Chapter 5: Ethics, Corporate Social Responsibility, and Sustainability

Corporate Moral Obligations

Noblesse oblige - honorable and benevolent behavior that is the responsibility of successful companies J&J has an existing deal with South African group Aspen Pharmacare, which makes Prezista at a discounted price of $2.22 for Africa - a fraction of he western market place

Corporate Social Responsibility (CSR)

Refers to the idea that managers should consider the social consequences of economic actions when making decisions Out of 34 million HIV positive people - 69% live in sub Saharan Africa Johnson & Johnson is deepening its business in Africa, adding new research, development and distribution capabilities to boost sales of new medicine to fight HIV/AIDS and other major killer diseases

Ethical Strategy

a strategy, or course of action, that does not violate these accepted principles

Environmental Pollution

Host country regulations are inferior - one of the perspectives on why globalization is unsavory

Factors contributing to unethical behavior

Personal ethics, decision-making processes, organization culture, unrealistic performance expectations, leadership, societal culture

Organization Culture

can legitimize unethical behavior or reinforce the need for ethical behavior

Personal Ethics

the generally accepted principles of right and wrong governing the conduct of individuals — expatriates may face pressure to violate their personal ethics because they are away from their ordinary social context and supporting culture — managers fail to question whether a decision or action is ethical, and instead rely on economic analysis when making decisions

Decision-making processes

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

Ethical Issues

Employment practices, human rights, environmental, pollution, corruption

Ethics

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

Business Ethics

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

Employment Practices

12 hour work day (Nike), child labor, working conditions

Ethical Dilemmas

Situations in which none of the available alternatives seems ethically acceptable — real-world decisions are complex, difficult to frame, and involve consequences that are difficult to qualify — ethical obligations of an MNE (multinational enterprise) toward employment conditions, human rights, corruption, environmental pollution, and the use of power are not always clear cut

Human Rights

South Africa, Apartheid still lingers