Ethics in international business

By:Vineetha.C

MHROD

ETHICS IN INTERNATIONAL BUSINESS

EthicsEthics: It is a discipline dealing with what is

good and bad or right and wrong or with moral duty and obligation

Social responsibility : It is moral, legal or mental accountability

These terms make up the foundational principles and character which drives the decision of a company and individual present

Conti..It is a study and governance by which

acceptable standards are based onDo countries with lower ethical views

attract business ?Some aspect answer is yes but overall

answer is no.

Conti..Banana republic : A country that is

politically unstable, dependant on limited agriculture and ruled by a corrupt elite class that is heavily influence by MNC

FDI tends to be greater in countries with stronger workers rights –> higher labour standards – >higher economic growth

Can Ethical Business Practices Be Applied Globally?Accepted code of ethical standards is difficultHonesty, Integrity and loyalty Ethics change over time –GladiatorEthics should evaluated under situation and

circumstance

Example1970 –USCalifornia Toyota –JapaneseChange – Technology, Physical Lay out, People

and Structure17 levelsBusiness cardDirector of welding improvement“I made this car. Have any problem ? Call me.”Value them and understand them

Ethical IssuesChild LaborForced LaborDiscriminationHealth and SafetyWorking HoursCompensationThe right to free association

ETHICS PHYLOSOPHYWesternKant Philosophy – Duty ethics-Act out of

dutyAristotle- Virtue ethics –Act out of valuesAristotle focused on the actorKant focused on the action

VirtuePrudence/Wisdom (exercising sound

judgment in practical affairs.)Justice (proper moderation between self-

interest and the rights and needs of others)Courage (the ability to confront fear, pain,

risk/danger, uncertainty, or intimidation)Temperance (practicing self-control,

abstention, and moderation)

Conti..Moral virtue, or excellence of character,

concerns what we do voluntarily, and not what we do because we are forced to do so.

Kant-The basis of moral action is duty. When we exercise the goodwill to decide to follow our duty, then our actions have moral value.

We shouldn’t treat people as a means to an end, but as ends in themselves.

“Certain actions are right or wrong regardless of the consequences.”

Utilitarianism

Conti…Eastern –People are intrinsic and

inseparable part of the universe. So one must do what is right and expected and universe will take care of the rest

DifferenceWestern Eastern

Focus Finding Truth Protocol and Respect

Basis Rational Thought Religious Teachings

Emphasis Logic, Cause and Effect

Respect towards family

Roots in Rome , Christianity etc

Hinduism , Buddhism etc

Approach Rational Holistic and Cultural

Conflict & Harmony Good must triumph over Evil

Good and bad ,Light and Dark all exist in equilibrium

Thank You…