1322754853_310__Week%252B14%252BSlides

1322754853_310__Week%252B14%252BSlides - Week 14: Doing...

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Unformatted text preview: Week 14: Doing well while doing good: the ethics issue in international business 12/05/11 330G 1 Public sensitivity and prominence of ethical issues in international management Information revolution: hard to hide, easy to spread and investigate Growing awareness of the costs Higher standards and demands Cultural diversity & heterogeneity at MNE Social responsibility as a business norm 12/05/11 330G 2 Where the pressures are from: 12/05/11 330G 3 NGOs and Multilateral Agreements on Corporate Behavior Non-governmental organizations (NGOs) actively monitor and publicize corporate practices in order to: educate managers about the environmental and economic consequences of corporate operations and practices increase shareholder value Multilateral agreements aid in ethical decision-making by dealing with: employment practices consumer protection environmental protection political activity human rights in the workplace. 12/05/11 330G 4 Cultural Foundations of Ethical Corporate Behavior Cultural relativism holds that ethical truths depend upon the groups subscribing to them; thus, intervention in local issues and traditions by outsiders is clearly unethical. Cultural normativism holds that there are universal standards of behavior that everyone should follow; thus, non-intervention in local violations of global standards is clearly unethical. 12/05/11 330G 5 Legal Foundations of Ethical Corporate Behavior Ethics teaches that people have a responsibility to do what is right and to avoid doing what is wrong. The appropriateness of behavior can be measured in the sense that individuals and organizations must seek justification for their behavior, and that justification is a function of both cultural values and legal principles. 12/05/11 330G 6 The Insufficiency of the Legal Argument Everything that is legal is not necessarily ethical. The law is slow to develop in emerging areas of concern. The law is often based on moral concepts that cannot be separated from legal concepts. The law may need to be tested by the courts. The law is inefficient in terms of achieving ethical behavior at a minimum cost. 12/05/11 330G 7 Multinational enterprises (MNEs) have their greatest impact on countries when they engage in foreign direct investment (FDI) via wholly-owned subsidiaries and/or joint ventures . Although not all MNEs are huge, the sheer size of many troubles their critics. The global orientation of MNEs causes many to believe that they are insensitive to national (local) concerns. 12/05/11 330G 8 MNEs and the global society Trade-offs among Constituencies Stakeholders, i.e., the collection of constituencies that an organization must satisfy to survive in the long run, include: shareholders employees customers suppliers society In the long run, the aims of all stakeholders must be adequately met or none will be attained....
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This note was uploaded on 12/05/2011 for the course MGMT 330G taught by Professor Francissun during the Fall '11 term at Utah Valley University.

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1322754853_310__Week%252B14%252BSlides - Week 14: Doing...

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