International bussiness 6th griffin pustay chapter 05

Ethics and Social Responsibility in International Business 5-1 Griffin & Pustay Copyright 2010 Pearson Education, Inc publishing as Prentice Hall International Business, 6th Edition chapter Chapter Objectives • Describe the nature of ethics • Discuss ethics in cross-cultural and international contexts • Identify the key elements in managing ethical behavior across borders • Discuss social responsibility in crosscultural and international contexts 5-2 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Chapter Objectives (continued) • Identify and summarize the basic areas of social responsibility • Discuss how organizations manage social responsibility across borders • Identify and summarize the key regulations governing international ethics and social responsibility 5-3 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Exporting Jobs or Abusing People? • Minute Maid • Tropicana • Nestle • Nike 5-4 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Nature of Ethics and Social Responsibility in International Business Ethics are an individual's personal beliefs about whether a decision, behavior, or action is right or wrong 5-5 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Ethical Generalizations • Individuals have their own personal belief systems • People from the same cultural context will tend to hold similar beliefs • Behaviors can be rationalized • Circumstances affect adherence to belief systems • National culture is intertwined with ethics 5-6 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Figure 5.1 Ethics in a Cross-Cultural Context Behavior of Organization Toward Employees Behavior of Employees Toward Organization Cultural Context Behavior of Employees and Organization Toward Other Economic Agents 5-7 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Ethics in Cross-Cultural and International Contexts • How Organizations Treat Employees • How Employees Treat the Organization • How Employees and Organizations Treat other Economic Agents 5-8 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Acceptability of Bribery 5-9 • Acceptable • Unacceptable – Russia – Australia – China – Sweden – Taiwan – Switzerland – South Korea – Austria Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Managing Ethical Behavior Across Borders Guidelines or codes Ethics training Organizational practices Corporate culture 5-10 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Areas of Social Responsibility Organizational stakeholders Natural environment 5-13 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall General social welfare Map 5.1 Social Responsibility Hot Spots 5-14 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Approaches to Managing Social Responsibility Obstructionist Defensive Accommodative Proactive 5-15 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Figure 5.2 Approaches to Social Responsibility Most Responsible Least Responsible Obstructionist 5-16 Defensive Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Accommodative Proactive Obstructionist Stance • Do as little as possible to address social or environmental problems • Deny or avoid responsibility • Examples – Astra – Nestle – Danone 5-17 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Defensive Stance • Do what is required legally, but nothing more • Corporate responsibility is to generate profits • Example – Philip Morris 5-18 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Accommodative Stance • Meet ethical and legal requirements and more • Agree to participate in social programs • Match contributions by employees • Respond to requests from nonprofits • No proactive behavior to seek such opportunities 5-19 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Proactive Stance • Strong support of social responsibility • Viewed as citizens of society • Seek opportunities to contribute • Examples – McDonald’s – The Body Shop – Ben & Jerry’s 5-20 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Managing Compliance Formally Legal Compliance Ethical Compliance 5-21 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Philanthropic Giving Informal Dimensions of Social Responsibility Organizational Leadership and Culture Whistle blowing 5-22 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Evaluating Social Responsibility A corporate social audit is a formal and thorough analysis of the effectiveness of the firm’s social performance 5-23 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Difficulties of Managing Corporate Social Responsibility Across Borders Actors in Policy Formulation Process The state The market 5-24 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Civil society Difficulties of Managing Corporate Social Responsibility Across Borders Anglo-Saxon approach Asian approach Continental European approach 5-25 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Regulating International Ethics and Social Responsibility • Foreign Corrupt Practices Act (FCPA) • Alien Tort Claims Act • Anti-Bribery Convention of the Organization for Economic Cooperation and Development • International Labor Organization (ILO) 5-26 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher Printed in the United States of America Copyright © 2010 Pearson Education, Inc publishing as Prentice Hall .. .Chapter Objectives • Describe the nature of ethics • Discuss ethics in cross-cultural and international contexts • Identify the key elements... Discuss social responsibility in crosscultural and international contexts 5-2 Copyright 2010 Pearson Education, Inc publishing as Prentice Hall Chapter Objectives (continued) • Identify and summarize... manage social responsibility across borders • Identify and summarize the key regulations governing international ethics and social responsibility 5-3 Copyright 2010 Pearson Education, Inc publishing