2012-05-25 Docket Report Western Sugar Cooperative v Archer Daniels-Midland
Daniels Ib14inppt 05
description
Transcript of Daniels Ib14inppt 05
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-1
International Business
Environments & Operations
14e
Daniels ● Radebaugh ● Sullivan
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-2
Chapter 5Globalization and Society
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-3
Learning Objectives To examine the broad foundation of ethical
behavior To demonstrate the cultural and legal foundations
of ethical behavior To discuss the importance of social responsibility
when operating internationally, especially in the areas of sustainability
To discuss some key issues in the social activities and consequences of globalized business
To examine corporate responses to globalization in the form of codes of conduct, among other things
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-4
Introduction Companies must satisfy stakeholders
Shareholders Employees Customers Society
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-5
Foundations of Ethical Behavior
Learning Objective 1: To examine the broad foundation of ethical behavior.
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-6
Foundations of Ethical Behavior
Three levels of moral development1. Preconventional2. Conventional3. Postconventional, autonomous,
principled
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-7
Foundations of Ethical Behavior
Teleological approach decisions are based on the
consequences of the action Utilitarianism
an action is right if it produces the greatest amount of good
Deontological approach moral judgments are made and moral
reasoning occurs independently of consequences
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-8
Why Do Companies Care? Ethical behavior can help a company
develop a competitive advantage avoid being perceived as irresponsible
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-9
The Cultural and Legal Foundations of Ethical
BehaviorLearning Objective 2: To demonstrate the cultural and legal foundations of ethical behavior
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-10
Relativism versus Normativism
Relativism ethical truths depend on the groups holding
them Normativism
there are universal standards of behavior that all cultures should follow
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-11
Legal Justification: Pro and Con
The law is inadequate because Some things that are unethical are not illegal Laws are slow to develop in emerging areas of
concern Laws may be based on imprecisely defined
moral concepts The law often needs to undergo scrutiny by the
courts The law is not very efficient
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-12
Legal Justification: Pro and Con
Legal justification is appropriate because The law embodies many of a country’s moral
principles The law provides a clearly defined set of rules The law contains enforceable rules that apply
to everyone The law reflects careful and wide-ranging
discussions
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-13
Extraterritoriality Extraterritoriality
imposing domestic legal and ethical practices on the foreign subsidiaries of companies headquartered in their jurisdictions
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-14
Ethics and Corporate Bribery
Regardless of the reasons for not using the law as a starting point for ethical behavior, it remains a good starting point
Countries looking for solutions to common problems take similar legal steps Consider
activities that affect the well-being of people activities that affect the environment
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-15
Corruption and Bribery Corruption
the misuse of entrusted power for private gain Bribes
payments or promises to pay cash or anything of value
Occurs to obtain government contracts to get public officials to do what they should
be doing anyway
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-16
Corruption and BriberyWhere Bribes Are Business As Usual
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-17
Corruption and Bribery International accords to stop bribery
OECD Anti-Bribery Convention ICC code of rules UN Convention against Corruption
Regional initiatives include EU efforts U.S. Foreign Corrupt Practices Act and
Sarbanes-Oxley legislation Industry initiatives include
2005 World Economic Forum zero tolerance pact
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-18
Ethics and the Environment
Learning Objective 3: To discuss the importance of social responsibility when operating internationally, especially in the areas of sustainability
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-19
Ethics and the Environment
Companies compromise the environment contamination of air, soil, or water during
manufacturing producing products that emit fossil-fuel
contaminants Effect of natural resource extraction
renewable versus non-renewable
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-20
What is Sustainability? Sustainability
meeting the needs of the present without compromising the ability of future generations to meet their own needs
Is sustainability good business practice? yes
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-21
Global Warming, Kyoto Protocol
Kyoto Protocol (1997) signed to require countries to cut greenhouse
gas emissions to 5.2% below 1990 levels between 2008 and 2012
Some countries have adopted stricter requirements others have not ratified the agreement
including the U.S., China, India
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-22
Ethical Dilemmas and Other Business PracticesLearning Objective 4:To discuss some key issues in the social activities and consequences of globalized business
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-23
Ethical Dilemmas in the Pharmaceutical Industry
Tiered pricing and other price-related issues reverse engineering
WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) generic drugs
R&D and the Bottom Line India
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-24
Ethical Dimensions of Labor Conditions
Labor issues include Wages Child labor Working conditions Working hours Freedom of association
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-25
Ethical Dimensions of Labor Conditions
Sources of Worker-Related Pressures in the Global Supply Chain
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-26
Ethical Dimensions of Labor Conditions
Child labor – ILO estimates 250 million children aged 5–17 years work
Some companies avoid operating in countries where child labor is common or establish responsible policies in those
countries - IKEA Some companies refuse to hire individuals
who want to work long hours concerned about exploitation
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-27
Corporate Codes of Ethics
Learning Objective 5: To examine corporate responses to globalization in the form of codes of conduct, among other things
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-28
Corporate Codes of Ethics
How should companies behave? The UN Global Compact establishes
guidelines for appropriate behavior in human rights labor the environment anti-corruption
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-29
Motivations for Corporate Responsibility
Unethical and irresponsible behavior could result in legal sanctions result in consumer boycotts lower employee morale cost sales because of bad publicity
A code of conduct sets global policy that must be complied with communicates the code to employees,
suppliers, and subcontractors ensures that policies are carried out reports results to external stakeholders
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-30
Corporate Ethics in The Future
Two trends: There will be greater convergence of proper
ethical conduct Individuals will develop skills to address ethical
issues Impact of social media Impact of future business and government
leaders
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
5-31
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.