Transcript ch09 F2006
Ethical Issues in Global Business • Marketing and safety practices • Sweatshop and labour abuse • Corruption and bribery Search the Web For student activists interested in sweatshop practices, visit http://www.usasnet.org/ The Moral Philosophy Framework • • • • Cultural Relativism: Cultural theories Situational ethics “When in Rome…do as the Romans do.” • Limitation: • Which Romans? Bribes vs. Grease Payments • Definitions • Examples – Grease Payments— Money given for the purpose of getting minor officials to do what they are supposed to be doing. – Money given to minor officials (clerks, attendants, customs inspectors) for the purpose of expediting a project – Bribes—Relatively large amounts of money given far the purpose of influencing officials to make decisions or take actions that they otherwise might not take. – Money given, often to high-ranking officials. Purpose is often to get these persons to purchase goods or services from the bribing firm. Arguments For and Against Bribery For Against • A necessary tool • Wrong/illegal • Accepted practice • Compromise personal beliefs • Form of commission, tax, or • Promotes government compensation corruption • Benefits recipient only • Creates dependence on corruption • Deceives stockholders Improving Global Business Ethics Integrative Social Contract Theory (ISCT) • Hypernorms-- transcultural values including fundamental human rights • Consistent norms-- norms that are culturally specific, but consistent with hypernorms • Moral free space norms-- strongly held cultural beliefs in countries that are in tension with hypernorms • Illegitimate norms– those norms that are incompatible with hypernorms Using ISCT: The Case of Bribery • Is bribery part of moral free space or is it an illegitimate norm? • 1) violates agent / principal contract • 2) against law in all countries • 3) violates political participation hypernorm • 4) violates economic efficiency hypernorm • Conclusion: Bribery is an illegitimate norm Trends Against Bribery • Foreign Corrupt Practices Act enacted • Transparency International developed • OCED Antibribery Initiatives launched • #10 on UN Global Compact Improving Global Business Ethics Fundamental International Rights 1. The right to physical movement 2. The right to ownership of property 3. The right to freedom from torture 4. The right to a fair trial 5. The right to nondiscrimination 6. The right to physical security 7. The right to freedom of speech and association 8. The right to minimal education 9. The right to political participation 10.The right to subsistence Improving Global Business Ethics The Dilemma of the Multinational Corporation Home Country Stakeholder Pressures The Multinational Corp. Host Country Stakeholder Pressures Improving Global Business Ethics Ethical Choices in Home vs. Host Country Situations International Law Global Codes of Conduct ETHICAL IMPERIALISM Home Country • Cultural standards • Ethical & moral standards of home country CULTURAL RELATIVISM Broad Middle Ground Mix of Home and Host Country Standards Application of Ethical Principles Host Country • Cultural standards • Ethical & moral standards of host country Improving Global Business Ethics Typology of Global Types • • • • Foreign type Empire type Interconnection type Global type Improving Global Business Ethics Seven Moral Guidelines for MNCs • Inflict no intentional or direct harm • Produce more good than bad for the host country • Contribute to host country’s development • Respect the human rights of their employees • Pay their fair share of taxes • Respect local cultural beliefs that do not violate moral norms • Cooperate with the government to develop and enforce background institutions