Post on 30-May-2018
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Countrywide & The Mortgage Industry Crisis
Global Warming
Martha Stewart & EnronDe Beers & Diamond Mining
Sweat Shops
Employment of Illegal Aliens / ForeignWorkers
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Ethics
Global Social Responsibility
Human Rights & Corruption
Promoting Ethics in TransnationalCompanies
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Oxford Definition
Ethics | plural noun
1. [usu. treated as pl.] moral principles thatgovern a persons or groups behavior : Judeo-
Christian ethics. the moral correctness ofspecified conduct : the ethics of euthanasia.
2. [usu. treated as sing.] the branch ofknowledge that deals with moral principles.
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Standards of Right & Wrong
Establishing a standard of conduct, beliefvalues, and sensitivity.
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Guidelines for making decisions that effectemployees, the organization, consumers, andother parties.
The importance of managerial ethicsincreases in proportion to the importance of
the outcome.
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Behavior that focuses on supposed short termadvantages without considering mid- andlong-term consequences.
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12% of Brazils Amazon charcoal works stilluse slave labor despite ban by Citizens CoalInstitute (regional industry watchdog since2004)
1,500 charcoal works operate in this region
316 charcoal works shut down due to
infractionsU.S. buyers concerned about doing business
with unethical charcoal works ethicsperception.
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Social
Economic
Human Asset
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Transnational FirmTransnational Firm
ViewpointViewpointActively solve host-country problems
Simply doing business is addressing local
social, human asset, and economic problemsEarn a profit
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Internal BeneficiariesInternal BeneficiariesEmployees
Customers
Owners
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External BeneficiariesExternal BeneficiariesSpecial-interest groupsRacial and ethnic minorities
WomenHandicapped
Aged
Groups that succeed in having laws madeEqual Employment Opportunity
Affirmative Action
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General ExternalGeneral External
BeneficiariesBeneficiariesSolve or prevent general social problems
Stakeholder management devices
Ethics committeesPublic Affairs Office
Code of Ethics
Corporate Sponsorship
Employee Newsletters
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Global SocialGlobal Social
ResponsibilityResponsibility
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Basic standards of treatment for all people,regardless of :
Religion Gender
Race
Economicstatus
Nationality
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Forced labor and inhumane workingconditions are examples of human rightsviolations
Companies implement policies and programsto avoid violations and are regulated by globalgroups, such as Amnesty International
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No longer acceptableInternational and national laws governing
corruption, bribery, and fraud are becomingincreasingly pervasive
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Why should a transnational company considerethics?
1. Combat human rights violations2. Good ethics is good business
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Good ethics is good businessEthical standards can be considered an asset
Special efforts andcost
Reputation
Investing in ethical behavior may yieldshort term profit loss Unethical behavior results in publicoutcry, legal action, and extended loss ofprofits
Investment may be balanced-out by a
gain in reputation Reputation of a company is one of themost valuable assets even if not in thebalance sheet
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How does a transnational company promoteethics?
No one successful approachEthics most effective when a part of a
companys culture
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Successful Strategies for PromotingEthics
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No universal set of standardsSituation
CountryContext
Review and consider each host country
separately
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EthicsStandards of right and wrong
Social ResponsibilitySocial, economic, and ethical decision making
Human RightsBasic standards of treatment for all people
Promoting EthicsImportance of firms to implement ethics
standards
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Prevalent today as shown in articles covered
Ethics Quiz
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