International Business Ch 5

Sustainable strategies

These not only help the multinational firm make good profits but that also do so without harming the environment while simultaneously ensuring that the corporation acts in a socially responsible manner with regard to its stakeholders.

Code of ethics

a formal statement of the ethical priorities that a business adheres to

External Stakeholders

are all the individuals and groups that have direct or indirect claim on the firm

Naive immoralist

asserts that if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation, that manager should not either

What is a righteous moralist?

claims that a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries.

Kantian ethics

holds that people should be treated as ends and never purely as means to the ends of others.

Internal stakeholders

individuals or groups who work for or own the business. This includes the board of directors and shareholders.

What is cultural relativism

it is the belief that ethics are nothing more then the reflection of a culture. —all ethics are culturally determined—and that accordingly, a firm should adopt the ethics of the culture in which it is operating.

Rights theories

recognize that human beings have fundamental rights and privileges transcend national boundaries and cultures.

What is organizational culture?

refers to the values and norms that shared among teh employees of an organization

What determines ethical behavior?

societal culture, personal ethics, organizational culture, leadership, decision making process, and, unrealistic performance goals

Universal Declaration of Human Rights?

the notion that there are fundamental rights that transcend national borders and cultures, an underlying motivation in the declaration.

What are stakeholders

they are individuals or groups that have an interest claim or stake in the company, in what it does, in how well it performs.

Utilitarian approach to ethics

An action is judged desirable if it leads to the best possible balance of good consequences over bad consequences.

Just Distribution

One that is considered fair and equitable