當代全球商務課件Chap

當代全球商務課件Chap當代全球商務課件Chap當代全球商務課件Chap12021/2/21chapter

EthicsinInternationalBusinessMcGraw-Hill/IrwinGlobalBusinessToday,5e?2008TheMcGraw-HillCompanies,Inc.,AllRightsReserved.4Chapter4:Ethicsin

InternationalBusinessINTRODUCTIONEthicsreferstoacceptedprinciplesofrightorwrongthatgoverntheconductofaperson,themembersofaprofession,ortheactionsofanorganization.Businessethicsaretheacceptedprinciplesofrightorwronggoverningtheconductofbusinesspeople.Ethicalstrategyisastrategy,orcourseofaction,thatdoesnotviolatetheseacceptedprinciples.Chapter4:Ethicsin

InternationalBusinessETHICALISSUESININTERNATIONALBUSINESSThemostcommonethicalissuesinbusinessinvolveemploymentpractices,humanrights,environmentalregulations,corruption,andthemoralobligationofmultinationalcompanies.Chapter4:Ethicsin

InternationalBusinessEmploymentPractices

Whenworkconditionsinahostnationareclearlyinferiortothoseinamultinational’shomenation,companiesmustdecidewhichstandardsshouldbeapplied,thoseofthehomenation,thoseofthehostnation,orsomethinginbetweenChapter4:Ethicsin

InternationalBusinessHumanRightsBasichumanrightstakenforgrantedinthedevelopedworldsuchasfreedomofassociation,freedomofspeech,freedomofassembly,freedomofmovement,andsoon,arebynomeansuniversallyacceptedChapter4:Ethicsin

InternationalBusinessEnvironmentalPollution

Whenenvironmentalregulationsinhostnationsarefarinferiortothoseinthehomenation,ethicalissuesariseThetragedyofthecommonsoccurswhenaresourceheldincommonbyall,butownedbynoone,isoverusedbyindividualsresultinginitsdegradationChapter4:Ethicsin

InternationalBusinessClassroomPerformanceSystemMultinationalcompaniesareconcernedwithethicsisallofthefollowingareasexceptEmploymentpracticesHumanrightsEnvironmentalregulationsTraderegulations

Chapter4:Ethicsin

InternationalBusinessCorruptionIntheUnitedStates,theForeignCorruptPracticesActoutlawedthepracticeofpayingbribestoforeigngovernmentofficialsinordertogainbusinessTheOrganizationforEconomicCooperationandDevelopment(OECD)adoptedaConventiononCombatingBriberyofForeignPublicOfficialsinInternationalBusinessTransactionsin1997whichobligesmemberstatestomakethebriberyofforeignpublicofficialsacriminaloffenseChapter4:Ethicsin

InternationalBusinessSomeeconomistssuggestthatthepracticeofgivingbribesmightbethepricethatmustbepaidtodoagreatergoodTheseeconomistsbelievethatinacountrywherepreexistingpoliticalstructuresdistortorlimittheworkingsofthemarketmechanism,corruptionintheformofblack-marketeering,smuggling,andsidepaymentstogovernmentbureaucratsto“speedup”approvalforbusinessinvestmentsmayactuallyenhancewelfareOthereconomistshavearguedthatcorruptionreducesthereturnsonbusinessinvestmentandleadstoloweconomicgrowthChapter4:Ethicsin

InternationalBusinessMoralObligationsTheconceptofsocialresponsibilityreferstotheideathatbusinesspeopleshouldtakethesocialconsequencesofeconomicactionsintoaccountwhenmakingbusinessdecisions,andthatthereshouldbeapresumptioninfavorofdecisionsthathavebothgoodeconomicandgoodsocialconsequencesInitspurestform,socialresponsibilitycanbesupportedforitsownsakesimplybecauseitistherightwayforabusinesstobehaveAdvocatesofthisapproacharguethatbusinessesneedtorecognizetheirnoblesseoblige(honorableandbenevolentbehaviorthatistheresponsibilityofsuccessfulcompanies)andgivesomethingbacktothesocietiesthathavemadetheirsuccesspossibleChapter4:Ethicsin

InternationalBusinessETHICALDILEMMASEthicaldilemmasaresituationsinwhichnoneoftheavailablealternativesseemsethicallyacceptable.Chapter4:Ethicsin

InternationalBusinessTHEROOTSOFUNETHICALBEHAVIORPersonalEthicsBusinessethicsreflectpersonalethics(thegenerallyacceptedprinciplesofrightandwronggoverningtheconductofindividuals)Expatriatesmayfacepressuretoviolatetheirpersonalethicsbecausetheyareawayfromtheirordinarysocialcontextandsupportingculture,andtheyarepsychologicallyandgeographicallydistantfromtheparentcompanyChapter4:Ethicsin

InternationalBusinessDecisionMakingProcessesStudiesshowthatbusinesspeoplemaybehaveunethicallybecausetheyfailtoasktherelevantquestion—isthisdecisionoractionethical?Chapter4:Ethicsin

