chapter 15: globalization and society Flashcards
companies must satisfy the demands of
SECSS
- shareholders
- employees
- customers
- suppliers
- society
name the three levels of moral development
- preconventional
- conventional
- post conventional
what is the teleological approach
decisions are based on the consequences of tha action
what is utilitarianism
an action is right if it produces the greatest amount of good
what is the deontological approach
moral judgemetns are made and moral reasoning occurs independent of consequences
why do companies care about ethical behaviour
- to develop competitive advantage
2. to avoid being perceived as irresponsible
relativism vs normativism
- Relativism: ethical truths depend on the groups holding them
- Normativism: there are universal standards of behaviour
legal justification: pro and con
pro: the law is a good basis for the ethical behaviour beacause it embodies local cultural values
con: legal justification for ethical behaviour may not be sufficient because not everything that is unethical is illegal
what are bribes and why do they take place
bribery of public officials takes place to obtain government contracts or to get officials to do what they should be doing anyways
bribes are payments or promises to pay cash or anything of value
what’s being done about corruption
- National initiative: the USA
- The foreign corrupt practices act is U.S legislation that makes bribery illegal. It applies to domestic or foreign operations and to company employees as well as their agents overseas
- Sarbanes-Oxley legislation in the USA is helpful in combating corruption through more effective corporate governance, financial disclosure, and public accounting oversight
what is sustainability
- Sustainability involves meeting the needs of the present without compromising the ability of future generations to meet their own needs while considering what is best for the people and the environment
- It is no longer just good business practice. New businesses are emerging that are combining the idea of environmental responsibility and profitability
ethical dilemmas of labor conditions
- Major labor issues that MNEs get involved in through FDI or purchasing from independent manufacturers in developing countries are fair wages, child labor, working conditions, working hours, and freedom of association
companies need to act responsibly because unethical and irresponsible behavior:
- Could result in legal sanctions
- Could result in consumer boycotts
- Could lower employee morale
- Could cost sales because of bad publicity
codes of conduct involve four dimensions
- Setting a global policy that must be complied with wherever the company operates
- Communicating the code to employees, suppliers, and subcontractors
- Ensuring that policies are carried out
- Reporting results to external stakeholders
