authors: thomas donaldson & thomas w. dunfee presented by: michael mosley
TRANSCRIPT
WHEN ETHICS TRAVEL : THE PROMISE AND PERIL OF GLOBAL
BUSINESS ETHICS
Authors: Thomas Donaldson & Thomas W. Dunfee
Presented by: Michael Mosley
Education:◦ PhD University of Kansas, 1976◦ BS, University of Kansas, 1967
Outstanding Teacher of The Year Award:◦ 2005 & 1998
“Named Ethisphere Magazine’s most influential “thought leader” in 2007 ranking of the 100 Most influential people in business ethics (Donaldson).”
Current Professor at Wharton University of Pennsylvania ◦ Previous professor at Georgetown University, University of
Virginia, and Loyola University of Chicago
THOMAS DONALDSON
Founding director of the Wharton Ethics Program
Three-term chair of the Department of Legal Studies and Business Ethics
President of the Society of Business Ethics
Appraised for his path breaking work “Ties That Bind: A Social Contracts Approach to Business Ethics”(Lavengood).
THOMAS W. DUNFEE
Hypernorm ◦ Universal norms that apply to all individuals.
Macro Social Contract◦ Provide global norms
Micro Social Contract◦ Norms developed for the community
Moral Free Space◦ Norms that are inconsistent with at least some other
legitimate norms existing in other economic cultures
Important Terms
Dealing with bribery example ◦ Ben & Jerry’s
Can managers successfully maneuver the disturbing gray zones that lie at the intersections of different cultures?
Corporate ethics and values programs are in vogue
GLOBAL MANAGER DECISIONS
Accept whatever prevails in the host country Exposes Company Neglects hypernorms
Exporting all home-country values
“Photocopy” Disrespectful Neglects moral free space
TAKING ETHICS PROGRAMS GLOBALLY : COMMON MISTAKES
Face conflicts and ethics
Learn how to cut the Gordian Knot
ISCT (International Social Contract Theory)
HOW TO SUCCEED IN GLOBAL ETHICS
2 Aspects of ISCT
Make use of hypernorms Or called “necessary social efficiency”
Identify Microsocial Contracts
CUTTING THE GORDIAN KNOT
Important Question
◦ Do cultural differences add up to different microsocial contracts with different authentic, legitimate norms being affirmed by different cultures?
MAPPING INTERNATIONAL BUSINESS ETHICS: CONTRACTS AND MORAL FREE SPACE
Kluckhorn, Hofstede, and other theorists have shown the importance of cultural differences
Ethical implications of these differences remains unexplored
Example Answer A definite right?
Some right? No right
INTERPRETING ETHICAL DIFFERENCES
Styles of ethical approach:
◦ Foreign Country Type◦ Empire Type◦ Interconnection Type◦ Global Type
WHAT MAKES A COMPANIES CULTURE UNIQUE FROM THE VANTAGE POINT OF ETHICS?
Acknowledges
◦ Universal moral limits
◦ Ability of communities to set moral standards of their own.
INTERACTIVE TYPE ALONE SATISFIES ISCT
Milton Rokeach value scale
Data indicated that different values, not only existed, but also converged neatly in most instances on a national basis
MORAL FREE SPACE DIFFERENCES EXISTS THAT ARE BOTH LEGITIMATE AND AUTHENTIC
One Extreme Boddewyn and Brewer
◦ “When companies seek competitive advantages, bribery, smuggling, and buying absolute market monopolies are not necessarily ruled out.”
Other Extreme DeGeorge –
◦ “Every company must produce more goods than harm for the host country”
DIFFERING ADVICE FROM ACADEMICS
THE ISCT GLOBAL VALUES MAP
Hypernorm
Consistent norms
Moral Free Space
Illegitimate Norms:
Incompatible with
Hypernorms
Illegitimate Norms: Incompatible with Hypernorms
Low level bribery
Competing for bids
Should these situations be examples of authentic norms?
USING ISCT MAP:BRIBERY AND SENSITIVE PAYMENTS
Violates a micro social contract specifying the duties of the agent
Violation of a duty by the person accepting the bribe to the principal for whom he acts as an agent
Has the person making the payment also committed an ethical error?
ETHICAL PROBLEMS WITH BRIBERY FROM THE VANTAGE POINT OF ISCT
Myth: Bribery is accepted wherever it flourishes
Fact: “There is not a country in the world where bribery is either legally or morally acceptable”- Fritz Heiman
BRIBERY IS TYPICALLY NOT AN ETHICAL FORM
Important question Is bribery only wrong because most people don’t like it?
Does a hypernorm disallowing bribery exists?
“Positive transnational right on political participation. (Malone).”
Transcultural norm implicit in political writings of Locke, Jefferson, Kant, and Rawls
BRIBERY MAY VIOLATE THE HYPERNORM SUPPORTING POLITICAL PARTICIPATION AND EFFICIENCY
What about bribes to employees of corporations?
What about smaller payoffs to public officials?
Is bribery inefficient?
Efficiency Hypernorm
BRIBERY MAY VIOLATE THE HYPERNORM SUPPORTING POLITICAL PARTICIPATION AND EFFICIENCY
“Only country to pass a comprehensive act against bribery (Foreign Corrupt Practices Act)
(Palazzolo).”
“From 1977 to 1992 U.S. fined or imprisoned more corporate officers and prominent businessmen than all other capitalist countries combined (Organizational Behavior Reader).”
Level in host countries background institutions
BRIBERY HARMS EFFICIENCY IS ESPECIALLY PRONOUNCED IN THE U.S.
Never “do in Rome as the Romans do” philosophy
Study of hypernorms suggest that we are more alike than we seem
When the rules of the game are different so are the ethics of playing it
Complying with hypernorms often demands considerable managerial activity
Being true to one’s ethics
PRACTICAL IMPLICATIONS OF ISCT FOR GLOBAL COMPANIES
THE ENDQ&A
“Donaldson, Thomas- The Wharton School of the University of Pennsylvania." Legal Studies and Business Ethics Department - The Wharton School of the University of Pennsylvania. Web. 23 Feb. 2011. <http://lgst.wharton.upenn.edu/people/faculty.cfm?id=1116>.
Lavengood, Lawrence G. "Thomas Donaldson and Thomas W. Dunfee, :Ties That Bind: A Social Contracts Approach to Business Ethics." Ethics 111.3 (2001): 627-30. Print.
Malone, Barry, and Elias Biryabarema. "Uganda Votes after Campaign Marked by Bribery Claims| Reuters." Business & Financial News, Breaking US & International News | Reuters.com. 18 Feb. 2011. Web. 23 Feb. 2011. <http://www.reuters.com/article/2011/02/18/us- uganda-election-idUSTRE71H16320110218?pageNumber=2>.
Palazzolo, Joe. "Challenge Could Break New Ground In FCPA - Corruption Currents - WSJ." WSJ Blogs - WSJ. Web. 23 Feb. 2011. <http://blogs.wsj.com/corruption-currents/2011/02/22/challenge-could-break-new-ground-in-fcpa/?KEYWORDS=China and bribery>.
Organizational Behavior Reader, The (8th Edition) (9780131441507): Joyce S Osland, Marlene E. Turner, David A. Kolb, Irwin M Rubin: Books." Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books, DVDs & More. Web. 24 Feb. 2011. <http://www.amazon.com/Organizational-Behavior-Reader-Joyce-Osland/dp/0131441507>.
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