Ethics & Internat'l Business

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  • Megan’s finance scandal at Broken Bow RecordsThe House’s employee theft scandal at the Outlet – selling items on eBay
  • Do any of your parents or any family members work for foreign-owned firms?
  • Do any of your parents or any family members work for foreign-owned firms?
  • Do any of your parents or any family members work for foreign-owned firms?
  • Ethics & Internat'l Business

    1. 1. The Business Environment Ethical Issues
    2. 2. • Standards of moral conduct that individuals and groups set for themselves• Defines what’s “right” or “wrong”• Closely linked to personal values (beliefs and attitudes)• Goes beyond state and federal laws
    3. 3. Business Ethics• Business Ethics: -collection of principles & rules for an organization• Codes of Ethics address issues such as… – Accepting business gifts – Employee privacy – Using company property for personal use – Maintaining confidentiality
    4. 4. Business Scandals• Tyco International – executive theft & prison sentence• Enron – Accounting fraud• Firestone Tire - use of child labor• Deutsche Bank – spying• Halliburton – overcharging government contracts• BP – oil pipe breaking in the Gulf
    5. 5. What is Right or Wrong?• Philosophers have debated for centuries• One approach is to ask… “What is the value or worth of a specific behavior for society as a whole?”• Answer: the best is that which does the most good for the most people
    6. 6. Ethical Issues Facing Business• Deforestation that endanger species• Oil drilling off coast destroying natural beauty• Quid-pro-Quo agreements• Discrimination in hiring practices
    7. 7. Social Responsibility of Business• What is a business’s responsibility to help solve society’s problems?• Firms are PROFIT-Seekers…but depend on society for resources, opportunities, and rights• Stakeholders: all people affected firm’s actions (Owners, customers, suppliers, employees, creditors, gover nment and the public)Enhancing goodwill in the community is now good business
    8. 8. INTERNATIONALEnvironment of Business Importance - Forms - Theories
    9. 9. How many foreign-madeitems are you wearing today? Check your clothing, backpacks, calculators, pens & compare with your neighbor
    10. 10. International Business• Business activities that occur between 2 or more countries• Since WW2 internat’l trade has flourished• Mostly traded are goods- services make up 1/5th of trade
    11. 11. Forms of International Business• Imports: – buying goods made in foreign country• Exports: – selling products to buyers in another country
    12. 12. Forms of International BusinessExchange Rate• The value of one country’s currency expressed in the currency of another• These are constantly changing• Example: – 1 USD = 0.7739 EUR
    13. 13. Forms of International Business• Joint Ventures Abroad – Firms set up business in foreign country to by sharing costs/profits with other companies• Strategic Alliances are ↑ing – Firms agree to cooperate on certain aspects while remaining competitors on other aspects – (ex. China’s Sing and Yahoo)
    14. 14. Forms of International Business• Wholly Owned Subsidiary – Firm sets up business abroad on its own – More expensive & more risky• Multi-National Firms – Owns or controls production or service facilities in more than 1 country -- Examples include: • Walmart – U.S. • Toyota – Japan • Shell (oil) – Netherlands • Deutsche Banke – Germany • AXA Group (insurance) – France
    15. 15. Government Policies• Economists consider Free Trade desirable for a society• Tariffs = taxes on foreign goods – Protect domestic industries (raises price of foreign goods) – Raise revenue for Gov’t• Dumping = export price that is “unfairly low”• Quotas – limit quantity of imports
    16. 16. Factors Supporting Trade• World Trade Organization (WTO): – create & enforce rules – 153 members• European Union (EU) – 25 countries – 11 countries merged currencies into the “euro”
    17. 17. Factors Supporting Trade• NAFTA (North American Free Trade Agreement) – 1992 Canada, U.S. and Mexico – Removed tariffs and trade barriers• IMF (International Monetary Fund) & World Bank – Helps less-developed countries pay for imports – Provides low-cost loans to develop basic industries and facilities (roads, electric power, etc)**Advances in Communication & Transportation – Internet, faster/cheaper transportation, private enterprise, and competition have ↑ed trade opportunities

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