InternationalBusinessOrganizationCultureInfirmswithanorganizationculture(thevaluesandnormsthataresharedamongemployeesofanorganization)thatdoesnotemphasizebusinessculture,unethicalbehaviormayexistChapter4:Ethicsin

InternationalBusinessUnrealisticPerformanceExpectationsPressurefromtheparentcompanytomeetperformancegoalsthatareunrealistic,andcanonlybeattainedbycuttingcornersoractinginanunethicalmannercancauseunethicalbehaviorLeadershipIfleadersarenotactingethically,otheremployeesmaynotactethicallyChapter4:Ethicsin

InternationalBusinessThecausesofunethicalbehaviorareshowninFigure4.1.Chapter4:Ethicsin

InternationalBusinessClassroomPerformanceSystemWhichofthefollowingdoesnotcontributetounethicalbehaviorbymanagers?UnrealisticperformancegoalsLeadershipOrganizationalcultureRestrictionsonbribesChapter4:Ethicsin

InternationalBusinessPHILOSOPHICALAPPROACHESTOETHICSStrawMen

Strawmenapproachestobusinessethicsareapproachesthatareraisedbybusinessethicsscholarsprimarilyforthepurposeofdemonstratingthattheyofferinappropriateguidelinesforethicaldecisionmakinginamultinationalenterprise.FoursuchapproachesaretheFriedmandoctrine,culturalrelativism,therighteousmoralist,andthena?veimmoralist.Chapter4:Ethicsin

InternationalBusinessTheFriedmanDoctrine

Economist’sMiltonFriedman’spositionisthattheonlysocialresponsibilityofbusinessistoincreaseprofits,solongasthecompanystayswithintherulesoflawCulturalRelativismCulturalrelativismisthebeliefthatethicsareculturallydeterminedandthatfirmsshouldadopttheethicsoftheculturesinwhichtheyoperate,orinotherwords,“wheninRome,doastheRomansdo”Chapter4:Ethicsin

InternationalBusinessTheRighteousMoralist

Therighteousmoralistapproachclaimsthatamultinational’shomecountrystandardsofethicsaretheappropriateonesforcompaniestofollowinforeigncountriesTheNa?veImmoralist

Thena?veimmoralistassertsthatifamanagerofamultinationalseesthatfirmsfromothernationsarenotfollowingethicalnormsinahostnation,thatmanagershouldnoteitherChapter4:Ethicsin

InternationalBusinessUtilitarianandKantianEthicsUtilitarianapproachestoethicsholdthatthemoralworthofactionsorpracticesisdeterminedbytheirconsequencesAnactionisjudgedtobedesirableifitleadstothebestpossiblebalanceofgoodconsequencesoverbadconsequences

Chapter4:Ethicsin

InternationalBusinessProblemswiththeapproachismeasuringthebenefits,costs,andrisksofacourseofaction,andthefactthatphilosophyfailstoconsiderjusticeKantianethicsarebasedonthephilosophyofImmanuelKantwhoarguedthatpeopleshouldbetreatedasendsandneverpurelyasmeanstotheendsofothersChapter4:Ethicsin

InternationalBusinessRightsTheories

RightstheoriesrecognizethathumanbeingshavefundamentalrightsandprivilegesthattranscendnationalboundariesandcultureMoraltheoristsarguethatfundamentalhumanrightsformthebasisforthemoralcompassthatmanagersshouldnavigatebywhenmakingdecisionsthathaveanethicalcomponentTheideathatsomefundamentalrightstranscendnationalbordersandcultureswastheunderlyingmotivationfortheUN’sUniversalDeclarationofHumanRights(specifiesthebasicprinciplesthatshouldalwaysbeadheredtoirrespectiveofthecultureinwhichoneisdoingbusiness)Chapter4:Ethicsin

InternationalBusinessJusticeTheories

JusticetheoriesfocusontheattainmentofajustdistributionofeconomicgoodsandservicesAjustdistributionisonethatisconsideredfairandequitable

Chapter4:Ethicsin

InternationalBusinessOnetheoryofjusticewassetforthbyJohnRawlswhoarguedthatalleconomicgoodsandservicesshouldbedistributedequallyexceptwhenanunequaldistributionwouldworktoeveryone’sadvantageImpartialityisguaranteedbytheveilofignorance(everyoneisimaginedtobeignorantofallhisorherparticularcharacteristics)wherepeoplewouldagreethateachpersonispermittedthemaximumamountofbasiclibertycompatiblewithasimilarlibertyforothers,andthatonceequalbasiclibertyisassured,inequalityinbasicgoodssocialgoodsaretobeallowedonlyiftheybenefiteveryoneRawlsformulatesthedifferenceprinciple,whichisthatinequalitiesarejustifiediftheybenefitthepositionoftheleastadvantagedpersonChapter4:Ethicsin

