1. ETHICAL GOES GLOBAL… OR INTERNATIONAL Ethical Dimensions of Leadership Virginia Tech MBA Andrew Watson

2. Agenda Current events: what did you bring? Managing for ethics… in a global environment: Ch. 11 Or in international business… Break PepsiCo case Looking ahead

3. A Chapter of Two Parts Some preliminary questions on each part Individual Focus on individual expatriate manager Expatriate: a person living outside native country Expatriate assignments Arguments for and against using them? Alternatives? Is expat assignment an ethical issue? Organization Why enter the “global environment”?

4. Expatriate Assignments Will illustrate with examples from my expat assignments Difficult, and sometimes unsuccessful For the family, as well as for the individual expatriate Hence need for support, including training Individual differences in “CQ” Cultural intelligence: ability to be effective in cross-cultural situations Foreign language proficiency “Americans speak fewer foreign languages than their trading partners”

5. Cultural Differences Differences between home and host country cultures Behaviors depend on more than country culture Individual differences Organizational culture Multiple cultures within country Geography, socio-econ group, language, religion,… Negotiating norms

6. Ethical Differences Payoffs and bribes Laws of relevant countries Corporate HQ country Home country of expat Host country Differences between countries Decreasing? Organization can help employees with principles To be applied wherever the organization operates Risk of “ethical imperialism”?

7. Entering a Foreign Country Why this country? What to do within this country? How to do it? Entry mode, etc. Some consequentialist questions Which stakeholders will be affected, and how? Effect on organizational reputation? What questions might we ask from other perspectives? Deontological Virtue ethics

8. Transcultural Corporate Ethic Authors suggest four principles 1. National sovereignty 2. Social equity 3. Market integrity 4. Human rights and freedoms Questions raised by these principles?

9. International Framework Facilitated by UN, involving MNCs Ten shared principles, under four headings Human rights (3 principles) Labor (3) Environment (3) Anti-corruption (1) The next slide provides a contrast It is descriptive, rather than prescriptive But still based on words, rather than on deeds

10. Analysis of MNC Business Principles 1. Fiduciary 2. Property 3. Reliability 4. Transparency 5. Dignity 6. Fairness 7. Citizenship 8. Responsiveness

11. Looking Ahead Group presentations next week See Announcement of earlier this week Then Discussion based on your recommendations Thanksgiving! Usual closing