2. INTRODUCTION
• ETHICS - moral principles that govern a person's behaviour or the
conducting of an activity.
• INTERNATIONAL BUSINESS - comprises all commercial
transactions (private and governmental, sales, investments,
logistics, and transportation) that take place between two or more
regions, countries and nations beyond their political boundaries.
3. IMPORTANCE OF ETHICS IN INTERNATIONAL
BUSINESS
• Ethical behavior combined with skills & professionalism
to ensure sustainable development. Ethical behavior
ensures awareness and concerns for future and for the
right way of action in each particular situation
• Ethical behavior establishes a healthy & pleasant
cooperation climate for all the parties involved in the
deal
• Significance of competitive advantage in a particular
market segment
4. GROWTH OF IB
• World trade has been growing so rapidly
• Availability of capital through international source
• Expansion of knowledge sector
• Technological development
• Information asymmetry
5. ETHICAL ISSUES IN IB PRACTICES
• Human Rights Violation
• Prevalence of racial & sexual discrimination
• Bribery
• Selling of harmful products
• Violation of IPR is unethical
• Use of child labor
6.
7. MNC'S & UNETHICAL IB
• MNC'S transfer jobs from high wage to low wage
countries
• Consumers safety & warnings
• Supporting the racial regime
• MNC'S do not share the cost of social development in the
host countries
8. ETHICAL DILEMMAS IN IB
• Body language
• Religious taboos
• Perception of time
• Cultural imperialism
9. DO'S OF IB
• Respect & protect human rights under all situations
• Always follow the law of land , even if you don’t like them
• Respect & obey Govt. orders
• Use peaceful process of settlement of disputes, if any
• Respect the religion of the country
• Maintain honesty, integrity
10. DON’T’S OF IB
• Do not use dirty tricks for favourable negotiations
• Do not be rude
• Don’t boast of your culture
• Don’t pollute the environment
• Don’t pickup quarells unnecessarily with the localemployees
• Don’t offer or accept bribes
• Don’t produce or circulate harmful products
11. METHODS OF ETHICAL DECISION MAKING IN IB
• Method of ethical relativism
• Imperialistic method
• Method of compromise
• Cosmopolitan global method
• Donaldsons hyper – norms method
