International business 6e griffin chapter 5

Chapter Objectives 1• Describe the nature of ethics • Discuss ethics in cross-cultural and international contexts • Identify the key elements in managing ethical behavior across borders

Chapter Objectives 1

• 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 cultural and international contexts

cross-Chapter Objectives 2

• 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

Ethics is 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

How Organizations Treat

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 cultureEthics 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

Areas of Social Responsibility

Organizational stakeholders

General social

welfare Natural

environment

Examples of Companies with a

Map 5.1 Social Responsibility

Hot Spots

Approaches to Social

Responsibility

Obstructionist Defensive Accommodative

Proactive

Obstructionist Defensive Accommodative Proactive

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

Managing Compliance Informally

Leadership

Whistle-blowing Organizational

culture

Evaluating Social Responsibility

A corporate social audit is a formal and

thorough analysis of the effectiveness of

the firm’s social performance

Steps in Corporate Social Audit

Define social goals

Analyze resources devoted

to each goal Determine degree of achievement for each goal

Actors in Policy Formulation Process

The state

Civil societyThe market

Regional Stereotypes

Anglo-Saxonapproach

Continental

Asianapproach

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)