Ethical Issues in Global Business • Marketing and safety practices • Sweatshop and labour abuse • Corruption and bribery Search the Web For student activi by erw13210

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									              Ethical Issues in Global
• Marketing and safety practices
• Sweatshop and labour abuse
• Corruption and bribery

 Search the Web
 For student activists interested in sweatshop
 practices, visit
    The Moral Philosophy Framework
• Cultural Relativism:
• Cultural theories
• Situational ethics
• ―When in Rome…do
  as the Romans do.‖
• Limitation:
• Which Romans?
  Bribes vs. Grease Payments
• Definitions                     • Examples
  – Grease Payments—               – Money given to minor
    Money given for the              officials (clerks,
    purpose of getting minor         attendants, customs
    officials to do what they        inspectors) for the purpose
    are supposed to be doing.        of expediting a project

  – Bribes—Relatively large
    amounts of money given         – Money given, often to
    far the purpose of               high-ranking officials.
    influencing officials to         Purpose is often to get
    make decisions or take           these persons to purchase
    actions that they otherwise      goods or services from the
    might not take.                  bribing firm.
Arguments For and Against Bribery

          For                   Against
 • A necessary tool    • Wrong/illegal
 • Accepted practice • Compromise personal
 • Form of               beliefs
   commission, tax, or • Promotes government
   compensation          corruption
                       • Benefits recipient only
                       • Creates dependence on
                       • Deceives stockholders
   Improving Global Business
  Integrative Social Contract Theory
• Hypernorms-- transcultural values including
  fundamental human rights
• Consistent norms-- norms that are culturally
  specific, but consistent with hypernorms
• Moral free space norms-- strongly held cultural
  beliefs in countries that are in tension with
• Illegitimate norms– those norms that are
  incompatible with hypernorms
 Using ISCT: The Case of Bribery
• Is bribery part of moral free space or is it
  an illegitimate norm?
• 1) violates agent / principal contract
• 2) against law in all countries
• 3) violates political participation hypernorm
• 4) violates economic efficiency hypernorm
• Conclusion: Bribery is an illegitimate norm
    Trends Against Bribery

• Foreign Corrupt Practices Act
• Transparency International
• OCED Antibribery Initiatives
• #10 on UN Global Compact
   Improving Global Business
       Fundamental International Rights
1. The right to physical   6. The right to physical
   movement                   security
2. The right to            7. The right to freedom
   ownership of               of speech and
   property                   association
3. The right to freedom    8. The right to minimal
   from torture               education
4. The right to a fair     9. The right to political
   trial                      participation
5. The right to            10.The right to
   nondiscrimination          subsistence
 Improving Global Business
        The Dilemma
of the Multinational Corporation

Home Country       The         Host Country
Stakeholder    Multinational   Stakeholder
Pressures         Corp.        Pressures
   Improving Global Business
 Ethical Choices in Home vs. Host Country Situations
                    International Law
                    Global Codes of Conduct

ETHICAL                                               CULTURAL
IMPERIALISM                                           RELATIVISM
  Home Country           Middle Ground                  Host Country

 • Cultural            Mix of Home and Host             • Cultural
   standards           Country Standards                  standards
 • Ethical &                                            • Ethical &
   moral                                                  moral
                  Application of Ethical Principles
   standards of                                           standards of
   home                                                   host
   country                                                country
    Improving Global Business
Typology of Global Types
•   Foreign type
•   Empire type
•   Interconnection type
•   Global type
    Improving Global Business
       Seven Moral Guidelines for MNCs
• Inflict no intentional or   • Pay their fair share of
  direct harm                   taxes
• Produce more good           • Respect local cultural
  than bad for the host         beliefs that do not
  country                       violate moral norms
• Contribute to host
                              • Cooperate with the
  country’s development
                                government to develop
• Respect the human
                                and enforce
  rights of their
  employees                     background institutions

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