INTERNATIONAL ETHICS

PRESENTED BY BEWARELY REBA J 1st MBA B Batch TIM KOLLAM.

INTRODUCTION
Increasingly business is being conducted across national boundaries. Ethical problems -Diversity of business standards between LDCs & MNCs. -Environmental standards of LDCs. -Pervasive corruption. -Exploitation of cheap labor & natural resources of LDCs by MNCs. However,MNCs plays a constructive role in the conversion of socialist, planned economy to a free market.

ABSOLUTISM VERSUS RELATIVISM

Absolutism- The business ought to be conducted in the same way the world over with no double standards ,ie,When in Rome or anywhere else ,do as you would at home. Relativism-The guide for business conduct abroad is legally and morally accepted in any given country where a company operates. It is the opposite of absolutism.

DEBATES OVER ABSOLUTISM OVER RELATIVISM

MORALLY RELAVANT DIFFERENCES. THE RIGHT OF PEOPLE TO DECIDE. THE VARIETY OF ETHICAL OUTLOOKS. REQUIRED CONDITIONS FOR DOING BUSINESS.

GUIDELINES FOR MULTINATIONALS.

1.HUMAN RIGHTS(THOMAS DONALDSON) - The right to freedom of physical movement. - The right to ownership of property. - The right to freedom from torture. - The right to a fair trial. - The right to nondiscriminatory treatment - The right to physical security. - The right to freedom of speech and association. - The right to minimal education. - The right to political participation. - The right to subsistence.

2.WELFARE (RICHARD DEGEORGE) - Multinationals should do no intentional direct harm. - Multinationals should produce more good than harm for the host country. - Multinationals should contribute by their activity to the host countrys development. - Multinationals should respect the human rights of their employees. - To what extent the local culture does not violate ethical norms, multinationals should respect the local culture and work with and not against it. - Multinationals should pay their fair share of taxes. - Multinationals should cooperate with the local Govt in developing and enforcing background institutions.

3.JUSTICE The activities may be still be criticized for being unfair or unjust. - One-sided division of the benefits from foreign investment. - Violating the rules of marketplace.