4.3: The Roots of Unethical Behaviour Flashcards
Figure 4.2: Determinants of Ethical Behavior
What are some examples of unethical behavior in international business as seen during the COVID-19 pandemic?
Companies falsely claiming their products have certain unproven capabilities (e.g., hand sanitizers claiming to kill 99% of germs without proof).
Proposals for testing new vaccines in African countries before Europe and North America.
Political actions affecting international business, like the U.S. blocking 3M from selling N95 masks to Canada under the Defense Production Act.
Why might managers behave unethically in international business settings
Disconnection from personal ethics and business ethics.
Pressure from intense international business competitiveness to cut costs and maximize profits.
Lack of ethical considerations in business decision-making processes.
Organizational cultures that de-emphasize business ethics, leading to purely economic decision-making.
How do personal ethics influence business ethics?
An individual with a strong sense of personal ethics is less likely to behave unethically in a business setting.
Societies emphasizing strong personal ethics can establish a stronger sense of business ethics.
What challenges might expatriate managers face in maintaining ethical standards?
They are away from their ordinary social context and culture.
They might be in an environment that doesn’t value the same ethical norms as their home country.
They may face local employees with less rigorous ethical standards.
What is the significance of organizational culture in ethical business behavior?
Organizational culture, comprised of shared values and norms among employees, significantly influences ethical decision-making within a company.
What are the four root causes of unethical behavior in international business?
Intense competitiveness of the international business environment.
Business decision processes that omit ethical considerations.
Organizational culture that prioritizes economics over ethics.
Pressure from parent companies to meet performance goals, potentially encouraging unethical shortcuts.
What additional factor can cause unethical behavior in businesses, as suggested by the examples provided?
Leadership plays a crucial role.
Leaders set the organizational culture and their actions, more than their words, can establish whether ethical behavior is a priority within the company.
How did the 3M N95 mask situation highlight the complexity of ethical behavior in business?
It showed that national politics can interfere with business agreements, prompting ethical and business considerations to intersect, especially when international supply chains are involved.
