Global Business Ethics and Social Responsibility

Global Business Ethics and Social Responsibility

Chapter 10

Ethical Issues – 4 TypesEthical Issues – 4 Types

• When a company deals internationally, they must deal with four types of ethical issues:

• The host country and society

• Consumers• Employees• Investors and stockholders

Societal IssuesSocietal Issues

Example: The Environment • Clean air, water, soil are

needed to live• Businesses slow to

respond to environmental concerns

• Canada among the worst polluters per capita in the world (worse than the USA)

Societal IssuesSocietal Issues

• THE major concern is currently is global warming

• Kyoto Protocol (Kyoto Accord) - 1997 Kyoto Japan, agreement to reduce carbon dioxide emissions

• The USA and Australia did not sign, Canada will not honour agreement

• Recent pressure for action – “An Inconvenient Truth” by Al Gore

Consumer IssuesConsumer Issues

Example: Quality Control • Product Safety Standards• Childrens’ toys, tires,

medicationExamples:• Johnson and Johnson -

Tylenol scare of 1982 (cyanide killed 7)

• Firestone Tires on Ford Explorers - recalled 6.5 million tires after numerous deaths in N. America

Employee IssuesEmployee Issues

Examples:

1. Workplace Health and Safety– Varied by country

2. Equality– Women still not treated fairly in

many countries

3. Human rights– Trade with countries that use child

labour?

4. Labour– Ethics of giving employees rights,

cheaper, less hassle elsewhere

Stockholder IssuesStockholder Issues• Illegal business dealings often result in

company ceasing to exist (e.g. Enron)• Corrupt governments and business are

plentiful • What effect does this have on

shareholders? • 2002 Corruption Perceptions Index

ranked 102 countries for corruption• Bangladesh, Nigeria, Paraguay, Kenya

most corrupt• Finland, Denmark least corrupt • Canada 7th

Ethical Dilemmas - WorksheetEthical Dilemmas - Worksheet

• What would you do in the given scenarios?

• Read sample case studies and organize each into the following:– Problem– People affected– What if scenarios– What choice would you make?