IN A GLOBAL
Emily Rich – MKT 350 – Southern New Hampshire
International vs. Global Marketplace
“Markets do not exist in a state of nature. They are social constructs, with defined customs and
regulations that are established through political struggle and compromise…Until recently, the
politics of the global economy has been largely viewed as “international,” i.e., focussed on the
questions of “which nation gets what,” with the central conflict between countries that are rich and
poor…There is no political constitution to match the growing global market.” – Jeff Faux, October
Variations on Social Contract
The “natural state” for
man is one outside of
The social contract
begins when two (or
rights to one another.
“Obedience to a selfprescribed law is liberty” (de
la Parra, 2010).
Citizens must take action in
building the ruling
The “general will” occurs
when citizens work together
toward the good of the
Variations on Social Contract
Combined with the “general will,”
an “original contract” suggests
that consent to be governed and
the will of the sovereign is implicit
for all those in the society as they
created the governing body.
Suggests that no law may be
declared which, “a whole people
could not possibly give its
consent to” (Rousseau, qtd. in
Creates an “original position” and “veil of
ignorance” to create an objective vacuum
to which one may make an “impartial moral
judgment” (Murphy, et al., 2004).
Establishes the Liberty Principle and
Liberty Principle – each person must have a
same equal right to the “most extensive basic
liberty compatible with a similar liberty for others”
(Murphy, et al., 2004).
Difference Principle - suggests that “social and
economic equalities are to be arranged so that
they are to the greatest benefit of the most
disadvantaged” and that no actions should be
taken which would in any way harm those who
are disadvantaged (Murphy, et al., 2004).
Variations on Social Contract
Assumes men have no natural reason for
compromise other than for self-service.
Two distinctive contracts are
Assumes that when there are two parties, each
controlled by a third, they will each sell the other out in
attempt to reduce their own sentence.
Thomas Donaldson & Thomas
Instead, they should work together against the third to
reduce both sentences beneath the singular threshold.
An issue of rational compliance with accepted norms.
Solved by “minimax relative concession” – a theory
that should the concessions suffered by each party be
perceived as equal, they will both be able to most
effectively minimize concessions and maximize utility
1st – The global community should
work together to find a “rational
arrangement for ethics in economic
2nd - business groups or other entities
should have “moral free space” so
they may “keep their moral options
open until they confront the full context
and environment of a decision”
Universal norms used as a standard
for all other norms.
Delineation of Stakeholders
Primary stakeholders may include
stockholders, and managers of the
Secondary stakeholders include the
government, the company’s
competition, the community, media,
and society as a whole.
Issues in Research
The Three Norms of Western
The right of selfdetermination within the law
The obligation of a fiduciary
to protect the welfare of a
The fiduciary’s obligation to
be trustworthy for social
stability reasons (Smith, et
Issues in Production
must fulfill them in
Issues in Sales and Marketing
company must be profitable.
There is a responsibility held to the consumer of
Salespeople must be culturally aware.
The company must remember the responsibility
to society as a whole.
Solutions and Building an Ethical
A company should begin by establishing its own Code
After an ethical code is established, consideration
should be taken to determine a method to best create
mutual codes with business partners.
The business should never deal below their own
standard, though some consideration should be taken
toward cultural norms.
If the company has a policy against bribery, for example, they
should consider their stance regarding gifting in foreign areas.
Suggested Metrics for Ethical
Texas Instruments Method
Are we complying with all legal
requirements on a local level?
Are there business practices or
requirements at the local level which
impact how we interact with co-workers
in other parts of the world?
Do some of our practices need to be
adapted based on the local laws and
customs of a specific locale? On what
basis do we define our universal
standards that apply to TI employees
everywhere? (2008 Corporate
Does the contemplated action violate the law? (The legal test)
Is this action contrary to widely accepted moral obligations?
(The duties test)
Does the proposed action violate any other special obligations
that stem from this type of marketing organization? (The
special obligations test)
Is the intent of the contemplated action harmful? (The motives
Is it likely that any major damages to people or organizations
will result from the contemplated action? (The consequences
Does this action enhance the ideal of a moral community, and
is it consonant with what the marketing organization wants to
be? (The virtues test)
Does the contemplated action infringe upon property rights,
privacy rights, or the rights of the consumer? (The rights test)
Does the proposed action leave another person or group less
well off? Is this person or group already a member of a
relatively underprivileged class? (The justice test) (Murphy, et
By striking an ethical code with the other members, a
company may use a combination of all the previously
mentioned theories. The two (or more) members of
the agreement could work together to create a
mutually beneficial arrangement. It requires
Rousseau’s consent, Donaldson’s establishment of
norms, Kant’s general will, and Rawls’ liberty
principle, all under Gauthier’s presupposition that two
parties who work together will achieve the greatest
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