Ethics in international business

1. By:Vineetha.C
MHROD
ETHICS IN INTERNATIONAL
BUSINESS

2. Ethics
 Ethics: It is a discipline dealing with what is good and bad or
right and wrong or with moral duty and obligation
 Social responsibility : It is moral, legal or mental
accountability
 These terms make up the foundational principles and
character which drives the decision of a company and
individual present

3. Conti..
 It is a study and governance by which acceptable standards
are based on
 Do countries with lower ethical views attract business ?
 Some aspect answer is yes but overall answer is no.

4. Conti..
 Banana republic :A country that is politically unstable,
dependant on limited agriculture and ruled by a corrupt elite
class that is heavily influence by MNC
 FDI tends to be greater in countries with stronger workers
rights –> higher labour standards – >higher economic
growth

5. Can Ethical Business Practices Be
Applied Globally?
 Accepted code of ethical standards is difficult
 Honesty, Integrity and loyalty
 Ethics change over time –Gladiator
 Ethics should evaluated under situation and circumstance

6. Example
 1970 –US
 California
 Toyota –Japanese
 Change –Technology, Physical Lay out, People and Structure
 17 levels
 Business card
 Director of welding improvement
 “I made this car. Have any problem ? Call me.”
 Value them and understand them

7. Ethical Issues
 Child Labor
 Forced Labor
 Discrimination
 Health and Safety
 Working Hours
 Compensation
 The right to free association

8. ETHICS PHYLOSOPHY
Western
 Kant Philosophy – Duty ethics-Act out of duty
 Aristotle-Virtue ethics –Act out of values
 Aristotle focused on the actor
 Kant focused on the action

9. Virtue
 Prudence/Wisdom (exercising sound judgment in practical
affairs.)
 Justice (proper moderation between self-interest and the
rights and needs of others)
 Courage (the ability to confront fear, pain, risk/danger,
uncertainty, or intimidation)
 Temperance (practicing self-control, abstention, and
moderation)

10. Conti..
 Moral virtue, or excellence of character, concerns what we do
voluntarily, and not what we do because we are forced to do so.
 Kant-The basis of moral action is duty.When we exercise the
goodwill to decide to follow our duty, then our actions have
moral value.
 We shouldn’t treat people as a means to an end, but as ends in
themselves.
 “Certain actions are right or wrong regardless of the
consequences.”

11. Utilitarianism

12. Conti…
 Eastern –People are intrinsic and inseparable part of the
universe. So one must do what is right and expected and
universe will take care of the rest

13. Difference
Western Eastern
Focus FindingTruth Protocol and Respect
Basis RationalThought ReligiousTeachings
Emphasis Logic, Cause and Effect Respect towards family
Roots in Rome , Christianity etc Hinduism , Buddhism etc
Approach Rational Holistic and Cultural
Conflict & Harmony Good must triumph over Evil Good and bad ,Light and Dark
all exist in equilibrium

14. ThankYou…