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1、International Business9eBy Charles W.L.HillMcGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies,Inc.All rights reserved.Chapter 5Ethics in International Business5-3What Is Ethics?Ethics-accepted principles of right or wrong that governthe conduct of a personthe members of a professionthe ac

2、tions of an organization Business ethics-accepted principles of right or wrong governing the conduct of business peopleEthical strategy-a strategy,or course of action,that does not violate these accepted principles 5-4Which Ethical Issues Are Most Relevant To International Firms?The most common ethi

3、cal issues in business involve1.employment practices2.human rights3.environmental regulations4.corruption5.the moral obligation of multinational companies5-5How Are Ethics Relevant To Employment Practices?Suppose work conditions in a host nation are clearly inferior to those in the multinationals ho

4、me nationWhich standards should apply?home country standardshost country standardssomething in between5-6How Are Ethics Relevant To Employment Practices?Firms should establish minimal acceptable standards that safeguard the basic rights and dignity of employeesaudit foreign subsidiaries and subcontr

5、actors regularly to ensure they are meeting the standardstake corrective action as necessary5-7How Are Ethics Relevant To Human Rights?Basic human rights are taken for granted in developed countriesfreedom of associationfreedom of speechfreedom of assemblyfreedom of movementQuestion:What are the res

6、ponsibilities of firms in countries where basic human rights are not respected?5-8How Are Ethics Relevant To Human Rights?Question:Is it ethical for companies to do business with countries with repressive regimes?MyanmarNigeriaQuestion:Does multinational investment actually help bring change to thes

7、e countries and ultimately improve the rights of citizens?China5-9How Are Ethics Relevant To Environmental Regulations?Some parts of the environment are a public good that no one owns,but anyone can despoilWhat happens when environmental regulations in host nations are far inferior to those in the h

8、ome nation?Is it permissible for multinationals to pollute in developing countries simply because there are no regulations against it?legal versus ethical behaviorThe tragedy of the commons occurs when a resource held in common by all,but owned by no one,is overused by individuals,resulting in its d

9、egradation5-10How Are Ethics Relevant To Corruption?The U.S.Foreign Corrupt Practices Act outlawed the practice of paying bribes to foreign government officials in order to gain business amended to allow for facilitating paymentsThe Convention on Combating Bribery of Foreign Public Officials in Inte

10、rnational Business Transactions was adopted by the Organization for Economic Cooperation and Development(OECD)obliges member states to make the bribery of foreign public officials a criminal offense5-11How Are Ethics Relevant To Corruption?But,is it permissible for multinationals to pay government o

11、fficials facilitating payments if doing so creates local income and jobs?is it ok to do a little evil in order to do a greater good?does grease money actually improve efficiency and help growth?5-12How Are Ethics Relevant To Moral Obligations?Social responsibility refers to the idea that managers sh

12、ould consider the social consequences of economic actions when making business decisionsthere should be a presumption in favor of decisions that have both good economic and good social consequences it is the right way for a business to behave5-13How Are Ethics Relevant To Moral Obligations?Advocates

13、 argue that businesses need to recognize their noblesse oblige-honorable and benevolent behavior that is the responsibility of successful companies give something back to the societies that have made their success possibleBut,are multinationals morally required to use their power to enhance local we

14、lfare?5-14What Are Ethical Dilemmas?Ethical dilemmas-situations in which none of the available alternatives seems ethically acceptablereal-world decisions are complex,difficult to frame,and involve consequences that are difficult to quantify the ethical obligations of an MNE toward employment condit

15、ions,human rights,corruption,environmental pollution,and the use of power are not always clear cutthe right course of action is not always clear5-15Why Do Managers Behave Unethically?Several factors contribute to unethical behavior including1.Personal ethics -the generally accepted principles of rig

16、ht and wrong governing the conduct of individualsexpatriates may face pressure to violate their personal ethics because they are away from their ordinary social context and supporting culture managers fail to question whether a decision or action is ethical,and instead rely on economic analysis when making decisions 5-16Why Do Managers Behave Unethically?2.Decision-making processes-the values and norms that are shared among employees of an organization organization culture that does not emphasiz