International Business
Ethics
© 2007 Robert Sweo
What is Ethics
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Moral standards that regulate right and
wrong conduct
Most standards vary greatly between
populations
© 2007 Robert Sweo
Ethical Theories
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Virtue Theories – Develop good habits of
Character
Duty Theories – Meet obligations
Consequential Theories – Seek favorable
outcomes
Social Contract Theory – Minimum social
standards must be adhered to
© 2007 Robert Sweo
Virtue Theories
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Develop good habits of Character
Very common in Western cultures
Plato's Virtues - wisdom, courage,
temperance and justice. Other important
virtues are fortitude, generosity, self-respect,
good temper, and sincerity
Vices - cowardice, insensitivity, injustice, and
vanity
© 2007 Robert Sweo
Duty Theories
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One must meet obligations
Rights theories – Strong must protect the
weak
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we should not harm anyone's life, health, liberty or
possessions
Obligations of the universe
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© 2007 Robert Sweo
Fidelity: the duty to keep promises
Reparation: the duty to compensate others when we
harm them
Gratitude: the duty to thank those who
help us
Justice: the duty to recognize merit
Beneficence: the duty to improve the
conditions of others
Self-improvement: the duty to improve
our virtue and intelligence
Nonmaleficence: the duty to not injure
others
Consequential Theories
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An action is morally right if the consequences
of that action are more favorable than
unfavorable
Utilitarianism – the action that creates the
most happiness is the moral action
 Rule utilitarianism – measures rules of
behavior rather than each act
© 2007 Robert Sweo
Social Contract Theory
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The following minimum standards must be
adhered to
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That a productive organization should enhance
the long-term welfare of employees and
consumers in any society in which the
organization operates.
That a productive organization should minimize
the drawbacks associated with moving beyond
the state of nature to a state containing
productive organizations.
That a productive organization should refrain
from violating minimum standards
of justice and of human rights in
any society in which it operates.
© 2007 Robert Sweo
Applied Ethics
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Tries to create policies of behavior from
Ethical Theory
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© 2007 Robert Sweo
Business Ethics
Environmental Ethics
Computer Ethics
Corporate Social Responsibility
International Applied
Business Ethics
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Theory preference is culturally bound
Companies often face conflicting government
and cultural requirements
World perspectives important
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© 2007 Robert Sweo
Multinational
Multidomestic
Global
Major Issues
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Environment
Employee relations
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Health & Safety
Pay
Interface to religion and other cultural practices
Affects of business on local culture
Government relations
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© 2007 Robert Sweo
Bribery
Corruption
Bribery
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Foreign Corrupt Practices Act
© 2007 Robert Sweo
Corruption
2004 CPI Score:
-relates to perceptions of the degree of corruption as seen by
businesspeople, risk analysts, journalists, and the general public
-ranges between 10 (highly clean) and 0 (highly corrupt)
RANK/COUNTRY
1.
2.
5.
11.
12.
15.
17.
18.
21.
SCORE
RANK/COUNTRY
Finland
9.7
26. Botswana
6.0
New Zealand 9.6
38. South Africa
4.8
Singapore
9.3
46. Brazil
4.0
United Kingdom
8.6
54. El Salvador
3.6
Canada
8.5
57. China
3.5
Germany
8.2
71. India
2.7
United States 7.6
79. Russia
2.3
Chile
7.5
84. Bolivia
2.0
Japan
7.1
90. Nigeria
1.0
Source: Transparency International
© 2007 Robert Sweo
SCORE
Now What?
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This will be one of your biggest problems in
International Business START STUDYING
Golden Rule – Do onto others as you would
have them do onto you
Platinum Rule – Do onto others as they
would have you do onto them
© 2007 Robert Sweo