ch05 ethics-social-responsibilityinib
TRANSCRIPT
©2004 Prentice Hall5-1
Chapter 5:Ethics and Social Responsibility in International Business
International Business, 4th EditionGriffin & Pustay
By Mahsina, SE., MSIBy Mahsina, SE., MSIFB: mahsina seFB: mahsina se
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Chapter Objectives_1
Describe the nature of ethics Discuss ethics in cross-cultural and
international contexts Identify the key elements in managing
ethical behavior across borders Discuss social responsibility in cross-
cultural and international contexts
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Chapter Objectives_2
Identify and summarize the basic areas of social responsibility
Discuss how organizations manage social responsibility across borders
Identify and summarize the key regulations governing international ethics and social responsibility
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Exporting Jobs or Abusing People?
“Made in USA” – American Samoa and Saipan
NAFTA – low wages in Mexico Walmart & More South African miners Canada and drug prices
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Ethical Behavior
Ethical behavior usually refers to behavior that conforms to generally accepted
social norms.
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Ethical Generalizations
Individuals have their own personal belief systems
People from the same cultural context will tend to hold similar beliefs
Behaviors can be rationalized Circumstances affect adherence to belief
systems National culture is intertwined with ethics
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Figure 5.1 Ethics in a Cross-Cultural Context
Cultural Context
Behavior of Organization Toward Employees
Behavior of EmployeesToward Organization
Behavior of Employees and Organization
Toward Other Economic Agents
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Spectrum of Effects
Free Trade No Trade•Jobs migrate
•Low wages
•Poor conditions
•Fewer jobs in developing countries
•Higher prices
•Fewer products
Trade with Social Responsibility
How? Code of Ethics
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Guidelines and Codes of Ethics
Written statements of the values and ethical standards that guide the firm’s actions
Examples– Johnson & Johnson -- IBEI– General Mills -- Lilly
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What do you do…
when the country in which you are doing business does not have a code of ethics compatible with your own?
Gao Feng in China Case.
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Acceptability of Bribery
Acceptable– Russia– China– Taiwan– South Korea
Unacceptable– Australia– Sweden– Switzerland– Austria
The U.S., Japan, and Italy fell between the two extremes.
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Areas of Social Responsibility
Organizational stakeholders Natural environment General social welfare
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Corporate Excellence
L.L. Bean Toyota Lands’ End Dell Computer DaimlerChrysler BP
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A joint venture between Anglo-American and the Zambian government
seeks to mine copper while minimizing harm to the environment
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Figure 5.3 Approaches to Social Responsibility
LeastResponsible
MostResponsible
Obstructionist Defensive Accommodative Proactive
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Obstructionist Stance
Do as little as possible to address social or environmental problems
Deny or avoid responsibility Examples
– Astra– Nestle– Danone
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Defensive Stance
Do what is required legally, but nothing more
Corporate responsibility is to generate profits
Example– Philip Morris
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Accommodative Stance
Meet ethical and legal requirements and more
Agree to participate in social programs Match contributions by employees Respond to requests from non-profits No proactive behavior to seek such
opportunities
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Proactive Stance
Strong support of social responsibility Viewed as citizens of society Seek opportunities to contribute Examples
– McDonald’s– The Body Shop– Ben & Jerry’s
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Managing Social Responsibility
Planning
Decision Making
Consideration
Evaluation
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Implementing Social Responsibility
Legal Compliance Ethical Compliance Philanthropic Giving
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Informal Dimensions of Social Responsibility
Leadership Organizational culture Whistle-blowing
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Corporate Social Audit
Tool for the evaluation of social responsibility effectiveness
Formal and thorough analysis Conducted by task force
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Steps in Corporate Social Audit
Define social goals
Analyze resources devoted to each goal
Determine degree of achievement for each goal
Make recommendations