1. The Global Context Lecture 10 Global Corporate Social Responsibility

2. Lecture Objectives Define Corporate Social responsibility Identify corporate social responsibility issues in the global economy Propose ways in which business can respond to global inequalities

3. Why this Topic? Globalization brings many pressures and problems Problems are partly, but not wholly linked to MNC conduct in international markets Globalization is a continuing process and so of continuing interest to ethics in business

5. Corporate Social Responsibility The notion that corporations have an obligation to society to take into account not just their economic impact but also their social and environmental impact.

6. Global CSR Whose standards? –ETHNOCENTRISM –CULTURAL RELATIVISM

7. Codes of Conduct ARE THERE UNIVERSAL PRINCIPLES? –FREEDOM OF MOVEMENT –OWNERSHIP OF PROPERTY –FREEDOM FROM TORTURE –FAIR TRIAL

8. Codes of Conduct –PHYSICAL SECURITY –FREEDOM OF SPEECH AND ASSOCIATION –MINIMAL EDUCATION –POLITICAL PARTICIPATION –SUBSISTENCE

9. The UN Global Compact FOUR AREAS HUMAN RIGHTS LABOUR STANDARDS ENVIRONMENT ANTI-CORRUPTION

10. Corruption ‘Involves the behaviour on the part of officials in the public and private sectors, in which they improperly and unlawfully enrich themselves and/or those close to them, or induce others to do so, by misusing the position in which they are placed’ (World Bank)

11. What’s Wrong with Bribery & Corruption? REDUCES NATIONAL WEALTH BY DISTORTING THE MARKET DIVERTS RESOURCES FROM PUBLIC SERVICE PROJECTS UNETHICAL – ABUSE OF POWER

12. What’s Wrong with Bribery & Corruption? UNDERMINES THE DEMOCRATIC PROCESS CAN DAMAGE THE ENVIRONMENT

13. Business Risks LOSS OF REPUTATION RISK OF PROSECUTION NO COMPENSATION FOR LOST BUSINESS ONE BRIBE CAN LEAD TO ANOTHER

14. Business Risks ADDS TO THE COST OF DOING BUSINESS MAKES DOING BUSINESS DIFFICULT LOSS OF TRUST

15. Corruption

16. Child Work TYPES OF CHILD WORK ECONOMICALLY ACTIVE CHILD LABOUR HAZARDOUS WORK

17. Child Labour

18. WHY DO CHILDREN WORK? PUSH FACTORS –POVERTY –LACK OF EDUCATIONAL OPPORTUNTIES –FAMILY BREAKDOWN –CULTURAL PRACTICES

19. Child Labour WHY DO CHILDREN WORK? PULL FACTORS –CHEAP LABOUR –OBEDIENT LABOUR –NIMBLE FINGERS –INADEQUATE/UNPOLICED LAWS –POOR INFRASTRUCTURE

20. What’s Wrong With Child Labour? DENIAL OF HUMAN RIGHTS STEALS CHILDHOOD PREVENTS EDUCATION EXPLOITED THROUGH LOW OR NO WAGES POOR CONDITIONS OFTEN LEAD TO HEALTH PROBLEMS

21. What’s Wrong With Child Labour? PERPETUATES POVERTY SWELLS LABOUR SUPPLY AND REDUCES WAGES FOR ALL CAN REDUCE ADULT EMPLOYMENT OPPORTUNITES LONG TERM COST TO SOCIETY

22. Why worry? Ethical problems in global business can leave long- lasting stains on corporate reputations –Nike –Gap –Coca-Cola –Nestlé Obvious damage to expensively-created brand value –Worldwide media, increasingly decentralised Possible competitive disadvantage –Bad news demotivates more than good news motivates

24. De George’s Code of Conduct Do no intentional direct harm –Act so as to benefit the host country –no utilitarian trade-offs; The good of the host country may not be the same as the good of the current regime Respect the human rights of workers, consumers and others in the host country Promote the development of just background institutions, within the host country and internationally Respect the laws of the host country as well as its culture and values, provided these do not violate human rights or impose immoral laws De George, R T (1998), Business Ethics, Prentice Hall

25. Any Questions ?