Title: Ethical Issues in Global Business
1Ethical Issues in Global Business
- Marketing and safety practices
- Sweatshop and labour abuse
- Corruption and bribery
2The Moral Philosophy Framework
- Cultural Relativism
- Cultural theories
- Situational ethics
- When in Romedo as the Romans do.
- Limitation
- Which Romans?
3Bribes vs. Grease Payments
- Definitions
- Grease PaymentsMoney given for the purpose of
getting minor officials to do what they are
supposed to be doing. - BribesRelatively large amounts of money given
far the purpose of influencing officials to make
decisions or take actions that they otherwise
might not take.
- Examples
- Money given to minor officials (clerks,
attendants, customs inspectors) for the purpose
of expediting a project - Money given, often to high-ranking officials.
Purpose is often to get these persons to purchase
goods or services from the bribing firm.
4Arguments For and Against Bribery
- For
- A necessary tool
- Accepted practice
- Form of commission, tax, or compensation
- Against
- Wrong/illegal
- Compromise personal beliefs
- Promotes government corruption
- Benefits recipient only
- Creates dependence on corruption
- Deceives stockholders
5Improving Global Business Ethics
- Integrative Social Contract Theory (ISCT)
- Hypernorms-- transcultural values including
fundamental human rights - Consistent norms-- norms that are culturally
specific, but consistent with hypernorms - Moral free space norms-- strongly held cultural
beliefs in countries that are in tension with
hypernorms - Illegitimate norms those norms that are
incompatible with hypernorms
6Using ISCT The Case of Bribery
- Is bribery part of moral free space or is it an
illegitimate norm? - 1) violates agent / principal contract
- 2) against law in all countries
- 3) violates political participation hypernorm
- 4) violates economic efficiency hypernorm
- Conclusion Bribery is an illegitimate norm
7Trends Against Bribery
- Foreign Corrupt Practices Act enacted
- Transparency International developed
- OCED Antibribery Initiatives launched
- 10 on UN Global Compact
8Improving Global Business Ethics
Fundamental International Rights
- The right to physical movement
- The right to ownership of property
- The right to freedom from torture
- The right to a fair trial
- The right to nondiscrimination
- The right to physical security
- The right to freedom of speech and association
- The right to minimal education
- The right to political participation
- The right to subsistence
9Improving Global Business Ethics
The Dilemma of the Multinational Corporation
The Multinational Corp.
10Improving Global Business Ethics
Ethical Choices in Home vs. Host Country
Situations
11Improving Global Business Ethics
- Typology of Global Types
- Foreign type
- Empire type
- Interconnection type
- Global type
12Improving Global Business Ethics
Seven Moral Guidelines for MNCs
- Pay their fair share of taxes
- Respect local cultural beliefs that do not
violate moral norms - Cooperate with the government to develop and
enforce background institutions
- Inflict no intentional or direct harm
- Produce more good than bad for the host country
- Contribute to host countrys development
- Respect the human rights of their employees