tragedy of the commons
occurs when a resource held in common by all but owned by no one Is overused by individuals resulting in degradation
foreign corrupt practices act (FCPA)
outlaws paying of bribes to foreign govt officials to gain business
grease payments
(facilitation payments) legal payments to speed up or ensure performance of normal government duties
Convention on Combating Bribery of Foreign Public Officials in International Business Transactions
obliges member states and other signatories to make the bribery of foreign public officials a criminal offense
ethical dilemmas
situations in which none of the available alternatives seems ethically acceptable
determinants of ethical behavior
societal culture, decision making process, leadership, unrealistic performance goals, personal ethics, organizational culture
personal ethics
the generally accepted principles of right and wrong governing the conduct of individuals
decision making process
asking yourself "is this decision or action ethical?
organizational culture
values and norms that are shared among employees of an organization
straw men
Approaches that are raised by business ethics scholars primarily for the purpose of demonstrating that they offer inappropriate guidelines for ethical decision making in a multinational enterprise
straw men approaches
friedman doctrine, cultural relativism, righteous moralist, naive immoralist
Friedman doctrine
the only social responsibility of business is to increase profits, so long as the company stays within the rules of law
cultural relativism
belief that ethics are nothing more than the reflection of a culture; form should adopt the ethics of the culture in which it is operating
righteous moralist
One who claims that a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries
naive immoralist
if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation, that manager should not either
utilitarian approaches to ethics
these hold that the moral worth of actions or practices is determined by their consequences
Kantian ethics
the belief that people should be treated as ends and never as means to the ends of others; people have dignity and need respect
rights theories
human beings have fundamental rights and privileges which transcend national boundaries and cultures
universal declaration of human rights
A 1948 statement in which the United Nations declared that all human beings have rights to life, liberty, and security.
justice theories
focus on the attainment of a just distribution of economic goods and services
just distribution
one that is considered fair and equitable
veil of ignorance
making decisions with a blind eye to extraneous factors that could affect the decision
difference principle
Rawls' suggestion that society should reward behavior that provides the most benefit to the community as a whole
code of ethics
a formal statement of ethical principles and rules of conduct
stakeholders
individuals or groups that have an interest, claim, or stake in the company
internal stakeholders
employees, owners, board of directors
external stakeholders
people or groups in the organization's external environment that are affected by it
moral imagination
When one is facing an ethical decision, the ability to envision various alternative choices, consequences, resolutions, benefits, harms.
fundamental rights
rights and privileges considered essential by the general society
moral courage
Taking a position against something or someone even though you know the outcome may be unpopular
Corporate Social Responsibility
the notion that corporations are expected to go above and beyond following the law and making a profit; consider social consequences of economic actions when making a business decision
noblesse oblige
principle that persons of high rank or birth are obliged to act nobly
management focus
the degree to which management decisions take into account the effect of outcomes on people within the organization
sustainable strategies
Strategies that not only help the multinational firm make good profits, but that do so without harming the environment, while simultaneously ensuring that the corporation acts in a socially responsible manner with regard to its multiple stakeholders