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Frameworks for Teaching and Learning Business Ethics within the Global Context: Background of Ethical Theories
Judith White and Susan Taft Journal of Management Education 2004 28: 463 DOI: 10.1177/1052562904265656 The online version of this article can be found at: http://jme.sagepub.com/content/28/4/463

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including those of Confucianism. allowing faculty and students to explore ethical problems that honor a wide array of national. along with five different sets of internationally accepted ethical guidelines for corporations operating anywhere in the world. We include examples of corporate codes of conduct from particular multinational corporations.sagepub. teaching. Vol. Our orienting framework of ethics theory is expanded to include a discussion of both Western and non-Western frameworks. and ethnic contexts and differences. 28 No. 2011 . and Judith White. Buddhism. Keywords: ethics. August 2004 463-477 DOI: 10. The authors would like to thank the reviewers. we have students from around in the world. global. Susan Taft.1177/1052562904265656 © 2004 Organizational Behavior Teaching Society 463 Downloaded from jme. ethical.com at Dehli University Library Syst on June 16. and Native American traditions. whose advice JOURNAL OF MANAGEMENT EDUCATION. we provide a summary of several major traditional and contemporary philosophical and psychological perspectives on ethical conduct for businesses.10. cultural. learning.1177/1052562904265656 JOURNAL OF MAN AGEMENT EDUCA TION / August 2004 White. yet throughout our Authors’ Note: This article is the initial product of work on teaching global ethics that began with a presentation at OBTC in June 1997 at Case Western Reserve University by Gail Ambuske. Taft / BUSINESS ETHICS WITHIN THE GLOB AL CONTEXT FRAMEWORKS FOR TEACHING AND LEARNING BUSINESS ETHICS WITHIN THE GLOBAL CONTEXT: BACKGROUND OF ETHICAL THEORIES Judith White University of Redlands Susan Taft Kent State University In this article. reasoning In our graduate and undergraduate organizational behavior and management classes. 4.

1993). these come from Western philosophy and psychology and are based on the ideas of Aristotle. Locke. Additionally. Piper. we have not yet found a comprehensive theoretical approach to teaching and learning business ethics within a global context. CA 92373. Noddings. we developed a model to use in teaching and learning business ethics that addresses the global context. The different theoretical approaches. cultural. Downloaded from jme. increasingly the business ethics challenges found both in the United States and abroad involve understanding ethical dilemmas from the perspective of non-U. & Parks. The Philosophical Traditions of Ethical Reasoning Whether teaching organizational behavior. Although many good models exist for teaching ethics from a domestic perspective (e. phone: (909) 748-6255. and multiculturalism. fax: (909) 335-5125. 2011 . business and society.g. Please send proofs and all correspondence regarding this manuscript to Judith White. Hume. along with the guidelines. School of Business. we find an increasing number of international business issues and cases but few tools to explore and understand the ethical challenges embedded in these issues. This separation of ends from means is an example of the Western way of thinking that is conditioned to divide into dualities. offer faculty and students an expanded means of exploring and solving ethical problems that honor a wide array of national. University of Redlands. Rawls.464 JOURNAL OF MANAGEMENT EDUCATION / August 2004 teaching experience. 1997. Traditionally. and Gilligan. greatly improved the structure. Redlands. business ethics.edu. educating management students involves providing frameworks to approach ethical issues and dilemmas. Kant. along with five recognized sets of ethical guidelines from the 20th century that are currently used in a global context. we provide examples of corporate codes of conduct from particular corporations. whereas other approaches are concerned almost exclusively with the consequences of actions and/or decisions. We offer here a summary of several major traditional and contemporary philosophical and psychological approaches to ethical conduct to be used in business. human resources management.sagepub.S.. e-mail: judith_white@redlands. Some of these frameworks focus on processes or methods of making decisions or taking action. Following our interest in business ethics. or general management. 1992. In examining textbooks and journal articles. and ethnic contexts and differences.com at Dehli University Library Syst on June 16. stakeholders. 1200 East Colton Avenue. Liedtka. Mallinger. and focus of the final manuscript. Gentile. content. Kohlberg. Mill. MacIntyre. global issues.

