Syllabus and schedule highlights

http://yourpeakescape.com/uscupstate

What kind of problem do you want to see?Nokia in the Congo: Blood in the Mobile

Al Jazeera: Nepalese kids sold to work in Indian circuses

Corruption in Cambodian logging destroying forests and local livelihood(be sure to click the “show more” button below the video

United Nations: Shell Oil’s pollution in Nigeria may cost $1 billion to clean up

The Cove: Dolphin slaughter for free school lunches in Japan

PBS NewsHour: Health dangers of making i-Phones in China

60 Minutes: Child labor on farms in US

Set 3: Ethics and Social Responsibility

Ethics in international management

Some ethical issues and problems for MNCs

Pressures/action—industrialized countries, companies

Initiatives for corporate accountability, corruption

Ethics

Study of morality and standards of conduct

Dilemmas due to differing ethical standards

Most evident in employment practices/HR

Legal issues of right and wrong

Social Responsibility

Corporate Social Responsibility (CSR):

Closely related to ethics

Firm’s actions to benefit society beyond law and self-interest

CSR involves taking voluntary action

Typical MNC CSR issues: factory conditions, environmental impact, human/animal rights

Employment/Human Resources

Hard to standardize practices across countries

Working, length of shift, vacation, safety, paye.g., U.S. MNCs give more vacation in Europe

Moving because of cheap labor

Discrimination—sex, age, religion, race, appearance

Human Rights

No universal standards

Subjectivity, cultural bias

Some basic rights? Life, freedom from slavery or torture, freedom of opinion and expression, general ambiance of nondiscriminatory practices

Terrible track record around the world

Corruption

Pervasive in international business environment

Transparency International http://www.transparency.org/

Corruption Index (perceptions of experts and polls): http://www.transparency.org/policy_research/surveys_indices/cpi/2010/results

Corruption

Exercise: Pick an industry/sector and let’s talk about

how corruption might be relevant…

Corruption Index: Least and Most Corrupt Countries

NGOs, MNCs and Ethical Balance

Non-Governmental Organization; private, not-for-profit, focused on social, political, or economic issues e.g., poverty, social justice, education, health and the environment.

Oxfam, Doctors Without Borders, Red Cross, One Laptop Per Child, Save the Children, CARE, World Wildlife Fund, etc

Numerous, powerful, influential, active

NGO leaders have high trust

Trust in Leaders

Rise of NGOs

Rise due to problems

MNC response to social obligations:Create agreements and codes of conductMaintain in domestic and global operationsCooperate with NGOs

Some heavily-criticized companiesNikeLevi’sChiquita

Ethics/CSR Examples: CHINA

Poor pay, hazardous work, Piracy, counterfeiting, industrial spyingPrisoner/child laborPollution

Ethics/CSR Examples: JAPAN

Political and business scandals:bribes and favors for politicians and bureaucratsbanking loan collapseMinimata Bay mercury, Fukushima reactor

Discrimination:against other Asianswomen absent from managementtreatment of women at work

United Nations’ Global Compact for Business

Human RightsLaborEnvironmentAnti-Corruption

United Nations’ Global Compact for business

Human Rights

Labor

Environment

Anti-Corruption

Corporate Governance

The direction and control of corporations:Distribution of rights and responsibilitiesStakeholder managementRules and proceduresGoal-setting, decision-making, planning, monitoring

Corporate Governance

Many foreign companies are “insider” systemsConcentrated ownershipOwned by holding companies, families,

banks

U.K. and U.S. systems are “outsider” systemsDispersed ownershipMany outside investors

Some Initiatives to Increase Accountability and Limit Corruption

Foreign Corrupt Practices Act

US law, has lead to international changesMore countries making bribes of foreign officials illegal(but often not payments to political parties…)

International assistance partnerships

Government-corporate collaboration

For example, Gates Foundation: health, poverty, education

http://www.gatesfoundation.org

UN Millennium Project goals

What we just didSet 3: Ethics and Social Responsibility

Ethics in international management

Some ethical issues and problems for MNCs

Pressures/action—industrialized countries, companies

Initiatives for corporate accountability, corruption