ethics in international business

1: Ethics in InternationalBusiness Ali Zohery, Ph.D. Founder World Assembly for Ethics

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3: www.worldassemblyforethics.org 3 Multiethics As we are Multilingual, So we are multiethnic And as we are Multiethnic, so we are multiethical.

4: www.worldassemblyforethics.org 4 Ethical Issues in International Business EMPLOYMENT PRACTICES Work conditions: hot weather � around toxic chemicals - # of hours and pay salaries in developing countries. HUMAN RIGHTS Freedom is not universally accepted. South Africa white rule until 1994 � investment in China � Nigeria and Shell

5: www.worldassemblyforethics.org 5 Ethical Issues in International Business ENVIRONMENTAL POLLUTION The emission of pollutants, the dumping of toxic chemicals Amoral management might move production to a developing nation precisely because costly pollution controls are not required. No one owns the atmosphere or the oceans, but polluting both, no matter where the pollution originates, harms all.

6: www.worldassemblyforethics.org 6 Ethical Issues in International Business CORRUPTION Economic advantages by making payments to corrupted government officials. $12.5 million payment to Japanese agents and government officials MORAL OBLIGATIONS BP, one of oil companies, has made �social investments� in Algeria, the desert town of Salah. it built two desalination plants to provide drinking water for the local Ethical Dilemmas in a poor nation, a 12-yearold girl works in a factory.

7: www.worldassemblyforethics.org 7 Philosophical Approaches to Ethics STRAW MEN The Friedman Doctrine Cultural Relativism The Righteous Moralist The Naive Immoralist asserts that if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation, that manager should not either.

8: www.worldassemblyforethics.org 8 Philosophical Approaches to Ethics UTILITARIAN AND KANTIAN ETHICS Utilitarian approaches to ethics: the moral worth of actions or practices is determined by their consequences. Utilitarianism is committed to the maximization of good and the minimization of harm. Kantian ethics are based on the philosophy of Immanuel Kant (1724�1804). Kantian ethics hold that people should be treated as ends and never purely as means to the ends of others. People are not instruments, like a machine. People have dignity and need to be respected as such

9: www.worldassemblyforethics.org 9 Philosophical Approaches to Ethics RIGHTS THEORIES Developed in the 20th century, rights theories recognize that human beings have fundamental rights and privileges that transcend national boundaries and cultures United Nations Universal Declaration of Human Rights, JUSTICE THEORIES Justice theories focus on the attainment of a just distribution of economic goods and services. A just distribution is one that is considered fair and equitable.

10: www.worldassemblyforethics.org 10 Ethical Decision Making HIRING AND PROMOTION ORGANIZATION CULTURE AND LEADERSHIP DECISION-MAKING PROCESSES ETHICS OFFICERS MORAL COURAGE

11: www.worldassemblyforethics.org 11 Nike code of ethics with subcontractors �behaving ethically required going beyond the requirements of the law. establishment and enforcement of rules that adhere to accepted moral principles of right and wrong.�

12: www.worldassemblyforethics.org 12 Recommendations Courses in ethics should be required for graduation for all levels of school.

13: www.worldassemblyforethics.org 13 Recommendations We have to find effective policies to: counter corruption, reduce greed and self-centeredness, encourage honor and honesty, promote parental guidance to establish a sense of values, reduce the barriers to the freedom of inquiry, encourage respect for legitimate authority, support the identification and success of the influence of role models, implement cost-effective strategies for global education for a more enlightened world, and find ways to make behavior match the values people say they believe in.

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