Global Business Ethics and Social Responsibility Chapter 10

Ethical Issues – 4 Types When a company deals internationally, they must deal with four types of ethical issues: The host country and society Consumers Employees Investors and stockholders

Societal Issues Example: The Environment Clean air, water, soil are needed to live Businesses slow to respond to environmental concerns Canada among the worst polluters per capita in the world (worse than the USA)

Societal Issues THE major concern is currently is global warming Kyoto Protocol (Kyoto Accord) Kyoto Japan, agreement to reduce carbon dioxide emissions The USA and Australia did not sign, Canada will not honour agreement Recent pressure for action – “An Inconvenient Truth” by Al Gore

Consumer Issues Example: Quality Control Product Safety Standards Childrens’ toys, tires, medication Examples: Johnson and Johnson - Tylenol scare of 1982 (cyanide killed 7) Firestone Tires on Ford Explorers - recalled 6.5 million tires after numerous deaths in N. America

Employee Issues Examples: 1.Workplace Health and Safety –Varied by country 2. Equality –Women still not treated fairly in many countries 3. Human rights –Trade with countries that use child labour? 4. Labour –Ethics of giving employees rights, cheaper, less hassle elsewhere

Stockholder Issues Illegal business dealings often result in company ceasing to exist (e.g. Enron) Corrupt governments and business are plentiful What effect does this have on shareholders? 2002 Corruption Perceptions Index ranked 102 countries for corruption Bangladesh, Nigeria, Paraguay, Kenya most corrupt Finland, Denmark least corrupt Canada 7th

Ethical Dilemmas - Worksheet What would you do in the given scenarios? Read sample case studies and organize each into the following: –Problem –People affected –What if scenarios –What choice would you make?