Chapter4EthicsinInternational Business
Chapter 4 Ethics in International Business
LearningObjectivesBe familiar with the ethical issues faced bytheinternationalbusinessesRecognizeanethical dilemma.Discuss the cause of unethical behavior bymanagers4-2
4-2 Learning Objectives ❖Be familiar with the ethical issues faced by the international businesses ❖ Recognize an ethical dilemma. ❖ Discuss the cause of unethical behavior by managers
4.1EthicalIssuesInInternationalBusinessThemost commonethical issues in businessinvolve:（雇佣实务）employmentpracticeshumanrights（人权）environmentalregulations（环境标准）Corruption（腐败）themoralobligation（道德义务）4-3
4-3 4. 1Ethical Issues In International Business The most common ethical issues in business involve: ❖employment practices （雇佣实务） ❖human rights（人权） ❖environmental regulations（环境标准） ❖Corruption（腐败） ❖the moral obligation （道德义务）
EmploymentPracticesIf work conditions in a host nationare clearlyinferiorto those in a multinational's homenation,should companiesapplyhomecountrystandardshostcountrystandardssomethinginbetween4-4
4-4 Employment Practices If work conditions in a host nation are clearly inferior to those in a multinational’s home nation, should companies apply: ❖home country standards ❖host country standards ❖something in between
Human Rightslndevelopedcountries,basichumanrights such as freedom of association,freedomof speech,freedomofassemblyandfreedomof movement,aretaken forgrantedInothercountries,theserightsmaynotexist4-5
4-5 Human Rights ❖In developed countries, basic human rights such as freedom of association, freedom of speech, freedom of assembly, and freedom of movement, are taken for granted ❖In other countries, these rights may not exist
Environmental PollutionEthical issues arise whenenvironmentalregulations in host nations are far inferior to those inthehomenationEnvironmental questions take on added importancebecause some parts of the environment are a publicgood（公共产品）that no one owns,but anyone candespoilThetragedyofthecommons（公共的悲剧）occurswhenaresourceheldincommonbyall,butowned byno one,is overused by individuals,resultingin its degradation。4-6
4-6 Environmental Pollution ❖Ethical issues arise when environmental regulations in host nations are far inferior to those in the home nation ❖Environmental questions take on added importance because some parts of the environment are a public good（公共产品） that no one owns, but anyone can despoil ❖The tragedy of the commons （公共的悲剧） occurs when a resource held in common by all, but owned by no one, is overused by individuals, resulting in its degradation
CorruptionForeignCorruptPracticesActThe Conventionon Combating BriberyofForeign Public Officialsin InternationalBusiness(OECD)4-7
4-7 Corruption ❖Foreign Corrupt Practices Act ❖The Convention on Combating Bribery of Foreign Public Officials in International Business (OECD)
CorruptionSome economists believe that in a countrywherepreexisting political structures distort or limit the workings ofthemarketmechanism,corruptionintheformofblack-marketeering,smuggling,and sidepayments togovernment bureaucrats to“speed up”approval forbusiness investmentsmayactuallyenhancewelfareOthereconomists have argued thatcorruption reducesthereturns on business investment and leads to loweconomicgrowth4-8
4-8 Corruption ❖Some economists believe that in a country where preexisting political structures distort or limit the workings of the market mechanism, corruption in the form of blackmarketeering, smuggling, and side payments to government bureaucrats to “speed up” approval for business investments may actually enhance welfare ❖Other economists have argued that corruption reduces the returns on business investment and leads to low economic growth
Moral ObligationsSocial responsibility refers to the idea thatbusinesspeopleshouldtakethesocial consequencesof economic actions into account when makingbusiness decisions,and that there should be apresumption in favor of decisions that have bothgoodeconomic and good social conseguencesnoblesseoblige尊贵的义务：honorableand benevolent behavior that istheresponsibilityofsuccessfulcompanies4-9
4-9 Moral Obligations ❖Social responsibility refers to the idea that business people should take the social consequences of economic actions into account when making business decisions, and that there should be a presumption in favor of decisions that have both good economic and good social consequences ❖noblesse oblige 尊贵的义务: honorable and benevolent behavior that is the responsibility of successful companies
4.2 The Roots Of Unethical BehaviorThereisno clearcut reasonwhymanagersbehaveunethicallyThe causes of unethical behavior are complex andreflect:Personalethics（个人道德）（决策过程）+Decision-makingprocessesLeadership（领导艺术）Unrealisticperformanceexpectations（不现实的业绩期待）Organizationalculture（组织文化）4-10
4-10 4.2 The Roots Of Unethical Behavior ❖There is no clear cut reason why managers behave unethically The causes of unethical behavior are complex and reflect: ❖Personal ethics (个人道德） ❖Decision-making processes （决策过程） ❖Leadership（领导艺术） ❖Unrealistic performance expectations（不现实的业绩期 待） ❖Organizational culture（组织文化）