CHAPTER 10 - Globalization of
Ethical Decision Making
1
TABLE OF CONTENT
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Summary
Global Culture, Values, and Practices
Economic Foundations of Business Ethics
Multinational Corporations (MNCs)
Global Cooperation to Support Responsible Business
Global Ethics Issues
The Importance of Ethical Decision making in Global
Business
SUMMARY
 Advances in communication, technology, and transportation have
further minimized the world’s borders, creating an ever more
interconnected global economy.
 This chapter discusses how transactions across international
boundaries define global business, and how the variety of cultures
and expectations around the globe complicates the topic of
business ethics. International businesspeople must understand the
values, cultures, and ethical standards of his or her home country,
as well as every country in which his or her firm conducts business.
 Formal codes of conduct are less common internationally, and the
topics of principle concern shift between countries and across time.
Major concerns today involve global risks, legal approaches to
business ethics, and compliance measures. Insufficient
understanding of the complexity of global business can destroy
trust and do lasting damage to a firm.
SUMMARY
 This chapter examines these topics, as well as the
role of international organizations like the IMF, the UN,
and the WTO in shaping international business. It will
help students to learn about the cultural differences
between nations and how they can affect common
business practices, as well as to gain a general
awareness of global ethical issues.
 This chapter aims to help students understand, and
possibly avoid, the ethical quagmires that exist in the
global business environment.
GLOBAL CULTURE,
VALUES, AND
PRACTICES
GLOBAL CULTURE,
VALUES, AND PRACTICES
Global Business
 Global business is a practice that brings together
people from countries that have different cultures,
values, laws, and ethical standards.
 Country cultural values are specific to groups, sects,
regions, or countries that express actions, behavior,
and intent.
Next, a video on
Scott Szwast: The global business
next door
GLOBAL CULTURE,
VALUES, AND PRACTICES
National culture
National culture consists of everything in our
surroundings that is made by people—both tangible
items and intangible things such as concepts and
values.
 Each nation has a distinctive culture and distinctive
beliefs about what business activities are acceptable
or unethical.
 Many nations also have distinct subcultures.
GLOBAL CULTURE, VALUES,
AND PRACTICES
National culture
 Geert Hofstede identified four
cultural dimensions that can have a
profound impact on the business
environment.
 Individualism/collectivism refers to
how self-oriented cultural
members are in their behavior
 Power distance refers to the
“power inequality” between
superiors and subordinates
 Uncertainty avoidance refers to
how members of a society
respond to uncertainty or
ambiguity.
 Masculinity/femininity
Power distance
Uncertainty avoidance
Individualism/collectivism
Masculinity/femininity
Cultural
Dimension
Next, a video on
Hofstede's Cultural Dimensions
Theory
GLOBAL CULTURE, VALUES,
AND PRACTICES
National culture
 The self-reference criterion (SRC) is the unconscious reference to
one’s own cultural values, experiences, and knowledge.
Cultural
Values
Experience
Knowledge
Self
Reference
Criterion
GLOBAL CULTURE, VALUES,
AND PRACTICES
National culture
 Businesspeople tend to fall
into the thinking of cultural
relativism, the concept that
morality varies from one
culture to another and that
“right” and “wrong” are defined
differently. In other words:
“When in Rome, do what the
Romans do.”
Concept
of What
is Right
Cultural
Relativism
Concept
of What
is Wrong
GLOBAL CULTURE, VALUES,
AND PRACTICES
 Global common values are shared
across most cultures.
 Although divergent religious values
and other aspects of culture can
create ethical issues in international
business, many cultures share
desirable and undesirable common
values such as
 Desirable common values:
Integrity, family and community
unity, equality, honesty, fidelity,
sharing and unselfishness
 Undesirable common values:
Ignorance, pride, egoism, selfish
desires, lust, greed, adultery,
theft, deceit, lying, murder,
hypocrisy, slander and addiction
Undesirable
common
values
Desirable
common
values
ECONOMIC
FOUNDATIONS OF
BUSINESS ETHICS
ECONOMIC FOUNDATIONS OF
BUSINESS ETHICS
 The last economic recession
highlighted the fact that firms
were taking extreme risks,
bending rules, and engaging in
unethical activity.
 A major part of the problem
was an excessive focus on
rewards and the bottom line
that pervaded the global
financial industry.