In either case. using the criterion of achieving the greatest good for the greatest number. we begin with a discussion of both Western and non-Western ethical frameworks. such as small businesses. or justice. 1997). social service agencies. thus taking precedence over concerns of duties. leaving more than 43 million people without basic care. When the company’s management concludes that more damage will be Downloaded from jme. whether actions are right or wrong depends on whether harm or good results from the action. As an example. rights. considering direct and indirect consequences of an act on all relevant stakeholders during a period of time. 1997. Buddhism. physical evidence. To provide an orienting framework of ethics theory. egoism. we offer here a brief summary of the main philosophical and psychological perspectives on ethical reasoning.White. a large company in a small town considers laying off a majority of its employees but can see the effects on the other local stakeholders. that is. 2011 . and is founded on the importance of basing knowledge on objective. and Native American traditions. Utilitarianism is meant to promote the welfare of all persons by minimizing harm and maximizing benefits. Velasquez. An example of a utilitarian-driven public policy decision would be to change U. Teleological theories.com at Dehli University Library Syst on June 16. claim that acts do not have intrinsic value but should be judged on the basis of the consequences they produce and on how they affect others. Ethical egoism (Fritzsche. takes a societal perspective on costs and benefits of ethical choice. including utilitarianism. ethics have been divided into two main categories: teleological and deontological. focuses on the maximization of an individual’s own self-interest. it also can apply to the self-interest of an organization. decisions based on egoism are made to provide the most satisfactory consequences to the individual or organization making the decision or taking an action. Taft / BUSINESS ETHICS WITHIN THE GLOBAL CONTEXT 465 As a foundation for teaching ethics in a global context. 1998).sagepub. suggesting that an action should be evaluated according to how much good or harm it causes and should consider the effects on all parties. Teleological or consequentialist approaches to ethics emphasize the consequences or results of an action or decision. however. including those of Confucianism.S. health care policy from a system that provides services primarily to insured individuals. as a teleological approach. Utilitarianism is based on the 18th-century ideas of Jeremy Bentham’s belief in empiricism and the work of John Stuart Mill (Rosenstad. and care. Utilitarianism. Enlightened self-interest takes into consideration the long-term and the welfare of others. regardless of the consequences to others. and suspects its own future might be compromised as a consequence of the effects of the layoffs. and city services. to a system that provides fundamental health and illness services to everyone. From the Western perspective. a teleological perspective.

The ethic of care. Dobson & White. . 1987) and Noddings (1984). (pp. (b) a human resources manager who. White (1994) suggests care is a positive and essential aspect of moral maturity that calls for the avoidance of harm and the preservation of relationships . and claims that certain actions in themselves are intrinsically good or bad or right or wrong. 1995. one considers the specific context and/or circumstances surrounding the situation. A moral person acts Downloaded from jme. . handicraft importer who invests in families in Southeast Asia by providing cottage industry production work. a strength valuable to developing relationships among people and in community and essential for survival. and generalized principles. When using the ethic of care to decide or act. 1989. . assuming that every situation is unique and calls for a situation-specific solution and an individualized response rather than relying on abstract. . transforming the identity through the experience of relationship.sagepub. .S. and decides to postpone or minimize the layoffs. a morality of responsiveness to the needs of others. Some examples of applications of the ethic of care in the workplace include (a) a supervisor who bends rigid human resources policies and grants flex time to an employee to care for her sick child. laws. 2011 . People who use a morality of care are concerned with outcomes. and considering both one’s own and the others’ feelings and emotions. . and paying for their children’s school fees rather than hiring the children for production. minimizing harm to others. rules. . is both teleological and deontological. universal. 634-635) The ethic of care has established a presence among the various frameworks of ethical reasoning in business (Derry. regardless of circumstances or consequences. The ethic of care maintains that essential to ethical behavior are the basic principles of being responsible toward others. using moral principles or rules. bends the selection criteria set by the dominant White male management group and instead advocates for and hires a Latina who is capable of performing well in the position. in the interests of developing a multicultural management team. The deontological approach to ethics—known as the categorical imperative. White. if not entirely meeting the stated criteria. and are not to be judged by their results. previously having been attributed primarily to the domestic and personal rather than public arena. or nonconsequentialist approach—is often attributed to Immanuel Kant.466 JOURNAL OF MANAGEMENT EDUCATION / August 2004 done than benefits gained from the layoffs. it is demonstrating enlightened self-interest. A moral person makes an ethical decision based on what is right. 1994). . Solutions to ethical dilemmas are inclusive.com at Dehli University Library Syst on June 16. Summarizing Gilligan’s concept of care. who will be harmed and what will happen to the relationship. (c) a small U. using protective clothing and equipment for the adults. associated with the work of Gilligan (1982. maintaining a relationship with others. or policies.

