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Ethical Issues in Global Business


Ethical Issues in Global Business Marketing and safety practices Sweatshop and labour abuse Corruption and bribery Search the Web For student activists interested in ... – PowerPoint PPT presentation

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Title: Ethical Issues in Global Business

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

The Moral Philosophy Framework
  • Cultural Relativism
  • Cultural theories
  • Situational ethics
  • When in Romedo as the Romans do.
  • Limitation
  • Which Romans?

Bribes vs. Grease Payments
  • Definitions
  • Grease PaymentsMoney given for the purpose of
    getting minor officials to do what they are
    supposed to be doing.
  • BribesRelatively large amounts of money given
    far the purpose of influencing officials to make
    decisions or take actions that they otherwise
    might not take.
  • Examples
  • Money given to minor officials (clerks,
    attendants, customs inspectors) for the purpose
    of expediting a project
  • Money given, often to high-ranking officials.
    Purpose is often to get these persons to purchase
    goods or services from the bribing firm.

Arguments For and Against Bribery
  • For
  • A necessary tool
  • Accepted practice
  • Form of commission, tax, or compensation
  • Against
  • Wrong/illegal
  • Compromise personal beliefs
  • Promotes government corruption
  • Benefits recipient only
  • Creates dependence on corruption
  • Deceives stockholders

Improving Global Business Ethics
  • Integrative Social Contract Theory (ISCT)
  • 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 enacted
  • Transparency International developed
  • OCED Antibribery Initiatives launched
  • 10 on UN Global Compact

Improving Global Business Ethics

Fundamental International Rights
  1. The right to physical movement
  2. The right to ownership of property
  3. The right to freedom from torture
  4. The right to a fair trial
  5. The right to nondiscrimination
  • The right to physical security
  • The right to freedom of speech and association
  • The right to minimal education
  • The right to political participation
  • The right to subsistence

Improving Global Business Ethics

The Dilemma of the Multinational Corporation
The Multinational Corp.
Improving Global Business Ethics

Ethical Choices in Home vs. Host Country
Improving Global Business Ethics
  • Typology of Global Types
  • Foreign type
  • Empire type
  • Interconnection type
  • Global type

Improving Global Business Ethics
Seven Moral Guidelines for MNCs
  • Pay their fair share of taxes
  • Respect local cultural beliefs that do not
    violate moral norms
  • Cooperate with the government to develop and
    enforce background institutions
  • Inflict no intentional or direct harm
  • Produce more good than bad for the host country
  • Contribute to host countrys development
  • Respect the human rights of their employees