Excessive
Focus on
Profit
Extreme
Risk
Taking
Economic
Calamities
Rules
Bending
Unethical
Activities
ECONOMIC FOUNDATIONS
OF BUSINESS ETHICS
2008 Global Economic Crisis
 Risk compartmentalization occurs when various profit centers
within corporations are unaware of the consequences of their
decisions on the organization as a whole. No one person can be
blamed, as problems were systemic.
 Economic and social disasters intensify the risks and challenges
global businesses will encounter.
 National disasters can also destabilize economies and affect the
economic system.
 The world is still coping with the after effects of the last global
recession, which caused massive distrust in the stability of
governmental institutions as well as the responsibility of those who
manage the money of individuals, corporations, and countries.
ECONOMIC FOUNDATIONS
OF BUSINESS ETHICS
Economic Systems
 An economic system (also economic order)[1] is a system of
production, resource allocation and distribution of goods and
services within a society or a given geographic area. It includes
the combination of the various institutions, agencies, entities,
decision-making processes and patterns of consumption that
comprise the economic structure of a given community.
 As such, an economic system is a type of social system. The
mode of production is a related concept.[2] All economic
systems have three basic questions to ask: what to produce,
how to produce and in what quantities and who receives the
output of production.
 https://en.wikipedia.org/wiki/Economic_system
Next, a video on
Types of Economic Systems
ECONOMIC FOUNDATIONS OF
BUSINESS ETHICS
Economic Systems
 Main types
Capitalism
 Capitalism
 Socialism
 Mixed Economy
 To understand capitalism and
what people are beginning to
perceive as its shortcomings,
one needs a historical review
of key figures and concepts.
Types of
Economic
System
Mixed
Socialism
ECONOMIC FOUNDATIONS OF
BUSINESS ETHICS
Economic Systems Capitalism
Capitalism
 To understand capitalism and
what people are beginning to
perceive as its shortcomings,
one needs a historical review
of key figures and concepts.
Types of
Economic
System
Mixed
Socialism
ECONOMIC FOUNDATIONS
OF BUSINESS ETHICS
Economic Systems – Capitalism Key Figures and
Concept
 Adam Smith was a 19th century professor of logic
and moral philosophy and is considered the father of
modern free market (laissez-faire) capitalism and
economics. Smith believed that the market has its
own internal set of checks and balances that help the
system to self-regulate. Smith believed, in order for
the market to work properly, ethical people must guide
businesses.
ECONOMIC FOUNDATIONS
OF BUSINESS ETHICS
Economic Systems – Capitalism Key Figures and
Concept
 John Maynard Keynes is the father of the second
incarnation of capitalism that gained traction in the 1930s.
Keynes believed that the private sector, in order to
stimulate growth and improve stability, occasionally needs
help from government intervention. Keynesian economic
policies were widely employed during the 1930s and into
the 1940s.
ECONOMIC FOUNDATIONS
OF BUSINESS ETHICS
Economic Systems – Capitalism Key Figures and
Concept
 Milton Friedman represents the most recent form of
capitalism, which represented a swing to the right
politically. Friedman stood for a return to the selfregulating free- market capitalism espoused by Smith.
Friedman called for widespread deregulation. His ideas
took off during the 1980 Reagan years in the United
States.
ECONOMIC FOUNDATIONS
OF BUSINESS ETHICS
Economic Systems – Capitalism Key Figures and
Concept
 Both Keynes and Friedman believed that
 People have rational preferences among outcomes that
can be identified and associated with value
 Individuals seek to maximize utility, and firms seek to
maximize profits
 People act independently on the basis of full and
relevant information
ECONOMIC FOUNDATIONS OF
BUSINESS ETHICS
Economic Systems - Socialism
 Socialism refers to economic
theories advocating the
creation of a society in which
wealth and power are shared
and distributed evenly based
on the amount of work
expended in production.
Capitalism
Types of
Economic
System
Mixed
Socialism
ECONOMIC FOUNDATIONS OF
BUSINESS ETHICS
Economic Systems – Socialism
 Modern socialism was a
working-class political
movement that emerged in the
19th century
Capitalism
 Karl Marx was one of socialism’s
most famous advocates
 Social democracy formed in
the 1940s as an offshoot of
socialism. It allows for private
ownership of property, but also
has a large government that
provides a wide range of
services to citizens.
Types of
Economic
System
Mixed
Socialism
ECONOMIC FOUNDATIONS OF
BUSINESS ETHICS
Economic Systems – Mixed
 Theoretically, it refer to an economic
system that combines one of three
characteristics: public and private
ownership of industry, market-based
allocation with economic planning, or
free markets with state
interventionism.
