BUS 200 Lecture Notes - Lecture 19: Business Ethics
Chapter 5
Ethics in International Business
• Ethics
o standards of right and wrong that influence behavior
o are accepted principles of right or wrong that govern the conduct of a person, the
members of a profession, or the actions of an organization
• Business ethics are the accepted principles of right or wrong governing the conduct of business
people
• Ethical strategy is a strategy, or course of action, that does not violate these accepted principles
• Values
o relatively permanent and deeply held underlying beliefs and attitudes that help
deterie a perso’s behavior
Ethical Issues in International Business
• The most common ethical issues in business involve:
o Employment practices
✓ establishing minimal acceptable standards that safeguard the basic rights and
dignity of employees, auditing foreign subsidiaries and subcontractors on a
regular basis to make sure those standards are met, and taking corrective action
if they are not up to standards are a good way to guard against ethical abuses
o Human rights
✓ Basic human rights still are not respected in many nations.
✓ Rights taken for granted in developed nations, such as freedom of association,
freedom of speech, freedom of assembly, freedom of movement, freedom from
political repression.
o Environmental regulations
✓ Ethical issues arise when environmental regulations in host nations are inferior
to those in the home nation
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Document Summary
Ethical strategy is a strategy, or course of action, that does not violate these accepted principles: values relatively permanent and deeply held underlying beliefs and attitudes that help deter(cid:373)i(cid:374)e a perso(cid:374)"s behavior. Ethical issues in international business: the most common ethical issues in business involve, employment practices. Basic human rights still are not respected in many nations. Rights taken for granted in developed nations, such as freedom of association, freedom of speech, freedom of assembly, freedom of movement, freedom from political repression: environmental regulations. Ethical issues arise when environmental regulations in host nations are inferior to those in the home nation. Any developed nations have substantial regulations governing the emission of pollutants: corruption. Corruption has been a problem in almost every society in history, and it continues to be one today. There always have been and always will be corrupt government officials. International businesses can and have gained economic advantages by making payments to those officials.
