Ethics in Global Markets

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Ethics in Global Markets
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Ethics in a Cross Cultural Environment
1. Why Bother?
? Good Ethics is Good Business
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? The Business of Business is Business Milton
Friedman
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Ethics is Prerequisite for Legal System,
Legal System is Prerequisite for Free
Market Economy
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2. Who is Responsible?
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It is easier to follow ones conscience than
ones reason because the conscience will always
offer some excuse and some cheer. This is why
there are still so many conscientious and so few
reasonable people
Nietzsche, Friedrich (1980). Die fröhliche
Wissenschaft, Gabler München.
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3. What Does it Mean to be Ethical?
Ethics is the enterprise that attempts to
formulate the principles by which human life is
to be lived Douglas Rasmussen
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? Ethics in a Corporate Setting
Stakeholder Concept versus Stockholder
Concept Satisfaction of Needs and Maximization
of Interests of all Stakeholders Shareholder
Value
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Stakeholder Matrix to Increase Shareholder Value
High
S1
S3
Potential for Threat
S2
S4
Low
High
Low
Potential for Cooperation
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Stakeholder Matrix to Balance differing
Stakeholder Interests
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Implications of Stakeholder Matrix S2 Little
Impact (ex. Small Investors, Industry
Associations, General Public)
Recommendation Ongoing Observation, Little
Allocation of Resources S3 High Impact (ex.
Qualified Employees, Key Accounts, Main
Suppliers, Key Customers)
Recommendation Permanent Management to Ward off
Potential Threats and to Nurture
Cooperative Relationships High Allocation of
Resources S1 High Strategic and Low Ethical
Importance (Ex. Unions, Suppliers,
Competitors) Recommendation Defensive
Strategy, Decrease Dependencies Selective
Allocation of Resources S4 Low Strategic and
High Ethical Importance (ex. Employees, Future
Generations, Local Community)
Recommendation Exploit Potential to Cooperate
Selective Allocation of Resources
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4. Ethics in a Cross Cultural Environment

• Major Problem Areas
• Environmental Issues
• Safety Issues
• Wage Issues
• Gender Issues
• Corruption
• FCPA
• http//www.transparency.org/policy_research/survey
  s_indices/cpi/2008

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4. Ethics in a Cross Cultural Environment
1. Cross Cultural Validity of Values
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3. Dialogic Idealism Communicative Approach
for Ethical Dilemmas
Act according to that maxim only, which you can
expect to be acceptable to all stakeholders in a
dialogue that is removed form all forms of
force and coercion
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Two Principles of the Dialogic Idealism
Universality Principle Universal Rules of
Ideal Dialogue 1. Everybody has the right to
participate in dialogue 2. Everybody has same
rights in dialogue 3. Everybody is willing to
follow the better argument 4. A norm is only
accepted if all participants can agree on it
Universal Objective Apply the rules of the
ideal dialogue as much as possible in real
dialogue
Responsibility Principle Assessment of
Consequences in Real Dialogue