Quiz 2: Chapters 4, Chapter 8 Flashcards
CPT4: what makes up the criteria for general business ethics
bonus: the 5 examples MEECH
The accepted principles of right and wrong governing the conduct of business people.
- moral obligation of multinational corporations
-employment practices - environmental regulations
- corruption
- human rights
CPT4: What is the root/cause of unethical practices in international businesses? ((6) (ppgsld)
PEPO: poor personal ethics
PSYCHO: psychological distances
GEO: geographical distances
STRATO: failure to incorporate strategic and operational decision making
LEAD D. CULTURO: dysfunctional leaders and culture.
CPT4: How does one make sure ethical issues are considered in international business decisions? (4)
- hire and promote well grounded. ethical employees
- build a workplace culture that values ethics
- leaders act and articulate good ethics with consistency
- be and share moral courage
CPT4: Most corrupt industries: (4)
- extraction
- construction
-transportation - IT
CPT4: what circumstances influence ethics and ethical considerations (5/6) PESCT
- political environment (laws,regulation, national, international)
-ECONOMIC ENVIRONEMTN (currency flucuations, international monetary organizations)
- socio-cultural environment ( population, immigration, urbanization, etc)
-COMPETITION: The need for corporations to remain competative = consequences for both employees and consumers on a global scale.
-Technological environment (communciations, productivity, demand and access to work)
CPT4: Determinants of ethical behaviour (5) PODUL:
- PERSONAL ETHICS
- ORGANIZATION CULTURE
-DECISION-MAKING PROCESS
-UNREALISTIC PERFORMANCE GOALS
-LEADERSHIP
CPT4: WHY DOES THE INTERNET HAVE SUCH A BIG INFLUENCE ON ETHICS? (4) VISQ + 1:
- VARIETY
-IMPACT - SPEED
-QUANTITY
MAGNITUDE: large amount of content can be created and shared at a short period of time, and more people than ever are on the internet
WHAT IS CORPORATE RESPONSIBILITY? :
the idea that corporations should consider social consequences of their actions when making business decisions, rather than just prioritizing capital gains all the time.
CPT4: WHAT IS NOBLESSE OBLIGE? HOW DOES IT APPLY?
NOBELLESE OBLIGE: honourable and benevolent behaviour, responsibility of the high birth
- successful corporations should give something back to society bc it is that made their success possible
CPT4: WHAT ARE THE CORPORATE SOCIAL RESPONSIBILITY (CSR) OBLIGATIONS (4) ADOP?
- ACCOMADATIVE STANCE
exceeding customers expectations
-DEFENSIVE STANCE
deny responsibility for the cause of concern - OBSTRUCTIONIST STANCE
create barriers that make it difficult for customers to address their concerns - PROACTIVE STANCE
responding to issues as soon as they arise and inform their customers of how they will be proceeding
CHAPTER 4 IMPLICATIONS FOR BUSINESS:
- COMPANIES HAVE TO DEAL WITH AN INCREASINGLY COMPETITIVE ENVIRONMENT
- COMPANIES MUST NOT JUST “DO THE RIGHT THING”, THEY MUST BE SEEN DOING I
NAFTA AND CUSMA ARE/WERE
agreements between mexico, usa, and canada to reduce tarrifs and trade barriers between the countries
WHAT ARE THE LEVELS OF FREE TRADE (FROM OUTSIDE IN) (5)
- Political union
- independent states uniting (USA) - economic union
-adoption of a common currency (euro)
- create more efficiencies and more wealth opportunities - common market
pursuing a comon external trade policy (pre-pre free trade) - customs union
group of countries committed to removing all barriers (pre free trade ) - FREE TRADE
all barriers of trade are removed
Pros and Cons of the Euro
Pros :
- significant savings from having only one currency
- common currency makes it easy to compare prices across Europe
- european producers will be forced to reduce their production costs to maintain profits
Cons:
- national authorities have no control over monetary policy
-European central bank has responsibility to set interest rates and determine policies
TRADE CREATION VS TRADE DIVERSION
AND Which is better?
CREATION:
- high cost producers are replaced by low cost foreign producers within a free trade area
DIVERSION:
- Lower cost external suppliers are replaced by high cost external suppliers within a free trade area
-TRADE CREATION HAS TO HAVE A GREATER AFFECT THAN TRADE DIVERSION IN ORDER TO HAVE A BENEFICIAL AFFECT