1. © 2007 Robert Sweo International Business Ethics

2. © 2007 Robert Sweo What is Ethics Moral standards that regulate right and wrong conduct Most standards vary greatly between populations

3. © 2007 Robert Sweo Ethical Theories Virtue Theories – Develop good habits of Character Duty Theories – Meet obligations Consequential Theories – Seek favorable outcomes Social Contract Theory – Minimum social standards must be adhered to

4. © 2007 Robert Sweo Virtue Theories Develop good habits of Character Very common in Western cultures Plato's Virtues - wisdom, courage, temperance and justice. Other important virtues are fortitude, generosity, self-respect, good temper, and sincerity Vices - cowardice, insensitivity, injustice, and vanity

5. © 2007 Robert Sweo Duty Theories One must meet obligations Rights theories – Strong must protect the weak  we should not harm anyone's life, health, liberty or possessions Obligations of the universe  Fidelity: the duty to keep promises  Reparation: the duty to compensate others when we harm them  Gratitude: the duty to thank those who help us  Justice: the duty to recognize merit  Beneficence: the duty to improve the conditions of others  Self-improvement: the duty to improve our virtue and intelligence  Nonmaleficence: the duty to not injure others

6. © 2007 Robert Sweo Consequential Theories An action is morally right if the consequences of that action are more favorable than unfavorable Utilitarianism – the action that creates the most happiness is the moral action  Rule utilitarianism – measures rules of behavior rather than each act

7. © 2007 Robert Sweo Social Contract Theory The following minimum standards must be adhered to  That a productive organization should enhance the long-term welfare of employees and consumers in any society in which the organization operates.  That a productive organization should minimize the drawbacks associated with moving beyond the state of nature to a state containing productive organizations.  That a productive organization should refrain from violating minimum standards of justice and of human rights in any society in which it operates.

8. © 2007 Robert Sweo Applied Ethics Tries to create policies of behavior from Ethical Theory  Business Ethics  Environmental Ethics  Computer Ethics  Corporate Social Responsibility

9. © 2007 Robert Sweo International Applied Business Ethics Theory preference is culturally bound Companies often face conflicting government and cultural requirements World perspectives important  Multinational  Multidomestic  Global

10. © 2007 Robert Sweo Major Issues Environment Employee relations  Health & Safety  Pay  Interface to religion and other cultural practices Affects of business on local culture Government relations  Bribery  Corruption

11. © 2007 Robert Sweo Bribery Foreign Corrupt Practices Act

12. © 2007 Robert Sweo Corruption 2004 CPI Score: -relates to perceptions of the degree of corruption as seen by businesspeople, risk analysts, journalists, and the general public -ranges between 10 (highly clean) and 0 (highly corrupt) RANK/COUNTRY SCORERANK/COUNTRY SCORE 1.Finland 9.7 26. Botswana 6.0 2. New Zealand 9.6 38. South Africa 4.8 5. Singapore 9.3 46. Brazil 4.0 11.United Kingdom 8.6 54. El Salvador 3.6 12. Canada 8.5 57. China 3.5 15.Germany 8.2 71. India 2.7 17.United States 7.6 79. Russia 2.3 18. Chile 7.5 84. Bolivia 2.0 21. Japan 7.1 90. Nigeria 1.0 Source: Transparency International

13. © 2007 Robert Sweo Now What? This will be one of your biggest problems in International Business START STUDYING Golden Rule – Do onto others as you would have them do onto you Platinum Rule – Do onto others as they would have you do onto them