universal values in international trade

8/3/2019 universal values in international trade

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PRESENTED BY:Anil Anand-10066Eldhose Peter-10076K Swetha Nandana-10082Shah Saumil J-10105Sowmya B -10108Swarup Gattani-10112


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Globalization- Process by which an activity orundertaking becomes global in scope

Fall of trade barriers in the globalizing scenario led

companies to operate with global group of stakeholders

Cross border trade and investment differs fromDomestic Business

Companies involved in International Trade findthemselves in new and diverse cultures


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Countries differ in their cultures, socio-economic andpolitical systems, legal systems and levels of economicdevelopment

Differences in moral values being practiced

The differences in values of countries pose manyethical challenges to International Business

Need for a new moral consensus within the globalsociety

Acceptance and practice of minimum human valuesand standards


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Ethics is the moral principle that individuals inject intotheir decision making process and that helps temperthe last outcome to conform to the norms of their

society Universal Values : Values that a great many human

beings in the vast majority of places and situations, atalmost all times, do in fact hold in common

The basic values which underlie all other values are: HUMANITY : Every human being must be treated humanely

RECIPROCITY: What you do not wish done to yourself, donot do to others


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The 272 participants represented 40 countries andmore than 50 different faith communities. Thesame three values were within each

respondents top five in almost 60% of cases.These are

Truth (169 votes)

Compassion (153 votes)

Responsibility (147 votes)


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Derived core values: Respect for life Non-violence Solidarity Justice Tolerance Truthfulness Equality Shared Responsibility Respect for environment Reciprocity


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For the Global Ethical Issues, decision-making processcan be influenced by many ethical approaches:

Normative (prescriptive)

Deontological Theory Teleological Theory

Descriptive (positive)

Egoism approach Utilitarian approach

Helps us to solve ethical dilemmas and seek for thecommon good of all the nations


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In a survey of 300 multinational corporations, 80 percentagreed with seven items being ethical issues forInternational business:

Environmental issues

Unauthorized payments

Child labor Inappropriate gifts to corporate personnel

Affirmative action

Employee privacy


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In some countries bribery is acceptable

While some other countries consider it as a

serious issue and it is not accepted In International Trade ,Dilemma raises

whether to follow home country or foreigncountry practices

International bribery assumes many guises, butwherever the practice occurs, it inhibitseconomic development and distortscompetition


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Siemens Bribery Scandal

Pseudo-Utilitarian Theory

Utilitarian Approach for the case: Immediate

economic benefit seems to be significantly lessthan the long-term benefits

Impact on the society

Adopting Universal Values-Social Justice,Shared Responsibility


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Many international businesses confront issuesof child labor in their own operations and thoseof suppliers in their value chain

Poverty is one of the key drivers of child labor From an employer's perspective, child labor

may initially seem to offer many advantages

It affects growth of parent country and hostcountry


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Nestle child labor case

Utilitarian approach Kantian Theory

Value Driven Management

Universal Values-Humanity

Society should value children as rational beingswith rights, not merely as a means to greaterprofits


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Globalization and International Trade leavesdisastrous effects on the environment ifunregulated

Mexico oil spill case BP s Responsibility

Effect on the environment

Stake holder Approach Universal Values-Reciprocity, Respect for the

nature


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Outsourcing is the delegation of tasks or jobs frominternal production to an external entity

Inevitable response to globalization--internationaltrade

Is it beneficial for both the countries in the longrun? Job loss-Developed countries Relaxation of labor laws and worker rights-

Developing Countries Competition among developing countries making

the economy weaker Long run benefits outweigh the short term benefits


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DeGeorge proposes guidelines to solve internationalbusiness ethics problems guidelines:

Do no intentional direct harm Produce more good than bad for the host country

Contribute by their activity to the host countrydevelopment

Respect the human rights of their employees

Respect the local culture and work with and not against it


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The Caux Round Table (CRT) Principles forResponsible Business set forth ethical norms for

acceptable businesses behavior The CRT Principles for Responsible Business are : 1) Respect stake holders beyond share holders

2) Contribute to economic, social and Environmental

development 3) Build trust by going beyond the letter of the law

4) Respect rules and conventions

5) Support responsible globalization

6) Respect the environment

7) Avoid illicit activities


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Expansion of global entities lead to the inevitableconclusion that ethical issues facing businessentities assume global dimensions. So globalsolution is required

All business firms that desire to competesuccessfully in international environment shouldoblige to common good of all parties involved.

Universal Values and theories help to solve theethical dilemmas faced by the companies in theinternational trade and seek for the common goodof the Global Economy


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Thank you

universal values in international trade

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