meeting 3 team a
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The Political, Legal, & Technological Environment &
Ethics & Social Responsibility
Carlos Kichul (Warren)
Dong Woo
TopicsChapter 2: The Political, Legal, and Technological
Environment
Chapter 3: Ethics and Social Responsibility
Case: Colgate’s Distasteful Toothpaste
Table of Contents1. Opening
2. Chapter 2 Explanation
3. Chapter 2 Discussion
4. Chapter 3 Explanation
5. Chapter 3 Discussion
6. Case Study
7. Closing
Objectives In what ways do different ideologies and political systems
influence the environment ain which MNCs operate? Would these challenges be less for those operating in the EU than for those in Russia or China? Why or why not?
How will advance in technology and telecommunications affect developing countries? Gives some specific examples.
What lessons can U.S. multinationals learn from the political and bribery scandals in Japan that can be of value to them in doing business in this country? Discuss two.
How do ethical practices differ in the U.S. and in European countries such as France and Germany? What implications does your answer have for U.S. multinations operating in Europe?
Ideologies &Political System
Totalitarianism
Democracy
Discussion 1In what ways do different ideologies and political
systems influence the environment ain which MNCs operate? Would these challenges be less for those operating in the EU than for those in Russia or China? Why or why not?
Legal Environment
Principles of International Law
Principle of Sovereignty Countries should be able to rule themselves.
Nationality Principle Countries have jurisdiction over its citizens regardless of their location.
Territoriality Principle Countries have jurisdiction over their territories.
Protective Principle Countries have jurisdiction over behavior that affects national security.
Doctrine of Comity Countries must respect each other’s jurisdiction over its citizens.
Act of State Doctrine Acts of other countries are allowed in U.S. courts even if there are illegal under U.S. law.
TechnologyThe World is getting smaller.
Technology
Technology http://www.youtube.com/watch?v=-
4CV05HyAbM
New OpportunityIn Bangladeshi, the cellphones are
commercialized for all people in 1997.
Market bigger than before.
Individual incomes have increased and the economy has developed.
Win Win Game
MNCs penetrate New Market.
Developed country take new technology.
Discussion 2How will advance in technology and
telecommunications affect developing countries? Gives some specific examples.
Discussion 3What lessons can U.S. multinationals learn from
the political and bribery scandals in Japan that can be of value to them in doing business in this country? Discuss two.
How do ethical practices differ in the U.S. and in European countries such as France and Germany? What implications does your answer have for U.S. multinations operating in Europe?
Ethicshttp://www.youtube.com/watch?v=91K3Trn4_YI
CSR
Marketing Change
Product Quality Customer World
http://www.youtube.com/user/tomsshoes?blend=8&ob=5
SustainabilityIndividual Exercise
If your boss mention that “we need more sustainability, give your ideas or solutions,” what ideas or solution will you give to him or her?
Sustainability
http://www.youtube.com/watch?v=B5NiTN0chj0
Colgate Case StudyColgate is New York-based.
International sales is half of revenue.
Bought 50% partnership in Hawley and Hazel.
H&H makes Darkie toothpaste.
Asians love it. Americans not amused.
Pressure on Colgate by ICCR.
Darkie changes to Darlie. Colgate distances itself.
Colgate Case Study Cont.
http://www.youtube.com/watch?v=QQI9HGV9uhw (Darkie ad)http://www.youtube.com/watch?v=fUQeZPqGVn0&feature=related (Darlie ad)
Discussion Identify the major strategic and ethical issues faced by
Colgate in its partnership with Hawley and Hazel
What do you think Colgate should have done to handle the situation?
Is it possible for Colgate and Hawley and Hazel to change the toothpastes’ advertising without sacrificing consumer brand loyalty? Is that a possible reason for Colgate’s not responding quickly to domestic complaints?
In the end, was a “no management rights” clause good for Colgate? What could have happened during the negotiations process to get around this problem?