1.  Individual ethics + values – Martha McKasky  Organization culture – GCC  Ethics in the organization – How to implement

2. Ethics Codes/Policies in Organizations: How to  The code is about corporate culture -What lines can’t be crossed?  Get input – From ALL levels  Don’t be too specific or too vague  Ask experts (HR, ethicist, lawyer)  Put someone in charge -Who applies and updates?

3. In order to comply…  Codes of ethics exist in each of your chosen fields: – -Accounting (AICPA, IFAC, Code of Ethics for Professional Accountants) – -Finance (FPA, NAPFA) – -Marketing (AMA, BMA) – -Information Technology (Association of IT Professionals)

4. What do your company’s codes look like?  Standard or unique?  Do they work very well?  What single change would you make?

5. Creating an ethical culture  Ethical leaders  Ethics committees  Ethics officers/ombudspersons  Hot lines  Ethics audits  Corporate ethics awards

6.  Individual ethics + values  Organization culture  Ethics in the organization  The organization in the world – Stakeholders – Cultural considerations – CSR

7. Theories of the Firm

8. What is a corporation?

9. They are not all psychopaths! 100 Best Companies to work for

10. Milton Friedman’s Stockholder Model “The Social Responsibility of Business is to Maximize Profits” (1971)

11. How's That Shareholdery-Valuey Stuff Working Out for Ya?  The purpose of a corporation is to maximize shareholder wealth. And a corporation's board of directors' chief fiduciary responsibility is to shareholders.  These are plain and simple facts — and have been so forever. Right?  No, and no, actually.

13. The Stakeholder Model  Appeals to utilitarian considerations of overall well-being + individual rights  Requires management to achieve balance

14. Who are stakeholders?  People and groups that affect or can be affected by an organization’s decisions, policies, and operations  Benefits v. risks

15. Primary + Secondary  Primary stakeholders are critical to company’s existence and activities  Secondary stakeholders are those people/groups that are affected directly or indirectly by a company’s primary activities and decisions – Secondary DOES NOT = less important

16. Corporation Stockholders Customers Employees Communities Governments Educational Institutions Educational Institutions The Poor The Poor Future Generations Future Generations Earth’s Biosphere Earth’s Biosphere Religious Groups Religious Groups Political Parties Political Parties Creditors Political Interest Groups Political Interest Groups Trade Associations Trade Associations Suppliers Media Competitors Unions Primary Stakeholders Secondary Stakeholders

17. Prioritize your stakeholders

18. The Stakeholder Paradox An ethical problem will still exist whether or not management takes a strategic or multi-fiduciary position.

19. Some Problems and Concerns  Institutionalizing/Implementing  Conflicts between stakeholder groups  Efficiency/practicality

20. But…  It helps rule out alternatives and can be tested in the marketplace.  Maybe it is practical enough?

23. What is national culture?  Culture comes from a tradition  Culture is experienced in a collective, for which it is an important binding force  Culture is a process, not static

24. Hofstede: Levels of cultural programming Personality Culture Human nature Inherited and learned Learned Inherited Specific to individual Specific to group or category Universal

26. Basic Assumptions  Fundamental beliefs about the world; about... – the relationship between people and the environment – the existence of truth – the nature of space – the nature of time – the nature of human relationships

27. Cultural Dimensions: Hofstede  Power Distance  Individualism  Masculinity  Uncertainty Avoidance  Short/Long Term Orientation  These are GUIDES!

28. Power distance To what extent do we accept that some people have more power than others?  High: hierarchical, top-down (Latin)  Low: egalitarian, bottom-up (Germanic)

29. Individualism vs collectivism  Collectivism – “We” – extended family, group – interdependence – Harmony – Portugal, Greece, Spain, Africa, Asia, Latin America  Individualism –“I”–“I” – small group – independence – personality – Western

30. Masculinity vs femininity  Masculinity – be the best – ambition, competition – money, performance – success, technology – Italy, Germany, UK, Belgium, USA  Femininity – don’t be different – sympathy for the weak – solidarity, caring – Environment – Scandinavian countries, The Netherlands, Africa

31. Uncertainty Avoidance  Strong – uncertainty = threat – the unknown = danger, – risk averse – distrust, stress – Greece, Latin countries, German speaking countries, Finland  Weak – uncertainty = normal – the unknown = interesting – risk taking, “open” – Relaxed, “cool” – Scandinavian, Anglo- Saxon, Dutch

32. Bonus Dimension: Long vs. Short term orientation  Long – persistence – ordering relationships by status and observing this order – Thrift – having a sense of shame Virtue  Short – personal steadiness and stability – protecting your ‘face’ – respect or tradition – reciprocation of greetings, favors, and gifts Truth

33. High-Context Cultures  Infer information from message context, rather than from content.  Prefer indirectness, politeness & ambiguity.  Convey little information explicitly.  Rely heavily on nonverbal signs.

