Ethics and Social Responsibility

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Ethics and Social Responsibility

• Dr. Carol Reade
• Bus 162

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Learning Objectives

• Understand major ethical issues in international
  management
• Examine pressures on, and actions taken by,
  companies and governments to be more socially and
  environmentally responsive to world problems
• Discuss initiatives to bring greater
  accountability to corporate conduct and limit
  corruption in the world

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Ethics

• Definition
• Study of morality and standards of conduct
• Legal component
• Inferring right vs. wrong in legal sense
• Cultural relativism
• When in Rome, do as the Romans do
• Dilemmas
• Arise from conflicts between ethical standards
  between countries

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Areas of Ethical Concern

• Employment Business Practices
• Human Rights
• Environment
• Corruption

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Ethical Dilemma

• Read the ethical dilemma
• Getting Medicine to Bosnia Acceptable Bribery?
• Institute for Global Ethics
• http//www.globalethics.org/resources/dilemmas/get
  ting_medicine.htm
• Read the Foreign Corrupt Practices Act
• US Department of Justice
• http//www.usdoj.gov/criminal/fraud/docs/dojdocb.h
  tml

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Corporate Social Responsibility (CSR) and
Sustainability

• CSR Action of a firm to benefit society beyond
  the requirements of the law and direct interests
  of the firm
• Sustainability Development that meets
  humanitys needs without harming future
  generations

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Rise of Civil Society and NGOs

• Pressure for greater attention to CSR
• Nongovernmental organizations (private,
  not-for-profits that focus on social, political
  and economic issues)
• Corporations receiving heavy criticism
• Nike, Levis, Chiquita
• Major criticisms
• Exploitation of low-wage workers
• Environmental abuses
• Intolerable workplace standards

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Response to Social Obligations

• Agreements and codes of conduct
• Maintenance of standards in domestic and global
  operations
• Cooperation with NGOs regarding social and
  environmental issues

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Principles of Global Compact

• Human Rights
• Labor
• Environment
• Anti-Corruption

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International Assistance

• Governments and corporations increase
  collaboration to provide assistance to
  communities and locales through global
  partnerships
• Best investments
• Controlling and preventing AIDS
• Fighting malnutrition
• Reducing subsidies and trade restrictions
• Controlling malaria

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Millennium Development Goals
Table 3-3 The U.N. Millennium Development Goals
Goal 1 Eradicate extreme poverty and
hunger. Goal 2 Achieve universal primary
education. Goal 3 Promote gender equality and
empower women. Goal 4 Reduce child
mortality. Goal 5 Improve maternal health. Goal
6 Combat HIV/AIDS, malaria, and other
diseases. Goal 7 Ensure environmental
sustainability. Goal 8 Develop a Global
Partnership for Development.
Source www.unmillenniumproject.org
Adapted from Table 3-3 The U.N. Millennium
Development Goals
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Consider

• Is there a trade-off between financial
  performance and social responsibility?

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Whos Doing Well By Doing Good