Chapter4

Ethics in International Business

Chapter Outline

OPENING CASE: Wal-Mart’s Chinese Suppliers

INTRODUCTION

ETHICAL ISSUES IN INTERNATIONAL BUSINESS

Employment Practices

Management Focus: Making Apple’s iPod

Human Rights

Environmental Pollution

Management Focus: Unocal in Myanmar

Corruption

Moral Obligations

Management Focus: News Corporation in China

ETHICAL DILEMMAS

THE ROOTS OF UNETHICAL BEHAVIOR

Personal Ethics

Decision Making Processes

Organizational Culture

Unrealistic Performance Expectations

Leadership

Management Focus: Pfizer’s Drug Testing Strategy in Nigeria

PHILOSOPHICAL APPROACHES TO ETHICS

Straw Men

Utilitarian and Kantian Ethics

Rights Theories

Justice Theories

FOCUS ON MANAGERIAL IMPLICATIONS

Hiring and Promotion

Organization Culture and Leadership

Decision-Making Processes

Ethics Officers

Moral Courage

Summary of Decision-Making Steps

SUMMARY

CRITICAL THINKING AND DISCUSSION QUESTIONS

CLOSING CASE: Google in China

Learning Objectives

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 to do to incorporate ethical considerations into their decision making.

Chapter Summary

This chapter focuses on how ethical issues can and should be incorporated into decision making in an international business. The chapter starts by looking at the source and nature of ethical issues and dilemmas in an international business. Then, the reasons for poor ethical decision making in international business are reviewed. Next, there is a discussion of different philosophical approaches to business ethics. Finally,...