aim to incorporate these ideals. Constitution (1791) or the Universal Declaration of Human Rights of the United Nations (1948. no one shall be held in slavery or servitude. justice. asking. individuals have moral autonomy within the context of a social contract and are expected to use reason to discern which principles should be followed. Human rights may be based on moral principles and/ or a legal system of rights. equitable. legal system demonstrates that rights serve justice. not. There are three types of justice principles: Downloaded from jme. and no one shall be subjected to torture or to cruel. and virtue ethics all are deontological forms of ethical reasoning. The U. and whereas we may judge certain acts as immoral. employees’ right to a safe work environment overrides employers’ right to cut costs and ignore safety in the workplace. For example. A justice approach to ethics uses universal principles such as reciprocity and equality of human rights and respect for the dignity of all human beings as individual persons. Basic rights of one kind can override rights of another kind.sagepub. Human rights. 1988). Mill. assuming that what is right for one person is right for all persons. Systems of justice in society.S. applied to everyone. Taft / BUSINESS ETHICS WITHIN THE GLOBAL CONTEXT 467 according to a perceived duty. the laws may permit such acts (Smith. Human rights are universal rights that individuals are born with. situations. and impartial manner. and security of person. “What is my duty or obligation in this situation?” Kant put forth the categorical imperative: Every person should act only on those principles that he or she would prescribe as universal laws. (2) in the United States until 1920. and obligations that protect the infringement of individual rights. women were prohibited by law from voting. or degrading treatment or punishment. objective. swayed by circumstances. contrary to an ethic of care. Whites had the legal right to own slaves. and justice takes rights into account. regardless of status. is founded on a movement throughout history to overcome basic social injustice and/or constraints on personal freedom. rights. Here are two examples: (a) in the United States during the period from the 16th to the 19th centuries. & Extejt. include those rights contained in the Bill of Rights of the U. Persons. Rights.S.com at Dehli University Library Syst on June 16. Forbes. truth-telling.White. Rights are aligned with justice and often asserted to overcome or correct some fundamental injustice. Society provides a hierarchy of rules. In a system of justice. inhuman. intelligence. Kant. and dilemmas are to be judged in a fair. also referred to as natural rights. delineating fundamental and unconditional rights to be respected because they are based on universal tenets in nature. liberty. the Universal Declaration of Human Rights of the United Nations states that everyone has the right to life. see Appendix). or nationality. associated with the ideas of Locke. for example. 2011 . and Rawls. and the grievance process in organizations. The rights perspective.

