IB Chapter #4 - Chapter 4: Ethics in International Business...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 4: Ethics in International Business Ethical Issues in International Business Business Ethics – accepted principles of right or wrong governing the conduct of businesspeople Ethical Strategy – course of action that does not violate ethical principles Employment Practices When work conditions in a host nation are inferior to those in a multinational’s home nation, what standards should be applied? - No clear answer per say, but Nike was criticized for paying Vietnamese women .20 cents an hour/6 days a week in a horrible toxic environment - Nike did not break any laws, however Nike established a code of conduct that would change this. Human Rights Basic human rights still are not respected in many nations Such was the case for South Africa, where apartheid system segregated black and whites, and prevented blacks from holding management positions. GM adopted: - Sullivan Principles – twofold approach to doing business in apartheid South Africa, one was not to obey the apartheid laws (passive resistance) and company should promote the abolition of apartheid laws. Environmental Pollution Should a multinational feel free to pollute in a developing nation? - This phenomenon of tragedy of the commons , when individuals overuse a resource held in common by all, but owned by no one resulting in degradation, becomes applicable. Corruption Corruption has been a problem in about every society in history, and continues today. Foreign Corrupt Practices Act (1977)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

IB Chapter #4 - Chapter 4: Ethics in International Business...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online