Ethics in International Business
Chapter 4 - Ethics in International Business
Introduction • Business ethics are the accepted principles of right or wrong governing the conduct of business people • An ethical strategy is a strategy or course of action that does not violate these accepted principles
Ethical Issues in International Business • Many of the ethical issues and dilemmas in international business are rooted in the fact that political systems, law, economic development, and culture vary significantly from nation to nation • In the international business setting, the most common ethical issues involve - Employment practices - Human rights - Environmental regulations - Corruption - Moral obligation of multinational corporations
Employment Practices • Ethical issues associated with employment practices abroad include - When work conditions in a host nation are clearly inferior to those in a multinational’s home nation, what standards should be applied? - While few would suggest that pay and work conditions should be the same across nations, how much divergence is acceptable?
Human Rights • Questions of human rights can arise in international business because basic human rights still are not respected in many nations - Rights that we take for granted in developed nations, such as freedom of association, freedom of speech, freedom of assembly, freedom of movement, and freedom from political repression are by no means universally accepted • The question that must be asked of firms operating internationally is: ‘What is the responsibility of a foreign multinational when operating in a country where basic human rights are trampled on?’
Environmental Pollution • Ethical issues arise when environmental regulations in host nations are far inferior to those in the home nation - Developing nations often lack environmental regulations, and according to critics,
Introduction • Business ethics are the accepted principles of right or wrong governing the conduct of business people • An ethical strategy is a strategy or course of action that does not violate these accepted principles
Ethical Issues in International Business • Many of the ethical issues and dilemmas in international business are rooted in the fact that political systems, law, economic development, and culture vary significantly from nation to nation • In the international business setting, the most common ethical issues involve - Employment practices - Human rights - Environmental regulations - Corruption - Moral obligation of multinational corporations
Employment Practices • Ethical issues associated with employment practices abroad include - When work conditions in a host nation are clearly inferior to those in a multinational’s home nation, what standards should be applied? - While few would suggest that pay and work conditions should be the same across nations, how much divergence is acceptable?
Human Rights • Questions of human rights can arise in international business because basic human rights still are not respected in many nations - Rights that we take for granted in developed nations, such as freedom of association, freedom of speech, freedom of assembly, freedom of movement, and freedom from political repression are by no means universally accepted • The question that must be asked of firms operating internationally is: ‘What is the responsibility of a foreign multinational when operating in a country where basic human rights are trampled on?’
Environmental Pollution • Ethical issues arise when environmental regulations in host nations are far inferior to those in the home nation - Developing nations often lack environmental regulations, and according to critics,