Business 303  Sheppard   Business Society & Ethics, Week 10:  Global Ethical Dilemmas
BUSINESS ETHICS WEEK 10: MAIN QUESTIONS <ul><li>Why & how are ethics different internationally? </li></ul><ul><li>What is ...
1.  Global: International diplomacy <ul><li>International diplomacy at the Global Level </li></ul><ul><li>Influencing othe...
2.  Organizational: Globalization <ul><li>Globalization & outsourcing </li></ul><ul><li>International HR practices </li></...
3.  Individual:  Ethical decision-making <ul><li>Bribery </li></ul><ul><li>Consumer choices </li></ul><ul><li>Negotiation ...
4.  What Drives Global Differences    in Ethics? <ul><li>Culture </li></ul><ul><li>Economic Development </li></ul>
4b.  Cultural effects on ethics  (1 of 2) <ul><li>Geert Hofstede’s  </li></ul><ul><li>Cultural Dimensions of International...
4b.  Cultural effects on ethics  (2 of 2)     Kohlberg’s Model of Moral    Development across Cultures ? <ul><li>1 - Obedi...
4c.  Economic Development &    How it affects Ethics <ul><li>Higher levels of econ. development    higher standards of et...
5.  Universalism vs. Relativism  (1 of 3) <ul><li>Big debate: </li></ul><ul><ul><li>Are there Universal rules & Ethics </l...
5.  Universalism vs. Relativism  (2 of 3) <ul><li>Most readings centre on this debate.  </li></ul><ul><li>Midgley’s argume...
5.  Universalism vs. Relativism  (3 of 3) <ul><li>Donaldson’ arguments against absolutism  (his term for universalism):  <...
6.   Donaldson ’s Hypernorms Model Hypernorms Moral Free Space All Ethical dilemmas or problems <ul><li>From a Corporate P...
7.  Donaldson’s Hypernorms  (1 of 4)   <ul><li>(aka core human values) </li></ul><ul><ul><li>Respect for human dignity </l...
<ul><li>Respect for human dignity </li></ul><ul><ul><li>Treat people as ends in themselves </li></ul></ul><ul><ul><ul><li>...
<ul><li>2)   Respect for basic rights </li></ul><ul><ul><li>Support & protect rights of employees, customers & community <...
<ul><li>3) Good citizenship </li></ul><ul><ul><li>Support essential social institutions, eg economic system, education sys...
8. U.N. Global Compact  (1 of 7)   <ul><li>•  UN Global Compact   – the ten universal principles fall within four categori...
8. U.N. Global Compact  (2 of 7)   <ul><li>•  Founded in 1999 by Kofi Annan  </li></ul><ul><ul><li>International ethics gu...
8. U.N. Global Compact  (3 of 7)     Sample Companies… <ul><li>HP  (USA) </li></ul><ul><li>Cosco  (China) </li></ul><ul><l...
8.  U.N. Global Compact  (4 of 7) <ul><li>Human Rights </li></ul><ul><li>Principle 1 :  Support & respect the protection o...
<ul><li>Labour Standards </li></ul><ul><li>Principle 3 :  Uphold freedom of association; </li></ul><ul><li>Principle 4 :  ...
<ul><li>Environment </li></ul><ul><li>Principle 7 :   Support a precautionary approach to environmental challenges; </li><...
<ul><li>Anti-Corruption </li></ul><ul><li>Principle 10 :  Work against all forms of corruption, including extortion & brib...
9.  Applications <ul><li>Yahoo in China </li></ul><ul><li>Nestle infant formula </li></ul><ul><li>The latest version of Wa...
B y e  B y e
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  • Not important to know all of the cultural value terms, but understand some of the ways that ethics differs across cultures.
