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International Business > Chapter 5 > Flashcards

Chapter 5 Flashcards

1
Q

what are the most common ethical issues concerned with? (5)

A

employment practices,
human right
environmental considerations, corruption, moral obligations of MNCs

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2
Q

To guard ethical abuses a firm should (3)

A
  • establich acceptable standards that protect the basic rights of employees
    -audit foreign subsidies and contractors regularly to ensure that standards are being met
    -take corrective action if they notice abuses
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3
Q

what are the 5 freedoms associated with human rights

A
  • freedom of association
    -freedom of speech
    -freedom of assembly
    -freedom of movement
    -freedom from political repression
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4
Q

which country had a apartheid system

A

south africa

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5
Q

what did business from developed countries that operate in south africa think

A

they questioned the ethics of doing business there

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6
Q

what business took action regarding working in south africa

A

general motors

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7
Q

what did general motors do

A

they adopted the sullivan principles

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8
Q

what are the sullivan principles

A

that the company should not obey the apartheid rules in its own operations in south africa, and they should promote the abolition of the apartheid laws,

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9
Q

after 10 year what did leon sullivan conclude

A

that adopting the principles was not enough to end the apartheid regime and that business could not justify operating in south africa anymore

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10
Q

what happened after leon sullivan changed his mind about the ethics of working in south africa

A

many american companies divested their south african operations, and many american pension funds said they wont hold stocks of companies that operate in south africa, then the apartheid regime and introduced democratic elections

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11
Q

is it ethical for multinational corporations to operate in countries that are repressive

A

inward investment by MNCS can be a force for economic, political, and social progress to improve human rights in the foreign country

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12
Q

economic progress in a nation could create pressure for

A

democratization

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13
Q

why would a mnc produce in a country with less pollution controls

A

less costly to produce there , so they are free to despoil the environment while lowering costs to obtain a competitive advantage

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14
Q

what is the tragedy of the commmons

A

when a resource is held in common but owned by no one and is overused by individuals

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15
Q

how do corporations contribute to the global tradegy of the commons

A

they move production to locations where they are free to pump plutants into the atmosphere or dump them in ocean, thereby harming global commons

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16
Q

how do international business gain advantages in corrupt contries

A

making payments to corrupt government officials in order to gain an economic advantage

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17
Q

when does the problem of ethics regarding environmental pollution arise

A

Problems occur when environmental regulations differ between host and home nations.

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18
Q

what is the US foreign corrupt practices act (FCPA)

A

the act outlaws the paying of bribes to foreign officials to gain business

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19
Q

what does the FCPA allow

A

facilitating payments

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20
Q

what are facilitating payments

A

they are NOT payments to secure contracts that would not otherwise be secured and they arent payments made to obtain exclusive preferential treatment, they are payments to ensure receiving standard treatment that a business ought to receive from a foreign gov

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21
Q

the OECD followed the US and made the ?

A

convention on combating bribery of foreign public officials in international business transactions

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22
Q

what is the CONVENTION ON COMBATTING BRIBERY

A

obliges member states of the OECD to make bribery of foreign officials a criminal offense, but it excludes facilitating payments made to expedite routine gov action

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23
Q

How do bribes affect a company

A

the may improve efficiency and help growth, but they reduce the inventive to invest and it reduces the returns on investment and leads to low economic growth

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24
Q

how do bribes reduce ROI

A

officials may siphon off the profits from business activity which reduces the business incentive to invest and may retard economic growth

