Business Ethics Ch 1
example of big companies getting through bc of Globalization (tax payments)
(Globalization) tax avoidance strategies of Apple, Google, Starbucks, and amazon. Due to different tax legislations in various countries they managed to minimize their tax payment without breaking the law.
Reasons why Business ethics is important
1. Business had huge power within society 2. Business has the potential to provide a major contribution to our societies 3. Business malpractice has the potential to inflict enormous harm on individuals, communities, and the environment. 4. The demands being placed on business to be ethical by its various stakeholders are becoming ore complex and challenging. 5. Employees face significant pressure to compromise ethical standards. 6. The business faces a trust deficit. 7. Evaluating different ways of managing business ethics 8. Interesting and rewarding
what is business ethics? (definition)
Business ethics is the study of business situations, activities, and decisions where issues of right and wrong are addressed.
Cultural issues Globalization and BE
Corporations engage in oversee markets and find themselves confronted with diverse, sometimes even contradictory, ethical demands. Racial and Ethical differences in America vs Middle east.
Ethical impacts of globalization on employees and workers
Corporations outsource production to developing countries in order to reduce costs in global marketplace - this provides jobs but also raises the potential for exploitation of employees through poor working conditions.
Three main issues regards to Globalization and Business Ethics
Cultural, Legal and Accountability issues
What are the main priorities in addressing ethical issues for Civil Society Organizations?
Delivery of mission to clients; legitimacy and accountability issues
Civil society organizations are responsible and/or accountable to...
Donors and clients
What are the main priorities in addressing ethical issues for Small businesses?
Employee, customer/community issues
What are the key ethical issues in the Construction industry?
Employment issues including modern slavery, health and safety, provenance of raw materials, environmentally sustainable construction (waste reduction, demolition, energy-saving, CO2 emissions, community and supply chain relationships)
What is Ethical Dilemma?
Ethical Dilemma presents one such situation that you might face where values are in conflict
What is Ethics?
Ethics is concerned with the study of morality and the application of reason to elucidate specific rules and principles that determine right and wrong for any given situation.
What is the dominant stakeholder management approach? (Europe, North America, Asia)
Europe - Formalized multiple stakeholder approach North America - Focus on shareholder value Asia - Implicit multiple stakeholder approach, benign managerialism
Who is the key actor in business ethics? (Europe, North America, Asia)
Europe - Government, trade unions, corporate associations North America - The Corporation Asia - Top Management
What are the key guidelines for ethical behavior? (Europe, North America, Asia)
Europe - Negotiated legal framework of business North America - Corporate codes of ethics Asia - Managerial discretion
Who is responsible for ethical conduct in business? (Europe, North America, Asia)
Europe - Social control by the collective North America - The Individual Asia - Top Management
What are the key issues in business ethics? (Europe, North America, Asia)
Europe - Social issues in organizing the framework of business North America - Misconduct and immorality in single decision situations Asia - accountability
What are the main priorities in addressing ethical issues for Large companies?
Financial integrity, employee/customer issues
How do Public Sector Organizations approach to managing ethics?
Formal, bureaucratic, regulated
How do Large corporations approach managing ethics?
Formal, public relations, and/or systems-based
Public sector organizations are responsible and/or accountable to...
General public, higher level government organizations
Ethical impacts of globalization on Civil society (pressure groups, NGOs, local communities)
Global activities brings the company in direct interaction to local communities with possibility for erosion of traditional life; globally active pressure groups emerge with aim to "police "the corporation where governments are weak and tolerant.
Ethical impacts of globalization on Consumers
Global products provide social benefits to consumers across the globe, but may also meet protests about cultural imperialism and westernization. Globalization can bring cheaper prices to customers, but vulnerable consumers in developing countries may also face the possibility of exploitation by MNCs.
Ethical impacts of globalization on Shareholder
Globalization provides potential for greater profitability, but also greater risks. Lack of regulation of capital markets, leading to additional financial risks and instability.
Ethical impacts of globalization on Government and regulation?
Globalization weakens governments and increases the corporate responsibility for jobs, welfare, maintenance of ethical standards, etc. Globalization also confronts governments with corporations from different cultural expectations about issues such as bribery, corruption, taxation, and philanthropy.
What are the key ethical issues in Supermarkets?
Healthy eating (especially sugar and salt content and pricing strategies), food and packaging waste (especially plastics), power in supply chain relationships, supply chain CO2 emissions, community relationships, local economic decline of town center locations)
Main constraints with Public Sector?
Inertia, lack of transparency
How does Civil Society Organization's approach to managing ethics?
