Business Ethics

most comprehensive.

consists of general statements serving as principles and the basis for the rules in a code of conduct

-guide employees in situations where the ethical course of action is not obvious
-help the company reinforce and acquant new employees with its culture and values
-help the company communicate its expectations for its staff to suppliers, vendors, and customers
-minimize subjective and inconsistent management standards
-help a company remain in compliance with complex government regulations
-build public trust and enhance business reputiation
-offer protection in preempting or defending against lawsuits
-enhance morale, employee pride, loyalty, and the recruitment of outstanding employees
-promote constructive social change by raising awareness of the community's needs and encouraging employees and other stakeholders to help
-promote market efficiency by rewarding the best and most ethical procedures of goods and services

-trustworthiness
-respect
-responsibility
-fairness
-caring
-citizentishp

1. Consider areas of risk ans state the values (important buffer in preventing misconduct) and the conduct necessary to comply with laws and regulations
2. Identify values that specifically address current ethical issues
3. Consider values that link the organization to a stakeholder orientation. Attempt to find overlaps in organizational and stakeholder values.
4. Make the code understandable by providing examples
5. Communicate the code frequently and in clear language
6. Revise the code very year with input from organizational memebrs and stakeholders

managing the ethics and legal compliance programs

-assess needs and risks
-develop and distribute the code
-conduct training programs for employees
-confidentially answer employees' questions
-ensure government compliance
-monitor and audit ethical conduct
-take action on possible code violations
-review and update the code

-observing employees
-internal audits and investigations
-surveys
-reporting systems
-external audits

-->consistent enforcement and disciplinary actions are essential to a functional ehtics or compliance program

-failure to understand and appreciate goals
-setting unrealistic/immeasurable objectives
-unsupporting top management
-ineffective or incomprehensible content
-transferring an national program to a firm's international operations
-designing a program that is little more than a series of lecutres resulting in low recall

a practice that brings people from countries that have different cultures, values, laws, and ethical standards together

specific to countries, regions, sects or groups

consists of everything in our surroundings that is made by people

-Individualism/collectivism
-power distance (power inequality between superiors and subordinates)
-uncertainty avoidance
-masculinity/femininity

the idea that "we" differ from "them"

the unconscious reference to one's own cultural values, experiences, and knowledge

are shared across most cultures
 

often based on religion, reflected by law

the concept that morality varies from one culture to another

right and wrong is defined differently by each culture

When corporate profit centers are unaware of the consequences of their decisions on the firm as a whole

Laissez-faire capitalism (free market)
the market has its own internal set of checks and balances that help the system to self-regulate

believed that the privat sector, in order to stimulate growth and improve stability, occasionally needs help from government intervention

stood for a return to the self-regulating free-market capitalism by Smith. 
Called for widespread deregulation

wealth and power should be shared across society, based on the amount of work expended in production

-Karl Marx

Private ownership of property, but a large government that provides a wide range of services

many poor people, concentrated wealth at the top and a small middle class

issue of MNCs

assumes that people are predictable and base their decisions on maximizing utility based on resources

assumes that humans do not always act rationally due to genetics, emotions and learned behavior

Public companies that operate on a global scale, without significant ties to any one nation or region

characterized by a global strategy of focusing on opportunities thorughout the world

subject of much ethical debate due to their size and financial power

globally based resource system which many MNCs have joined

tracks issues and trands
provides information on corporate leadership and best practices
conducts educational workshops and training
assists in developing practical business ethics tools

makes short-term loans to member countries
provides foreign currencies for its members
promotes responsible business conduct
recommended new rules for large firms 

193 member nations

promote world peace, improve intercountry relations, and support better standards and human rights
focus on environmental and human rights issues

set of ten principles (including human rights, labour, environment, anti-corruption) promoting human rights, sustainability, and eradication of corruption

159 member and observer nations

administers trade agreements
monitors trade policies
addresses economic and social issues
attempts to reduce trade barriers
provides legally binding groud rules for commerce

charging high prices for products in domestic markets, while selling the same products in foreign markets at low prices, often below cost

places local firms at disadvantage

-emerging markets carry significant risks for international investors
-chinese leaderhsip is promoting nationalism, which could threaten relationship with other countries
-economic outlook for many Eurozone countries remains weak

acceptance varies by countrry

e.g. vertical system where a channel member controls the entire business system

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