InternationalBusinessClassroomPerformanceSystemWhichphilosophyclaimsthatacompany’shome-countrystandardsofethicsaretheappropriateonestofollowinforeigncountries?CulturalrelativismRighteousmoralistFriedmandoctrineNa?veimmoralistChapter4:Ethicsin

InternationalBusinessIMPLICATIONSFORMANAGERSFirmsthatensureethicalissuesareconsideredinbusinessdecisions:favorhiringandpromotingpeoplewithawellgroundedsenseofpersonalethicsbuildanorganizationalculturethatplacesahighvalueonethicalbehaviormakessurethatleaderswithinthebusinessnotonlyarticulatetherhetoricofethicalbehavior,butalsoactinmannerthatisconsistentwiththatrhetoricputdecisionmakingprocessesinplacethatrequirepeopletoconsidertheethicaldimensionofbusinessdecisionsdevelopmoralcourageChapter4:Ethicsin

InternationalBusinessHiringandPromotionBusinessesshouldstrivetoidentifyandhirepeoplewithastrongsenseofpersonalethicsProspectiveemployeesshouldfindoutasmuchastheycanabouttheethicalclimateinanorganizationChapter4:Ethicsin

InternationalBusinessOrganizationCultureandLeadershipBusinessesneedtobuildanorganizationculturethatplacesahighvalueonethicalbehavior:thebusinessmustexplicitlyarticulatevaluesthatplaceastrongemphasisonethicalbehavior,perhapsusingacodeofethics(aformalstatementoftheethicalprioritiesabusinessadheresto)leadersinthebusinessshouldgivelifeandmeaningtothecodeofethicsbyrepeatedlyemphasizingtheirimportance,andthenactingonthemthebusinessshouldputinplaceasystemofincentivesandrewardsthatrecognizepeoplewhoengageinethicalbehaviorandsanctionthosewhodonotChapter4:Ethicsin

InternationalBusinessDecisionMakingProcessesAmoralcompasscanhelpdeterminewhetheradecisionisethical.Ifamanagercananswer“yes”tothefollowingquestions,thedecisionisethicallyacceptable.doesmydecisionfallwithintheacceptedvaluesofstandardsthattypicallyapplyintheorganizationalenvironment?amIwillingtoseethedecisioncommunicatedtoallstakeholdersaffectedbyit?wouldthepeoplewithwhomIhavesignificantpersonalrelationshipsapproveofthedecision?Chapter4:Ethicsin

InternationalBusinessAfivestepprocesscanalsohelpmanagersthinkthroughethicalproblems:businesspeopleshouldidentifywhichstakeholders(theindividualsorgroupswhohaveaninterest,stake,orclaimintheactionsandoverallperformanceofacompany)adecisionwouldaffectandinwhatwaysInternalstakeholdersarepeoplewhoworkfororwhoownthebusinesssuchasemployees,theboardofdirectors,andstockholders.Externalstakeholdersaretheindividualsorgroupswhohavesomeclaimonafirmsuchascustomers,suppliers,andunions.Chapter4:Ethicsin

InternationalBusinessThen,managersneedtodeterminewhetheraproposeddecisionwouldviolatethefundamentalrightsofanystakeholdersNext,managersneedtoestablishmoralintent(thebusinessmustresolvetoplacemoralconcernsaheadofotherconcernsincaseswhereeitherthefundamentalrightsofstakeholdersorkeymoralprincipleshavebeenviolated)ThecompanyshouldthenengageinethicalbehaviorFinally,thebusinessmustaudititsdecisions,reviewingthemtomakesurethattheywereconsistentwithethicalprinciplesChapter4:Ethicsin

InternationalBusinessEthicsOfficers

Toensureethicalbehaviorinabusiness,anumberoffirmsnowhaveethicsofficers

MoralCourageItisimportanttorecognizethatemployeesinaninternationalbusinessmayneedsignificantmoralcourageChapter4:Ethicsin

InternationalBusinessClassroomPerformanceSystemAcompany’sformalstatementofethicalprioritiesiscalleditsMissionstatementCodeofethicsCodeofvaluesOrganizationalcultureChapter4:Ethicsin

InternationalBusinessSummaryofManagerialActionsIntheend,thereareclearlythingsthataninternationalbusinessshoulddo,andtherearethingsthataninternationalbusinessshouldnotdo,buttherearealsoactionsthatpresentmanagerswithtruedilemmasChapter4:Ethicsin

InternationalBusinessCRITICALTHINKINGANDDISCUSSIONQUESTIONS1.ReviewtheManagementFocusontestingdrugsinthedevelopingworldanddiscussthefollowingquestions:(a)DidPfizerbehaveunethicallybyrushingtotakeadvantageofanepidemicinNigeriainordertotestanexperimentaldrugonsickchildren?Shouldthecompanyhaveproceededmorecarefully?(b)Isitethicaltotestanexperimentaldrugonchildreninemergency