1. Managing Business Ethics
Chapter 11
Treviño & Nelson – 5th Edition

2. Chapter 11 Overview Introduction
Focus on the Individual Expatriate Manage
The Organization in a Global Business Environment
Conclusion

3. Focus on the Individual Expatriate Manager
Difficulty of foreign business assignments
Need for training and guidance
Foreign language proficiency
Learning about the culture

4. Individualism/Collectivism
Responsibility primarily to self versus family/group
Most Asian / Latin American countries - collectivist
U.S., Canada, Australia, most N. Europeans - individualist

5. Power Distance
Acceptance of hierarchical or unequal distribution of power, inequality
India, Philippines, Mexico, Venezuela - high on power distance
U.S., Israel, most Northern Europeans lower on power distance

6. Donaldson’s Approach to Developing Corporate Guidelines
Reject ethical relativism
Reject ethical imperialism
Develop an “ethical threshold” for corporate behavior abroad based upon core values that can be translated into specific guidelines

7. Development of Transcultural Corporate Ethic - 4 Principles
Inviolability of national sovereignty
Social equity
Market integrity in business transactions
Human rights and fundamental freedoms

8. UN Global Compact
Protection of internationally proclaimed human rights
Noncomplicity in human rights abuses
Support for freedom of association
Elimination of forced and compulsory labor
Effective abolition of child labor
Elimination of employment and workplace discrimination
Support for a precautionary approach to environmental challenges
Initiatives to promote greater environmental responsibility
Development and diffusion of environmentally friendly technologies

9. Global Codes of Conduct
Address Eight Principles:
Fiduciary
Property
Reliability
Transparency
Dignity
Fairness
Citizenship
Responsiveness

10. Case: The Gift
You're an account executive with a multinational financial firm, and one of your biggest accounts is that of a shipping magnate in Greece. Several months after you've arranged a very complex financing to build a new fleet of oil tankers for this customer, he asks if you and your wife would attend the christening of the first tanker. You, of course agree to attend - it would be an insult to him if you didn't. When you arrive, he asks your wife to break the traditional champagne bottle over the bow of the tanker. Two weeks after the christening, your wife receives a package from your customer. In it is a gold bracelet with her initials and the date of the christening set in diamonds. To return the gift would insult your customer, but accepting it would clearly violate your company's policy.
What should you do?