Presentation Transcript

1. WHEN ETHICS TRAVEL : THE PROMISE AND PERIL OF GLOBAL BUSINESS ETHICS

   Authors: Thomas Donaldson & Thomas W. Dunfee Presented by: Michael Mosley
2. THOMAS DONALDSON Education: PhD University of Kansas, 1976 BS, University of Kansas, 1967 Outstanding Teacher of The Year Award: 2005 & 1998 “Named Ethisphere Magazine’s most influential “thought leader” in 2007 ranking of the 100 Most influential people in business ethics (Donaldson).” Current Professor at Wharton University of Pennsylvania Previous professor at Georgetown University, University of Virginia, and Loyola University of Chicago
3. THOMAS W. DUNFEE Founding director of the Wharton Ethics Program Three-term chair of the Department of Legal Studies and Business Ethics President of the Society of Business Ethics Appraised for his path breaking work “Ties That Bind: A Social Contracts Approach to Business Ethics”(Lavengood).
4. Important Terms Hypernorm Universal norms that apply to all individuals. Macro Social Contract Provide global norms Micro Social Contract Norms developed for the community Moral Free Space Norms that are inconsistent with at least some other legitimate norms existing in other economic cultures
5. GLOBAL MANAGER DECISIONS Dealing with bribery example Ben & Jerry’s Can managers successfully maneuver the disturbing gray zones that lie at the intersections of different cultures? Corporate ethics and values programs are in vogue
6. TAKING ETHICS PROGRAMS GLOBALLY : COMMON MISTAKES Accept whatever prevails in the host country Exposes Company Neglects hypernorms Exporting all home-country values “Photocopy” Disrespectful Neglects moral free space
7. HOW TO SUCCEED IN GLOBAL ETHICS Face conflicts and ethics Learn how to cut the Gordian Knot ISCT (International Social Contract Theory)
8. CUTTING THE GORDIAN KNOT 2 Aspects of ISCT Make use of hypernorms Or called “necessary social efficiency” Identify Microsocial Contracts
9. MAPPING INTERNATIONAL BUSINESS ETHICS: CONTRACTS AND MORAL FREE SPACE Important Question Do cultural differences add up to different microsocial contracts with different authentic, legitimate norms being affirmed by different cultures?
10. INTERPRETING ETHICAL DIFFERENCES Kluckhorn, Hofstede, and other theorists have shown the importance of cultural differences Ethical implications of these differences remains unexplored Example Answer A definite right? Some right? No right
11. WHAT MAKES A COMPANIES CULTURE UNIQUE FROM THE VANTAGE POINT OF ETHICS? Styles of ethical approach: Foreign Country Type Empire Type Interconnection Type Global Type
12. INTERACTIVE TYPE ALONE SATISFIES ISCT Acknowledges Universal moral limits Ability of communities to set moral standards of their own.
13. MORAL FREE SPACE DIFFERENCES EXISTS THAT ARE BOTH LEGITIMATE AND AUTHENTIC Milton Rokeach value scale Data indicated that different values, not only existed, but also converged neatly in most instances on a national basis
14. DIFFERING ADVICE FROM ACADEMICS One Extreme Boddewyn and Brewer “When companies seek competitive advantages, bribery, smuggling, and buying absolute market monopolies are not necessarily ruled out.” Other Extreme DeGeorge – “Every company must produce more goods than harm for the host country”
15. THE ISCT GLOBAL VALUES MAP Moral Free Space Consistent norms Illegitimate Norms: Incompatible with Hypernorms Illegitimate Norms: Incompatible with Hypernorms Hypernorm
16. USING ISCT MAP:BRIBERY AND SENSITIVE PAYMENTS Low level bribery Competing for bids Should these situations be examples of authentic norms?
17. ETHICAL PROBLEMS WITH BRIBERY FROM THE VANTAGE POINT OF ISCT Violates a micro social contract specifying the duties of the agent Violation of a duty by the person accepting the bribe to the principal for whom he acts as an agent Has the person making the payment also committed an ethical error?
18. BRIBERY IS TYPICALLY NOT AN ETHICAL FORM Myth: Bribery is accepted wherever it flourishes Fact: “There is not a country in the world where bribery is either legally or morally acceptable”- Fritz Heiman
19. BRIBERY MAY VIOLATE THE HYPERNORM SUPPORTING POLITICAL PARTICIPATION AND EFFICIENCY Important question Is bribery only wrong because most people don’t like it? Does a hypernorm disallowing bribery exists? “Positive transnational right on political participation. (Malone).” Transcultural norm implicit in political writings of Locke, Jefferson, Kant, and Rawls
20. BRIBERY MAY VIOLATE THE HYPERNORM SUPPORTING POLITICAL PARTICIPATION AND EFFICIENCY What about bribes to employees of corporations? What about smaller payoffs to public officials? Is bribery inefficient? Efficiency Hypernorm
21. BRIBERY HARMS EFFICIENCY IS ESPECIALLY PRONOUNCED IN THE U.S. “Only country to pass a comprehensive act against bribery (Foreign Corrupt Practices Act) (Palazzolo).” “From 1977 to 1992 U.S. fined or imprisoned more corporate officers and prominent businessmen than all other capitalist countries combined (Organizational Behavior Reader).” Level in host countries background institutions
22. PRACTICAL IMPLICATIONS OF ISCT FOR GLOBAL COMPANIES Never “do in Rome as the Romans do” philosophy Study of hypernorms suggest that we are more alike than we seem When the rules of the game are different so are the ethics of playing it Complying with hypernorms often demands considerable managerial activity Being true to one’s ethics
23. THE ENDQ&A
24. References “Donaldson, Thomas- The Wharton School of the University of Pennsylvania." Legal Studies and Business Ethics Department - The Wharton School of the University of Pennsylvania. Web. 23 Feb. 2011. <http://lgst.wharton.upenn.edu/people/faculty.cfm?id=1116>. Lavengood, Lawrence G. "Thomas Donaldson and Thomas W. Dunfee, :Ties That Bind: A Social Contracts Approach to Business Ethics." Ethics 111.3 (2001): 627-30. Print. Malone, Barry, and Elias Biryabarema. "Uganda Votes after Campaign Marked by Bribery Claims| Reuters." Business & Financial News, Breaking US & International News | Reuters.com. 18 Feb. 2011. Web. 23 Feb. 2011. <http://www.reuters.com/article/2011/02/18/us- uganda-election-idUSTRE71H16320110218?pageNumber=2>. Palazzolo, Joe. "Challenge Could Break New Ground In FCPA - Corruption Currents - WSJ." WSJ Blogs - WSJ. Web. 23 Feb. 2011. <http://blogs.wsj.com/corruption- currents/2011/02/22/challenge-could-break-new-ground-in-fcpa/?KEYWORDS=China and bribery>. Organizational Behavior Reader, The (8th Edition) (9780131441507): Joyce S Osland, Marlene E. Turner, David A. Kolb, Irwin M Rubin: Books." Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books, DVDs & More. Web. 24 Feb. 2011. <http://www.amazon.com/Organizational-Behavior-Reader-Joyce-Osland/dp/0131441507>.