36. Low-Context Cultures  Rely more on content rather than on context.  Explicitly spell out information.  Value directness.  See indirectness as manipulative.  Value written word more than oral statements.

38. Motivation

39. “Fighting is in our DNA” - Dana White

40. What’s going on?  Team HOEHN…?

41.  Considering the history of the UFC and the challenges that cultural differences present to sports- related organizations abroad, can Lorenzo Fertitta make a case that the UFC is culturally viable in these potential international markets?

43. S. Korea  Sully  Jacquelyn  David  Mu-Ting  Ignacio  Grant  Wang

44. India  Ted  Raj  Chris K.  Anthony  Chris M.  Annik  Tim  Jon  Daniel  Huiwen

45. China  Jeff  Kathleen  Shawna  Michelle  Sunny  Jennifer

46.  What were the most important considerations in your decision?  Will there need to be “tweaks” to the product in order to make it work abroad?  How would you suggest he actually enter your chosen market?

47. So what did they decide?

48. China  TUF China – December 7, 2013 - January 26, 2014 -Finale: March 1 st in Macao – Cung Lee = mentor – Some issues…  Office IN China

49. India  TUF India – Announced as partnership with Sony Six  Looking to do several live events in the area

50. S. Korea  New fighters – Chan Sung Jung – Dong Hyun Kim  ‘Korean Zombie’ says UFC needs to show more sensitivity toward Asians  Live event in Singapore

51. What Lorenzo knew: =

52. Solid organizational decisions utilize  Ethics – Individual – Organizational  Stakeholder analysis  Cultural awareness

54. Is is possible to agree on fundamental rules that cut across all nations?

55. Hypernorms  Principles that serve as a guide in evaluating lower-level moral norms – Thought to represent intersection of: -Political, philosophical and religious beliefs

56.  Widespread consensus that the principle is universal.  Component of well-known global industry standards.  Supported by prominent nongovernmental organization or Transparency International.  Known to be consistent with precepts of major philosophies.  Known to be consistent with findings concerning universal human values.  Supported by the laws of many different countries.

57. Fundamental International Rights  The right to physical movement  The right to ownership of property  The right to freedom from torture  The right to a fair trial  The right to nondiscriminatory treatment  The right to physical security  The right to freedom of speech and association  The right to minimal education  The right to political participation  The right to subsistence T. L. Ceranic, PhD

58. The Dilemma of the Multinational Corporation Improving Global Business Ethics The Multinational Corporation Home Country Stakeholder Pressures Host Country Stakeholder Pressures T. L. Ceranic, PhD

59. Ethical Choices in Home versus Host Country Situations International Law Global Codes of Conduct BROAD MIDDLE GROUND Mix of Home and Host Country Standards CULTURAL RELATIVISM ETHICAL IMPERIALISM Cultural standards Ethical/moral standards of home country Home Country Host Country Cultural standards Ethical/moral standards of host country Application of Ethical Principles T. L. Ceranic, PhD

60. Actions for Improving International Business Ethics  Create global codes of conduct  Integrate ethics into a global strategy  Suspend activities in host country  Create ethical impact statements

61. Steps in the right direction  SA8000 SA8000  UN Global Compact UN Global Compact  Sullivan Principles  Cadbury Code

62. UN Global Compact  1: businesses should support and respect the protection of internationally proclaimed human rights  2: make sure that they are not complicit in human rights abuses  3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining  4: the elimination of all forms of forced and compulsory labour  5: the effective abolition of child labour  6: the elimination of discrimination in respect of employment and occupation  7: businesses should support a precautionary approach to environmental challenges  8: undertake initiatives to promote greater environmental responsibility  9: encourage the development and diffusion of environmentally friendly technologies  10: businesses should work against corruption in all its forms, including extortion and bribery T. L. Ceranic, PhD