Global Business Ethics and
Social Responsibility
Chapter 10
Ethical Issues – 4 Types
• When a company deals
internationally, they must
deal with four types of
ethical issues:
• The host country and
society
• Consumers
• Employees
• Investors and stockholders
Societal Issues
Example: The Environment
• Clean air, water, soil are
needed to live
• Businesses slow to
respond to environmental
concerns
• Canada among the worst
polluters per capita in the
world (worse than the
USA)
Societal Issues
• THE major concern is currently
is global warming
• Kyoto Protocol (Kyoto Accord)
- 1997 Kyoto Japan,
agreement to reduce carbon
dioxide emissions
• The USA and Australia did not
sign, Canada will not honour
agreement
• Recent pressure for action –
“An Inconvenient Truth” by Al
Gore
Consumer Issues
Example: Quality Control
• Product Safety Standards
• Childrens’ toys, tires,
medication
Examples:
• Johnson and Johnson Tylenol scare of 1982
(cyanide killed 7)
• Firestone Tires on Ford
Explorers - recalled 6.5
million tires after numerous
deaths in N. America
Employee Issues
Examples:
1. Workplace Health and Safety
– Varied by country
2. Equality
– Women still not treated fairly in
many countries
3. Human rights
– Trade with countries that use child
labour?
4. Labour
– Ethics of giving employees rights,
cheaper, less hassle elsewhere
Stockholder Issues
• Illegal business dealings often result in
company ceasing to exist (e.g. Enron)
• Corrupt governments and business are
plentiful
• What effect does this have on
shareholders?
• 2002 Corruption Perceptions Index
ranked 102 countries for corruption
• Bangladesh, Nigeria, Paraguay, Kenya
most corrupt
• Finland, Denmark least corrupt
• Canada 7th
Ethical Dilemmas - Worksheet
• What would you do in the given scenarios?
•
Read sample case studies and organize each into the following:
–
–
–
–
Problem
People affected
What if scenarios
What choice would you make?