week 4 Flashcards
define national culture
Everything in our surroundings that is made by people
explain the self reference criterion
The unconscious reference to one’s own cultural values, experiences, and knowledge The idea that “we” differ from “them” Common in international business We react based on our knowledge Accumulated over a lifetime Grounded in culture of origin
explain cultural relativism
The concept that morality varies from one culture to another
Believes ‘right’ and ‘wrong’ is defined differently by each culture
Can be a rationalization for straying from one’s cultural values
explain global common values
Shared across most cultures; often based on religion, reflected by law
Desirable common values
Integrity, family and community unity, equality, honesty, fidelity, sharing, and unselfishness
Undesirable common values
Ignorance, pride and egoism, selfish desires, lust greed, adultery, theft, deceit, lying, murder, hypocrisy, slander, and addiction
slide 8 graph
sienna x jazzie :P
define Risk compartmentalization
Occurs when profit centers within corporations are unaware of the consequences of their actions on the firm as a whole
gfc
explain socialism (economic system)
Socialism: Advocates that wealth and power be shared across society, based on the amount of work expended in production
Karl Marx
explain social demoncarcy (ec0nomic system)
Social democracy: Private ownership of property, but a large government
Formed in the 1940s as an offshoot of socialism
explain biomodal wealth distribution (eco systems)
Many poor and a few very wealthy with a small middle class Some argue it is a result of the global economic system
explain rational v behavioural economiss
Rational economics: Assumes that people are predictable and maximize the utility of their choices based on their needs and wants
Act independently on the basis of full and relevant information
Behavioral economics: Assumes that economic decisions are influenced by human behaviour
Humans are assumed to act irrationally due to genetics, emotions, learned behavior, and heuristics
explain multinational corporations
Public companies that operate on a global scale and are not limited to any one nation or region
Criticisms
Misusing and misallocating scarce resources
Exploiting labor markets of the host country
Issues of unfair competition
Failing to carry an appropriate share of the cost of social development
multinational corporations now support Business for social responsibility (BSR) which
Tracks emerging issues and trends
Provides information on corporate leadership and best practices
Conducts educational workshops and training
Assists organizations in developing practical business ethics tools
explain international monetary fund
Regulates monetary relationships between national economies
Promotes responsible global business conduct
explain world trade organisation
Provides legally binding ground rules for international commerce and trade policy
Facilitates trade negotiations and settles trade disputes
explain bribery
Bribery’s acceptance varies by country
Can be a challenge to determine what a bribe is
Bribery laws and regulations
The U.S. Foreign Corrupt Practices Act (FCPA) prohibits companies from paying foreign officials to keep/obtain business, with exceptions
The U.K. Bribery Act goes much further
Most developed countries recognize bribery is not conducive to business
However, companies must determine what constitutes a bribe
explain anti trust activity
Antitrust laws are meant to encourage fair competition
Countries have differing levels of protections
Can create difficulties in international business
Vertical system: A channel member controls the entire business system
Can occur when MNCs are allowed to grow unchecked and create a monopoly
Reduces competition and can put small competitors out of business
explain human rights
Opportunistic use of child labor, payment of low wages, and abuses in foreign factories are a few of the concerns.
Relationships with subcontractors have proven problematic for some firms.
MNCs should view the law as a ‘floor’ of acceptable behavior and strive for greater improvements in workers’ quality of life.
explain labour and right to work
Many people work outside their homeland International firms today have many global ethical concerns related to labor Gender pay equality Right to join unions Standards of living
explain consumerism
The belief that consumers should dictate the economic structure of society
States that consuming goods at an increasing rate is desirable
Equates personal happiness with purchasing and consuming products
Made-to-break (Planned obsolescence): Encourages consumers to buy more items
Meeting with backlash from stakeholders who do not believe that consumerism leads to happiness Not sustainable as resources diminish
Importance of Ethical Decision Making in Global Business
Companies should:
Incorporate global and domestic ethical issues in their risk management strategies
Formulate their own global ethical codes
Appoint ethics officers or committees to oversee and handle global compliance issues
Provide extensive training to its employees
alternative energy sources
wind power gethermal ppower solar nuclear power ethnol hydro poweer
explain the triple bottom line approach
Considers social and environmental performance along with economic performance
Better environmental performance reduces costs by:
Improving risk management and stakeholder relationships
Reducing the amount of materials and energy used
Reducing capital and labor costs
define green marketing
Using stakeholder assessment to create long-term relationships with customers while maintaining, supporting, and enhancing the natural environment
define greenwashing
Misleading a consumer into thinking that a good or service is more environmentally friendly than it really is
Negatively relates to financial performance
strategic implementation of environmental responsibility includes
recycling
stakeholder assessment
risk analysis
strategic sustainability environmental audit
