Ch05 ethics-social-responsibilityinib
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The document discusses ethics and social responsibility in international business, focusing on the nature of ethics, cross-cultural considerations, and the management of ethical behavior across borders. It outlines various stances organizations may take regarding social responsibility, ranging from obstructionist to proactive approaches, and highlights the importance of adhering to ethical codes in different cultural contexts. Additionally, it identifies key regulations influencing international ethics and social responsibility.
Ch05 ethics-social-responsibilityinib
- 1. ©2004 Prentice Hall5-1 Chapter 5: Ethics and Social Responsibility in International Business International Business, 4th Edition Griffin & Pustay By Mahsina, SE., MSIBy Mahsina, SE., MSI FB: mahsina seFB: mahsina se Follow me et: mahsina_seFollow me et: mahsina_se Email:Email: mahsina_se@hotmail.commahsina_se@hotmail.com Download this file et:Download this file et: http://mahsina.wordpress.comhttp://mahsina.wordpress.com
- 2. ©2004 Prentice Hall5-2 Chapter Objectives_1 Describe the nature of ethics Discuss ethics in cross-cultural and international contexts Identify the key elements in managing ethical behavior across borders Discuss social responsibility in cross- cultural and international contexts
- 3. ©2004 Prentice Hall5-3 Chapter Objectives_2 Identify and summarize the basic areas of social responsibility Discuss how organizations manage social responsibility across borders Identify and summarize the key regulations governing international ethics and social responsibility
- 4. ©2004 Prentice Hall5-4 Exporting Jobs or Abusing People? “Made in USA” – American Samoa and Saipan NAFTA – low wages in Mexico Walmart & More South African miners Canada and drug prices
- 5. ©2004 Prentice Hall5-5 Ethical Behavior Ethical behavior usually refers to behavior that conforms to generally accepted social norms.
- 6. ©2004 Prentice Hall5-6 Ethical Generalizations Individuals have their own personal belief systems People from the same cultural context will tend to hold similar beliefs Behaviors can be rationalized Circumstances affect adherence to belief systems National culture is intertwined with ethics
- 7. ©2004 Prentice Hall5-7 Figure 5.1 Ethics in a Cross-Cultural Context Cultural Context Behavior of Organization Toward Employees Behavior of Employees Toward Organization Behavior of Employees and Organization Toward Other Economic Agents
- 8. ©2004 Prentice Hall5-8 Spectrum of Effects Free Trade No Trade •Jobs migrate •Low wages •Poor conditions •Fewer jobs in developing countries •Higher prices •Fewer products Trade with Social Responsibility How? Code of Ethics
- 9. ©2004 Prentice Hall5-9 Guidelines and Codes of Ethics Written statements of the values and ethical standards that guide the firm’s actions Examples – Johnson & Johnson -- IBEI – General Mills -- Lilly
- 10. ©2004 Prentice Hall5-10 What do you do… when the country in which you are doing business does not have a code of ethics compatible with your own? Gao Feng in China Case.
- 11. ©2004 Prentice Hall5-11 Acceptability of Bribery Acceptable – Russia – China – Taiwan – South Korea Unacceptable – Australia – Sweden – Switzerland – Austria The U.S., Japan, and Italy fell between the two extremes.
- 12. ©2004 Prentice Hall5-12 Areas of Social Responsibility Organizational stakeholders Natural environment General social welfare
- 13. ©2004 Prentice Hall5-13 Corporate Excellence L.L. Bean Toyota Lands’ End Dell Computer DaimlerChrysler BP
- 14. ©2004 Prentice Hall5-14 A joint venture between Anglo- American and the Zambian government seeks to mine copper while minimizing harm to the environment
- 15. ©2004 Prentice Hall5-15 Map 5.1 Social Responsibility Hot Spots
- 16. ©2004 Prentice Hall5-16 Figure 5.3 Approaches to Social Responsibility Least Responsible Most Responsible Obstructionist Defensive Accommodative Proactive
- 17. ©2004 Prentice Hall5-17 Obstructionist Stance Do as little as possible to address social or environmental problems Deny or avoid responsibility Examples – Astra – Nestle – Danone
- 18. ©2004 Prentice Hall5-18 Defensive Stance Do what is required legally, but nothing more Corporate responsibility is to generate profits Example – Philip Morris
- 19. ©2004 Prentice Hall5-19 Accommodative Stance Meet ethical and legal requirements and more Agree to participate in social programs Match contributions by employees Respond to requests from non-profits No proactive behavior to seek such opportunities
- 20. ©2004 Prentice Hall5-20 Proactive Stance Strong support of social responsibility Viewed as citizens of society Seek opportunities to contribute Examples – McDonald’s – The Body Shop – Ben & Jerry’s
- 21. ©2004 Prentice Hall5-21 Managing Social Responsibility Planning Decision Making Consideration Evaluation
- 22. ©2004 Prentice Hall5-22 Implementing Social Responsibility Legal Compliance Ethical Compliance Philanthropic Giving
- 23. ©2004 Prentice Hall5-23 Informal Dimensions of Social Responsibility Leadership Organizational culture Whistle-blowing
- 24. ©2004 Prentice Hall5-24 Corporate Social Audit Tool for the evaluation of social responsibility effectiveness Formal and thorough analysis Conducted by task force
- 25. ©2004 Prentice Hall5-25 Steps in Corporate Social Audit Define social goals Analyze resources devoted to each goal Determine degree of achievement for each goal Make recommendations
- 26. ©2004 Prentice Hall5-26 Regulating International Ethics and Social Responsibility Foreign Corrupt Practices Act (FCPA) Alien Tort Claims Act Anti-Bribery Convention of the Organization for Economic Cooperation and Development International Labor Organization (ILO)