Ethics in a Global Business Management

294 Words2 Pages
1. Why is it important to focus on ethics in a global business management course? It is important because every multinational company and multinational managers face ethical challenges when operating in a foreign country. Multinationals engaging in questionable behavior receive bad publicity and can lose goodwill. Also multinationals can get sued and suffer losses. They can also lose customers. Managers at all levels face ethical issues every day. And it affects people and their welfare. 2. What 3 “moral languages” does Thomas Donaldson believe should guide MNC’s is creating ethical standards and why? Multinational companies should be guided by the three moral languages of avoiding harm, rights and duties, and the social contract. Multinationals should engage in business practices that avoid negative consequences to their stakeholders. While multinationals retain basic rights (i.e. seeking a fair profit), these rights also imply duties (i.e. providing a fair wage to local employees). The multinational also has a social contract between itself and its stakeholders. 3. What is driving ethical convergence (pressure to follow similar rules/standards for ethical behavior and social responsibility)? 1. The growth of international trade organizations and trading blocs (such as NAFTA, EU). 2. Interaction between trading partners promotes imitating the business practices of other country. 3. Companies that do business throughout the world have employees from varied cultural backgrounds who need common standards and rules regarding how to behave. 4. An increasing number of business watchdogs (such as NGO, ethical investment companies). 4. Visit Transparency International website: www.transparency.org Any surprises in the top/bottom 10? Can this data be useful as you select your target country for your global expansion project? This data can be useful. I need
Open Document