Summary Chapter 3: Ethics and Social Responsibility - Comprehensive Chapter

Chapter 3: Ethics and Social Responsibility Learning Objectives and Chapter Summary 1. EXAMINE ethics in international management and some of the major ethical issues and problems confronting MNCs in selected countries. Ethics is the study of morality and standards of conduct. It is important in the study of international management because ethical behavior often varies from one country to another. Ethics manifests in the ways societies and companies address issues such as employment conditions, human rights, and corruption. A danger in international management is the ethical relativism trap—“When in Rome, do as the Romans do.” 2. DISCUSS some of the pressures on and action being taken by selected industrialized countries and companies to be more socially responsive and environmentally to world problems. During the years ahead, multinationals likely will become more concerned about being socially responsible. NGOs are forcing the issue. Countries are passing laws to regulate ethical practices and governance rules for MNCs. MNCs are being more proactive (often because they realize it makes good business sense) in making social contributions in the regions in which they operate and in developing codes of conduct to govern ethics and social responsibility. One area in which companies have been especially active is pursing strategies that blend environmental sustainability in business objectives. 3. EXPLAIN some of the initiatives to bring greater accountability to corporate conduct and limit the impacts of corruption around the world. MNCs—in conjunction with government and NGOs—are also contributing to international development assistance and working to ensure that corporate governance practices are sound and efficient.