International business 6e griffin chapter 5

ethics and social responsibility in international business international business, 5th 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 Chapter Objectives • 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 Exporting Jobs or Abusing People? • Minute Maid • Tropicana • Nestle • Nike 5-4 Ethics Ethics is an individual's personal beliefs about whether a decision, behavior, or action is right or wrong 5-5 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 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 How Organizations Treat Employees Some businesses in Africa have taken steps to educate their employees about how AIDS is contracted 5-8 Acceptability of Bribery 5-9 • Acceptable • Unacceptable – Russia – Australia – China – Sweden – Taiwan – Switzerland – South Korea – Austria Managing Ethical Behavior Across Borders Guidelines or codes Ethics training Organizational practices Corporate culture 5-10 Examples of Companies with a Commitment to CSR 5-13 • L.L Bean • Dell Computer • Toyota • DaimlerChrysler • Lands’ End • BP • 3M • Honda Map 5.1 Social Responsibility Hot Spots 5-14 Approaches to Social Responsibility Obstructionist Defensive Accommodative Proactive 5-15 Figure 5.3 Approaches to Social Responsibility Most Responsible Least Responsible Obstructionist 5-16 Defensive 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 Defensive Stance • Do what is required legally, but nothing more • Corporate responsibility is to generate profits • Example – Philip Morris 5-18 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 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 Managing Compliance Formally Legal compliance Ethical compliance 5-21 Philanthropic giving Managing Compliance Informally Leadership Organizational culture 5-22 Whistle-blowing Evaluating Social Responsibility A corporate social audit is a formal and thorough analysis of the effectiveness of the firm’s social performance 5-23 Steps in Corporate Social Audit Define social goals Analyze resources devoted to each goal Determine degree of achievement for each goal Make recommendations 5-24 Actors in Policy Formulation Process The state The market 5-25 Civil society Regional Stereotypes Anglo-Saxon approach Asian approach Continental European approach 5-26 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) 5-27 ... Economic Agents 5- 7 How Organizations Treat Employees Some businesses in Africa have taken steps to educate their employees about how AIDS is contracted 5- 8 Acceptability of Bribery 5- 9 • Acceptable... Honda Map 5. 1 Social Responsibility Hot Spots 5- 14 Approaches to Social Responsibility Obstructionist Defensive Accommodative Proactive 5- 15 Figure 5. 3 Approaches to Social Responsibility Most... Formulation Process The state The market 5- 25 Civil society Regional Stereotypes Anglo-Saxon approach Asian approach Continental European approach 5- 26 Regulating International Ethics and Social Responsibility