Chapter 7 Flashcards
International marketing & ethics
Who are internal stakeholders?
equity investors, lenders, management, employees
Who are external stakeholders?
customers, consumer associations, environmental protection groups
What is the Global Compact
worldwide pact signed in 2000 by 173 countries between companies and UN for the sociological and ecological shaping of globalization.
aim: be socially responsible corporate systems, abolish child and forced labor, prevent discrimination in workplace, support trade union rights, install environmental protections, disseminate environmentally-friendly technologies
What are benefits of ethical behavior
-can lead to higher profits
-improved long-term corporate image
What are two important principles in business ethics?
-environmental protection
-social responsibility
What is ethics?
Moral principles that govern a person’s behavior
Task of general ethics: establish criteria for good, acceptable and moral actions & decisions
What is the focus of business ethics?
Identify solutions and ways to achieve goals of shaping the economy and social systems in accordance with generally acceptable legal and ethical standards
What are ethics management systems?
ethics management system helps define and uphold a company’s moral principles, ensuring responsible behavior towards all stakeholders.
It includes a code of ethics, accountability mechanisms, and regular assessments to monitor compliance. This system not only promotes responsible business conduct but also enhances the company’s reputation, customer trust, and employee satisfaction.
Why were values and ethics management systems created and implemented?
to create link between individual and organizational behaviors
to facilitate in mediating conflicting issues between and among various stakeholders
can be seen as successfactors
What is the name of the professional association of ethics managers?
Ethics Officers Association (EOA)
What is personal ethics?
regulates behavior of superiors towards employees and relationship between employees.
Objective: shape social direction of company
What are examples of ethical behaviors in an organization?
-equal treatment and equality of employees
-effort to maintain, secure and create jobs
-compliance with health and social standards
-respect for human rights
-incorporating environmentally-friendly production process into business process
-offering high quality products and services
-integration of customer advisory and complaint management system into company
-maintaining ethical principles in work process: issuance of pertinent contracts (employment, sales, contracted services) that are highly negotiable and may be modified to put weaker party in a advantageous position
What are the incentives of corporate not to abide to moral compliance?
- incentive to override shareholders to maximize profits
-incentive to waste corporate resources to increase own wealth
Where do you check for corporate ethics?
social balance sheets
codes of conduct
corporate mission statements
appointing ethics officers
creating ethics network
What are further ways to check compliance compliance management system and consequences?
monitor code of ethics: regulates general behavior guidelines, employee behavior, responsibility towards interest groups; corporate objectives are presented and defined
recommend appropriate sanctions if company is found guilty of mismanagement
What is goal for companies concerning ethical behavior
-ensure that business opportunities don’t compromise well-being of society and stakeholders
What is corporate governance?
comprises the rules and principles relating to the organization and conduct of how a company is managed and controlles
What are advantages of corporate governance and ethical measures?
-positive public image
-trust in company is strengthened
-easier to deal with legal regulations and authorities
-can lead to greater customer satisfaction=higher market sales
-improvement of market position
-long-term impact on sales development and economic success
-increase transparency=weak point and risks can be identified at early stage=improves and expands relationships with customers & business partners
-employees better identify with employer=employees are more satisfied and motivated=higher work performance=greater sense of loyalty to company
What are disadvantages of corporate governance and ethical measures?
-difficulties introducing and implementing ethical aspects
-losing competitive advantage through new behaviors
-having to bear higher costs
-more focus on shareholder value than customer interests may yield no benefit
What is the Global Reporting Initiative (GRI)?
emphasizes on integrated innovation management combined with measurable standards
What is ISO 14001 certification
standard for sustainability reporting
What are differences between western hotels and asian hotel companies?
Western: emphasize on integrated innovation and sustainability
Asian: pursue more diverse sustainability initiatives: HR development, compensation, environmental sustainability, energy sources&conservation, risk management
Western hotel companies employ standardized and measurable methods like GRI standards or ISO 14001 certification for environmental management, whereas Asian hotel companies strive for a broad spectrum of initiatives from human resource development and compensation to risk management. Both approaches reflect their respective cultural values and stakeholder expectations.
What are benefits on focusing on sustainability for hotel chains?
-cost savings, image gains, increase in number of overnight stays
What is greenwashing?
companies who advertise environmentally-aware measures which have less impact on environment and more impact on company’s benefit
-pretense if responsible practices
What are Wyndhams’ four pillars of social responsibility program?
-diversity and inclusion: internal advocacy groups (pride for LGBTQ; next-generational dialogue), training to recognize and avoid prejudice and unconscious bias for affinity groups
-human rights: combating human trafficking (partnership with ECPAT-USE end child prostitution & trafficking, organization committed to ending commercial sexual exploitation of children; Polaris-organization against modern slavery); employees are trained to recognize warning signs and act accordingly
-sustainability: conserving natural resources and reducing environmental footprint (Wyndham Green Certification-five-level program from core to export practices towel reuse, energy-efficient indoor/outdoor lighting, water-efficient shower heads/toilet flushes, water, energy consumption & Co2 emissions reported to GRI and published in sustainability report
-philanthropy: in-kind donations and volunteerism
