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Topic-6-Ethics-in-International-Business 2

The document discusses ethics in international business. It outlines objectives like understanding ethical issues, dilemmas, and approaches. It defines ethics and business ethics. Ethical issues in international business involve employment practices, human rights, environmental regulations, corruption, and moral obligations. Unethical behavior can stem from personal ethics, decision-making, organizational culture, unrealistic expectations, and leadership. Philosophical approaches to ethics discussed include utilitarianism, Kantianism, rights theories, and justice theories.

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44 views5 pages

Topic-6-Ethics-in-International-Business 2

The document discusses ethics in international business. It outlines objectives like understanding ethical issues, dilemmas, and approaches. It defines ethics and business ethics. Ethical issues in international business involve employment practices, human rights, environmental regulations, corruption, and moral obligations. Unethical behavior can stem from personal ethics, decision-making, organizational culture, unrealistic expectations, and leadership. Philosophical approaches to ethics discussed include utilitarianism, Kantianism, rights theories, and justice theories.

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dqcbjt2t2b
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Group 6

Ethics in International Business

Objectives:
• What is Ethics?
• What is Business Ethics?
• Understand the Ethical Issues faced by International Business
• Recognize an Ethical Dilemma
• Identify the causes of Unethical Behavior by Managers
• Describe the different Philosophical Approaches to ethics.

WHAT IS ETHICS?
- refers to accepted principles of right and wrong that govern the conduct
of a person, the members of a profession, or the actions of an
organization.
WHAT IS BUSINESS ETHICS?
- Is the system of morals, behavior, and ethical beliefs that guides the
business in terms of values, practices, and decisions in the process of
doing it’s business.

ETHICAL ISSUES IN INTERNATIONAL BUSINESS


The most common ethical issues in business involve:
1. Employment Practices – If work conditions. In a host nation are clearly
inferior to those in a multinationals home nation, should companies
apply:

 Home country standards


 Host country standards
What is the difference between home country and host
country with regards to business operation?

- In home country, the business’ headquarters is located where the


company’s origin came from. It where the company’s good and services
are produced and it is where the company controls its operating
activities. While host country is the opposite of home country. Host
country is the foreign countries where the company invests. In
host country, the home country has operations in other
foreign country where it also invests in other foreign country.

2. Human Rights
- In developed countries, basic human rights such as freedom of
association, freedom of speech, freedom of assembly, and freedom of
movement, are taken for granted.
In other countries, these rights may not exist.
3. Environmental Regulations
-Ethical issues arise when environmental regulations in host nations are
far inferior to those in home nation.
- Environmental questions take on added importance importance
because some parts of the environment are public good that no one
owns, but anyone can despoil.
- The tragedy of the commons occurs when a resource held in common
by all, but owned by no one, is overused by individuals, resulting in it’s
degradation.

4. Corruption
- Some economists believe that in a country where preexisting political
structure distort or limit the workings of the market mechanism,
corruption in the form of black marketeering, smuggling, and side
payments to government bureaucrats to “ speed up” approval for
business investment may actually enhance welfare.
- Other economists have argued that corruption reduces the returns on
business investment and leads to low economic growth.
5. Moral Obligations
- Social Responsibility refers to the idea that business people should
take the social consequences of economic actions into account when
making business decisions and that there should be a presumption in
favor of decisions that have both good economic and good social
consequences.
- Social responsibility can be supported for it’s own sake simply because it
is the right way for a business to behave.

- Advocates argue that businesses need to recognize their noblesse oblige (


honorable and benevolent behavior that is the responsibility of
successful companies) and give something back to the societies that have
made their success possible.

ETHICAL DILEMMAS

•Some argue that what is ethical depends on one’s culture


•For example in the United States we execute murderers yet in many
cultures execution is an insult to human dignity and the death penalty is
outlawed.
• In Asian cultures gift giving is a part of negotiating business however others
may view this as bribery.
• An orphaned 12-year old girl working in a factory to support herself and
Her 6-year old brother. As an American we would find this child labor to be a
violation of ethical Code.
•Ethical dilemmas are tough and when put in such situations available
alternatives are far from ethically acceptable.

THE ROOTS OF UNETHICAL BEHAVIOR


1. Personal Ethics – Generally accepted principles of right and wrong.
2. Decision making process – People behave unethically because they fail
to implement a ethical dimension to decision making.
3. Organization Culture – Values and norms that are shared among
employees of an organization.
4. Unrealistic Performance Expectations – Attained by cutting corners or
acting in an unethical manner.
5. Leadership – Has to establish the culture of an organization setting
example for others to follow.
PHILOSOPHICAL APPROACHES TO ETHICS

1. Straw Men
-Approach to business ethics scholars demonstrate that they offer
inappropriate guidelines for ethical decision making in a multinational
enterprise, ex: ( The Friedman Doctrine)
2. Utilitarian and Kantian Ethics
- Moral philosophers see value in utilitarian and Kantian approach to business
ethics. Utilitarian approach to ethics is to hold moral worth of actions or
practices is determined by their consequences. Kantian holds that people
should be treated as ends, never as means to ends of others.
3. Rights Theories
- Human beings have fundamental rights and privileges that transcend
national boundaries and culture.
4. Justice Theories
- Focus on the attainment of a just distribution of economic goods and
services.

References:
John Kline (2019) Ethics in International Business
https://www.taylorfrancis.com/books/mono/10.4324/9780203880593/
ethics-international-business-john-kline
Harsh Thaker (2016) Philosophical Approaches in Ethics
https://www.scribd.com/presentation/86320478/Philosophical-Approaches-
to-Ethics-
Lin Nguyen (2016) Roots of Unethical Behavior
https://prezi.com/d19jbqgguxme/the-roots-of-unethical-behavior/
MEMBERS:

CLOMA, PRINCESS CHARITY


NAVARRO, MAE
OPENIANO, JEZZERYL

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