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International Business. Competing in the Global Marketplace, Seventh Edition

Chapter 4: Ethics in International Business

ISBN: 9780073381343 Author: Charles W. L. Hill

copyright © 2009 McGraw-Hill, a business unit of the McGraw-Hill Companies, Inc.

Ethics in International Business

Learning Objectives

After you have read this chapter you should:

1. Be familiar with the ethical issues faced by international businesses.

2. Recognize an ethical dilemma.

3. Discuss the causes of unethical behavior by managers.

4. Be familiar with the different philosophical approaches to ethics.

5. Know what managers can do to incorporate ethical considerations into their decision making.

Apple’s iPod Plant

In mid-2006 news reports surfaced suggesting that there were systematic labor abuses at the factory in China that makes the iconic iPod for Apple Computer. According to the reports, workers at Hongfujin Precision Industries were paid as little as $50 a month to work 15-hour shifts making the iPod. There were also reports of forced overtime and poor living conditions for the workers, many of whom were young women who had migrated in from the countryside to work at the plant and lived in company-owned dormitories. The articles were the work of two Chinese journalists, Wang You and Weng Bao, employed by China Business News, a state-run newspaper. The target of the reports, Hongfujin Precision Industries, was reportedly China’s...