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INTERNATIONAL BUSINESS BY GRIFFIN v.2

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Chapter 5: Ethics and Social

Responsibility in International
Business
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
CHAPTER OBJCTIVES 2

 Identifyand summarize the basic areas of


social responsibility
 Discusshow organizations manage social
responsibility across borders
 Identify andsummarize the key regulations
governing international ethics and social
responsibility
 Exporting Jobs or Abusing People?
Ethical Behavior

Ethical behavior usually refers to



behavior that conforms to
generally accepted social norms.
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
Ethics in a Cross-Cultural Context
Spectrum of Effects
Guidelines and Codes of Ethics

 Writtenstatements of the values and


ethical standards that guide the firm’s
actions

 Examples – Johnson & Johnson -- IBEI –


 General Mills -- Lilly
What do you do…

 When the country in which you are doing


business does not have a code of ethics
compatible with your own?
Acceptability of Bribery
Areas of Social Responsibility

 Organizationalstakeholders
 Natural environment
 General social welfare
Corporate Excellence

 L.L. Bean
 Toyota
 Lands’ End
 Dell Computer
 DaimlerChrysler
 BP
Approaches to Social Responsibility
Obstructionist Stance

 Do as little as possible to address social or


environmental problems
 Deny or avoid responsibility

 Examples
 – Astra
 – Nestle
 – Danone
Defensive Stance

 Do what is required legally, but nothing


more
 Corporate responsibility is to generate
profits
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
Proactive Stance

 Strong support of social responsibility


 Viewed as citizens of society
 Seek opportunities to contribute

 Example
 – McDonald’s
Managing Social Responsibility
Implementing Social Responsibility

Legal Compliance
Ethical Compliance
Philanthropic Giving
Informal Dimensions of Social
Responsibility
 Leadership
 Organizational culture
 Whistle-blowing
Corporate Social Audit

 Toolfor the evaluation of social


responsibility effectiveness
 Formal and through analysis
 Conducted by task force
Steps in Corporate Social Audit
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)
THANK YOU!!!

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