mtkm 5013 global social responsibility

8/14/2019 MTKM 5013 Global Social Responsibility

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Countrywide & The Mortgage Industry Crisis

Global Warming

Martha Stewart & EnronDe Beers & Diamond Mining

Sweat Shops

Employment of Illegal Aliens / ForeignWorkers


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Ethics

Global Social Responsibility

Human Rights & Corruption

Promoting Ethics in TransnationalCompanies


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Oxford Definition

Ethics | plural noun

1. [usu. treated as pl.] moral principles thatgovern a persons or groups behavior : Judeo-

Christian ethics. the moral correctness ofspecified conduct : the ethics of euthanasia.

2. [usu. treated as sing.] the branch ofknowledge that deals with moral principles.


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Standards of Right & Wrong

Establishing a standard of conduct, beliefvalues, and sensitivity.


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Guidelines for making decisions that effectemployees, the organization, consumers, andother parties.

The importance of managerial ethicsincreases in proportion to the importance of

the outcome.


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Behavior that focuses on supposed short termadvantages without considering mid- andlong-term consequences.


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12% of Brazils Amazon charcoal works stilluse slave labor despite ban by Citizens CoalInstitute (regional industry watchdog since2004)

1,500 charcoal works operate in this region

316 charcoal works shut down due to

infractionsU.S. buyers concerned about doing business

with unethical charcoal works ethicsperception.


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Social

Economic

Human Asset


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Transnational FirmTransnational Firm

ViewpointViewpointActively solve host-country problems

Simply doing business is addressing local

social, human asset, and economic problemsEarn a profit


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Internal BeneficiariesInternal BeneficiariesEmployees

Customers

Owners


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External BeneficiariesExternal BeneficiariesSpecial-interest groupsRacial and ethnic minorities

WomenHandicapped

Aged

Groups that succeed in having laws madeEqual Employment Opportunity

Affirmative Action


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General ExternalGeneral External

BeneficiariesBeneficiariesSolve or prevent general social problems

Stakeholder management devices

Ethics committeesPublic Affairs Office

Code of Ethics

Corporate Sponsorship

Employee Newsletters


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Global SocialGlobal Social

ResponsibilityResponsibility


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Basic standards of treatment for all people,regardless of :

Religion Gender

Race

Economicstatus

Nationality


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Forced labor and inhumane workingconditions are examples of human rightsviolations

Companies implement policies and programsto avoid violations and are regulated by globalgroups, such as Amnesty International


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No longer acceptableInternational and national laws governing

corruption, bribery, and fraud are becomingincreasingly pervasive


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Why should a transnational company considerethics?

1. Combat human rights violations2. Good ethics is good business


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Good ethics is good businessEthical standards can be considered an asset

Special efforts andcost

Reputation

Investing in ethical behavior may yieldshort term profit loss Unethical behavior results in publicoutcry, legal action, and extended loss ofprofits

Investment may be balanced-out by a

gain in reputation Reputation of a company is one of themost valuable assets even if not in thebalance sheet


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How does a transnational company promoteethics?

No one successful approachEthics most effective when a part of a

companys culture


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Successful Strategies for PromotingEthics


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No universal set of standardsSituation

CountryContext

Review and consider each host country

separately


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EthicsStandards of right and wrong

Social ResponsibilitySocial, economic, and ethical decision making

Human RightsBasic standards of treatment for all people

Promoting EthicsImportance of firms to implement ethics

standards


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Prevalent today as shown in articles covered

Ethics Quiz


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mtkm 5013 global social responsibility

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