Transcript Strategic Leadership

Business 303 Sheppard
Business Society & Ethics, Week 10:
Global Ethical Dilemmas
BUSINESS ETHICS WEEK 10:
MAIN QUESTIONS
1. Why & how are ethics different internationally?
2. What is the Relativism vs. Universalism debate?
3. Donaldson’s Hypernorms: A solution to the
Relativism vs. Universalism debate?
4. What is the UN Global Compact?
Wk. 9-2
1. Global: International diplomacy

International diplomacy at the Global Level

Influencing other countries

Sending peacekeepers

Canada's P.M. Lester B. Pearson
led negotiations that established the
U.N. Emergency Force in Nov. 1956.

Pearson won a Nobel Prize for
convincing the world that putting
neutral military forces between the 2
opposing sides would be a way to
ensure that a negotiated ceasefire held.
2. Organizational: Globalization
Globalization & outsourcing
• International HR practices
• Internationally influencing governments / being influenced by them.
•
•
Shell in Nigeria ~1997:
complying with brutal government
•
Starbucks:
branding includes international aid
•
Microsoft: from evil giant corp.
to international philanthropist?
• Blood Diamonds?
3. Individual: Ethical decision-making
•
Bribery
•
Consumer choices
•
Negotiation
•
Ethical decision-making
•
Intellectual property
4. What Drives Global Differences
in Ethics?
Culture
Economic Development
Wk. 10-6
4b. Cultural effects on ethics (1 of 2)
Geert Hofstede’s
Cultural Dimensions of International Bus.
• Individualist vs. collectivist approaches
to deciding who to hire?
• ‘feminine’ vs. ‘masculine’ approaches to
the environment?
• High vs. low power distance approaches
to responsibility for ethical decisions?
Wk. 10-7
4b. Cultural effects on ethics (2 of 2)
Kohlberg’s Model of Moral
Development across Cultures ?
• 1 - Obedience & Punishment
• 2 - Individualism & Reciprocity These
work in
• 3 - Interpersonal Conformity almost all
• 4 - Social System/Law & Order cultures
• 5 - Social Contract
These
• 6 - Universal Ethical Principles don’t
Wk. 10-8
Individualist, Western values.
4c. Economic Development &
How it affects Ethics
• Higher levels of econ. development
 higher standards of ethics
• Maslow’s hierarchy of needs
Wk. 10-9
5. Universalism vs. Relativism (1 of 3)
• Big debate:
– Are there Universal rules & Ethics
– Or are all ethics relative to culture?
• Answer: something in the middle
Tom
Donaldson
Wk. 10-10
5. Universalism vs. Relativism
(2 of 3)
• Most readings centre on this debate.
• Midgley’s argument against relativism:
– Results in an inability to judge anything,
including relativism, since relativism is a judgment
against making condemnations of other cultures.
– It’s Internally inconsistent:

If one culture believes it’s okay to condemn
others cultures, by relativist standards, there’s
no way to tell them to stop.
5. Universalism vs. Relativism
(3 of 3)
• Donaldson’ arguments against absolutism
(his term for universalism):
- Not respectful
- Ignores local context (e.g. economic development)
- Assumes one set of concepts overrides all others.
6. Donaldson’s Hypernorms Model
Moral Free Space
From a Corporate Perspective:
All Ethical
dilemmas
or
problems
• Allow local units to adapt to local standards
• Support efforts to decrease corruption
Hypernorms
• Corporate standards as absolutes
• Conditions of acceptance of buyers/ suppliers
• Support efforts to decrease corruption
Wk. 10-13
7. Donaldson’s Hypernorms (1 of 4)
(aka core human values)
1) Respect for human dignity
2) Respect for basic rights
3) Good citizenship
More specifically…
Wk. 10-14
7. Donaldson’s Hypernorms (2 of 4)
1) Respect for human dignity
– Treat people as ends in themselves
 Eg. corporate culture that respects
customers & suppliers
 Eg. safe products, services &
workplace
Wk. 10-15
7. Donaldson’s Hypernorms (3 of 4)
2) Respect for basic rights
• Support & protect rights of employees,
customers & community
• Avoid relationships that violate human
beings’ rights to health, education, safety
& adequate standard of living
Wk. 10-16
7. Donaldson’s Hypernorms (4 of 4)
3) Good citizenship
• Support essential social institutions, eg
economic system, education system
• Work with host government / other
organizations to protect the environment.
Now that we know that
universal principles
may exist, let’s look at
a plausible source:
Wk. 10-17
8. U.N. Global Compact (1 of 7)
• UN Global Compact – the ten universal
principles fall within four categories:
– Human Rights
– Labour Standards
– Environment
– Anti-Corruption
Source: http://www.unglobalcompact.org/
Wk. 10-18
8. U.N. Global Compact (2 of 7)
• Founded in 1999 by Kofi Annan
- International ethics guide managers should know it.
- Currently 2,900 firms signed in over 100 countries:
-
Eg. Bayer, BMW, BP, Cadbury, eBay, HP, Microsoft, ING, Nokia,
Starbucks, Sun Microsystems, Unilever, VW
• Vision: a more sustainable & inclusive global econ.
- Companies use it as a platform to develop their own
specific codes of conduct.
- Companies publish how they are promoting the ten
principles in annual report.
- Non-enforceable Bluewash or a first step for UN to
reach into world of business?
Wk. 10-19
8. U.N. Global Compact (3 of 7)
Sample Companies…
•
•
•
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HP (USA)
Cosco (China)
Tata Motors (India)
Volkswagen (Germany)
Wk. 10-20
8. U.N. Global Compact (4 of 7)
Human Rights
• Principle 1: Support & respect the
protection of internationally proclaimed
human rights; and
• Principle 2: Do not comply with others
in human rights abuses.
Wk. 10-21
8. U.N. Global Compact (5 of 7)
Labour Standards
• Principle 3: Uphold freedom of association;
• Principle 4: Eliminate forced labour;
• Principle 5: Abolish child labour; and
• Principle 6: Eliminate discrimination in
employment.
Wk. 10-22
8. U.N. Global Compact (6 of 7)
Environment
• Principle 7: Support a precautionary
approach to environmental challenges;
• Principle 8: Promote greater
environmental responsibility; and
• Principle 9: Encourage development &
diffusion of enviro-friendly technologies.
Wk. 10-23
8. U.N. Global Compact (7 of 7)
Anti-Corruption
• Principle 10: Work against all forms of
corruption, including extortion & bribery.
Wk. 10-24
9. Applications
•
•
•
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Yahoo in China
Nestle infant formula
The latest version of Wal-Mart
What else… ?
Bye
Bye