Ethics in international business: How to behave ethically in an International business

1. Ethics in International Business

2. Growth of International Business
 World trade is growing rapidly
 Availability of capital
 Expansion of knowledge sector
 Technological development
 Globalization
 Digital Sources
 Outsourcing
 Off shoring of production
 Supply chain
 Demand for foreign products

3. Ethical Issues in IB
1) Human rights violation
2) Racial and Sexual discrimination
3) Bribery and kickbacks
4) Selling of harmful products
5) Price discrimination
6) Dumping products
7) Child labour
8) Violation of IPR
9) Pollution of natural environment

4. Do’s and Don’ts in IB
DO’s
 Respect and protect Human Rights
 Follow the law of the land
 Respect and obey Govt orders and codes of behaviour
 Use peaceful process of settlement of disputes
 Understand the business and its environment
 Respect the religion of the country
 Build interpersonal relationship with others
 Maintain honesty, integrity and accountability

5. Don’ts
 Don’t use dirty tricks for negotiations
 Don’t be over rude or over smart
 Don’t cross the cultural limit and taboos
 Don’t pollute the environment
 Don’t do any work that offends others
 Don’t offer or accept kickbacks
 Don’t discriminate price and the employees
 Don’t produce harmful products

6. Ethical Decision making in IB
• Method of ethical relativism
• Imperialistic method
• Method of compromise
• Cosmopolitan global method
• Donaldson’s hyper norms method