Chapter 5

Ethics

accepted principles of right or wrong that govern the conduct of a person, the members of a profession, or the actions of an organization

Organization for Economic Cooperation and Development

adopted conventions in 1999 that made the bribery of public officials a criminal offense but excluded facilitating payments that were used to expedite routine government actions.

Moral imagination

allows a business to think about how a decision might impact the stakeholder.

What did the Foreign Corrupt Practices Act include in facilitating payments?

because some US businesses complained the act would put US firms at a competitive disadvantage.

Why did western businesses questioned the ethics of operating in South America?

because the apartheid system in place there violated basic human rights.

What are three actions that a manager can take to ensure that ethical issues are considered in business decision making?

to implement decision-making processes that consider ethical aspects of business decisions. Favor hiring and promoting people with a sense of personal ethics, and build an organizational culture that values ethical behavior.

When does ethical issues arise in international business?

when environmental regulations in host nations are less stringent than those in the home country

Ethics officer

A management position serves as the organization's internal control point for improprieties.

Grease payment

A payment which ensures that a business receives the standard treatment that it out to receive from a foreign government

Foreign corrupt practices act

The congressional act outlaws the payment of bribes to foreign government officials to gain businesses

Corporate social responsibility

The idea that business people should favor decisions that have both good economic and social consequences

Ethical Strategy

a course of action that doesn't violate a company's business ethics

Code of ethics

a formal statement of primary values and ethical standards for employees to follow

What is not universally accepted?

freedom of association and freedom of speech

Sustainable strategy

helps a company make good profits but does so without harming the environment.

Moral courage

helps managers walk away from a decision that is profitable, but not ethical.

How is facilitating payments a benefit?

it smooths the process of services to which the business is entitled.

Culture

reflects the values and norms that are shared among employees of an organization.

What situation is generally most preferred when considering employment practices in international business?

requiring good conditions in home and foreign operations even when this results in smaller profit margin

Tragedy of the Commons

situation in which people acting individually and in their own interest use up commonly available but limited resources, creating disaster for the entire community

Ethical dilemmas

situations where none of the available alternatives seems morally acceptable.

Business ethics

the accepted principles of right and wrong governing the conduct of business people

Noblesse Oblige

the moral obligation to act in an honorable and benevolent manner