Chapter 4 Business Ethics in the Global Marketplace:
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. What would you like to do?
what is a bribe?
The payer offers it to the other party; in contrast, an extortion, The receiver of the payment demands the payment from the payer
what is the Foreign Corrupt Practices Act (FCPA) and why is it important for mangers of American companies doing business in another country?
Forbids the bribing of foreign officials by American companies and their agents. Bribery is specifically outlawed and there are harsh penalties for both the firm and the individuals who pay for the brides, including monetary penalties and jail time
what is relativism
says that the answer to any ethical problem is relative, whether to the individual, the group, or the culture. there is no answer to questions of values, so any answer is as good as the next.
Relativism ends the conversation about ethics by suggesting that conversations about ethics and values are pointless
What is ethnocentrism
What is right is fixed and is based on my or my culture's values and that dictates correct behavior regardless of where I am
This perspective prevents fruitful conversations from taking place , because the manager's particular perception always takes precedent over others
Relativism and ethnocentrism as extreme views and barriers to ethical dialogue
While we want to underscore the kernel of truth in both ethnocentrism and relativism , we argue that in their strict forms, both represent extreme and incoherent views that reject the need tor the kind of moral reflection and analysis represented
If we think of our own moral views on a continuum, ethnocentrism (moral views are fixed) and relativism (moral views are relative) exist on the poles and outside the space where moral conversation is needed.
What is Principalism
represents the continuum in between, where people may be more tolerant and accepting of other views ( embracing the tolerance characteristics of relativism, while other may see the world more clearly in terms of sharp black and white categories that remain fixed regardless of context (embracing the clarity of morality characteristic of ethnocentrism).
Along the continuum, people recognize the need for moral conversation, for reflection and critical thinking about moral matters and for respect for other in addressing moral questions.
Universal values! What do these term mean?
> a clear set of values to use and would not be prioritizing one county's (or person's) over another's since they would be the values of all persons.
> In context of the book, it is a way out of the dilemma imposed by relativism and ethnocentrism.
What is moral minimums?
>Provide moral concepts that are true across cultures so that manages can think globally and spend less time focusing on local rules.
>One way to deal with this problem of difference in perspective of values is to move the focus of the conversation from universal agreement about philosophical norms to more concrete set of moral principles on which people or countries, organizations can at least agree
Describe Donaldson’s “ethical algorithm” (figure 4.2 on p. 100). Do you think it is helpful? Understanding a sense of them and providing an example
Is a given business practice permissible for a multinational company when it si morally or legally permitted int eh hose country, but not in the company's home country?
> Type 1 Conflict (Economic): The moral or legal support for a practice in the host country is defined by current economic conditions in the host country: lower wages, lower environmental standards. etc.
Solutions: The practice is permissible in the host country if it were to be permissible in the home country under similar economic circumstances
> Type 2 Conflict (cultural): The moral or legal support for a practice in the host country is defined by current cultural conditions in the host county: social loyalties, historic customs, etc.
Solution: The practice is permssible if it meets the following criteria:
1) Business cannot be conducted in the host country if this practice is not undertaken
2) This practice does not directly violate international rights.
On pp. 108-109, the text describes some benchmarks for responsible business in the global marketplace. Describe some of these benchmarks. Do you think they are helpful?
Industry Initiatives: Some industries set standards that provide benchmarks for the industry. Usually such standards are put in place when firms recognize an ongoing challenge and see the opportunity to head off criticism and potential regulation by seeing guidelines for responsible behavior, or when under pressure to raise the bar in terms of business conduct.
The Fair Labor Association was a voluntary industry initiatives
Prominent Nation and International Organizations: International organizations have also been crucial in the formation of several agreements and conventions attempting to address the same issues that industry initiatives have tried to address.
1. The UN Universal Declaration of Human rights provides a compressive lis of human rights that one could use to think through a wee range of practices and decide whether adopting to what the locals do is acceptable
2. International Organization for Standardization: Is nongovernmental organization that sets standards based on input from governmental and industry sources for a variety of operational parameters.
3. International labor Organization: provides a comprehensive analysis of labor conditions and labor standards throughout the world
Guidance from Ethicists: managers can use the work of business ethicists
Why I think it is helpful
I think they are extremely helpful for managers to have these benchmarks to reference, because their can be a lot of ambiguity in international markets. Different customs, values, and beliefs. This gives them a baseline to at least be able to navigate
What about De George’s ten principles for cross-cultural management (figure 4.3 on p. 110)? Would these help address the ethical dilemma described at the beginning of the chapter?
I believe that De George's ten Principles for cross cultural management would assist managers with facing some of the dilemmas. as with the american pesticide issue overseas, Contributing to the host's development to increase the worker training and skill development will resolve their ethical issues
Approaching the case from the standpoint of a RE developer – do you think the developer did anything wrong? Does your answer change if the developer wants to do business in the community for a long time in the future?
i don't think the developer did anything wrong. I believe his intentions were genuine. the accusations were never quite proven. it was alleged that he acquired the land from hilton for little than it actually was appraised for. I don't think he would want to do business again in the long run and the stakeholders in that environment would make it not worth his while.
Applicability of the ethical frameworks discussed in prior class (e.g., Paine, Wicks chapter 1)
He never involved the stakeholders in the process of developing the land. His only interest was developing a partnership with the government and not the other stakeholders.
- The NGO
- The Architect organization
- Other Government institutions
Describe the key facts of the article, including:–What did Wal-Mart do and who were the various stakeholders in the case?–What was the reaction of the Wal-Mart America?
Walmart mexico paid government officials with bribes to get permits to build a walmart in one of mexico's historical areas.
The stakeholders were residents, archeologist agencies, mayors, government agencies, other protest groups, etc
Walmart america did not respond with the original allegations until the mass media got involved in an investigation. Walmart responded with an internal investigation of their own. They fired a number of Walmart Mexico executives... instituted training programs and hired over 100 lawyers, investigators, and a policy group to overlook their overseas options.
Is the Wal-Mart case a problem of American values or Mexican values?
This is not a problem with American values, but the values of the Mexican business culture. Bribes were apparently a way of getting things done is this environment
What would you like to do?
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