Ethics in International Business

Part 2 - Midterm
Five things that an international Business and its managers can do to make sure ethical issues are considered in business decisions.
1. Hiring and Promotion
- businesses should strive to hire people who have strong sense of personal ethics and would not engage in unethical behavior.
- It is also an interests of prospective employees to find out as much as they can about the ethical climate in an organization.
2. Organization Culture and Leadership
 Code of Ethics – a list of guidelines and protocols based on the organizations values.
Leaders and employees must know how to deal with ethical issues like these.
The code of conduct and the company must be strong enough for the leaders and employees to choose to do the right things.
Example: The Food and Consumer Products Multinational Unilever
Code of Conduct:
1. Unilever is committed to diversity in a working environment where there is mutual trust and respect and where every one feels responsible
for the performance and reputation of the company.
2. We will recruit, employ, and promote employees on the sole basis of the qualifications and abilities needed for the work to be performed.
3. We are committed to safe and healthy working conditions for all employees.
4. We will not use any form of forced, compulsory and child labor.
5. We are committed to working with employees to develop and enhance each individuals skills and capabilities.
6. We respect the dignity of the individual and the right of employees to freedom of association.
7. We will maintain good communications with employees through company – based information and consultation procedures.
Business Integrity:
Unilever does not give or receive, whether directly or indirectly bribes or other improper advantages for business or financial gain.
Any demand for, or offer of, a bribe must be rejected immediately and reported to the management.
No undisclosed or unrecorded account, fund, or asset will be established or maintained.
Example: Baby Food Corporation
Mission and Vision:
Upholds the distribution of healthy and safe baby products in the market.
Code of Conduct:
Employee Decorum:
1. Employee must always practice mutual respect to one other. The company does not tolerate spreading of rumors and stories that
may taint the reputation of its employees.
2. Employees must practice professional tone in communicating with colleagues whether in oral or written communication.
Use of company Property:
1. Employees must only use company properties for official business functions and not personal interest or gains.
2. Company properties are the employees resources. Everyone must engage proper use, care maintenance and operation of these
properties.

3. Ethics Officer
- These individuals are responsible for making sure that all employees are trained to be ethically aware, that ethical considerations
enter the business decision-making processes.
- It is also responsible for auditing decisions to make sure they are consistent with this code.
- Responsible for handling confidential inquires from employees, investigating complaints from employees, reporting and making
recommendations for change.
4. Moral Courage
- Enables managers to walk away from a decision that is profitable but unethical.
- Moral Courage gives an employee the strength to say no to a superior who instructs her to pursue actions that are unethical.
5. Decision Making Processes
Does my decision fall within the accepted values and standards that typically apply in the organization environment?
Am I willing to see the decision communicated to all stakeholders affected by it?
Stakeholders – are individuals or groups that have interest, claim or stake in the company.
a. Internal stakeholders
- individuals or group who work for or own the business. Ex. Employees, board of directors, and stockholders.
b. External stakeholder
- are all other individuals and groups that have some claim on the firm.
- ex. Customer, suppliers, lenders, governments, unions, local communities and the general public.