1. What is ethics ?
1.1. Ethics
1.1.1. Ethical right to the accepted principles about the right or wrong conduct of a person, members of a profession or the actions of an organization.
1.2. Business ethics
1.2.1. Business ethics are the accepted principles of right or wrong governing the conduct of businesspeople
1.3. Ethical strategy
1.3.1. Ethical strategy is a strategy, or course of action, that does not violate these accepted principles
2. The most relevant ethical issue for international businesses ?
2.1. The most common ethical issues in business
2.1.1. - Employment practices - Human rights - Environmental regulations - Corruption - The moral obligation of Multinational companies
3. Ethics Relevant To Employment Practices ?
3.1. Basic Employment Practices: - Working hour/day or week, minimum wage/hour or salary/month, protection against toxic chemicals - Employment practices vary across countries
3.1.1. An organization that is perceived to act ethically by employees can realize positive benefits and improved business outcomes. The perception of ethical behavior can increase employee performance, job satisfaction, organizational commitment, trust and organizational citizenship behaviors
4. Ethics Relevant To Human Rights ?
4.1. Basic human rights are taken for granted in developed countries: - Freedom of association: rights of individuals to join or leave groups voluntarily, rights of groups to take collective action to pursue the interests of its members - Freedom of speech: rights to express information, ideas, and opinions free of government restrictions based on content, even right not to speak - Freedom of assembly: ensures people can gather and meet, both publicly and privately - Freedom of movement: right of individuals to travel from place to place within the territory of a country, and to leave the country and return to it
5. Ethics Relevant To Environmental Regulations ?
5.1. - Environment are a public good that no one owns, but anyone can despoil
5.1.1. The tragedy of the commons occurs when a resource held in common by all, but owned by no one, is overused by individuals, resulting in its degradation
6. How Are Ethics Relevant To Corruption ?
6.1. Under the Foreign Corrupt Practices Act, it is illegal to give bribes to foreign government officials to gain business.
6.1.1. The Convention Against Bribery of Foreign Public Officials in International Business Transactions, adopted by the Organization for Economic Co-operation and Development (OECD), obliges member states to consider bribery of foreign public officials as an guilty.
7. How Are Ethics Relevant To Moral Obligations ?
7.1. Social responsibility refers to whether the social consequences of economic actions should be considered, business decisions should be made, and an assumption should be made in favor of decisions that have both economic and social consequences.
7.1.1. Proponents argue that businesses need to recognize their noble duty - benevolent and honorable behavior is the responsibility of successful companies
8. What Are Ethical Dilemmas ?
8.1. Ethical dilemmas are situations in which none of the available alternatives seems ethically acceptable
8.1.1. Is a problem in too the process between the two method method, all the two method are not accept secure for the angle of the director.
9. Why Do Managers Behave Unethically ?
9.1. Several factors contribute to unethical behavior
9.1.1. Personal ethics: - The generally accepted principles of right and wrong governing the conduct of individuals
9.1.2. Decision-making processes: - The values and norms that are shared among employees of an organization
9.1.3. Organizational culture: - Organizational culture can legitimize unethical behavior or reinforce the need for ethical behavior
9.1.4. Unrealistic performance expectations: - Encourage managers to cut corners or act in an unethical manner
9.1.5. Leadership: - Helps establish the culture of an organization, and set the examples that others follow
10. Philosophical approach to ethics
10.1. Straw men approaches deny the value of business ethics or apply the concept in an unsatisfactory way
11. The Straw People's Approach to Business Ethics
11.1. There are four common straw men approaches:
11.1.1. Friedman doctrine
11.1.1.1. Also known as shareholder theory, is a normative theory of business ethics by economist Milton Friedman that the sole social responsibility of business is to increase profits, as long as the company remains comply with the provisions of the law
11.1.2. Cultural relativism
11.1.2.1. Ethics are culturally defined and companies should adopt the ethics of the cultures in which they operate "arbitrary admission"
11.1.3. Righteous moralist
11.1.3.1. The standards of ethics in the home country of a multinational should be observed abroad
11.1.4. Naïve immoralist
11.1.4.1. If a manager of a multinational company finds that companies from other countries do not follow ethical standards in a host country, that manager shouldn't either
12. Utilitarian And Kantian Approaches To Ethics
12.1. Utilitarian ethics
12.1.1. The moral worth of actions or practices is determined by their consequences: - Actions are desirable if they lead to the best possible balance of good consequences over bad consequences - But, it is difficult to measure the benefits, costs, and risks of an action - The approach fails to consider justice
12.2. Kantian ethics - (Immanuel Kant)
12.2.1. People should be treated as ends and never purely as means to the ends of others
13. What Are Rights Theories ?
13.1. - Humans have fundamental rights and privileges that transcend national and cultural boundaries. - Establish a minimum level of ethically acceptable behavior The Universal Declaration of Human Rights outlines basic principles that should always be followed regardless of the culture in which one does business.
13.1.1. Ethical theorists argue that basic human rights form the basis of the ethical compass that managers should navigate when making ethical decisions
14. What Are Justice Theories?
14.1. - Focus on the attainment of a just distribution of economic goods and services - A just distribution is one that is considered fair and equitable
14.1.1. ---> Argued that all economic goods and services should be distributed equally except when an unequal distribution would work to everyone’s advantage
14.1.1.1. Impartiality is guaranteed by the veil of ignorance - everyone is imagined to be ignorant of all his or her particular characteristics
15. How Can Managers Make Ethical Decisions?
15.1. Hire and promote people with a well grounded sense of personal ethics
15.1.1. - Refrain from promoting individuals who have acted unethically - Prospective employees should find out as much as they can about the ethical climate in an organization prior to taking a position
15.2. Build an organizational culture that places a high value on ethical behavior
15.2.1. - Articulate values that place a strong emphasis on ethical behavior - Emphasize importance of code of ethics - formal statement of the ethical priorities a business adheres to - Implement a system of incentives and rewards that recognize people who engage in ethical behavior and sanction those who do not
15.3. Develop moral courage
15.3.1. - Enables managers to walk away from a decision that is profitable, but unethical - Gives an employee the strength to say no to a superior who instructs her to pursue actions that are unethical - Gives employees the integrity to go public to the media and blow the whistle on persistent unethical behavior in a company
15.4. Put decision making processes in place that require people to consider the ethical dimension of business decisions
15.4.1. Ask: - Decisions fall within the accepted values of standards that typically apply in the organizational environment - Decisions can be communicated to all stakeholders affected by it - If colleagues would approve of decisions