chapter 9 business ethics in a global economy. ethical perspectives in international business when...
TRANSCRIPT
Chapter 9
Business Ethics in a Global Economy
Ethical Perspectives in International Business
when businesspeople travel abroad, they sometimes perceived different modes of operation
research shows that American companies feel they are different from may foreign companies
“we” versus “them” is referred to as self-reference criterion-unconscious reference to one’s own cultural values, experiences, & knowledge
Culture as a Factor in International Business
culture is everything in our surroundings made by people-both tangible and intangible concepts & values– each nation has a distinctive culture & beliefs about
acceptable or unethical activities
citizens of different cultures vary based on their religious beliefs as well as perceptions of time
the key question: whose values & ethical standards take precedence
Cultural Relativism...
the concept that morality varies from one culture to the next since business practices are defined as right or wrong by the particular culture– ethical relativism-one culture defines ethical
behavior for the whole globe, no exceptions– business relativist-there may be no ethical standards
except for the one in the transaction culture
Multinational Corporations...
operate on a global scale without significant ties to any one nation or region– perceived to be unfair for MNCs to transfer jobs
abroad where wage rates are lower– have been accused of increasing the gap between
the rich & poor nations– have been accused of exploiting natural & human
resources– have been accused of engaging in unfair competition
Global Ethical Issues
sexual & racial discrimination
human rights
price discrimination
bribery
harmful products
pollution
telecommunications
Sexual & Racial Discrimination
U.S. laws prohibit U.S. businesses from discriminating on the basis of race, color, sex, religion & ability
discrimination is often justified on the basis of cultural norms & values
discrimination remains one of the more prevalent concerns in international business
Human Rights
opportunistic use of child labor, payment of low wages, abuses in foreign factories are a few of the concerns
relationships with subcontractors have proved problematic for some firms
MNCs should view the law as a floor of acceptable behavior & strive for greater improvements in workers’ quality of life
Advancing Human Rights...
engage in an open dialog with workers & management
be aware of human rights issues & concerns in each country in which they engage in business
adopt the prevailing legal standard, but seek to embrace a ‘best practices’ approach and standard
Price Discrimination
occurs when a firm charges different prices to different groups of consumers– allowable if justified based on costs
price gouging-a price increase exceeding the costs of additional expenses (taxes, etc.)
dumping-charging high prices for products sold in the home market and low prices that do not cover costs in foreign markets (considered illegal under many international laws)
Bribery & the Foreign Corrupt Practices Act...
bribes & facilitating payments are acceptable in many cultures
the U.S. Foreign Corrupt Practices Act prohibits American corporations from offering or providing payments to officials of foreign governments for the purpose of obtaining or retaining business abroad– may place U.S. businesses at a disadvantage– has been supported through global treaties
Harmful Products
product banned in many industrial nations, considered harmful, are sold in other countries where they are still legal
dumping of hazardous waste materials in less developed countries is a related issue
some products that are not harmful in some countries may be so in others because of issues related to: literacy, unsanitary conditions, & cultural values
Pollution
many countries are working together to create alliances & standards for environmental responsibility to minimize the negative effects of pollution
some countries are taking legal action against polluting firms in an effort to defend air & water quality
reasonable global emission standards must be established
Telecommunications
satellites, e-mail & the Internet bring a ease of information access with resulting ethical issues
a few of the ethical issues include:– counterfeiting– knockoffs– money laundering