Beruflich Dokumente
Kultur Dokumente
Globalization
and Society
Learning Objectives
Examine the broad foundations of ethical
behavior
Demonstrate the cultural and legal foundations of
ethical behavior
Discuss the importance of social responsibility
when operating internationally, especially in the
areas of sustainability
Discuss key issues in the social activities and
consequences of globalized business
Examine corporate responses to globalization in
the form of codes of conduct, among other things
Introduction
Companies must satisfy stakeholders
Shareholders
Employees
Customers
Society
Foundations of Ethical Behavior
Learning Objective:
Examine the broad foundation of ethical
behavior
Foundations of Ethical Behavior
Three levels of moral development
1. Preconventional
2. Conventional
3. Postconventional
Foundations of Ethical Behavior
Teleological approach
decisions are based on the
consequences of the action
Utilitarianism
an action is right if it produces the
greatest amount of good
Deontological approach
moral judgments are made and moral
reasoning occurs independently of
consequences
Why Do Companies Care?
Ethical behavior can help a company
develop a competitive advantage
avoid being perceived as irresponsible
The Cultural and Legal
Foundations of Ethical Behavior
Learning Objective:
Demonstrate the cultural and legal
foundations of ethical behavior
Founders
Story
Story Continues …
Sustainability as a source to
CA
Stonyfield Farm, also
simply called Stonyfield, is
an organic yogurt maker
located in Londonderry, New
Hampshire, USA. Stonyfield
Farm was founded by
Samuel Kaymen in 1983, on
a 19th-century farmstead in
Wilton, New Hampshire, as
an organic farming school.
Relativism versus Normativism
Relativism
ethical truths depend on the groups
holding them
Normativism
there are universal standards of
behavior that all cultures should follow
Legal Justification: Pro and Con
The law is inadequate because
Some things that are unethical are not illegal
Laws are slow to develop in emerging areas of
concern
Laws may be based on imprecisely defined
moral concepts
The law often needs to undergo scrutiny by the
courts
The law is not very efficient
Legal Justification: Pro and Con
Legal justification is appropriate because
The law embodies many of a country’s moral
principles
The law provides a clearly defined set of rules
The law contains enforceable rules that apply
to everyone
The law reflects careful and wide-ranging
discussions
Extraterritoriality
Extraterritoriality
imposing domestic legal and ethical practices
on the foreign subsidiaries of companies
headquartered in their jurisdictions
Ethics and Corporate Bribery
Regardless of the reasons for not using
the law as a starting point for ethical
behavior, it remains a good starting point
Countries looking for solutions to common
problems take similar legal steps
Consider
activities that affect the well-being of people
be doing anyway
Corruption and Bribery
Where Bribes Are (and Are Not) Business As Usual
Corruption and Bribery
International accords to stop bribery
OECD Anti-Bribery Convention
ICC code of rules
UN Convention against Corruption
Regional initiatives include
EU efforts
U.S. Foreign Corrupt Practices Act and
Sarbanes-Oxley legislation
Industry initiatives include
2005 World Economic Forum zero tolerance
pact
Ethics and the Environment
Learning Objective:
Discuss the importance of social
responsibility when operating
internationally, especially in the areas of
sustainability
Ethics and the Environment
Companies compromise the environment
contamination of air, soil, or water during
manufacturing
producing products that emit fossil-fuel
contaminants
Effect of natural resource extraction
renewable versus non-renewable
What is Sustainability?
Sustainability
meeting the needs of the present without
compromising the ability of future generations
to meet their own needs
Is sustainability good business practice?
yes
Global Warming, Kyoto
Protocol
Kyoto Protocol (1997)
signed to require countries to cut greenhouse
gas emissions to 5.2% below 1990 levels
between 2008 and 2012
Some countries have adopted stricter
requirements
others have not ratified the agreement
including
the U.S., China, India
Ethical Dilemmas and
Other Business Practices
Learning Objective:
Discuss key issues in the social activities
and consequences of globalized business
Ethical Dilemmas in the
Pharmaceutical Industry
Tiered pricing and other price-related
issues
reverse engineering
WTO Agreement on Trade-Related Aspects
of Intellectual Property Rights (TRIPS)
generic drugs
R&D and the Bottom Line
India
Ethical Dimensions of
Labor Conditions
Labor issues include
Wages
Child labor
Working conditions
Working hours
Freedom of association
Ethical Dimensions of
Labor Conditions
Sources of Worker-Related Pressures in the Global Supply Chain
Ethical Dimensions of
Labor Conditions
Child labor – ILO estimates 250 million
children aged 5–17 years work
Some companies avoid operating in
countries where child labor is common
or establish responsible policies in those
countries - IKEA
Some companies refuse to hire individuals
who want to work long hours
concerned about exploitation
Corporate Codes of Ethics
Learning Objective:
Examine corporate responses to
globalization in the form of codes of
conduct, among other things
Corporate Codes of Ethics
How should a company behave?
The UN Global Compact establishes
guidelines for appropriate behavior in
human rights
labor
the environment
anti-corruption
Motivations for
Corporate Responsibility
Unethical and irresponsible behavior could
result in legal sanctions
result in consumer boycotts
lower employee morale
cost sales because of bad publicity
A code of conduct
sets global policy that must be complied with
communicates the code to employees,
suppliers, and subcontractors
ensures that policies are carried out
reports results to external stakeholders
Corporate Ethics in The Future
Two trends:
There will be greater convergence of proper
ethical conduct
Individuals will develop skills to address ethical
issues
Impact of social media
Impact of future business and government
leaders