Global Business Today Chapter 5

Flashcard maker : Lily Taylor
Business Ethics
The accepted principles of right or wrong governing the conduct of business people
Ethical Strategy
A course of action, that does not violate ethical principles
Sullivan Principles
A twofold approach to doing business in apartheid South Africa, comprising passive resistance to apartheid laws and attempts to influence the abolition of apartheid laws
Foreign Corrupt Practices Act
U.S. law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions
Convention on Combating Bribery of Foreign Public Officials in International Business Transactions
A OEDC convention that establishes legally binding standards to criminalize bribery of foreign public officials in international business transactions and provides for a host of related measures that make this effective
Ethical Dilemma
A situation in which none of the available alternatives seems ethically acceptable
Organization Culture
The values and norms that are shared among employees of an organization
Cultural Relativism
The belief that ethics are nothing more than a reflection of a culture and that firms should simply adopt the ethics of the cultures in which they operate
Righteous
Moralism
The belief that a multinational’s homecountry standards of ethics are the appropriate ones for
companies to follow in foreign countries
Naive Immoralism
The belief that 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
Kantian Ethics
The belief that people should be treated as ends and never as means to the ends of others.
Rights Theories
A twentieth century ethical approach based on the belief that human beings have fundamental rights and privileges that transcend national
boundaries and cultures.
Utilitarian Approaches to Ethics
These hold that the moral worth of actions or practices is determined by their consequences
Universal
Declaration of
Human Rights
A UN document inspired by Kantian and rights theories and ratified by almost every country on the planet; it lays down basic principles that should always be adhered to, irrespective of the culture in which one is doing business
Just Distribution
A distribution that is considered fair
and equitable.
Code of Ethics
A formal statement of the ethical priorities to which a business adheres.
Stakeholders
Individuals or groups that have an interest, claim, or stake in a company, what it does, and how well it performs.
Internal Stakeholders
Individuals or groups that work for or own the business.
External Stakeholders
All other individuals and groups that have some claim on a firm, such as the government, suppliers, and the general public.
Corporate Social Responsibility
The idea that businesspeople should consider the social consequences of economic actions and give preference to outcomes with positive social and economic consequences when making business decisions.
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
Justice Theories
Ethical approaches that focus on the attainment of a just distribution of economic goods and services
Moral Imagination
Standing in the shoes of a stakeholder and asking how a proposed decision will affect that stakeholder.
Fundamental Rights of Stakeholders
Basic rights of stakeholders, such as the right to information about products and working conditions, that should be considered when business decisions are made.
Ethics Officer
An individual hired by a company to be responsible for making sure that all employees are trained to be ethically aware, that ethical considerations enter the decision-making process, and that employees follow the company’s
code of ethics.
Noblesse Oblige
A French term referring to the honorable and benevolent behavior required of persons of noble birth.
Personal Ethics
The generally accepted principles of right and wrong governing the conduct of individuals.

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