Global Business Ethics and Social Responsibility Chapter 10 Global Business Ethics and Social Responsibility

Brainstorm List 1 positive and 1 negative media story you’ve heard recently about business ethics and issues? To whom should multinational businesses show corporate responsibility? What is the role of Canadian international businesses in developing nations?

Understanding Business Ethics Code of Ethics Values, written or not, that represent principles for actions of individuals and organizations E.g. home, schools, businesses, countries “The Tiger Way”

Understanding Business Ethics Rule of Law Written laws, refined in history, establish the rules that citizens are expected to follow E.g. Canadian Charter of Rights and Freedoms Ethical Dilemma 2+ courses of action conflict, choice between two fundamental rights

Cultural Relativism vs. Ethical Imperialism Ethical Imperialism - belief that certain forms of behaviour are categorically right or wrong Cultural Relativism - belief that behaviour should be governed by what will bring greatest good E.g. smoking, children working

Corporate Social Responsibility Broadly covers corporate standards and practices regarding human rights, the environment, human resources, and community relations Stakeholders - people affected by performance of company E.g. management, employees, shareholders, host community                                                                                        

Social Marketing Social Marketing Proactive initiatives that companies take to support a cause, e.g. literacy, environment, poverty Also known as Cause Marketing Successful recent examples: (red) campaign – Gap, Motorola, Converse, iPod Idol Gives Back – over $75 million raised for global poverty

Homework Read “Cause Related Consumerism”. Answer the questions at the end of the article. Page 311 Explain the term ‘business ethics’. Describe the difference between cultural relativism and ethical imperialism. Identify three stakeholders in any international business organization.

“Latte Activist” vs. Traditional Social Activist Prefer to buy products that benefit the greater good of society Don’t research deeply into cause Don’t buy exclusive brands Jump from trendy cause to trendy cause Traditional Social Activist Strong believe in a cause Helping the cause is far more important than consumerism Not lazy – actively involved in a cause Well researched – experts in the cause Support the same cause from year to year

Product (red) Campaign created by Bono of U2 Benefits the “Global Fund” Broad spectrum of corporate support – iPod, American Express, Converse Corporations are not shy about pursuing profit while supporting a cause Taps into our insatiable desire to buy stuff…always

Traditional Route for CSR “Portion of proceeds go to…” Hide the fact that profit is a motivation for social responsibility Examples: Timbits program Employee volunteer programs