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Chapter Eight Ethical Issues in International Business. Ethical Theory and Business, 6 th Edition Tom L. Beauchamp & Norman E. Bowie. Objectives. After studying this chapter the student should be able to:

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chapter eight ethical issues in international business

Chapter EightEthical Issues in International Business

Ethical Theory and Business, 6th Edition

Tom L. Beauchamp & Norman E. Bowie

  • After studying this chapter the student should be able to:
    • Describe problems encountered by multinational corporations when conducting business with other countries.
    • Contrast the transcendental normative environment and the group normative environment.
    • Analyze the ethical issues of the Japanese business community.
  • Discuss the concept of reciprocity as it applies to the Chinese culture.
  • Explain the guidelines for conducting business with Chinese businesspeople.
  • Contrast gift giving, bribery, and corruption.
  • Define the term sweatshop.
  • Discuss the development of the campus anti-sweatshop movement.
  • Discuss possible standards for appropriate wages and labor standards in international sweatshops.
  • Discuss the potential economic problems that may occur if current sweatshop practices are changed.
  • Multinational Corporations
  • Bribery
  • Sweatshops


norman bowie
Norman Bowie
  • “Relativism and the Moral Obligations of Multinational Corporations”
  • General multinational corporation obligations
  • Distinctive obligations
  • Relativism
  • Morality of the marketplace
daryl koehn
Daryl Koehn
  • “What Can Eastern Philosophy Teach Us About Business Ethics?”
  • Cullen Chair of Business Ethics, University of St. Thomas in Houston
  • Do Asian values exist?
  • Watsuji Tetsuro and Confucius
    • Meaning of trust
    • Relations are for life
    • Ethics beyond rights
iwao taka
Iwao Taka
  • “Business Ethics: A Japanese View”
  • Religious dimension
    • Transcendental normative environment
      • Numen – Soul, spirit, or spiritual energy.
      • Transcendentalism – The philosophy that every phenomenon is an expression of the great life force and is ultimately connected with the numen of the universe.
    • Japanese meaning of work
    • Group normative environment
iwao taka1
Iwao Taka
  • Living between the group and individual environments
  • Social dimension
    • Concentric circles of corporations
      • Family, fellows, Japan, and world
    • Dynamics of the concentric circles
      • The individuals
      • The contextuals
    • Group environment and concentric circles
iwao taka2
Iwao Taka
  • Japanese recognition of the American business community
    • Job description and the transcendental logic
    • Employees’ interest and the group logic
    • Claims against the Japanese market and the concentric circles’ ethics
iwao taka3
Iwao Taka
  • Ethical Issues of the Japanese business community
    • Discrimination and transcendental logic
      • Transcendental logic has favored the male society.
      • Transcendental logic has been used to accuse certain workers of laziness.
    • Employees’ dependency and the group logic
    • Exclusiveness of the concentric circles
patricia h werhane
Patricia H. Werhane
  • “Exporting Mental Models: Global Capitalism in the Twenty-First Century”
  • Ruffin Professor of Business Ethics, University of Virginia
  • Mental models - The mechanisms whereby humans are able to generate descriptions of system purpose and form; explanations of system functioning and observed system states; and predictions of future system states.
patricia h werhane1
Patricia H. Werhane
  • This article examines the possibilities of using an American free enterprise capitalist model for conducting business in a global arena.
p steidlmeier
P. Steidlmeier
  • “Gift Giving, Bribery, and Corruption: Ethical Management of Business Relationships in China”
  • Associate Professor School of Management, Binghamton University
  • Developing a cultural framework for reciprocity
    • Artifacts
    • Social knowledge
    • Cultural logic
p steidlmeier1
P. Steidlmeier
  • Interacting with others in China
  • Moral analysis of reciprocity
  • Guidelines for doing business right in China
    • Investigate the backgrounds of local executives you place in charge of company matters.
    • Ensure no one individual has total control over company matters.
    • Treat remarks such as “China is different” and “You shouldn’t get involved” as red flags.
p steidlmeier2
P. Steidlmeier
  • Establish regular and detailed auditing systems to ensure transparency.
  • Be aware of the political standing of your counterparts and do not get caught in the cross fire of Chinese power struggles.
  • Explain your difficulties to the Chinese side and offer alternatives that are legitimate.
  • As much as possible, use Chinese sources themselves as the basis for your unwillingness to do corrupt deals.
p steidlmeier3
P. Steidlmeier
  • Rather than becoming entangled in a specific minor bribe, place the whole matter in a broader context of negotiation.
thomas donaldson and thomas w dunfee
Thomas Donaldson and Thomas W. Dunfee
  • “When Ethics Travel: The Promise and Peril of Global Business Ethics”
  • ISCT Core norms
    • Hypernorms
    • Consistent norms
    • Moral free space
    • Illegitimate norms
  • Navigating the ISCT map
richard applebaum and peter dreier
Richard Applebaum and Peter Dreier
  • “The Campus Anti-Sweatshop Movement”
  • The global sweatshop
    • Sweatshop – A process where profits are sweated out of workers by forcing them to work longer and faster.
  • Kathie Lee
  • Robert Reich
richard applebaum and peter dreier1
Richard Applebaum and Peter Dreier
  • A “sweat-free” campus
    • Began at Duke University, Fall 1997
    • Required manufacturers of items with the Duke label to sign a pledge that they would not use sweatshop labor
    • Quickly spread to other U.S. universities/colleges
    • United Students Against Sweatshops (USAS) formed Summer 1998
  • The industry’s new clothes
ian maitland
Ian Maitland
  • “The Great Non-Debate Over International Sweatshops”
  • Carlson School of Management, University of Minnesota
  • International sweatshop labor standards
    • Home-country standard
    • Living wage standard
    • Classical liberal standard
ian maitland1
Ian Maitland
  • Charges against sweatshops
    • Unconscionable wages
    • Immiserization thesis
    • Widening gap between rich and poor
    • Collusion with repressive regimes
  • Labor standards in international sweatshops: painful tradeoffs