Professional Documents
Culture Documents
Quick Reflects
Falsify or
misrepresent
contracts of official
documents
4-5
Quick Reflects
Pay or accept bribes, kickbacks, or
inappropriate gifts
4-5
Quick Reflects
Tolerate
sweatshop
conditions or
abuse employees
4-5
Quick Reflects
Do falsify
advertising or
other deceptive
marketing
4-5
Quick Reflects
Undertake activities that harm the natural environment.
4-5
Quick Reflects
Engage in deceptive or discriminatory pricing.
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Note: Countries with the highest scores have the lowest levels of corruption.
Sources: Adapted from Corruption Perceptions Index 2014. Transparency International: The Global Coalition Against
Corruption (2015), www.transparency.org. Copyright 2017 Pearson Education, Ltd.
4-6
MISCONDUCTS IN
INTERNATIONAL BUSINESS
Organizing Framework
4-3
Corporate
governance:
A system of procedures and
processes for corporations to
manage, direct and control provides the means through
which firms undertake ethical
behaviors, CSR, and
sustainability.
4-3
CODES OF
ETHICS
Describes the values and
expectations that guide
decision making by all
employees in the firm
CODES OF
CONDUCTS
Translates the code of ethics
into specific rules regarding
behaviors and practices
(prohibited vs required)
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4-8
Realitivism
The belief that ethical
truth are not absolute
may differ from group to
group
Normativism
The belief that ethical behavior
standards are universal need to
uphold them consistently across
the world
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Source: Intellectual Property Rights Seizure Statistics Fiscal Year 2014, Washington, DC: Homeland Security, U.S. Customs
and Border Protection and U.S. Immigration and Customs Enforcement (2015), at www.cbp.gov/sites/default/
files/documents/2014%20IPR%20Stats.pdf.
Copyright 2017 Pearson Education, Ltd.
4-14
4-15
4-16
cultural relativism, no
cultures ethics are
better than any others;
therefore there are no
international rights and
wrongs (i.e Bribery)
BENEFITS
VS
DAMAGES
Shaping
ethical
behavior
when
involving in
international
context
4-18
4-18
4-19
Cisco focused on
creating a networked
medical delivery
system that would
bridge the gap
between urban and
rural healthcare.
4-19
4-19
4-19
GOOGLE CSR
4-19
STARBUCKS CSR
4-19
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Sources: Pete Engardio, Beyond the Green Corporation, Business Week, January 29, 2007, pp. 5064; Fisk Johnson, How I Did It: SC Johnsons
CEO on Doing the Right Thing, Even When It Hurts Business, Harvard Business Review, April, 2015, pp. 3336; Kasturi Rangan, Lisa Chase, and
Sohel Karim, The Truth about CSR, Harvard Business Review, January/February, 2015, pp. 4049.
4-19
Sustainability
ENVIRONMENTAL INTEREST - to
the extent of the firms impact and
harm to the natural environment
4-20
Workers at a Foxconn factory in China, a leading supplier to Apple. Following charges about
poor working conditions at Foxconn plants, Apple and Foxconn took steps to improve the
4-21
work environment.
Copyright 2017 Pearson Education, Ltd.
4-22
As water grows scarce in much the world, some multinational firms are conserving their use of this
critical resource. Coca-Cola, a major water consumer, conducts a water sustainability program to
4-23
address shortages in India.
Copyright 2017 Pearson Education, Ltd.
Source: World Bank, World Bank Development Indicators 2014, Washington DC: World Bank; World Bank, Clean Air and
Healthy Lungs: Enhancing the World Banks Approach to Air Quality Management (Washington DC: World Bank, February
2015).
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Copyright 2017 Pearson Education, Ltd.
HOW?
1. Skillful use of innovative technologies
2. Improved wafer productivity
3. Management of shortages in vulnerable areas
4. Planning in incorporating sustainability practices
5. Managed the partners/suppliers to use sustainable practices
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Corporate Governance
The system of procedures and processes by which
corporations are managed, directed, and controlled.
Provides the means through which firms undertake
ethical behaviors, CSR, and sustainability.
Corporate Governance
ETHICS
CSR
SUSTAINABILITY
What is right
4-25
4-29
Rights
Approach
This approach
instructs the
decision maker
to choose the
action that best
protects and
respects the
moral rights of
everyone
involved. It is
based on the
belief that,
regardless of
how you deal
with an ethical
dilemma, human
dignity must be
preserved.
Fairness
Approach
This approach
advises that
everyone should
be treated
equally and
fairly. Workers
should be paid a
fair wage that
provides a
decent standard
of living, and
colleagues and
customers
should be
treated as we
would like to be
treated.
Common Good
Approach
This approach
suggests that
actions should
be based on the
welfare of the
entire
community or
nation. It asks
which action
contributes most
to the quality of
life of all affected
people. Respect
and compassion
for all, especially
the vulnerable,
should be the
basis for
decision making.
Virtue
Approach
This approach
advocates that
ethical actions
should be
consistent with
certain ideal
virtues that
provide for the
full development
of our humanity.
The most
important virtues
are truth,
courage,
compassion,
generosity,
tolerance, love,
integrity, and
prudence.
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ISLAM,
ETHICS, CSR
AND SUSTAINABILITY
4-31
And Allah loveth not those who do mischief (Surat Al Maeda, verse 64)
And do no mischief on the earth after it has been set in order: that will be best for
you, if ye have Faith (Surat Al Araf, the Heights, verse 85)
Eat and drink: But waste not by excess, for Allah loveth not the wasters (Surat AlAraf 7: 21).
And do good as Allah has been good to you. And do not seek to cause corruption in
the earth. Allah does not love the corrupters, (Surat Al Qasas 28:77)
Children of Adam, dress well whenever you are at worship, and eat and drink (as we
have permitted) but do not be extravagant: God does not like extravagant people.
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(Surat Al-Araf 7:31)