1. Welcome to MT 220 Global Business Unit 3 Ethics and Social Responsibility in a Global Market Bill Okrepkie WOkrepkie@kaplan.edu bokrepkie@rap.midco.net AIM - WSOkrepkie (605) 342-1689 (h) (605) 390-0466 ©

2. Agenda Welcome everyone Admin Review units 1 and 2 Discuss Unit 3 Preview Units 4 – 6 Conclusion of Seminar

3. Hi everyone and I hope you all are having a great week and weekend!

4. Are there any questions so far in the class or any questions I missed?

5. A little Admin Did you get a chance to look at the academic tools?... Some good stuff I gave you some APA examples in the drop box… may want to look and use it.

6. Unit 1 Introduction to Global Business You introduced yourself Completed your discussion question on Globality and the Seven Struggles. Anyone care to share your thoughts on this topic? Then you had the geography and time zone activities/quiz. Did you all have fun with those two activities? Any thoughts?

7. Unit 2 Culture and Political Economy Command economies: the government plans for and is in control of decisions regarding the goods and services-> state-owned enterprises Market economies: profitable organizations are privately owned.  Eliminate monopolies/ antitrust laws Mixed Economy: There are some mixed economies that have reduced the percentage of state ownership like: Brazil, Italy and even India has reduced state ownership. So what type of economy do we have here in the US?

8. Unit 2 – Legal Systems Common Law- built on English system involving precedent Civil Law- Based on Codes – Germany, France, Japan, Russia. Theocratic Law- Based on religious teachings CIGS= U.N. Conventions on Contracts for Int’l Sale and Goods (CIGS)

9. Unit 2 Discussion Question A French company wants to expand their operations to Georgia. -Where did you look for the information -Did anyone consider the US State Department Link -How about articles you can find in our Library data bases -How about your APA style and citing your sources -What was your recommendation based on what you found?

10. Unit 2 Assignment Compare the economic and political “pros and cons” of investing in the gas industry Bolivia and Venezuela. Based on your analysis, explain which country you would start establishing a relationship with as a basis for potential future business in the gas industry and why. How did you come to your conclusions? Anyone scared with the political situation in Venezuela? Did the economic model cause any concern in your choice?

11. Unit 2 Quiz Can you begin to appreciate the dynamics of the different cultures and economic landscapes as you study the different countries? I believe it is critical you develop an appreciation of the various issues and dynamics in countries you may want to do business with. You should begin (if you are not already) following and understanding on what is going on around the world.

12. Any Questions on Unit 2

13. Unit 3 Ethics and Social Responsibility in a Global Environment Summarize philosophical approaches to ethics and their shortcomings Know what managers can do to incorporate ethical considerations into their decision making Discuss opposing viewpoints of ethical issues Discuss a sustainability and socially responsible leader Evaluate the reasoning of opposing perspectives on ethical issues

14. Association for the Advancement of Sustainability in Higher Education Membership to the is free to you at Kaplan University. We have a campus wide membership. You will be able to log in by doing the following to access the resources: Follow this link http://www.aashe.org/members/memberlogin.php

15. Some great links Take the Self Challenge: Sustainability Practice Quiz on the left hand menu bar. Use these helpful links as you work through the ungraded quiz.

16. What is Corporate Social Responsibility? The responsibility of an organization’s management to ensure that their firm interacts/impacts the community in which it exists in a sustainable and ethical manner. What are some of the pros of CSR What are some of the cons of CSR

17. Business Ethics The accepted principles of right or wrong governing the conduct of business people. Markkula Center for Applied Ethics http://www.scu.edu/ethics/ What are some of your ethics? What are some of your values?

18. Values Consistent over timeBroad-minded HonestSupportive Forward lookingDependable InspiringCooperative CompetentCourageous IntelligentDetermined Fair-mindedCaring Straight forwardImaginative MatureAmbitious LoyalSelf-controlled

19. Ethical Strategy A course of action, that does not violate ethical principles. Employment practices Human rights Environmental pollution Corruption Moral obligations

20. Roots of Unethical Behavior Personal ethics Decision making processes Organizational culture – the values and norms that are shared among employees of an organization Unrealistic performance expectations. Leadership

21. Philosophical approaches to ethics Straw Men Friedman doctrine – increase profits within laws – no social expenditures beyond required by law. Cultural relativism – The belief that ethics are nothing more than a reflection of a culture and that firms should simply adopt the ethics of the cultures in which they operate Righteous moralists – The belief that a multinational’s home- country standards of ethics are the appropriate ones for companies to follow in foreign countries. Naïve Immoralist – The belief that if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation, that manager should not either.

22. Philosophical approaches cont. Utilitarian – Hold that the moral worth of actions or practices is determined by their consequences Kantian Ethics – The belief that people should be treated as ends and never as means to the end of others Rights Theories – A 20 th century ethical approach based on the belief that human beings have fundamental rights and privileges tat transcend national boundaries and cultures. Universal declaration of human rights – A UN document based on Kantian and rights theory – lays down basic principles that should always be adhered to, irrespective of the culture in which one is doing business.

23. Any Questions

24. Discussion Question Choose one of the Straw Men approaches to ethics from your chapter reading (Friedman doctrine, cultural relativism, righteous moralism, naïve immoralism) and explain which approach you have chosen in the past (or would choose in the future) when making an ethical decision in business. Then discuss what is lacking in the approach you chose as an ethical approach for businesses. Then compare your thoughts with the thoughts the President of Ketchum.

25. Assignment Decide which ethical stance Google takes on their website when they enter China and defend your decision. Decide which ethical stance the Human Rights Advocates used based on the readings in the course text pages 141-148. Explain why you think so. Then decide which ethical stance Google takes now based on the site below, and evaluate the reasons why Google changed stances and what influences were at work? Is there a logical reason for their change of ethical stance? Did Robert Ketchum’s statements from our Reading section prove to be true here? Why or why not? http://dealbook.blogs.nytimes.com/2010/07/12/china-renews-googles-license/ Please refer to one of the philosophical approaches when doing your evaluation of each side of this ethical consideration. Your response should be in the form of a 1 page paper (not including a Title and Reference) page. Watch the APA video in your online course on the Assignment Page.

26. Coming up in Units 4, 5, and 6 In Unit 4 we will talk about trade policy – How and why industry tariffs and subsidies affect a country In Unit 5 we will examine Foreign Direct Investment- We will look at how political ideology (which we looked at in Unit 2) affects FDI as well as geography, trade agreements etc. Then in Unit 6 we look at Export/Import briefly for our next seminar.

27. Any final questions

28. It looks like the hour is up. I hope this session was valuable to you and I look forward to seeing you in our next seminar. Have a great week and weekend and see you in the discussion board.