1、Ethics and Social Responsibilitychapter threeMcGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies,Inc.All Rights Reserved.3-3Ethics and Social ResponsibilityChapter Objectives:1.EXAMINE ethics in international management and some of the major ethical issues and problems confronting MNCs in
2、selected countries.2.DISCUSS some of the pressures on and action being taken by selected industrialized countries and companies to be more socially and environmentally responsive to world problems.3.EXPLAIN some of the initiatives to bring greater accountability to corporate conduct and limit the im
3、pacts of corruption around the world.3-4Ethics and Social Responsibility Ethics:Study of morality and standards of conduct Dilemmas arising from conflicts between ethical standards between countries most evident in employment practices Inferring right vs.wrong in legal sense3-5Ethics and Social Resp
4、onsibilityCorporate Social Responsibility(CSR):Closely related to ethicsActions of a firm to benefit society beyond requirements of law and direct interests of firmCSR involves taking voluntary actionCSR concerns include working conditions in factories and service centers as well as environmental im
5、pacts of corporate activities3-6Whos Doing Well By Doing Good3-7Ethics and Social Responsibility Employment and business practices Difficult to establish a universal foundation of employment practices Difficult dilemmas in deciding working conditions,expected consecutive work hours,and labor regulat
6、ions.Offshoring due to differences in labor costs3-8Ethics and Social Responsibility Human Rights Currently no universally adopted standard A great deal of subjectivity and culturally biased viewpoints exist Some basic rights:life,freedom from slavery or torture,freedom of opinion and expression,gen
7、eral ambiance of nondiscriminatory practices Human rights violations still rampant globally3-9Ethics and Social Responsibility Corruption Government corruption pervasive element in international business environment Scandals in Russia,China,Pakistan,Lesotho,South Africa,Costa Rica,Egypt and elsewher
8、e3-10Corruption Index:Least and Most Corrupt Countries3-11Corporate 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 ge
9、nerations3-12NGOs,MNCs and Ethical Balance NGO:Non-governmental organization;private,not-for-profit organization that seeks to serve societys interests by focusing on social,political,and economic issues such as poverty,social justice,education,health and the environment.NGOs have urged MNCs to be m
10、ore responsive to range of social needs in developing countries NGOs have grown in number,power,influence NGO activism has caused major changes in corporate behavior NGO leaders are the most trusted of eight leadership categories(see slide to follow)3-13NGOs NGOs in U.S.and globally Save the Childre
11、n Oxfam CARE World Wildlife Fund Conservation International3-14Rise of Civil Society and NGOs Major criticisms Exploitation of low-wage workers Environmental abuses Intolerable workplace standards Response to social obligations:Agreements and codes of conduct Maintenance of standards in domestic and
12、 global operations Cooperation with NGOs regarding certain social issues Corporations receiving heavy criticism Nike Levis Chiquita3-15Trust in Leaders3-16Ethics and Social ResponsibilityAround the World:CHINA Workers not well paid Often forced to work 12 hours a day,7 days a week Piracy,counterfeit
13、ing,industrial spying Human rights violations Use of prisoner and child labor3-17Ethics and Social ResponsibilityAround the World:JAPAN Political and business scandals:Japanese cabinet member have accepted questionable payments and favors Japanese banking system has failed to take corrective actions
14、 when dispersing loans Some Japanese firms systematically concealed customer complaints3-18Ethics and Social ResponsibilityAround the World:JAPAN Equal opportunity issues Refusal to hire women or promote them into management positions Hostile work environment Traditional role of females and female e
15、mployees Sexual harassment may not be considered a moral issue3-19Ethics and Social ResponsibilityAround the World:EUROPE Equal employment opportunity Glass ceiling pervasive throughout the world France,Germany,Great Britain have seen increase in number of women in management,but tend to represent o
16、nly lower levels3-20Corporate Response to Social Obligations Agreements and codes of conduct committing MNCs to maintain certain standards Codes help offset real or perceived concern that companies move jobs to avoid higher labor or environmental standards in their home markets Contribute to raising
17、 of standard in developing world by exporting higher standard to local firms in these countries3-21Principles of Global Compact Human Rights Labor Environment Anti-Corruption3-22Principles of Global Compact3-23Corporate Governance The System by which business corporations are directed and controlled
18、:Distribution of rights and responsibilities Stakeholder management Spells out rules and procedures Makes decisions Objective setting Means of attaining objectives Monitors performance3-24Corporate Governance Many continental European countries are“insider”systems Ownership more concentrated Shares
19、owned by holding companies,families or banks Rules and regulations differ among countries and regions U.K.and U.S.systems are“outsider”systems Dispersed ownership of equity Large number of outside investors3-25Global Initiatives to Increase Accountability and Limit Corruption Foreign Corrupt Practic
20、es Act International Assistance Partnerships3-26Corruption and Foreign Corrupt Practices Act(FCPA)Some evidence that discontinuing bribes does not reduce sales of the firms products or services in that country Recent formal agreement by many industrialized nations to outlaw the practice of bribing f
21、oreign government officials Illegal for U.S.firms and their managers to attempt to influence foreign officials through personal payments of political contributions,including such tactics as“Entertainment”expenses“Consulting”fees3-27Corruption and Foreign Corrupt Practices Act Recent formal agreement
22、 by many industrialized nations to outlaw the practice of bribing foreign government officials Organization for Economic Cooperation and Development 29 members plus several other countries have signed on Fails to outlaw most payments to political party leaders Does indicate growing support for anti-
23、bribery initiatives3-28International 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 Controllin
24、g malaria3-29International Assistance3-30Millennium Development Goals3-31Review and Discuss1.What lessons can U.S.multi-nationals learn from the political and bribery scandals in Japan that can be of value to them in doing business in this country?Discuss two.2.How do ethical practices differ in the
25、 United States,and in European countries such as France and Germany?What implications does your answer have for U.S.multi-nationals operating in Europe?3.Why are MNCs getting involved in corporate social responsibility?Are they displaying a sense of social responsibility,or is this merely a matter of good business?Defend your answer.
