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2. International business impacts daily life around the world and also affects ethical decisions in business.

3. To describe settings in which international business affects people • To list issues that affect ethics in international business

4. It is necessary to work in the global environment in an ethical and legal way in order to sustain effective global trade.

5. a set of moral principles by which people conduct themselves personally, socially, or professionally ethics a set of ideas about how a company should conduct business in relation to legal, social, and environmental issues businessethics

6. socialresponsibility the duty to do what is best for society a statement that explains what a company or group believes is proper and improper conduct code of ethics

7. the various individuals or groups of people who have a direct interest, involvement, or investment in something stakeholders

8. The Impact of International Business International National State or Provincial International business affects countries on several levels. Local

9. Local Level • People can buy products from firms around the world. • Customers expect local businesses to keep up with local and international trends. • Internet use makes the world of international business move faster.

10. State or Provincial Level • State and provincial governments seek ways to sell regional products globally. • Businesses located in one state look to build relationships with international companies and national governments.

11. National Level • Highly developed countries seek to keep a balance between exporting their products and importing products. • Countries with few natural resources or goods to export have trouble with economic stability.

12. International Level • Taxes and tariffs can be imposed on a country that is gaining an unfair advantage by pricing its exported products too low. • A recession in one country can affect the economies of other countries.

13. Ethics and Social Responsibility Ethics exist to serve as guidelines for behavior. ethics a set of moral principles by which people conduct themselves personally, socially, or professionally

14. Ethics and Social Responsibility Business ethics have to do with doing “the right thing” in business. business ethics a set of ideas about how a company should conduct business in relation to legal, social, and environmental issues Business ethics include practicing business legally, morally, and fairly.

15. Ethics and Social Responsibility

16. Social Responsibility To promote social responsibility, businesses can: social responsibility the duty to do what is best for society • Eliminate negative activities. • Perform positive activities.

17. Social Responsibility A code of ethics might be created or sponsored by a company or profession. code of ethics a statement that explains what a company or group believes is proper and improper conduct

18. Stakeholders Business organizations have many stakeholders. stakeholders the various individuals or groups of people who have a direct interest, involvement, or investment in something

19. Stakeholders labor unions employees owners Stakeholdersin aBusiness general public stockholders customers governments suppliers

20. Stakeholders Every ethical issue, from unfair wages to tax evasion, has a specific impact on a stakeholder group.

21. Factors Affecting Ethical Decisions Factors affecting ethical decisions include: • The culture and history of a country • Union issues • Government regulations

22. Factors Affecting Ethical Decisions Recall Name three factors that affect ethical decisions.

23. Consequences Some consequences of unethical decisions include: • Lawsuits • Government intervention • Jail • Loss of business partners internationally • Loss of customers

24. Factors Affecting Ethical Decisions Relate Do you think it is fair for one country to sell goods to buyers in other countries at much lower prices if companies in the seller’s home country pay low wages to employees?

25. Local and Global Impacts • Global business has expanded with the Internet, technology, and transportation. • The growth of global business requires responsible action by businesses around the world.

26. 1.2 • How does international business affect ordinary people? on the local level, through offering new goods and services; on the state or provincial level, by representing local products internationally; on the national level, by impacting the nation’s economy

27. 1.2 • What are ethics and social responsibility? Ethics is a set of moral principles by which people conduct themselves; social responsibility is the duty to do what is best for the good of society.

28. 1.2 • What are stakeholders? individuals or groups of people who have a direct interest, involvement, or investment in something

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