Chapter 5 - International Business

what are the 4 approaches of the straw men approach

1. righteous moralist 2. friedman doctrine 3. naive immoralist 4. cultural relativism

determinants of unethical behavior

1. societal culture 2. personal ethics 3. decision-making process 4. organizational culture 5. leadership 6. unrealistic performance goals

Nike demonstrated a situation that is most preferred

a company that requires good conditions in its home and foreign operations and at foreign subcontractors even when this results in a smaller profit margin

apartheid system

a system that denied the basic political rights to the majority nonwhite population of south africa

what is Straw Men

approaches to business ethics are raised by business ethics scholars primarily to demonstrate that they offer inappropriate guidelines for ethical decision making in a multinational enterprise.

Naive Immoralist

asserts that if a manager of a multinational firm sees that firms from other nations are not following ethical norms in a host nation, that manager should not either objection is twofold The classic example is known as the drug lord problem.

why do ethical issues occur most often in international business?

because business practice and regulations normally differ between nations

righteous moralist

claims that a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries. This approach is typically associated with managers from developed nations. can create problems, bc proponents go too far

The Friedman Doctrine

classic straw man example business ethics scholars outline only to then tear down basic position is to increase profits In a free-enterprise, private-property system, a corporate executive is an employee of the owners of the business.

the belief that ethics are nothing but a reflection of culture is what?

cultural relativism

Environmen and Ethical Issues global tragedy of the common

ethical issues arise when environmental regulations in host nations are inferior to those in the home nation Many developed nations have substantial regulations governing the emission of pollutants, toxics, etc

Universal Declaration of Human Rights

everyone has the right to work free choice of employment to favorable work conditions

Utilitarian approach to ethics

hold that the moral worth of actions or practices is determined by their consequences An action is judged desirable if it leads to the best possible balance of good consequences over bad consequences maximize good and minimize the harm Utilitarianism recognizes that actions have multiple consequences, some of which are good in a social sense and some of which are harmful.

Kantian ethics

holds that people should be treated as ends and never purely as means to the ends of others. People are not instruments, like a machine.

Ethical Strategy

is a strategy or course of action that does not violate the principles of a business ethics

Sullivan Principles

named after Leon Sullivan, black baster minister General Motors adopted these principles in South Africa 2 conditions: 1. the company should not obey the apartheid laws in its own South African operations (a form of passive resistance) 1. the company should do everything within its power to promote the abolition of apartheid laws

the OECD Convention on combating bribery of foreign public officials in international business transactions

obliges its member stats and other signatories to make the bribery of foreign public officials a criminal offense

facilitating payments help a business do what?

receive standard treatment from a foreign government

right theories

recognize that human beings have fundamental rights and privileges that transcend national boundaries and cultures. Rights establish a minimum level of morally acceptable behavior.

organizational culture

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

cultural relativism

straw man the belief that ethics are nothing more than 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. when in rome do as the romans

philosophical approaches to ethics

straw man the friedman doctrine

a righteous moralist claims what?

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

what is one criticism of the naive immoralist?

that the multinational firm must regonize the fact they can change the prevailing business practices in a country

Business Ethics

the accepted principles governing the right or wrong of the people in a business

Ethics

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

how have international businesses gained economic advantages?

they made payments to corrupt government officials

True or False: international businesses have gained economic advantages by making payments to corrupt government officials

true

difference between norms and values

values are abstract ideas about what a group believes to be good, right, and desirable norms are the social rules and guidelines that prescribe appropriate behavior in particular situations