1. The Political, Legal, & Technological Environment & Ethics & Social Responsibility Carlos Kichul (Warren) Dong Woo
2. Topics Chapter 2: The Political, Legal, and Technological Environment Chapter 3: Ethics and Social Responsibility Case: Colgate’s Distasteful Toothpaste
3. Table of Contents 1. Opening 2. Chapter 2 Explanation 3. Chapter 2 Discussion 4. Chapter 3 Explanation 5. Chapter 3 Discussion 6. Case Study 7. Closing
4. Objectives In what ways do different ideologies and political systems influence the environment ain which MNCs operate? Would these challenges be less for those operating in the EU than for those in Russia or China? Why or why not? How will advance in technology and telecommunications affect developing countries? Gives some specific examples. What lessons can U.S. multinationals learn from the political and bribery scandals in Japan that can be of value to them in doing business in this country? Discuss two. How do ethical practices differ in the U.S. and in European countries such as France and Germany? What implications does your answer have for U.S. multinations operating in Europe?
6. Discussion 1 In what ways do different ideologies and political systems influence the environment ain which MNCs operate? Would these challenges be less for those operating in the EU than for those in Russia or China? Why or why not?
10. New Opportunity In Bangladeshi, the cellphones are commercialized for all people in 1997. Market bigger than before. Individual incomes have increased and the economy has developed.
11. Win Win Game MNCs penetrate New Market. Developed country take new technology.
12. Discussion 2 How will advance in technology and telecommunications affect developing countries? Gives some specific examples.
13. Discussion 3 What lessons can U.S. multinationals learn from the political and bribery scandals in Japan that can be of value to them in doing business in this country? Discuss two. How do ethical practices differ in the U.S. and in European countries such as France and Germany? What implications does your answer have for U.S. multinations operating in Europe?
17. Sustainability Individual Exercise If your boss mention that “we need more sustainability, give your ideas or solutions,” what ideas or solution will you give to him or her?
19. Colgate Case Study Colgate is New York-based. International sales is half of revenue. Bought 50% partnership in Hawley and Hazel. H&H makes Darkie toothpaste. Asians love it. Americans not amused. Pressure on Colgate by ICCR. Darkie changes to Darlie. Colgate distances itself.
20. Colgate Case Study Cont. http://www.youtube.com/watch?v=QQI9HGV9uhw (Darkie ad) http://www.youtube.com/watch?v=fUQeZPqGVn0&feature=related (Darlie ad)
21. Discussion Identify the major strategic and ethical issues faced by Colgate in its partnership with Hawley and Hazel What do you think Colgate should have done to handle the situation? Is it possible for Colgate and Hawley and Hazel to change the toothpastes’ advertising without sacrificing consumer brand loyalty? Is that a possible reason for Colgate’s not responding quickly to domestic complaints? In the end, was a “no management rights” clause good for Colgate? What could have happened during the negotiations process to get around this problem?
