Ch4: Ethics in International Business Flashcards Preview

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Flashcards in Ch4: Ethics in International Business Deck (22)
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1

Business ethics

are the accepted principles of right or wrong governing the conduct of businesspeople

2

ethical strategy

is a strategy, or course of action, that does not violate these accepted principles

3

Most Common Ethical Issues in Business involve (5)

- employment practices
- human rights
- environmental regulations
- corruption
- the moral obligation of multinational companies

4

Employment practices

- establish minimal acceptable standards that safeguard the basic rights and dignity of employees
- audit foreign subsidiaries and subcontractors regularly to ensure they are meeting the standards

5

environmental regulations

No one owns the atmosphere or the oceans, but polluting both, no matter where the pollution originates, harms all

6

tragedy of the commons

when individuals overuse a resource held in common by all, but owned by no one, resulting in its degradation

7

Social responsibility

refers to the idea that businesspeople should consider the social consequences of economic actions when making business decisions, and that there should be a presumption in favor of decisions that have both good economic and social consequences

8

ethical dilemmas

they are situations in which none of the available alternatives seems ethically acceptable

9

personal ethics

which are the generally accepted principles of right and wrong governing the conduct of individuals

10

roots of unethical behaviour (6)

1. personal ethics
2. decision making processes
3. organizational culture
4. unrealistic performance expectations
5. leadership
6. societal culture

11

straw men

straw men approaches deny the value of business ethics or apply the concept in an unsatisfactory way

12

The Freidman Doctrine

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

13

Cultural Relativism

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 the ethics of the culture in which it is operating

14

The Righteous Moralist

claims that a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries

15

Naive Immoralist

asserts that if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation, that manager should not either

16

Utilitarian approaches

- greatest good for the greatest number of people

17

Kantian ethics

People have dignity and need to be respect ed as such

18

rights theories

recognize that human beings have fundamental rights and privileges that transcend national boundaries and cultures

19

just distribution

- just distribution is one that is considered fair and equitable
- Rawls argues that all economic goods and services should be distributed equally except when an unequal distribution would work to everyone's advantage

20

veil of ignorance

everyone is imagined to be ignorant of all of his or her particular characteristics

21

ethical decision making (5)

1. hire people with ethical values
2. build organizational culture
3. leaders show ethical values
4. decision making process that require people to consider ethics
5. develop moral courage

22

ethics officers

- individuals are responsible for making sure that all employees are trained to be ethically aware
- that ethical considerations enter the business decision-making process
- and that the company's code of ethics is followed