Informal values-based
How do small businesses approach managing ethics?
Informal, relationship and trust-based
What is Morality?
It is concerned with the norms, values, and beliefs embedded in social processes which define right and wrong for an individual or a community. (comes from inside and the family)
Main constraints with Civil Society Organizations?
Lack of resources and formal training
Main constraints with small businesses?
Lack of resources, including time
differences between countries regarding culture and ethics
Racial and Ethical differences in America vs Middle east. Europeans disapprove capital punishment while many Americans may think that its morally acceptable Gun ownership is normal in South Africa and Canada, but controversial in Japan and Australia.
What are the main priorities in addressing ethical issues for Public sector Organizations?
Rule of law, conflict of interest; accountability issues
Main constraints with large corporations?
Shareholder orientation; size and complexity
Large Corporations are responsible and/or accountable to...
Shareholders and other stakeholders
What are SMEs?
Small and Medium-sized enterprises are firms with fewer than 250 employees, they differ in their attention and approach to business ethics compared to large firms, they make up 95% of most private sector economies. They usually have less than ten employees (micro businesses).
Ethical impacts of globalization on Suppliers and competitors
Suppliers in developing countries face regulation from MNCs through supply chain management. Small scale indigenous competitors exposed to global players.
What is sustainability?
Sustainability refers to the long-term maintenance of systems according to environmental, economic and social considerations
what is sustainable development?
Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. (World Commission on Environment and Development 1987)
main developments in past few decades that have enhanced the impact of globalization (Technological and Political)
Technological - from telephone trough to the internet and digitalization. have opened up the possibility of connection and interaction between people. Global transportation technologies allow people to easily meet one another. Political - territorial borders made it hard for people to communicate before. after the fall of iron curtain and substantial liberalization efforts elsewhere. In most cases national borders have eroded or even been abolished.
Problems with subject of business ethics.
The concerns with business ethics are directed at how theories of business ethics have been developed and applied, rather than questioning the importance of business ethics as a subject per se.
What is Globalization?
The ongoing integration of political, social, and economic interactions at the transnational level, regardless of physical proximity of distance. Globalization is: a process which diminishes the necessity of a common and shared territorial basis for social, economic, and political activities, processes, and relations. 'de-territorialization'
What is the relationship between Business Ethics and the law? (Venn diagram)
There is an overlap between the law and ethics, in fact, the law is essentially an institutionalization or codification of ethics into specific social rules, regulations, and proscriptions. There are issues that are covered by the law but not by ethics or vice versa. For example, selling landmines to oppressive regimes is unethical but is not against the law. On the other hand, in different countries, there are different laws regarding which side of the road to drive, nothing unethical about it
What is The Comperative analysis of business ethics?
Understanding the differences in cultural norms and moral values between different countries and regions is an important skill in business ethics, Competitive analysis helps you to understand that key issues, actors, and guidelines for ethical conduct always need to be understood in the specific geographic context where a business operates.
Accountability issues Globalization and BE
Walmart being more economically powerful than some countries. and is only accountable to small groups of people while the governments are accountable to whole countries. When economic activities become global, the less governments can control them.
Legal Issues Globalization and BE
When the company lives its home country the legal frameworks become completely different.
What does "Race to the bottom" mean?
a process whereby multinationals pit developing countries against each other by allocating foreign direct investment to countries that can offer them the most favorable conditions in terms of low tax rates, low levels of environmental regulation, and restricted workers' rights
State differences and similarities between ethics and morality?
an individual has their own morality, a basic sense of right and wrong in relation to particular activities. While Ethics represents an attempt to systemize and rationalize morality, typically into generalized normative rules. The relationship between morality, ethics and ethical theory (diagram)
Environmental perspectives on Sustainability
clean up
social perspectives on sustainability
community, system
What are the key ethical issues in Chemical industry?
competitive practices, environmental responsibility, health and safety and human rights
What are the key ethical issues in Information and mobile technology?
competitive practices, fair pricing, global production methods, data protection, protection of consumer from harmful materials and energy and CO2 usage
where have the ethical differences between US and Europe emerged?
different cultural, economic and religious histories of Europe and US.
three components of sustainability
environmental, Economic, Social
Economic perspectives on sustainability
make money with long term growth
What is the Triple Bottom Line (TBL) ?
represents the idea that business does not have just one single goal-namely adding economic value, but that it has an extended goal which necessitates adding environmental and social value too.
What are the key ethical issues in Financial services? (pg.15)
weak regulation, financial crime, responsible lending, sales practices and consumer protection, tax evasion and avoidance