Transcript Lecture 1
Chapter 12 Global Business Ethics Managing Organizations in a Global Economy: An Intercultural Perspective First Edition John Saee Copyright by South-Western, a division of Thomson Learning. All rights reserved. International organizations must be concerned with how they carry out their business and social responsibility in other nations. This is because ethical behavior of businesses has become a major issue throughout the world. How are Ethics Learned? Ethics are basically learned by members of a given society through a number of channels including: Family groups Religious beliefs Educational institutions Reflection of social values, for example, as expressed through media Moral Philosophies and Their Relevance to Business Ethics Teleology Deontology Theory of Justice Cultural Relativism Teleology It tends to advocate that a behavior or action is acceptable in a society for as long as it produces desired outcomes. Two key teleological philosophies: Egoism and Utilitarianism. Egoism It is primarily based on the pursuit of individual self-interest. Utilitarian View The goal of utilitarianism is about maximizing the greatest good for the largest number of individuals. Deontology: The Theory of Rights Is an ethical theory holding that acting from a sense of duty rather than concern for consequences is the basis for establishing our moral obligation. Doing the “right thing” is a universal moral duty. Theory of Justice Be equitable Be fair Be impartial Cultural Relativism in Ethical Decision Making There is no single right way; therefore, people should not impose their own standards and values on others. Business Ethics Defined Business ethics are the standards for conduct perceived as right and moral by individuals within an enterprise, taking into account the human welfare of those affected by decisions and behavior (Holt 1998). Ethical versus Legal Behavior As long as businesses abide by laws relating to their operations, then they have conducted themselves ethically. Put simply, if the law is not breached, is it moral ??? Why are Business Ethics Needed? To prevent businesses from abusing the rights of the general public. To protect employees from being subjected to unethical practices. To ensure businesses remain economically viable by complying to the value system of a society. Why are Business Ethics Needed? To act as major motivator for ethical employees. To protect business itself from unethical practices of employees. Ethical Dilemmas in Business Practices around the Globe Bribery False Information Dealing with Competitors Gender Equality Environmental and Ecological Concerns Social Responsibility Corporate social responsibility reflects an organization's obligation to conduct business in a way that safeguards the welfare of society as it pursues its own interests (Holt 1998).