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Business 303 Sheppard

Business 303 Sheppard. Business Society & Ethics, Week 10: Global Ethical Dilemmas. BUSINESS ETHICS WEEK 10: MAIN QUESTIONS. Why & how are ethics different internationally? What is the Relativism vs. Universalism debate?

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Business 303 Sheppard

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  1. Business 303 Sheppard Business Society & Ethics, Week 10: Global Ethical Dilemmas

  2. BUSINESS ETHICS WEEK 10: MAIN QUESTIONS • Why & how are ethics different internationally? • What is the Relativism vs. Universalism debate? • Donaldson’s Hypernorms: A solution to the Relativism vs. Universalism debate? • What is the UN Global Compact? Wk. 9-2

  3. 1. Global: International diplomacy • International diplomacy at the Global Level • Influencing other countries • Sending peacekeepers • Canada's P.M. Lester B. Pearson led negotiations that established the U.N. Emergency Force in Nov. 1956. • Pearson won a Nobel Prize for convincing the world that putting neutral military forces between the 2 opposing sides would be a way to ensure that a negotiated ceasefire held.

  4. 2. Organizational: Globalization • Globalization & outsourcing • International HR practices • Internationally influencing govern- ments / being influenced by them. • Shell in Nigeria ~1997: complying with brutal government • Starbucks: branding includes international aid • Microsoft: from evil giant corp. to international philanthropist? • Blood Diamonds?

  5. 3. Individual: Ethical decision-making • Bribery • Consumer choices • Negotiation • Ethical decision-making • Intellectual property

  6. 4. What Drives Global Differences in Ethics? Culture Economic Development

  7. 4b. Cultural effects on ethics (1 of 2) Geert Hofstede’s Cultural Dimensions of International Bus. • Individualist vs. collectivist approaches to deciding who to hire? • ‘feminine’ vs. ‘masculine’ approaches to the environment? • High vs. low power distance approaches to responsibility for ethical decisions?

  8. 4b. Cultural effects on ethics (2 of 2)Kohlberg’s Model of Moral Development across Cultures ? • 1 - Obedience & Punishment • 2 - Individualism & Reciprocity • 3 - Interpersonal Conformity • 4 - Social System/Law & Order These work in almost all cultures • 5 - Social Contract • 6 - Universal Ethical Principles These don’t Individualist, Western values.

  9. 4c. Economic Development & How it affects Ethics • Higher levels of econ. development  higher standards of ethics • Maslow’s hierarchy of needs

  10. 5. Universalism vs. Relativism (1 of 3) • Big debate: • Are there Universal rules & Ethics • Or are all ethics relative to culture? • Answer: something in the middle Tom Donaldson

  11. 5. Universalism vs. Relativism (2 of 3) • Most readings centre on this debate. • Midgley’s argument against relativism: • Results in an inability to judge anything, including relativism, since relativism is a judgment against making condemnations of other cultures. • It’s Internally inconsistent: • If one culture believes it’s okay to condemn others cultures, by relativist standards, there’s no way to tell them to stop.

  12. 5. Universalism vs. Relativism (3 of 3) • Donaldson’ arguments against absolutism (his term for universalism): • Not respectful • Ignores local context (e.g. economic development) • Assumes one set of concepts overrides all others.

  13. 6.Donaldson’s Hypernorms Model Moral Free Space • From a Corporate Perspective: • Allow local units to adapt to local standards • Support efforts to decrease corruption All Ethical dilemmas or problems Hypernorms • Corporate standards as absolutes • Conditions of acceptance of buyers/ suppliers • Support efforts to decrease corruption

  14. 7. Donaldson’s Hypernorms (1 of 4) (aka core human values) • Respect for human dignity • Respect for basic rights • Good citizenship More specifically…

  15. 7. Donaldson’s Hypernorms(2 of 4) • Respect for human dignity • Treat people as ends in themselves • Eg. corporate culture that respects customers & suppliers • Eg. safe products, services & workplace

  16. 7. Donaldson’s Hypernorms(3 of 4) 2)Respect for basic rights • Support & protect rights of employees, customers & community • Avoid relationships that violate human beings’ rights to health, education, safety & adequate standard of living

  17. 7. Donaldson’s Hypernorms(4 of 4) 3) Good citizenship • Support essential social institutions, eg economic system, education system • Work with host government / other organizations to protect the environment. Now that we know that universal principles may exist, let’s look at a plausible source:

  18. 8. U.N. Global Compact (1 of 7) • UN Global Compact– the ten universal principles fall within four categories: • Human Rights • Labour Standards • Environment • Anti-Corruption Source: http://www.unglobalcompact.org/

  19. 8. U.N. Global Compact (2 of 7) • Founded in 1999 by Kofi Annan • International ethics guide managers should know it. • Currently 2,900 firms signed in over 100 countries: • Eg. Bayer, BMW, BP, Cadbury, eBay, HP, Microsoft, ING, Nokia, Starbucks, Sun Microsystems, Unilever, VW • Vision:a more sustainable & inclusive global econ. • Companies use it as a platform to develop their own specific codes of conduct. • Companies publish how they are promoting the ten principles in annual report. • Non-enforceable Bluewash or a first step for UN to reach into world of business?

  20. 8. U.N. Global Compact (3 of 7)Sample Companies… • HP (USA) • Cosco (China) • Tata Motors (India) • Volkswagen (Germany)

  21. 8. U.N. Global Compact (4 of 7) Human Rights • Principle 1: Support & respect the protection of internationally proclaimed human rights; and • Principle 2:Do not comply with others in human rights abuses.  

  22. 8. U.N. Global Compact (5 of 7) Labour Standards • Principle 3: Uphold freedom of association; • Principle 4: Eliminate forced labour; • Principle 5: Abolish child labour; and • Principle 6: Eliminate discrimination in employment. 

  23. 8. U.N. Global Compact (6 of 7) Environment • Principle 7:Support a precautionary approach to environmental challenges; • Principle 8: Promote greater environmental responsibility; and • Principle 9: Encourage development & diffusion of enviro-friendly technologies. 

  24. 8. U.N. Global Compact (7 of 7) Anti-Corruption • Principle 10: Work against all forms of corruption, including extortion & bribery. 

  25. 9. Applications • Yahoo in China • Nestle infant formula • The latest version of Wal-Mart • What else… ?

  26. B y e B y e

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