 In practice, "mixed economy"
generally refers to market economies
with substantial state interventionism
and/or sizable public sector
alongside a dominant private sector.
Actually, mixed economies gravitate
more heavily to one end of the
spectrum.
Capitalism
Types of
Economic
System
Mixed
Socialism
ECONOMIC FOUNDATIONS OF
BUSINESS ETHICS
Economic Systems – Mixed
 Notable economic models and theories
that have been described as a "mixed
economy" include the following:
 American School
 Dirigisme
 Indicative planning, also known as a
planned market economy
 Japanese system
 Nordic model
 Progressive utilization theory
 Social corporatism
 Social market economy, also known as
Soziale Marktwirtschaft
 Socialist market economy
 State capitalism
Capitalism
Types of
Economic
System
Mixed
Socialism
ECONOMIC FOUNDATIONS OF
BUSINESS ETHICS
Bimodal Wealth Distribution
Large multinational corporations
have created unprecedented
concentrations of wealth and
power that lie, not with states, but
with private corporations.
 This has led to bimodal wealth
distribution, which occurs when
the middle class shrinks,
resulting in highly concentrated
wealth amongst the rich and
large numbers of poor people
with very few resources.
Rich and Middle
Wealthy Class
Class
Next, a video on
Income and Wealth Inequality
ECONOMIC FOUNDATIONS OF
BUSINESS ETHICS
Economics School of Thought
 There are two main schools of
economic thought
 Rational economics is based
on the idea that people are
rational and will base their
decisions on maximizing their
utility based on the amount of
resources available to them. It
also assumes that people act
independently on the basis of
full and relevant information.
Rational
Behavioural
Economic
School of
Thought
ECONOMIC FOUNDATIONS OF
BUSINESS ETHICS
Economics School of Thought
 Behavioral economics
assumes that humans may
not act rationally because of
a variety of influences such
as genetics, learned
behaviors, and heuristics
(rules of thumb).
Rational
Behavioural
Economic
School of
Thought
Next, a video on
Behavioral Economics
ECONOMIC FOUNDATIONS
OF BUSINESS ETHICS
United States Style of Capitalism
 Capitalism is one of the United States’ many cultural
exports.
 The United States practices one kind of capitalism, but
there are many forms.
 The last recession, combined with the collapse of some of
the world’s largest financial firms has dampened global
enthusiasm for capitalism in general.
 There is a general consensus that corporations should
practice corporate social responsibility as a means of
improving performance and reputation along with avoiding
some of the pitfalls of capitalism.
MULTINATIONAL
CORPORATIONS
(MNCS)
MULTINATIONAL
CORPORATIONS (MNCS)
 Multinational Corporations (MNCs) are public
companies that operate on a global scale without
significant ties to any one nation or region.
 They represent the highest level of international
business commitment and are characterized by a
global strategy of focusing on opportunities
throughout the world.
MULTINATIONAL
CORPORATIONS (MNCS)
Subjects of Ethical Criticism
Because of their size and
financial power, MNCs have
been the subject of much ethical
criticism, and their impact on the
countries in which they do
business is controversial.
Exploitation by MNCs
MNCs refused entry to market
Unfair competition
MNCs as global citizen
BSR Non Profit Organization
MNCs vs. Less Developed Nation
US MNCs vs World MNCs
MULTINATIONAL
CORPORATIONS (MNCS)
Subjects of Ethical Criticism
 Critics believe that the size
and power of MNCs create
ethical issues related to the
exploitation of both natural and
human resources. Critics also
accuse MNCs of exploiting the
labor markets of host
countries.
Exploitation by MNCs
MNCs refused entry to market
Unfair competition
MNCs as global citizen
BSR Non Profit Organization
MNCs vs. Less Developed Nation
US MNCs vs World MNCs
MULTINATIONAL
CORPORATIONS (MNCS)
Subjects of Ethical Criticism
 Some countries refuse outright
to allow MNCs in.
Exploitation by MNCs
MNCs refused entry to market
Unfair competition
MNCs as global citizen
BSR Non Profit Organization
MNCs vs. Less Developed Nation
US MNCs vs World MNCs
MULTINATIONAL
CORPORATIONS (MNCS)
Subjects of Ethical Criticism
 The activities of MNCs may
also raise issues of unfair
competition.
