Chapter 5 International Business Midterm

The Roots of Unethical Behavior

They can be complex and reflect: -personal ethics -decision making processes -leadership -unrealistic performance expectations -organizational culture

Personal Ethics

expatriates may face pressure to violate their personal ethics because they are away from their ordinary social context and supporting culture, and they are psychologically and geographically distant from the parent company

Organizational Culture

in firms with an organization culture that does not emphasize business culture, unethical behavior may exist

Decision Making Processes

people may behave unethically because they rely on economic analysis when making decisions and fail to ask the relevant question, "Is this decision or action ethical?"

Ethical Issues in IB

-employment practices -human rights -environment regulations -corruption -the moral obligation of multinational companies

Leadership:

-leaders help to establish the culture of an organization, and set the example that others follow -when leaders act unethically, subordinates may act unethically, too

Unrealistic Performance Expectations:

-when the parent company sets unrealistic performance goals, managers may cut corners or act in an unethical manner -organizational culture can legitimize unethical behavior or reinforce the need for ethical behavior