Lesson 2.1 – International Business Ethics

Question 1

Why is international business ethics important for Canadians?

Answer 1

Because Canadian companies operate globally, often in countries with weaker labor, environmental, and regulatory standards.

Question 2

What are some historical reasons why Canadian companies operate in developing countries?

Answer 2

Cheap labor and wages

Fewer unions or weaker labor laws

Less strict health & safety regulations

Lower taxes or better tax treatment

Weaker environmental protections

Abundance of inexpensive raw materials

Question 3

Are laws in Canada typically stricter than in developing countries?

Answer 3

Yes, developed countries like Canada usually have stronger labor, safety, and environmental protections.

Question 4

Do Canadian companies have to follow Canadian laws when operating abroad?

Answer 4

No, legally they must follow the laws of the host country, even if those laws are weaker.

Question 5

Is merely complying with weaker foreign laws ethical?

Answer 5

No, companies are expected to go beyond weak regulations and apply ethical business practices.

Question 6

What is the United Nations Global Compact (UNGC)?

Answer 6

A convention that encourages businesses to adopt socially responsible policies beyond the legal requirements of their host countries.

Question 7

What ethical approach does the UNGC promote?

Answer 7

It promotes long-term value over short-term profit maximization.

Question 8

How does the UNGC define long-term value?

Answer 8

Reducing pollution to protect the environment for future generations.

Improving social and economic conditions of the local workforce.