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Learning Objectives
Know
Know the
the definitions
definitions ofof international
international business
business ethics
ethics
and
and social
social responsibility
responsibility
Understand
Understand some
some basic
basic principles
principles ofof ethical
ethical philosophy
philosophy
relevant
relevant toto business
business ethics
ethics
Understand
Understand how
how social
social institutions
institutions and
and national
national culture
culture
affect
affect ethical
ethical decision
decision making
making and
and management
management
Learning Objectives
Understand
Understand the
the implications
implications ofof using
using ethical
ethical relativism
relativism
and
and ethical
ethical universalism
universalism
Identify
Identify the
the basic
basic principles
principles and
and consequences
consequences ofof the
the
U.S.
U.S. Foreign
Foreign Corrupt
Corrupt Practices
PracticesAct
Act
Understand
Understand how
how international
international agreements
agreements affect
affect
international
international business
business ethics
ethics
Learning Objectives
Understand
Understand the
the differences
differences among
among economic,
economic, legal,
legal,
and
and ethical
ethical analyses
analyses ofof business
business problems
problems
Develop
Develop skills
skills inin international
international decision
decision making
making with
with
ethical
ethical consequences
consequences
Ethics
Ethics deal
deal with
with the
the oughts
oughts ofof life
life
Although
Although economics
economics dominate
dominate business
business decisiondecisionmaking,
making, business
business decisions
decisions also
also have
have consequences
consequences
for
for people
people
International
International business
business ethics:
ethics: unique
unique ethical
ethical problems
problems
faced
faced by
by managers
managers operating
operating across
across national
national
boundaries
boundaries
More
More complex
complex as
as different
different cultures
cultures do
do not
not agree
agree on
on
what
what one
one ought
ought toto do
do
Copyright 2007 South-Western/Thomson Learning All rights reserved
Corporate Social
Responsibility
Idea
Idea that
that businesses
businesses have
have aa responsibility
responsibility toto society
society
beyond
beyond making
making profits
profits
Closely
Closely related
related toto business
business ethics
ethics
Must
Must take
take into
into account
account the
the welfare
welfare ofof other
other
constituents
constituents inin addition
addition toto stockholders
stockholders
Ethical Philosophy
Two
Two ways
ways toto consider
consider ethical
ethical decision
decision making
making
Traditional
Traditional ethical
ethical philosophy
philosophy
Contemporary
Contemporary philosophy
philosophy
Moral Languages
Basic
Basicways
waysthat
thatpeople
peopleuse
usetotomake
makeethical
ethicaldecisions
decisionsand
andtoto
explain
explaintheir
theirethical
ethicalchoices
choices
Six
Sixbasic
basicethical
ethicallanguages
languages
Virtue
Virtueand
andvice
vice
Self-control
Self-control
Maximizing
Maximizinghuman
humanwelfare
welfare
Avoiding
Avoidingharm
harm
Rights/duties
Rights/duties
Social
Socialcontract
contract
Copyright 2007 South-Western/Thomson Learning All rights reserved
National Differences in
Business Ethics and Social
Responsibility
National
National culture
culture and
and social
social institutions
institutions affect
affect ethical
ethical
behavior
behavior and
and social
social responsibility
responsibility
Questionable Payments
Questionable
Questionable payments
payments
Bribes
Bribes or
or gifts
gifts toto expedite
expedite government
government actions
actions or
or toto
gain
gain advantage
advantage inin business
business deals
deals
InIn many
many countries,
countries, people
people routinely
routinely offer
offer gifts
gifts ofof bribes
bribes
Questionable Payments
Corruption
Corruption and
and bribery
bribery can
can have
have devastating
devastating effects
effects on
on
societies
societies
Companies
Companies routinely
routinely use
use poorer-quality
poorer-quality products
products or
or
materials
materials toto cover
cover for
for the
the bribe,
bribe, thus
thus resulting
resulting inin inferior
inferior
products
products
Corruption
Corruption can
can also
also result
result inin collusion
collusion among
among firms,
firms,
resulting
resulting inin even
even higher
higher prices
prices
Questionable Payments
To
To understand
understand the
the level
level ofof corruption
corruption inin countries,
countries,
multinational
multinational companies
companies can
can rely
rely on
on the
the Corruption
Corruption
Perception
Perception Index
Index (CPI)
(CPI)
CPI
CPI developed
developed by
byTransparency
Transparency International,
International, gives
gives an
an
idea
idea ofof the
the levels
levels ofof perception
perception ofof corruption
corruption within
within
countries
countries
Ethics Gap
More
More coercive
coercive and
and normative
normative pressure
pressure for
for U.S.
U.S.
businesses
businesses toto follow
follow ethical
ethical standards
standards
Recent
Recent evidence
evidence suggests
suggests that
that FCPA
FCPAhas
has not
not
necessarily
necessarily caused
caused U.S.
U.S. business
business toto fall
fall behind.
behind.
Prescriptive Ethics
Suggested
Suggested guidelines
guidelines for
for the
the ethical
ethical behavior
behavior ofof
multinational
multinational companies
companies
Three
Three moral
moral languages
languages
Avoiding
Avoiding harm
harm
Rights/duties
Rights/duties
Social
Social contract
contract
Three
Three languages
languages work
work irrespective
irrespective ofof national
national
backgrounds
backgrounds
Copyright 2007 South-Western/Thomson Learning All rights reserved
Governments
Governments make
make agreements
agreements
The
The agreements
agreements have
have only
only voluntary
voluntary compliance
compliance
Not
Not all
all governments
governments subscribe
subscribe toto the
the agreements
agreements
Each
Each agreement
agreement isis an
an incomplete
incomplete moral
moral guide
guide toto the
the
company
company
Leading
Leading by
by example
example
Making
Making ethics
ethics part
part ofof the
the corporate
corporate culture
culture
Involving
Involving employees
employees atat all
all levels
levels
Setting
Setting and
and monitoring
monitoring goals
goals
Effective
Effective integration
integration inin business
business processes
processes
Open
Open discussion
discussion ofof ethics
ethics and
and other
other ethical
ethical issues
issues
Governments
Governments make
make agreements
agreements
Copyright 2007 South-Western/Thomson Learning All rights reserved
Convenient Relativism
Companies
Companies have
have aa higher
higher responsibility
responsibility than
than ethical
ethical
relativism
relativism
However,
However, some
some companies
companies use
use the
the logic
logic ofof ethical
ethical
relativism
relativism toto behave
behave any
any way
way they
they please
please
Use
Use the
the excuse
excuse ofof differences
differences inin cultures
cultures
Conclusion
Multinational
Multinational managers
managers face
face ethical
ethical dilemmas
dilemmas similar
similar
toto their
their domestic
domestic counterparts
counterparts
Chapter
Chapter provides
provides background
background on
on business
business ethics
ethics
Challenges
Challenges are
are magnified
magnified by
by the
the complexity
complexity ofof working
working
across
across different
different countries
countries and
and cultures
cultures