOCIAL RESPONSIBILITY AND NGOs
Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.
Review Questions
§ Answer the following questions on p178-179: § Q1-8, 10, 17, 19, 21-23
Chapter 6: SOCIAL RESPONSIBILITY AND NGOs
Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.
