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International business impacts daily life
around the world and also affects ethical
decisions in business.
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To describe settings in which international
business affects people
To list issues that affect ethics in
international business
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It is necessary to work in the global
environment in an ethical and legal way in
order to sustain effective global trade.
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ethics
a set of moral principles by which
people conduct themselves personally,
socially, or professionally
a set of ideas about how a company
business
should conduct business in relation to
ethics
legal, social, and environmental issues
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social
the duty to do what is best for
responsibility society
a statement that explains what a
code of ethics company or group believes is
proper and improper conduct
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stakeholders
the various individuals or groups
of people who have a direct
interest, involvement, or
investment in something
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The Impact of International
Business
International
National
International
business affects
countries on
several levels.
State or
Provincial
Local
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Local Level
People can buy products from firms around
the world.
Customers expect local businesses to keep
up with local and international trends.
Internet use makes the world of
international business move faster.
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State or Provincial Level
State and provincial governments seek
ways to sell regional products globally.
Businesses located in one state look to
build relationships with international
companies and national governments.
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National Level
Highly developed countries seek to keep a
balance between exporting their products
and importing products.
Countries with few natural resources or
goods to export have trouble with
economic stability.
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International Level
Taxes and tariffs can be imposed on a
country that is gaining an unfair advantage
by pricing its exported products too low.
A recession in one country can affect the
economies of other countries.
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Ethics and Social Responsibility
Ethics exist to serve
as guidelines for
behavior.
ethics
a set of moral principles
by which people
conduct themselves
personally, socially, or
professionally
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Ethics and Social Responsibility
Business ethics have
to do with doing “the
right thing” in business.
Business ethics include
practicing business
legally, morally, and fairly.
business ethics
a set of ideas about
how a company should
conduct business in
relation to legal, social,
and environmental
issues
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Ethics and Social Responsibility
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Social Responsibility
To promote social
responsibility,
businesses can:
social responsibility
the duty to do what is
best for society
1. Eliminate negative
activities.
2. Perform positive
activities.
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Social Responsibility
A code of ethics might
be created or sponsored
by a company or
profession.
code of ethics
a statement that
explains what a
company or group
believes is proper and
improper conduct
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Stakeholders
Business organizations
have many
stakeholders.
stakeholders
the various individuals
or groups of people
who have a direct
interest, involvement,
or investment in
something
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Stakeholders
labor unions
employees
owners
general public
Stakeholders
in a
Business
stockholders
customers
suppliers
governments
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Stakeholders
Every ethical issue, from unfair wages to tax
evasion, has a specific impact on a
stakeholder group.
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Factors Affecting Ethical Decisions
Factors affecting ethical decisions include:
The culture and history of a country
Union issues
Government regulations
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Factors Affecting Ethical Decisions
Recall Name three
factors that affect ethical
decisions.
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Consequences
Some consequences of unethical
decisions include:
Lawsuits
Government intervention
Jail
Loss of business partners internationally
Loss of customers
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Factors Affecting Ethical Decisions
Relate Do you think it is
fair for one country to sell
goods to buyers in other
countries at much lower
prices if companies in the
seller’s home country pay
low wages to employees?
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Local and Global Impacts
Global business has expanded with the
Internet, technology, and transportation.
The growth of global business requires
responsible action by businesses around
the world.
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1.2
1. How does international business affect ordinary
people?
on the local level, through offering new goods and
services; on the state or provincial level, by
representing local products internationally; on the
national level, by impacting the nation’s economy
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1.2
2. What are ethics and social responsibility?
Ethics is a set of moral principles by which people
conduct themselves; social responsibility is the duty to
do what is best for the good of society.
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1.2
3. What are stakeholders?
individuals or groups of people who have a direct
interest, involvement, or investment in something
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