Exploitation by MNCs
MNCs refused entry to market
Unfair competition
MNCs as global citizen
BSR Non Profit Organization
MNCs vs. Less Developed Nation
US MNCs vs World MNCs
MULTINATIONAL
CORPORATIONS (MNCS)
Subjects of Ethical Criticism
 Some MNCs strive to be good
global citizens with strong
ethical values.
Exploitation by MNCs
MNCs refused entry to market
Unfair competition
MNCs as global citizen
BSR Non Profit Organization
MNCs vs. Less Developed Nation
US MNCs vs World MNCs
MULTINATIONAL
CORPORATIONS (MNCS)
Subjects of Ethical Criticism
Exploitation by MNCs
 Because of increased
stakeholder scrutiny and
growing pressures to be
sustainable and socially
responsible, many corporations
belong to Business for Social
Responsibility, which is a
globally based research system
that tracks trends and issues
and provides resources for
corporations.
 https://www.bsr.org/
MNCs refused entry to market
Unfair competition
MNCs as global citizen
BSR Non Profit Organization
MNCs vs. Less Developed Nation
US MNCs vs World MNCs
MULTINATIONAL
CORPORATIONS (MNCS)
Subjects of Ethical Criticism
 Although MNCs are not
inherently unethical, their size
and power often seem
threatening to less-developed
countries.
Exploitation by MNCs
MNCs refused entry to market
Unfair competition
MNCs as global citizen
BSR Non Profit Organization
MNCs vs. Less Developed Nation
US MNCs vs World MNCs
MULTINATIONAL
CORPORATIONS (MNCS)
Subjects of Ethical Criticism
 The U.S. model of the MNC is
fading over time as countries
such as China, India, Brazil,
and South Korea continue to
grow.
 Regardless of the MNC model,
ethics and social responsibility
are always important—
particularly in MNCs because
of their strong international
presences.
Exploitation by MNCs
MNCs refused entry to market
Unfair competition
MNCs as global citizen
BSR Non Profit Organization
MNCs seem threatening
US MNCs vs World MNCs
Next, a video on
Chinese Multinationals
GLOBAL
COOPERATION TO
SUPPORT
RESPONSIBLE
BUSINESS
GLOBAL COOPERATION TO
SUPPORT RESPONSIBLE
BUSINESS
 Global organization agencies
and their roles in supporting
ethical and responsible
business
International
Monetary
Fund
 International Monetary Fund
 United Nations Global
Compact
Global
Agencies
 The World Trade
Organization (WTO)
The World
Trade
Organization
(WTO)
United
Nations
Global
Compact
GLOBAL COOPERATION TO
SUPPORT RESPONSIBLE
BUSINESS
 The International Monetary Fund
emerged from the Bretton Woods
agreement of 1944, where a group of
leaders decided that the
responsibilities for the regulation of
monetary relationships among
nations should be carried out by an
extra-national body. Member states
provide funds for IMF through quotas
that are proportional to the size of
their economies.
 The IMF makes short-term loans to
member countries that have deficits
and provides foreign currencies for
its members.
International
Monetary
Fund
Global
Agencies
The World
Trade
Organization
(WTO)
United
Nations
Global
Compact
Next, a video on
International Monetary Fund
GLOBAL COOPERATION TO
SUPPORT RESPONSIBLE
BUSINESS
 Its main function is to regulate
monetary relationships between
national economies. The
organization has also taken
steps to promote responsible
global business conduct.
 The concept of risk and IMF
bailouts took on significant
importance during the last
global recession. Because of
a massive amount of debt, the
European countries of
Greece, Ireland, Portugal and
Spain required major bailout
packages from the IMF.
International
Monetary
Fund
Global
Agencies
The World
Trade
Organization
(WTO)
United
Nations
Global
Compact
GLOBAL COOPERATION TO
SUPPORT RESPONSIBLE
BUSINESS
United Nations Global Compact
 It is a set of 10 principles that
promote human rights,
sustainability, and the
eradication of corruption.
 The purpose is to create a
collaborative arrangement
between businesses,
governments, nongovernmental
organizations, societies, and the
United Nations to overcome
challenges and advocate for
positive economic, social, and
political change.