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    1. 1. Business 303 Sheppard Business Society & Ethics, Week 10: Global Ethical Dilemmas
    2. 2. BUSINESS ETHICS WEEK 10: MAIN QUESTIONS <ul><li>Why & how are ethics different internationally? </li></ul><ul><li>What is the Relativism vs. Universalism debate? </li></ul><ul><li>Donaldson ’s Hypernorms: A solution to the Relativism vs. Universalism debate? </li></ul><ul><li>What is the UN Global Compact? </li></ul>Wk. 9-
    3. 3. 1. Global: International diplomacy <ul><li>International diplomacy at the Global Level </li></ul><ul><li>Influencing other countries </li></ul><ul><li>Sending peacekeepers </li></ul><ul><ul><li>Canada's P.M. Lester B. Pearson </li></ul></ul><ul><ul><li>led negotiations that established the </li></ul></ul><ul><ul><li>U.N. Emergency Force in Nov. 1956. </li></ul></ul><ul><ul><li>Pearson won a Nobel Prize for </li></ul></ul><ul><ul><li>convincing the world that putting </li></ul></ul><ul><ul><li>neutral military forces between the 2 </li></ul></ul><ul><ul><li>opposing sides would be a way to </li></ul></ul><ul><ul><li>ensure that a negotiated ceasefire held. </li></ul></ul>
    4. 4. 2. Organizational: Globalization <ul><li>Globalization & outsourcing </li></ul><ul><li>International HR practices </li></ul><ul><li>Internationally influencing govern- </li></ul><ul><li>ments / being influenced by them. </li></ul><ul><ul><li>Shell in Nigeria ~1997: </li></ul></ul><ul><li>complying with brutal government </li></ul><ul><ul><li>Starbucks: </li></ul></ul><ul><li>branding includes international aid </li></ul><ul><ul><li>Microsoft: from evil giant corp. </li></ul></ul><ul><li>to international philanthropist? </li></ul><ul><ul><li>Blood Diamonds? </li></ul></ul>
    5. 5. 3. Individual: Ethical decision-making <ul><li>Bribery </li></ul><ul><li>Consumer choices </li></ul><ul><li>Negotiation </li></ul><ul><li>Ethical decision-making </li></ul><ul><li>Intellectual property </li></ul>
    6. 6. 4. What Drives Global Differences in Ethics? <ul><li>Culture </li></ul><ul><li>Economic Development </li></ul>
    7. 7. 4b. Cultural effects on ethics (1 of 2) <ul><li>Geert Hofstede’s </li></ul><ul><li>Cultural Dimensions of International Bus. </li></ul><ul><li>Individualist vs. collectivist approaches to deciding who to hire? </li></ul><ul><li>‘ feminine’ vs. ‘masculine’ approaches to the environment? </li></ul><ul><li>High vs. low power distance approaches to responsibility for ethical decisions? </li></ul>
    8. 8. 4b. Cultural effects on ethics (2 of 2) Kohlberg’s Model of Moral Development across Cultures ? <ul><li>1 - Obedience & Punishment </li></ul><ul><li>2 - Individualism & Reciprocity </li></ul><ul><li>3 - Interpersonal Conformity </li></ul><ul><li>4 - Social System/Law & Order </li></ul>These work in almost all cultures These don’t <ul><li>5 - Social Contract </li></ul><ul><li>6 - Universal Ethical Principles </li></ul>Individualist, Western values.
    9. 9. 4c. Economic Development & How it affects Ethics <ul><li>Higher levels of econ. development  higher standards of ethics </li></ul><ul><li>Maslow’s hierarchy of needs </li></ul>
    10. 10. 5. Universalism vs. Relativism (1 of 3) <ul><li>Big debate: </li></ul><ul><ul><li>Are there Universal rules & Ethics </li></ul></ul><ul><ul><li>Or are all ethics relative to culture? </li></ul></ul><ul><li>Answer: something in the middle </li></ul>Tom Donaldson
    11. 11. 5. Universalism vs. Relativism (2 of 3) <ul><li>Most readings centre on this debate. </li></ul><ul><li>Midgley’s argument against relativism: </li></ul><ul><ul><li>Results in an inability to judge anything , including relativism, since relativism is a judgment against making condemnations of other cultures. </li></ul></ul><ul><ul><li>It’s Internally inconsistent: </li></ul></ul><ul><ul><ul><li>If one culture believes it’s okay to condemn others cultures, by relativist standards, there’s no way to tell them to stop. </li></ul></ul></ul>
    12. 12. 5. Universalism vs. Relativism (3 of 3) <ul><li>Donaldson’ arguments against absolutism (his term for universalism): </li></ul><ul><ul><li>Not respectful </li></ul></ul><ul><ul><li>Ignores local context (e.g. economic development) </li></ul></ul><ul><ul><li>Assumes one set of concepts overrides all others. </li></ul></ul>