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25
what are ethical dilemmas
ethical dilemmas are situations where there are. no alternatives that seem ethically acceptable
26
what are the determinants of ethical behaviour? (6)
societal culture personal ethics organizational culture unrealistic performance goals decision making processes leadership
27
what are personal ethics
generally accepted principles of right and wrong that govern the conduct of individuals
28
how are personal ethics formed
formed by our parents, our schools, religion, and media
29
what is a possible ethical issue that can arise when managers from another country face pressure
they violate their personal ethics because they are away from their ordinary social context and culture
30
ethical problems arise in processes that
do not incorporate ethical considerations
31
how does organizational culture affect unethical behaviour
values and norms in the organization may not encourage people to think about the ethical consequences of their decisions
32
how do unrealistic performance goals effect unethical behaviour
pressure from the company to meet unrealistic goals may force employees to cut corners and act unethically
33
how does leadership effect unethical behaviour
leaders that dont establish a culture of ethical behaviour will cause unethical behaviour in emplyees, employees take cues from their leaders on how to behave
34
what factors in societal culture affect unethical behaviour
individualism and uncertainty avoidance, masculinity and power distance
35
cultures that have higher ethical behavior have which societal culture
societal cultures with high individualism and uncertainty avoidance have higher ethical behaviour
36
what is philosophy
a system of beliefs and knowledge that provides a global influential framework
37
what is methodology
methodology helps approach dealing with something by providing methods and tools
37
what is approach
approach is a focused way to deal with something, largely influenced by philosophy
38
38
what are straw men approaches
offer inappropriate guidelines for ethical decision making
38
what are the 4 straw men approaches
the friedman doctrine cultural relativism the righteous moralist the naive immoralist
39
what is the friedman doctrine
the idea that the social responsibility of business is to increase profits so long as the company stays within the rules of the law then tooz
40
what is cultural relativism
ethics are reflection of culture, and we should reject the idea that universal notions of morality transcend different cultures
41
what is the righteous moralist approach
the home country standards of ethics should be followed in foreign countries,
42
the righteous moralist approach is usually criticized because
the proponents go too far
43
the naive immoralist approach is
if a manager of a mnc sees that firms from other nations are not following ethical norms in the host nation then they shouldnt either
44
utilitarian approaches to ethics suggest
the moral worth of actions or practices is determined by their consequences, so good=utility,
45
how are actions considered desirable under utilitarian approaches to ethics
actions are desirable if they lead to the best possible balance of good consequences over bad consequences
46
what are the best decisions under utilitarian approach to ethics
the best decisions are those that produce the greatest good for the greatest number of people
47
what are the drawbacks of the utilitarian approach to ethics
difficult to measure the benefits and costs of an actions, fails to consider justice
48
what are kantian ethics
believe that people should be treated as ends and never purely as means to the ends of others people have dignity and should be respected
49
kantian ethics require individuals to act based on
principles that can be consistently applied to everyone so it emphasizes universality and impartiality
50
what are the rights theories
believes that human beings have fundamental rights and privileges that transcend national borders and cultures
51
moral theorists argue that ----- form the basis for a moral compass that managers should use in ethical decision making
fundamental human rights
52
what is the UN declarayon of human right
lays down the principles that should be adhered to regardless of culture
53
what is article 1 of the human rights declaration
all human beings are born free and equal in dignity and rights, and people should act towards eachother in a spirit of brotherhood
54
what is article 2
everyone is entitled to all the rights in the declaration regardless of race color , sex, language, religion
55
what is article 3
everyone has the right to life, liberty and security
56
what are the justice theories
focus on the attainment of a just distribution of economic goods and services that is considered fair and equitable
57
what system would you design under a veil of ignorance
you create policies that work for everyone even those on extremes of the spectrum
58
under the veil of ignorance each person is permitted to the max amount of
basic liberty like right to vote and freedom of speech
59
when is inequality allowed under the veil of ignorance
allowed only if the inequalities benefit everyone
60
what organizational culture and leadership should we enforce to have ethical behaviour
articulate values that place a strong emphasis on ethical behaviour emphasize the importance of a code of ethics implement a system of incentives and rewards that recognize people that engage in ethical behaviour
61
how do we go about decision making to be ethical
-put decision making process that requires people to think about the ethical dimension of the decision -ask yourself is people close to you would approve of the decision -ask yourself does it fall within the accepted values -
62
what are the 5 steps to think through an ethical problem
1- identify which stakeholds the decision woudl affect -determine if the decision would violate the rights of any of the stakeholders -establish a moral intent ( moral concerns above other concerns) -engage in ethical behaviour -audit decisions later to see if they are consistent with ethical principles
63
what role should a firm create to ensure ethical behaviour
have ethics officers
64
what do ethics officers do
asses the efficiency of the ethics program develop and train employees on the ethics program comply with laws monitor and audit ethical behaviour take action when appropriate review and update the code of ethics periodically
65
what is the importance of moral courage
enables managers to walk awag from a decision that is profitable but unethical -give employees the power to say no to their superiors if they want them to act unethically -gives employees the integrity to go public if theres unethical behaviour in a company
66
what is CSR
corporate social responsibility
67
what are the rules of csr
-with power comes responsibility, csr advocates that businesses need to recognize their noblesse oblige, and acknowledge that power can be used in a positive way
68
what is noblesse oblige
term that refers to honorable and benevolent behavior that is considered a responsibility for those with high status
69
why are sustainable strategies beneficial
help the firm make good profits without harming the environment
70

International Business (7 decks)

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