4.5: Ethical Decision Making Flashcards
What is the importance of ethical considerations in international business decisions for managers in multinational firms?
Ethical considerations are crucial in international business decisions because unethical behavior can negatively impact employee morale, productivity, and a company’s competitiveness.
What are some key ethical dilemmas that managers in multinational firms may face in their decision-making?
Managers may encounter ethical dilemmas related to working conditions, human rights, corruption, and environmental pollution in their international business decisions.
Why is it challenging to determine the correct ethical course of action in many international business situations?
Many international business ethical problems are challenging because they involve real dilemmas, and there may be no obvious correct action due to conflicting interests and values.
What is the relationship between ethical behavior and employee morale in international business?
Ethical behavior positively influences employee morale, and a company that behaves unethically toward employees, customers, or suppliers risks jeopardizing morale and decreasing productivity.
What are the five things that an international business and its managers can do to ensure ethical issues are considered in business decisions?
Hiring and promoting individuals with a strong sense of personal ethics.
Cultivating an organizational culture that values ethical behavior.
Ensuring that leaders not only talk about ethical behavior but also demonstrate it through their actions.
Implementing decision-making processes that require the consideration of ethical dimensions.
Developing moral courage among employees and managers.
Why is it challenging for businesses to hire individuals with strong personal ethics and avoid those with poor ethical standards?
It’s challenging because individuals have an incentive to hide their lack of personal ethics, making it difficult for businesses to discern their true ethical predisposition.
What are some ways that businesses can assess the ethical predisposition of potential employees during the hiring process?
Businesses can use psychological tests and check with prior employers to assess a prospective employee’s ethical reputation, such as requesting letters of reference and speaking with people who have worked with the candidate.
How does the organizational culture impact the promotion of employees with poor ethics?
In an organization that values ethical behavior and where leaders act accordingly, promoting employees who have displayed poor ethics should not occur.
Why is it important for job seekers to inquire about the ethical climate in a prospective employer?
Job seekers should inquire about the ethical climate to ensure they are not entering an organization with unethical practices that could harm their career and reputation.
What are some questions that job seekers can ask prospective employers to assess the ethical climate of the organization?
Is there a formal code of ethics, and how widely is it distributed?
Are workers at all levels trained in ethical decision-making and encouraged to take responsibility for their behavior or question authority when faced with ethical concerns?
Are there formal channels for employees to confidentially raise concerns, and is there a committee within the organization that addresses ethical issues?
Is misconduct disciplined swiftly and justly within the organization?
Is integrity emphasized to new employees?
How are senior managers perceived in
terms of their integrity, and how do they model ethical behavior?
What are the three important aspects of building an organizational culture that emphasizes ethical behavior?
The three important aspects are:
Articulating values that emphasize ethical behavior.
Emphasizing the importance of these values and acting on them repeatedly.
Using independent auditors to ensure compliance with ethical codes.
What is a code of ethics in the context of building an ethical organizational culture?
A code of ethics is a formal statement of the ethical priorities that a business adheres to. It outlines the ethical principles and values that guide the organization’s behavior.
How do companies often draft their code of ethics, and what are some sources of inspiration for these codes?
Companies often draft their code of ethics by drawing heavily upon documents like the UN Universal Declaration of Human Rights. These documents are grounded in Kantian and rights-based theories of moral philosophy.
How can leaders in a business give life and meaning to the values articulated in a code of ethics?
Leaders can achieve this by repeatedly emphasizing the importance of ethical behavior, acting in accordance with the values, and ensuring that key business decisions align with ethical principles.
What additional step have some companies taken to ensure compliance with their ethical codes, and can you provide an example?
Some companies have hired independent auditors to ensure that they are behaving in a manner consistent with their ethical codes.
An example is Hudson’s Bay Company (HBC), which uses independent auditors to verify that suppliers adhere to HBC’s code of conduct for vendors.
