Ibus 300 Notes
Chapter 5: Ethics in International Business
* Opening Case: Exporting used batteries to Mexico * Business Ethics- accepted principles of right or wrong governing the conduct of businesspeople * Ethical Strategy- a course of action that does not violate a company’s business ethics * Ethical Issues in International Business * Employment practices * Nike * Human rights * General Motors in South Africa * Environmental Pollution * Global tragedy of the commons- when a resource is held in common by all, but owned by no one, and is overused by individuals, resulting in its degradation * Corruption * Daimler automotive (page 129) * Foreign Corrupt Practices Act- US law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions (Lockheed airplane manufacturing case) * Convention on Combating Bribery of Foreign Public Officials in International Business Transactions- An OECD convention that established legally binding standards to criminalize bribery of foreign public officials in international business transactions and provides for a host of related measure that make this effective * Moral Obligations * Social responsibility- the idea that business people should consider the social consequences of economic action when making business decisions * Noblesse Oblige- a French term that refers to honorable and benevolent behavior considered the responsibility of people of high birth * Power itself is morally neutral; it’s how power is used that matters * Ethical Dilemma- a situation in which there is no ethically acceptable solution * The Roots of Unethical Behavior * Personal Ethics- generally accepted principles of right and wrong governing the conduct of individuals * Decision-Making Process * Several studies of unethical behavior in a business
* Opening Case: Exporting used batteries to Mexico * Business Ethics- accepted principles of right or wrong governing the conduct of businesspeople * Ethical Strategy- a course of action that does not violate a company’s business ethics * Ethical Issues in International Business * Employment practices * Nike * Human rights * General Motors in South Africa * Environmental Pollution * Global tragedy of the commons- when a resource is held in common by all, but owned by no one, and is overused by individuals, resulting in its degradation * Corruption * Daimler automotive (page 129) * Foreign Corrupt Practices Act- US law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions (Lockheed airplane manufacturing case) * Convention on Combating Bribery of Foreign Public Officials in International Business Transactions- An OECD convention that established legally binding standards to criminalize bribery of foreign public officials in international business transactions and provides for a host of related measure that make this effective * Moral Obligations * Social responsibility- the idea that business people should consider the social consequences of economic action when making business decisions * Noblesse Oblige- a French term that refers to honorable and benevolent behavior considered the responsibility of people of high birth * Power itself is morally neutral; it’s how power is used that matters * Ethical Dilemma- a situation in which there is no ethically acceptable solution * The Roots of Unethical Behavior * Personal Ethics- generally accepted principles of right and wrong governing the conduct of individuals * Decision-Making Process * Several studies of unethical behavior in a business