International bussiness 6th griffin pustay chapter 05

cross-Chapter Objectives continued • Identify and summarize the basic areas of social responsibility • Discuss how organizations manage social responsibility across borders • Identify a

Chapter Objectives

• Describe the nature of ethics

• Discuss ethics in cross-cultural and

cross-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

Exporting Jobs or Abusing People?

• Minute Maid

• Tropicana

• Nestle

• Nike

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

• Behaviors can be rationalized

• Circumstances affect adherence to belief systems

• National culture is intertwined with ethics

Figure 5.1 Ethics in a Cross-Cultural Context

Cultural Context

Behavior of Organization Toward Employees

Behavior of Employees Toward Organization

Behavior of Employees and Organization Toward Other Economic Agents

Ethics in Cross-Cultural and

Acceptability of Bribery

• Acceptable

– Russia – China – Taiwan – South Korea

• Unacceptable

– Australia – Sweden – Switzerland – Austria

Managing Ethical Behavior

Across Borders

Guidelines or codes

Organizational practices

Corporate culture Ethics training

Corporate Social Responsibility

Corporate Social Responsibility is

the set of obligations an organization undertakes to protect and enhance the society in which it functions

Examples of Companies with Commitment

to Corporate Social Responsibility

Areas of Social Responsibility

Organizational stakeholders

General social

welfare Natural

environment

Map 5.1 Social Responsibility

Hot Spots

Approaches to Managing Social

Obstructionist Defensive Accommodative Proactive

Defensive Stance

• Do what is required legally, but nothing more

• Corporate responsibility is to generate profits

• Example

– Philip Morris

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

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

Managing Compliance Formally

Legal Compliance

Philanthropic Giving Ethical Compliance

Informal Dimensions of Social

Responsibility

Whistle blowing Organizational Leadership

and Culture

Evaluating Social Responsibility

A corporate social audit is a formal

and thorough analysis of the effectiveness of the firm’s social performance

Difficulties of Managing Corporate Social Responsibility Across Borders

The state

Civil society The market

Actors in Policy Formulation Process

Difficulties of Managing Corporate Social Responsibility Across Borders

Anglo-Saxon approach

Continental European approach

Asian approach

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)

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