S Ethics & IBT

Question 1

It refers to the rules, principles, and standards for determining what is morally right or wrong in business; the system of moral and ethical beliefs, values, and principles that guide the behaviors and decisions of a business organization and its individuals.

Answer 1

BUSINESS ETHICS

Question 2

it refers to the moral principles that guide the conduct of individuals and organizations involved in global commerce.

Answer 2

INTERNATIONAL
BUSINESS ETHICS

Question 3

ISSUES UNDER BUSINESS ETHICS IN THE
INTERNATIONAL MARKETING ENVIRONMENT

Answer 3

CHILD LABOR
TRANSFER PRICING
FAIR TRADE MOVEMENT
BIOPROSPECTING
BIOPIRACY

Question 4

• This refers to the exploitation of children in the workforce, often in hazardous conditions, for low wages.
• It is unethical because it deprives children of education, exposes them to unsafe environments, and violates human rights.
• Many industries, such as manufacturing, agriculture, and mining, have been criticized for ——, especially in developing countries.

Answer 4

CHILD LABOR

Question 5

• This is the pricing of goods, services, or intellectual property transferred between subsidiaries of a multinational corporation.
• While legal, unethical transfer pricing occurs when companies manipulate prices to shift profits to low- tax jurisdictions, avoiding taxes in countries where they actually operate.
• This practice reduces government tax revenues, leading to economic inequality and a lack of funding for public services.

Answer 5

TRANSFER PRICING

Question 6

• This is a global initiative that promotes ethical trade practices, ensuring fair wages, better working conditions, and environmental sustainability.
• It aims to protect small-scale farmers, artisans, and workers, particularly in developing countries, from
  exploitation by large corporations.
• Fair Trade-certified products, such as coffee, tea, and handicrafts, ensure that producers receive fair compensation while following ethical and eco-friendly production methods.

Answer 6

FAIR TRADE MOVEMENT

Question 7

• This is the exploration of biological resources (such as plants, fungi, and microorganisms) for commercial purposes, such as developing pharmaceuticals or agricultural products.
• When done ethically, it involves fair compensation and benefits for local communities and indigenous groups that provide these resources.
• However, when conducted without proper
  agreements, it can lead to biopiracy.

Answer 7

BIOPROSPECTING

Question 8

• This is the unethical or illegal appropriation of biological resources and traditional knowledge from indigenous communities without compensation or consent.
• It often involves corporations or researchers patenting traditional remedies, seeds, or plant extracts, depriving local communities of their cultural and economic rights.
• Famous examples include the patenting of neem, turmeric, and basmati rice by foreign companies without crediting the indigenous groups that have used them for centuries.

Answer 8

BIOPIRACY

Question 9

ETHICAL APPROACHES

Answer 9

• UTILITARIAN APPROACH - which action result s in the most good and least harm.
• RIGHTS-BASED APPROACH - which action respect s the right s of everyone involved.
• FAIRNESS OR JUSTICE APPROACH - which action treat s people fairly.
• COMMON GOOD APPROACH - which action contributes most to the quality of life of the people affected.
• VIRTUE APPROACH - which action embodies the character that strengthens value.