International
Monetary
Fund
Global
Agencies
The World
Trade
Organization
(WTO)
United
Nations
Global
Compact
Next, a video on
UN Global Impact
GLOBAL COOPERATION TO
SUPPORT RESPONSIBLE
BUSINESS
 Businesses that make a
commitment to the UN Global
Compact are required to
annually post the
organization’s progress toward
Global Compact goals, show
commitment to UN guiding
principles, and cooperate with
the UN on social projects
within developing nations in
which they do business
International
Monetary
Fund
Global
Agencies
The World
Trade
Organization
(WTO)
United
Nations
Global
Compact
GLOBAL COOPERATION TO
SUPPORT RESPONSIBLE
BUSINESS
 The World Trade Organization
(WTO) was established in 1995
at the Uruguay round of
negotiations of the General
Agreement on Tariffs and Trade
(GATT).
a. It has 159 member and
observer nations.
 The WTO administers its own
trade agreements, facilitates
future trade negotiations, settles
trade disputes, and monitors the
trade policies of member
nations.
International
Monetary
Fund
Global
Agencies
The World
Trade
Organization
(WTO)
United
Nations
Global
Compact
Next, a video on
World Trade Organization
GLOBAL COOPERATION TO
SUPPORT RESPONSIBLE
BUSINESS
 It addresses economic and
social issues involving
agriculture, textiles and clothing,
banking, telecommunications,
government purchases,
industrial standards, food
sanitation regulations, services,
and intellectual property.
 It provides legally binding
ground rules for international
commerce and trade policy. The
organization attempts to reduce
barriers to trade between and
within nations, and settle trade
disputes.
International
Monetary
Fund
Global
Agencies
The World
Trade
Organization
(WTO)
United
Nations
Global
Compact
GLOBAL COOPERATION TO
SUPPORT RESPONSIBLE
BUSINESS
 The WTO rules on trade
issues, such as dumping,
which is the practice of
charging high prices for
products in domestic markets
while selling the same
products in foreign markets at
low prices, often at below cost.
 The WTO has not been able to
increase global commitment to
free trade.
International
Monetary
Fund
Global
Agencies
The World
Trade
Organization
(WTO)
United
Nations
Global
Compact
GLOBAL ETHICS
ISSUES
GLOBAL ETHICS ISSUES
 Important issues in global
ethics
 Global Risks
 Bribery
 Antitrust Activity
 Internet Security and Privacy
 Human Right
 Health Care
 Labor and Right to Work
 Compensation
 Consumersim
Global Risks
Bribery
Antitrust
Activity
Internet
Security and
Privacy
Human Right
Health Care
Labor and
Right to Work
Compensation
Consumerism
GLOBAL ETHICS ISSUES
Global Risks
 Global risks are becoming an
increasingly important ethics issue.
Major risks include
 Emerging markets pose significant
investor risk, such as political
instability, imbalances in power,
social discontent, and faltering
economies
 Chinese leadership is promoting
nationalism, which could threaten
relationships with other countries,
including the United States
 The economic outlook for Eurozone countries remain weak
Global Risks
Bribery
Antitrust
Activity
Internet
Security and
Privacy
Human Right
Health Care
Labor and
Right to Work
Compensation
Consumerism
GLOBAL ETHICS ISSUES
Bribery
Global Risks
Bribery
Antitrust
Activity
Internet
Security and
Privacy
Human Right
Health Care
Labor and
Right to Work
Compensation
 The U.S. Foreign Corrupt Practices
Act prohibits American companies
from making
 corrupt payments to foreign officials
for the purpose of obtaining or
keeping business. Small facilitation
payments are allowed to facilitate or
expedite routine governmental
transactions.
 The U.K. Bribery Act goes further by
holding businesspeople more
accountable for bribery. It does not
have provisions for facilitation
payments.
Consumerism
GLOBAL ETHICS ISSUES
Antitrust Activity
 In 1890, the United States passed the
Sherman Antitrust Act to prohibit antitrust
activities.
 The European Union has more stringent
antitrust laws than many other countries.
Global Risks
Bribery
Antitrust
Activity
Internet
Security and
Privacy
Human Right
Health Care
Labor and
Right to Work
Compensation
Consumerism
GLOBAL ETHICS ISSUES
Antitrust Activity
 A vertical system is where a channel member
(manufacturer, wholesaler, distributor, or
retailer) has control of the entire business
system, via ownership, contract, or through its
purchasing ability. Vertical systems create
inertia, which causes channel members to stay
with their various retailers and distributors
even though competitors may have better
products and prices. Sometimes MNCs use
their size to coerce other companies to do
business exclusively with them.
