Ethics in Global Management 代写
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As International Managers, we must…
1.Understand the changing perceptions and demands of corporations doing business in other countries, in particular the responsibilities toward human rights.
2.Acknowledge the strategic role that CSR & codes of ethics must play in global management.
5.Recognise that companies must provide benefits to the host country in which they operate in order to maintain cooperation.
6.Consider sustainability in our long-term plans in order to manage environmental impacts on host locations.
7.Provide guidance to managers to maintain ethical behaviour amid the varying standards and practices around the world.
What role should Social Responsibility
have for MNC’s?
The MNC has multiple Stakeholders
MNC Stakeholders
Home Country Host Country
Society in General
Ethics in Global Management
General Guidelines for a
Code of Morality & Ethics
in Individual Countries
Example: International Codes of Conduct
International Chamber of Commerce
OECD (Organisation for Economic Cooperation & Development)
UN Commission on Transnational Corporations
The Sweatshop Code of Conduct
The Electronic Industry Code of Conduct (EICC)
Social Accountability 8000 (SA 8000)
Case: Doing Business in China …the USA perspective:
The attraction of doing business in China:
qCheap labour cost
qAn expanding market
qA growing economy with growth in higher skilled jobs and services
qContinuing concerns
qUncertain legal environment
qProtecting IP
Global Corruption Barometer:
2010 Corruption Perception Index (CPI)
Top 20 - Least Corrupt
1.Denmark
2.Singapore
3.New Zealand
4.Finland
5.Canada
6.Australia
7.Hong Kong
8.Germany
9.Japan
10.UK
11.Chile
12.Belgium
13.USA
14.France
15.Taiwan
16.South Korea
17.Poland
18.Greece
19.S. Africa
20.Turkey
To Bribe or NOT to Bribe?
Paying mail carriers in Mexico to prevent them from “losing” mail
Paying $100 to get a computer picked up from a rainy dock
Gift-giving to bond social ties
The Process for Companies to
Combat Corruption & Minimise the Risk of Prosecution
Having a global compliance system which shows that employees have understood, and signed off on, the legal obligations regarding bribery and corruption in the countries where they do business
Making employees aware of the penalties and ramifications for lone actions, such as criminal sanctions
Having a system in place to investigate any foreign agents and overseas partners who will be negotiating contracts
Keeping an effective whistle-blowing system in place
Policies to help MNCs to confront concerns
about Ethical Behaviour & Social Responsibility
Develop worldwide code of ethics.
Build ethical policies into strategy development.
Plan regular assessment of the company’s ethical posture.
If ethical problems cannot be resolved, withdraw from that market (as Sony did from Indonesia)
Managing Subsidiary - Host-Country interdependence
1.MNCs usually reserve the key managerial and technical positions for expatriates. As a result, they do not contribute to the development of host-country personnel.
2.MNCs do not adapt their technology to the conditions that exist in host countries.
3.MNCs concentrate their research and development activities at home, restricting the transfer of modern technology and know-how to host countries.
4.MNCs start their foreign operations by purchasing existing firms rather than by developing new productive facilities in host countries.
5.MNCs are not accountable to their host nations but only respond to home-country governments; they are not concerned with host-country plans for development.
Managing Subsidiary - Host-Country interdependence
MNCs Benefits & Costs to Host Countries
Recommendations for MNCs Operating in and Doing Business with Developing Countries
1.Do no intentional harm. This includes respect for the integrity of the ecosystem and consumer safety.
2.Produce more good than harm for the host country.
3.Contribute by their activity to the host country’s development.
4.Respect the human rights of their employees.
5.To the extent that local culture does not violate ethical norms, respect the local culture and work with and not against it.
6.Pay fair share of taxes.
Consider this…
What role does corporate social responsibility (CSR) play in the relationship between a company and its host country?
As a manager in a foreign subsidiary, how can you reconcile local expectations of questionable payments with the corporate code of ethics and any Foreign Corrupt Practices Act that might apply?