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Managing Business EthicsChapter 11

Treviño & Nelson – 5th Edition

++Chapter 11 Overview

Introduction

Focus on the Individual Expatriate Manage

The Organization in a Global Business Environment

Conclusion

++Focus on the Individual Expatriate Manager

Difficulty of foreign business assignments

Need for training and guidance

Foreign language proficiency

Learning about the culture

++Individualism/Collectivism

Responsibility primarily to self versus family/group Most Asian / Latin American countries - collectivist U.S., Canada, Australia, most N. Europeans - individualist

++Power Distance

Acceptance of hierarchical or unequal distribution of power, inequality India, Philippines, Mexico, Venezuela - high on power

distance U.S., Israel, most Northern Europeans lower on power

distance

++Donaldson’s Approach to Developing Corporate Guidelines

Reject ethical relativism

Reject ethical imperialism

Develop an “ethical threshold” for corporate behavior abroad based upon core values that can be translated into specific guidelines

++Development of Transcultural Corporate Ethic - 4 Principles

Inviolability of national sovereignty

Social equity

Market integrity in business transactions

Human rights and fundamental freedoms

++UN Global Compact

Protection of internationally proclaimed human rights

Noncomplicity in human rights abuses

Support for freedom of association

Elimination of forced and compulsory labor

Effective abolition of child labor

Elimination of employment and workplace discrimination

Support for a precautionary approach to environmental challenges

Initiatives to promote greater environmental responsibility

Development and diffusion of environmentally friendly technologies

++Global Codes of Conduct

Address Eight Principles: Fiduciary Property Reliability Transparency Dignity Fairness Citizenship Responsiveness

++Case: The Gift

You're an account executive with a multinational financial firm, and one of your biggest accounts is that of a shipping magnate in Greece. Several months after you've arranged a very complex financing to build a new fleet of oil tankers for this customer, he asks if you and your wife would attend the christening of the first tanker. You, of course agree to attend - it would be an insult to him if you didn't. When you arrive, he asks your wife to break the traditional champagne bottle over the bow of the tanker. Two weeks after the christening, your wife receives a package from your customer. In it is a gold bracelet with her initials and the date of the christening set in diamonds. To return the gift would insult your customer, but accepting it would clearly violate your company's policy.

What should you do?