Global Risks
Bribery
Antitrust
Activity
Internet
Security and
Privacy
Human Right
Health Care
Labor and
Right to Work
Compensation
Consumerism
Next, a video on
Antitrust
GLOBAL ETHICS ISSUES
Internet Security and Privacy
 Today’s computer hackers can use tools
like the Internet and computer viruses to
commit corporate espionage, launch
cyber terrorism attacks against
government infrastructures, steal
confidential information, and more
 Many companies use questionable
Internet practices such as cookies,
which may not be illegal but could be
construed as unethical.
 Another ethical issue is the personal
information collected by companies
such as Facebook. Some countries are
debating legislation to limit the amount
of information companies can collect or
track.
Global Risks
Bribery
Antitrust
Activity
Internet
Security and
Privacy
Human Right
Health Care
Labor and
Right to Work
Compensation
Consumerism
GLOBAL ETHICS ISSUES
Human Rights
 Human rights have been codified in the
United Nations Human Rights Declaration.
They are defined as an inherent dignity
that should be afforded to all people with
equal and inalienable rights as the
foundation of freedom, justice, and peace
in the world.
 Health care is a major global human rights
issue, with millions of people dying of
preventable diseases each year.
Particularly with multinational corporations,
the issue of health care availability and
affordability for workers in all nations is
becoming a major source of concern.
Many businesses have run into ethical
trouble over the question of whether
access to health care is a right or a
privilege.
Global Risks
Bribery
Antitrust
Activity
Internet
Security and
Privacy
Human Right
Health Care
Labor and
Right to Work
Compensation
Consumerism
GLOBAL ETHICS ISSUES
Labor and Right to Work
Global Risks
Bribery
Antitrust
Activity
Internet
Security and
Privacy
 One example of a global labor issue
involves gender pay inequality.
Women worldwide tend to be paid
less than their male counterparts are.
Human Right
Health Care
 Many countries outlaw or limit
workers’ rights to join trade unions.
Labor and
Right to Work
Compensation
 More people than ever work in
nations other than their homeland,
and multinationals are larger than
ever.
 Rights for pregnant workers vary
from country to country.
Consumerism
GLOBAL ETHICS ISSUES
Compensation
 A living wage refers to the minimum
wages that workers require to meet
basic needs.
 Many countries have passed minimum
wage laws to try to provide employees
with a living wage.
 While many multinationals choose to
do business in other countries
because of the low cost labor, this
becomes an ethical issue when
workers do not make enough to
support themselves or their families.
 Recently, many executives of bailed-out
financial firms found themselves facing
criticism over their high compensation,
which many stakeholders felt was
tantamount to rewarding failure.
Global Risks
Bribery
Antitrust
Activity
Internet
Security and
Privacy
Human Right
Health Care
Labor and
Right to Work
Compensation
Consumerism
Next, a video on
Antitrust
GLOBAL ETHICS ISSUES
Consumerism
 Consumerism is the belief that
consumers, not the interests of
corporations, should dictate the
economic structure of society. Part of
this theory is that the consumption of
goods relates to increased well-being.
However, strains on resources around
the world have caused many to begin to
question the idea that greater
consumption is always better.
 Made-to-break or planned
obsolescence is part of the
consumerist mindset that many
people are finding increasingly
difficult to accept. Made-to-break
items encourage consumers to
return regularly to buy more items.
Global Risks
Bribery
Antitrust
Activity
Internet
Security and
Privacy
Human Right
Health Care
Labor and
Right to Work
Compensation
Consumerism
THE IMPORTANCE
OF ETHICAL
DECISION MAKING IN
GLOBAL BUSINESS
THE IMPORTANCE OF ETHICAL
DECISION MAKING IN GLOBAL
BUSINESS
 Ethical decision-making is
essential to operate
successfully within a global
business context. Without a
clear comprehension of global
ethics issues, companies will
face a variety of legal and
political snares that could
result in disaster.
Weak
Comprehension
of Ethics Issues
Various Legal
and Political
Snares
THE IMPORTANCE OF ETHICAL
DECISION MAKING IN GLOBAL
BUSINESS
THUS,
 Many companies choose to adopt
global business codes of ethics to
provide guidelines for its international
operations.
 Some organizations create ethics
and social responsibility
frameworks that businesses can
adopt in formulating their own global
ethics codes.
 For multinational corporations, risk
management and global ethics are
so integral to the stability of their
overseas operations that they have
created special officers or
committees to oversee global
compliance issues.
Adopt Global Business
Codes of Ethics
Create Ethics and
Social Responsibility
Frameworks
Create Special Officers
and Committees