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2. International business impacts daily life around the world and also affects ethical decisions in business.

3. To describe settings in which international business affects people
To list issues that affect ethics in international business

4. It is necessary to work in the global environment in an ethical and legal way in order to sustain effective global trade.

5. a set of moral principles by which people conduct themselves personally, socially, or professionally
ethics
a set of ideas about how a company should conduct business in relation to legal, social, and environmental issues
business ethics

6. social responsibility
the duty to do what is best for society
a statement that explains what a company or group believes is proper and improper conduct
code of ethics

7. the various individuals or groups of people who have a direct interest, involvement, or investment in something
stakeholders

8. The Impact of International Business
State or Provincial
International business affects countries on several levels.
Local

9. People can buy products from firms around the world.
Local Level
People can buy products from firms around the world.
Customers expect local businesses to keep up with local and international trends.
Internet use makes the world of international business move faster.

10. State or Provincial Level
State and provincial governments seek ways to sell regional products globally.
Businesses located in one state look to build relationships with international companies and national governments.

11. National Level
Highly developed countries seek to keep a balance between exporting their products and importing products.
Countries with few natural resources or goods to export have trouble with economic stability.

12. International Level
Taxes and tariffs can be imposed on a country that is gaining an unfair advantage by pricing its exported products too low.
A recession in one country can affect the economies of other countries.

13. Ethics and Social Responsibility
Ethics exist to serve as guidelines for behavior.
ethics
a set of moral principles by which people conduct themselves personally, socially, or professionally

14. Ethics and Social Responsibility
Business ethics have to do with doing “the right thing” in business.
business ethics
a set of ideas about how a company should conduct business in relation to legal, social, and environmental issues
Business ethics include practicing business legally, morally, and fairly.

15. Ethics and Social Responsibility

16. Social Responsibility
To promote social responsibility, businesses can:
social responsibility
the duty to do what is best for society
Eliminate negative activities.
Perform positive activities.

17. Social Responsibility
A code of ethics might be created or sponsored by a company or profession.
code of ethics
a statement that explains what a company or group believes is proper and improper conduct

18. Business organizations have many stakeholders.
the various individuals or groups of people who have a direct interest, involvement, or investment in something

19. Stakeholders in a Business
labor unions
employees
owners
Stakeholders in a Business
general public
stockholders
customers
governments
suppliers

20. Stakeholders
Every ethical issue, from unfair wages to tax evasion, has a specific impact on a stakeholder group.

21. Factors Affecting Ethical Decisions
Factors affecting ethical decisions include:
The culture and history of a country
Union issues
Government regulations

22. Factors Affecting Ethical Decisions
Recall Name three factors that affect ethical decisions.

23. Some consequences of unethical decisions include:
Lawsuits
Government intervention
Jail
Loss of business partners internationally
Loss of customers

24. Factors Affecting Ethical Decisions
Relate Do you think it is fair for one country to sell goods to buyers in other countries at much lower prices if companies in the seller’s home country pay low wages to employees?

25. Local and Global Impacts
Global business has expanded with the Internet, technology, and transportation.
The growth of global business requires responsible action by businesses around the world.

26. How does international business affect ordinary people?
1.2
How does international business affect ordinary people?
on the local level, through offering new goods and services; on the state or provincial level, by representing local products internationally; on the national level, by impacting the nation’s economy

27. What are ethics and social responsibility?
1.2
What are ethics and social responsibility?
Ethics is a set of moral principles by which people conduct themselves; social responsibility is the duty to do what is best for the good of society.

28. 1.2
What are stakeholders?
individuals or groups of people who have a direct interest, involvement, or investment in something

30. End of