chapter 5 Flashcards
CAGE
cultural, administrative, geographic and economic distance.
stakeholders
anyone including shareholders, employees, customers, suppliers and society at large.
Why do companies care about ethical behavior?
to develop competitive advantage
To avoid being perceived as irresponsible
Ethics teaches that people have a responsibility to do what is
right and to avoid doing what is wrong
relativism
holds that ethical truths depend upon the
groups subscribing to them; thus, intervention in local issues and traditions by outsiders is clearly unethical
normativism
holds that there are universal standards of behavior that everyone should follow; thus, nonintervention in local violations of
global standards is clearly unethical
legal foundations of ethical behavior
i) everything that is legal is not necessarily ethical,
(ii) the law is slow to develop in emerging areas of concern,
(iii) the law is often based on moral concepts that cannot be separated from
legal concepts,
(iv) the law may need to be tested by the courts,
(v) the law is not efficient in terms of achieving ethical behavior at a minimum
cost, Nonetheless, the law does serve as a useful basis for examining ethical
behavior because it embodies cultural values.
BUT:
(i) the law provides a basic guide for proper conduct,
(ii) the law provides a clearly defined set of rules, and when
followed they establish a good precedent,
(iii) the law contains enforceable rules that apply to everyone,
and
(iv) the law reflects careful and wide-ranging discussions
corruption
involves using power or authority for personal gain, often through illegal or unethical means
bribery
Bribery-is one facet of corruption- It consists of payments, or promises, to
pay cash or something else of value, to public officials and/or other people of influence. In recent decades, questionable payments by MNEs to government officials have been prevalent in both industrial and developing
countries
the case of petrobras
the case revealed widespread corruption in Brazil’s government and corporate sectors, leading to major political and economic shifts. It also set a precedent for anti-corruption efforts worldwide.
whats being done for corruption
Multiple agreements established by OECD (Organization for Economic
Cooperation and Development), the ICC (International Chamber of
Commerce), and the UNCAC (United Nations Convention Against
Corruption).
The Foreign Corrupt Practices Act (FCPA)
a US law that prohibits the bribery of foreign officials to gain a business advantage. It also requires publicly traded companies to maintain accurate records and internal accounting controls.
sustainability
means meeting the needs of the present without compromising the ability of future generations to meet their own needs
while taking into account what is best for society and for the environment
Paris Agreement on Climate Change of 2015-One hundred eighty
One hundred eighty-seven countries agreed to keep the increase in the global average temperature to 2°C above pre-industrial levels and try to achieve 1.5°C. The countries also agreed to try to shoot for a target of zero net GHG emissions by the
second half of the century. The United States, one of the major sources of GHG emissions, signed the agreement in 2015 by executive order of the President of the United States. However, after a
new election in 2017, the United States announced it would cease all participation in the Paris Agreement, then rejoined in 2021.
