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Embeds 0 No embeds. No notes for slide. International management managing across borders and cultures text and cases 8th edition helen deresky solutions manual 1. To obtain a user name and password please contact your local Pearson sales representative. Learning Objectives 1. To understand the changing perceptions of and demands on corporations doing business in other countries, in particular their responsibilities toward human rights.
To acknowledge the strategic role that CSR and codes of ethics must play in global management. To provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world.
To recognize that companies must provide benefits to the host country in which they operate in order to maintain cooperation. To discuss the need for corporations to consider sustainability in their long-term plans in order to manage environmental impacts on host locations. To identify the challenges involved in human rights issues when operating around the world. The trust factor for McDonalds in China has gotten better as a result. Global interdependence is a compelling factor of the global business environment, creating demands on international managers to take a positive stance on issues of social responsibility and ethical behavior, economic development in host countries, and ecological protection around the world.
Managers today are usually quite sensitive to issues of social responsibility and ethical behavior because of pressures from the public, interest groups, legal and governmental concerns, and media coverage. The United Nations published guidelines for the responsibilities of transnational corporations and called for companies to be subject to monitoring, verification, and censure for unethical business practices.
Issues of social responsibility continue to center on poverty and lack of equal opportunity around the world, the environment, consumer concerns, and employee safety and welfare. The concept of international social responsibility is the expectation that MNCs concern themselves about the social and the economic effects of their decisions regarding activities in other countries.
The opinions on the level of social responsibility that a domestic firm should demonstrate range from two extremes—one is that the only responsibility of a business is to make a profit, and the other that companies should anticipate social needs and try to solve them. Exhibit page 42 shows that managers are faced with not only considering stakeholders in host countries, but also with weighing their rights against the rights of domestic shareholders.
Under the Lens Illustrating that shareholders are not always focused only on profits, the New York City Pension Funds, a minority shareholder in Walmart, is pressuring the company to require its suppliers to give annual reports about working conditions in their factories. Corporate Social Responsibility CSR —an integration of the business environments in which the firm operates.
Although it is very difficult to implement a generalized code of morality see slide and ethics in individual countries, such guidelines do provide a basis of judgment regarding specific situations. Bowie used the term moral universalism to describe a moral standard that could be accepted by all cultures. Under the ethical approach of ethnocentrism, a company would apply the morality used in its own home country.
A company subscribing to ethical relativism would take the local approach to morality appropriate in whatever country it is operating. MNC responsibility toward human rights 1. Although the United States often takes the lead in the charge against what they consider human rights violations around the world, other countries point to the homelessness and high crime statistics in the United States. The best chance to gain some ground on human rights around the world would be for large MNCs and governments around the world to take a unified stance.
A number of large image-conscious companies have established corporate codes of conduct for their buyers, suppliers, and contractors, and have instituted strict procedures for auditing their imports. Reebok and Levi have established codes of conduct for their buyers, suppliers, and contractors.
In addition some companies are uniting with others in their industry to form their own code for responsible action. However, although this growth has lifted millions of Chinese out of poverty, many people and their basic rights remain largely behind, and there has been a heavy cost to the environment as energy usage increases and causes pollution.
Growth in higher skilled jobs and in services is now well under way. However, there is continuing concern among MNCs about the pitfalls of operating in China—among them are the uncertain legal climate; the difficulty of protecting intellectual property there; the repression of free speech; and the difficulty of monitoring, let alone correcting, human rights violations in factories.
Codes of conduct 1. A considerable number of organizations have developed their own codes of conduct; some have gone further to group together with others around the world to establish standards to improve the quality of life for workers around the world. Companies such as Avon, Sainsbury Plc. Their proposed global labor standards would be monitored by outside organizations to certify if plants are meeting those standards, among which are the following: a.
Do not use child or forced labor. Provide a safe working environment. Do not regularly require more than hour work weeks. Teaching Tip: Send your students on an electronic scavenger hunt. Have students assess the codes of conduct given the guidelines in Exhibit There are four international codes of conduct see slide that provide some consistent guidelines for multinational enterprises MNEs. Getz has integrated these four codes and organized their common underlying principles, thereby establishing MNE behavior toward governments, publics, and people.
This synthesis of guidelines is shown in Exhibit page 48 II. Ethics in Global Management see slide A. Globalization has multiplied the ethical problems facing organizations. However, business ethics have not yet been globalized.
Attitudes toward ethics are rooted in culture and business practices. For an MNC, it is difficult to reconcile consistent and acceptable behavior around the world with home-country standards. One question, in fact, is whether it should be reconciled. Perhaps more scrutiny should have been applied to those global MNCs headquartered in the United States such as Enron and WorldCom that so greatly defrauded their investors, employees, and all who had business with them.
International business ethics refers to the business conduct or morals of MNCs in their relationships to all individuals and entities. Such behavior for MNCs is based largely on the cultural value system and the generally accepted ways of doing business in each country or society. Those norms are based on broadly accepted guidelines in religion, philosophy, professions, and the legal system.
The American approach is to treat everyone the same by making moral judgments based on general rules. Managers in Japan and Europe tend to make such decisions based on shared values, social ties, and their perception of obligations.
The biggest single problem for MNCs in their attempt to define a corporate-wide ethical posture is the great variation of standards of ethical behavior around the world. Exhibit see slide 2- 18 provides a conceptual model explaining important elements of this challenge.
Transparency International, a German organization, conducted research on the level of corruption among public officials and politicians in various countries as perceived by business people, academics, and risk analysts.
The Corruption Perceptions Index see slide is provided in Exhibit Ethics in Uses of Technology 1. This conflict is illustrated by the electronic data privacy laws in Europe. Bribery see slide 1. A specific ethical issue for managers in the international arena is that of questionable payments.
These are business payments that raise significant questions of appropriate moral behavior either in the host nation or in other nations. For the sake of simplicity, the text categorizes all these different types of questionable payments as some form of bribery. The dilemma for Americans operating abroad is how much to adhere to their ethical standards in the face of foreign customs, or how much to follow local ways in order to be competitive. Americans must be able to distinguish between harmless practices and actual bribery, between genuine relationships and those used as a cover up.
The goal was to stop MNCs from 8. The penalties include severe fines and sometimes imprisonment. There are three questions see slide to ask of ethical corporate actions: a.
International Management: Managing Across Borders and Cultures, Text and Cases, 8th Edition
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