Chapter 5 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 5 - 1 Ethics and Social Responsibility in International Business
MBA 713 - Chapter 05
May 14, 2015
MBA 713 - Chapter 05
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Chapter 5 - 1
Chapter 5
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Ethics and Social Responsibility in
International Business
Chapter 5 - 2
Learning Objectives
• Describe the nature of ethics• Discuss ethics in international and cross-
cultural contexts• Identify the key elements in managing
ethical behavior across borders• Discuss social responsibility in cross-
cultural and international contexts
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Chapter 5 - 3
Learning Objectives
• Identify and summarize the basic areas of social responsibility
• Learn how organizations manage social responsibility across borders
• Identify and summarize key regulations governing international ethics and social responsibility
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Chapter 5 - 4
The Nature of Ethics
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Chapter 5 - 5
Ethics and Behavior
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Norms
Beliefs
Chapter 5 - 6Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
General Observations
• Personal Beliefs
• Cultural Contexts
• Circumstances
• Ethical Values
Chapter 5 - 7
Summary of Discussion
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Chapter 5 - 8
Ethics in Cross-Cultural and International
Contexts
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Chapter 5 - 9
How an Organization Treats Its Employees
Hiring Practices
Career Development
Compensation and Benefits
Workers’ Rights and Dignity
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Chapter 5 - 10
How Employees Treat the Organization
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• Conflict of Interest
• Confidentiality
• Honesty
Chapter 5 - 11Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Customers
Stockholders
Dealers
Competitors
Suppliers
Labor Unions
Employees, the Organization, and Other
Economic Agents
Chapter 5 - 12
Summary of Discussion
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Chapter 5 - 13
Managing Ethical Behavior Across Borders
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Chapter 5 - 14Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Guidelines and Codes
Written Guidelines
Codes of Ethics
Corporate Cultures
Organizational Practices
Chapter 5 - 15Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
•Global Focus•Local Focus
Ethics Training
Chapter 5 - 16Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Corporate Culture
Organizational Practices
Standards Behaviors
Chapter 5 - 17
Summary of Discussion
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Chapter 5 - 18
Social Responsibility in Cross-Cultural and
International Contexts
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Chapter 5 - 19Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Social Responsibility
Global Stance vs. Local Markets
Chapter 5 - 20
Summary of Discussion
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Chapter 5 - 21
Areas of Social Responsibility
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Chapter 5 - 22
Organizational Stakeholders
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•Customers
•Employees
•Investors
Chapter 5 - 23
The Natural Environment
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Disposal of Waste Materials
Government Regulations
Corporate Efforts
Chapter 5 - 24
General Social Welfare
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Making Charitable Contributions
Supporting the Arts and Museums
Funding Public Health and Education
Confronting Political and Social Issues
Chapter 5 - 25
Summary of Discussion
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Chapter 5 - 26
Managing Social Responsibilities Across
Borders
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Chapter 5 - 27
Social Responsibility
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LeastResponsible
MostResponsible
ObstructionistStance
DefensiveStance
AccommodativeStance
ProactiveStance
Chapter 5 - 28
Managing Compliance
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• Legal
• Ethical
• Philanthropic
Chapter 5 - 29Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Informal Dimensions
• Leadership
• Corporate Culture
• Whistle-Blowing
Chapter 5 - 30
Corporate Social Audit
• Specific Social Goals
• Resources Devoted to Goals
• Assessment of Goal Achievement
• Recommended Courses of Action
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Evaluating CSR Efforts
Chapter 5 - 31
Summary of Discussion
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Chapter 5 - 32
Difficulties of Managing CSR Across Borders
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Chapter 5 - 33Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
CSR Policy Formation
•The State
•The Market
•Civil Society
Chapter 5 - 34Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
• Anglo Saxon• Asian Way• European
Behaviors in Three Regions of the World
Chapter 5 - 35
Summary of Discussion
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Chapter 5 - 36
Regulating International Ethics and Social
Responsibility
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Chapter 5 - 37
International Regulations
• The Foreign Corrupt Practices Act
• The Bribery Act
• The Alien Tort Claims Act
• The Anti-Bribery Convention of the Organization for Economic Cooperation and Development
• The International Labor Organization
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Chapter 5 - 38
Summary of Discussion
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Chapter 5 - 39
Chapter 5
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Ethics and Social Responsibility in
International Business
Chapter 5 - 40Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
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.
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