Stack #2548013
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show | Accepted principles of right or wrong governing the conduct of business people
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Ethical Strategy | show 🗑
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In the international business setting, what do the most common ethical issues involve? | show 🗑
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Employment Practices | show 🗑
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show | Nike code of conduct for subcontractors and instituted annual monitoring by independent auditors. Levis terminating partnership with Tan Brothers
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show | AFRICA Example: GM.Sullivan Principles in S. Africa in 1980s (company would not obey apartheid laws & company should do everything in its power to promote abolition of apartheid laws)
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Human Rights | show 🗑
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Human Rights | show 🗑
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show | that ultimately improves the rights of people in repressive regimes. Myanmar has a small economy and that divestment carries no great economic penalty for Western firms, unlike, for example, divestment from China.
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show | Example: Lead sales within Mexico from batteries
pollution regulations.Polluting even if not regulated hurts all. Tragedy of the Commons
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Tragedy of the Commons | show 🗑
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show | Example--Carl Kotchian, president of Lockheed, made a 12.6 million payment to Japanese agents an govt. officials to secure a large order for Lockheed's TriStar jet from Nippon Air. Lockheed case was an impetus for the 1977 passing for the Foreign Corrupt
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corruption | show 🗑
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Corruption | show 🗑
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Corruption | show 🗑
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show | U.S. Law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions
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Foreign Corrupt Practices Act | show 🗑
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Convention on Combating Bribery of Foreign Officials in International Business Transactions | show 🗑
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Convention on Combating Bribery of Foreign Officials in International Business Transactions | show 🗑
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show | Multinational corporations have power that comes from their control over resources and their ability to move production from country to country
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Moral Obligations | show 🗑
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show | Example: British East India Company-- grew to dominate the entire indian subcontinent in the 19th century.Power itself is morally neutral; how power is used is what matters. BP undertake "social investments" in the countries where it does business.
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Social Responsibility | show 🗑
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show | French term that refers to honorable and benevolent behavior considered the responsibility of the people of high birth
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Ethical Dilemma | show 🗑
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Ethical Dilemma | show 🗑
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show | he is the bread winner for her family and 6 year old brother; she cannot find another job so she turns to prostitution and then dies 2 years later from AIDS.
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ROOTS OF ETHICAL BEHAVIOR WEB DIAGRAM | show 🗑
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Personal Ethics: | show 🗑
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Personal Ethics: | show 🗑
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show | some people do not even realize they are making an unethical decision. Nikes decision to subcontract:
The fault lies in the processes that do not incorporate ethical considerations into business decision making
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show | decisions were probably made based on good economic logic. Subcontractors were probably chosen based on business variables such as cost, delivery, and product quality,
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Decision-Making Processes | show 🗑
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show | Definition: The values and norms shared among an organization's employees
values--abstract ideas about what a group believes to be good , right
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Organizational Culture | show 🗑
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show | pressure from the parent company to meet unrealistic performance goals that can be attained only by cutting corners or acting in an unethical manner.
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show | The HP Way" -- values, which shape the way business is conducted both within and by the corporation, have an important ethical component
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Leadership | show 🗑
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Societal Culture | show 🗑
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show | 3- than firms headquartered in cultures where masculinity and power distance are important cultural attributes.
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STRAW Men | show 🗑
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show | Freidman's basic position is that the only social responsibility of business is to increase profits, so long as the company stays within the rules of law.
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show | There is only one social responsibility of business--to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say that it engages in open and free competition with out dec
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The Friedman Doctrine | show 🗑
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Cultural Relativism | show 🗑
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Which is the belief that ethics are nothing more than the reflection of a culture--all ethics are culturally. determined--and that accordingly, a firm should adopt 2-the ethics of the culture in which its operating "when in rome, do as the romans do" | show 🗑
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show | 5- even if that behavior is both legal and routinely accepted in the country where the company is doing business
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Righteous Moralism. Def -the belief that a multinational's home-country standards of ethics are the appropriate one for companies to follow in foreign countries | show 🗑
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2- While there are some universal moral principles that should not be violated, it does not always follow that the appropriate thing to do is adopt home-country standards-- | show 🗑
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show | The belief that if a manager of a multinational sees that firm from other nations are not following ethical norms in a host nation, that manager should not either
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The Naive Immoralist. Classic example is the drug lord problem | show 🗑
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show | 2. the multinational must recognize that it does have the ability to change the prevailing practice in country.
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Utilitarian Approaches to Ethics. Definition---These hold that the moral worth of actions or practices is determined by their consequences. | show 🗑
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show | -Cost Benefit Analysis- Risk Assessment
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PROBLEM ONE--measuring the benefits, costs, and risks of a course of action. In the case of considering drilling for oil in Alaska, how does one measure the potential harm done to the region's ecosystem? | show 🗑
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Kantian Ethics. The belief that people should be treated as ends and never as means to the ends of others | show 🗑
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show | 20th century theory that recognizes that human beings have fundamental rights and privileges that transcend national boundaries and cultures
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What do moral theorists argue? | show 🗑
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show | The Notion that there are fundamental rights that transcend national borders and culture was the underlying motivation for the United Nations Universal Declaration of Human rights,.
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Universal Declaration of Human Rights. A United Nations Document that lays down the basic principles of human rights that should be adhered to. | show 🗑
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show | a distribution of goods and services that is considered fair and equitable
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Justice Theories | show 🗑
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Veil of Ignorance.Under the veil of ignorance, everyone is imagined to be ignorant of all of his or her particular characteristics, for example, race, sex, intelligence, naionality, family backgrouund, and special talents. | show 🗑
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show | inequalities are justified if they benefit the position of the least-advantaged person.
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Summary: The source and nature of ethical issues in international business , the different philosophical approaches to business ethics and the steps managers can take to ensure that ethical issues are respected in international decisions . | show 🗑
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Business ethics are the accepted principles of right and wrong governing the conduct of business people and an ethical strategy is one that does not volate these accepted principles. | show 🗑
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show | Ethical dilemmas are situations in which none of the available alternatives seems ethically acceptable.
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Unethical behavior is rooted in poor personal ethics, social culture, the psychological and geographical distances of a foreign subsidiary from the home office, a failure to incorporate ethical issues into strategic and operational decision making. | show 🗑
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show | The Friedman doctrine states that the only social responsibility of business is to increase profits as long as the company stays within the rules of law,
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show | Kantian ethics state that people should be treated as ends and never purely as means to the ends of others. People are not instruments, like a machine. People have dignity and need to re respected as such.
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show | John Rawls suggest that a decision is just and ethical if people would allow for it when designing a social system under a veil of ignorance.
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To make sure that ethical business decisions , managers should; favor hiring and promoting people with a well grounded sense of personal ethics, build an organization culture that places a high value on ethical behavior, | show 🗑
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