    13. 13. 6. Donaldson ’s Hypernorms Model Hypernorms Moral Free Space All Ethical dilemmas or problems <ul><li>From a Corporate Perspective: </li></ul><ul><li>Allow local units to adapt to local standards </li></ul><ul><li>Support efforts to decrease corruption </li></ul><ul><li>Corporate standards as absolutes </li></ul><ul><li>Conditions of acceptance of buyers/ suppliers </li></ul><ul><li>Support efforts to decrease corruption </li></ul>
    14. 14. 7. Donaldson’s Hypernorms (1 of 4) <ul><li>(aka core human values) </li></ul><ul><ul><li>Respect for human dignity </li></ul></ul><ul><ul><li>Respect for basic rights </li></ul></ul><ul><ul><li>Good citizenship </li></ul></ul><ul><li>More specifically… </li></ul>
    15. 15. <ul><li>Respect for human dignity </li></ul><ul><ul><li>Treat people as ends in themselves </li></ul></ul><ul><ul><ul><li>Eg. corporate culture that respects customers & suppliers </li></ul></ul></ul><ul><ul><ul><li>Eg. safe products, services & workplace </li></ul></ul></ul>7. Donaldson’s Hypernorms (2 of 4)
    16. 16. <ul><li>2) Respect for basic rights </li></ul><ul><ul><li>Support & protect rights of employees, customers & community </li></ul></ul><ul><ul><li>Avoid relationships that violate human beings’ rights to health, education, safety & adequate standard of living </li></ul></ul>7. Donaldson’s Hypernorms (3 of 4)
    17. 17. <ul><li>3) Good citizenship </li></ul><ul><ul><li>Support essential social institutions, eg economic system, education system </li></ul></ul><ul><ul><li>Work with host government / other organizations to protect the environment. </li></ul></ul>7. Donaldson’s Hypernorms (4 of 4) Now that we know that universal principles may exist, let’s look at a plausible source:
    18. 18. 8. U.N. Global Compact (1 of 7) <ul><li>• UN Global Compact – the ten universal principles fall within four categories: </li></ul><ul><ul><li>Human Rights </li></ul></ul><ul><ul><li>Labour Standards </li></ul></ul><ul><ul><li>Environment </li></ul></ul><ul><ul><li>Anti-Corruption </li></ul></ul><ul><li>Source: http://www.unglobalcompact.org/ </li></ul>
    19. 19. 8. U.N. Global Compact (2 of 7) <ul><li>• Founded in 1999 by Kofi Annan </li></ul><ul><ul><li>International ethics guide managers should know it. </li></ul></ul><ul><ul><li>Currently 2,900 firms signed in over 100 countries: </li></ul></ul><ul><ul><ul><li>Eg. Bayer, BMW, BP, Cadbury, eBay, HP, Microsoft, ING, Nokia, Starbucks, Sun Microsystems, Unilever, VW </li></ul></ul></ul><ul><li>Vision: a more sustainable & inclusive global econ. </li></ul><ul><ul><li>Companies use it as a platform to develop their own specific codes of conduct. </li></ul></ul><ul><ul><li>Companies publish how they are promoting the ten principles in annual report. </li></ul></ul><ul><ul><li>Non-enforceable Bluewash o r a first step for UN to reach into world of business? </li></ul></ul>
    20. 20. 8. U.N. Global Compact (3 of 7) Sample Companies… <ul><li>HP (USA) </li></ul><ul><li>Cosco (China) </li></ul><ul><li>Tata Motors (India) </li></ul><ul><li>Volkswagen (Germany) </li></ul>
    21. 21. 8. U.N. Global Compact (4 of 7) <ul><li>Human Rights </li></ul><ul><li>Principle 1 : Support & respect the protection of internationally proclaimed human rights; and </li></ul><ul><li>Principle 2: Do not comply with others in human rights abuses.   </li></ul>
    22. 22. <ul><li>Labour Standards </li></ul><ul><li>Principle 3 : Uphold freedom of association; </li></ul><ul><li>Principle 4 : Eliminate forced labour; </li></ul><ul><li>Principle 5 : Abolish child labour; and </li></ul><ul><li>Principle 6 : Eliminate discrimination in </li></ul><ul><li>employment.  </li></ul>8. U.N. Global Compact (5 of 7)
    23. 23. <ul><li>Environment </li></ul><ul><li>Principle 7 : Support a precautionary approach to environmental challenges; </li></ul><ul><li>Principle 8 : Promote greater environmental responsibility; and </li></ul><ul><li>Principle 9 : Encourage development & diffusion of enviro-friendly technologies.    </li></ul>8. U.N. Global Compact (6 of 7)
    24. 24. <ul><li>Anti-Corruption </li></ul><ul><li>Principle 10 : Work against all forms of corruption, including extortion & bribery.  </li></ul>8. U.N. Global Compact (7 of 7)
    25. 25. 9. Applications <ul><li>Yahoo in China </li></ul><ul><li>Nestle infant formula </li></ul><ul><li>The latest version of Wal-Mart </li></ul><ul><li>What else… ? </li></ul>
    26. 26. B y e B y e
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