Confucianism teaches that one should cultivate the virtues of patience. The severity of the punishment is to be in proportion to the magnitude of the wrongdoing. temperance. asking questions such as. and charity. modesty. along with other practices. including charity. traits. Virtue ethics is based on being. Aristotle claimed that moral virtue involved both emotion and reason. the “Middle Way. or proprietary information. or those qualities. emotion. The allocation of benefits and burdens may include equal shares to each person based on need. justice. sincerity. virtue focuses on moral character. friendliness. Compensatory justice is concerned with compensating the injured party equal to the loss that was suffered. Virtue. An example is equal pay for equal work. 2011 . generosity. Thomas Aquinas believed in both the intellectual virtues of wisdom. traits.” or in Buddhism. religion. merit. 1997).com at Dehli University Library Syst on June 16. How to be virtuous is primarily prescribed or proscribed by one’s culture. and knowledge. truthfulness. and the religious virtues of faith. including compensating women and men equally when performing the same job. 1997). or dispositions that a person strives to have or be. Philosophers and spiritual leaders have preached their preferred virtues. “What kind of person should I be?” “What kind of Downloaded from jme. grounded in the Western philosophy of Aristotle (384-322 BCE) and the Eastern philosophies of the Buddha (ca 500 BCE) and Confucius (ca 551-479 BCE). A conviction of corporate executives for knowingly leaking toxic chemicals into ground water would lead to some form of retributive justice. according to the “Golden Mean. then compensation is for a fair estimate of damage. and reason where one’s actions are an expression of one’s virtues. for example. and righteous indignation—or having a sense of justice (Rosenstad. effort. in the case of lost life. In all traditions. Retributive justice is for the punishment of wrongdoing. Virtue ethics. When compensation cannot be adequately provided. among other things. claiming that virtue is learned. prescribes living one’s life and behaving according to recognized virtues. forgiveness. St. nonharming of others. honesty. and fortitude. proven through due process. An example is the multibillion dollar settlement paid by tobacco companies to states and individuals for the loss of life and damage to health caused from cigarettes. and equanimity. includes living in moderation. or social contribution (Fritzsche. not innate. Buddhism teaches that the right path to a moral life involves practicing compassion.” It does not depend on rules or principles but rather motives and actions of people who are intent on doing the right thing at all times. obedience. or dispositions internal to an individual. Acting with virtue ethics depends on qualities.468 JOURNAL OF MANAGEMENT EDUCATION / August 2004 Distributive justice is a way to distribute benefits and burdens so that equals will be treated equally and nonequals will be treated unequally. hope.sagepub. courage. and life circumstances. property.

Are there. Or should societies enforce ethical principles publicly through laws.com at Dehli University Library Syst on June 16. without qualification? In the realms of human rights and justice. respect.White. an individual facing a moral or ethical dilemma exercises personal judgment rather than applying universal rules.sagepub. Once such ethical principles are identified. This Native American tradition emphasizes connection and harmony with others. & Robbins. LaPlante. processes of justice. we can identify ideal universal principles: freedom. and political mandates? What is the right balance between individual and societal behavior needed to create ethical environments? Should the guiding principles be concerned with universal laws. 1987). With an internal locus of control. Like Asian cultures. 2011 . 1997). and work associates would react to one’s behavior if they were to know of it (Mallinger. Defeat of another destroys the relationship and severs the community (Deloria. social institutions. A practical contemporary criterion for ethical conduct is the “light of day” test. congruent with the ethic of care. Although there are more than 200 separate Native American tribal groups in the United States (Young. and practices (Velasquez. regardless of consequences. many Native Americans value community and group solidarity. truth. we take the liberty to generalize about one of the more prevalent ethical traditions. The ethical approaches described up to this point provide us with a number of possible avenues for lecture content and student reflection and discussion (Table 1). The virtues provide criteria for evaluating individual actions. so the dispute resolution process seeks to maintain relationships and restore harmony among disputing parties (Jack & Jack. and equality of opportunity. “How would I feel if my actions were publicized on the front page of the newspaper?” The measure of ethical conduct would be the receipt of positive regard by valued others. This involves an assessment of how friends. why are these ethical approaches not practiced universally? Where in the world are there deviations from ideal principles? What are the cultural explanations for these deviations? Are the deviations ever acceptable? A second line of thinking in the classroom might be whether ethical behavior is best expressed by the pursuit of virtue or enacted through individual thought and conduct. due process. 1983).S. including nature and animals. 1998). acknowledging interdependence and emphasizing cooperation. ambiva- Downloaded from jme. Native American approaches to ethics share similarities with Eastern perspectives in their emphasis on valuing relationships between individuals and maintaining community. everywhere. universal ethical laws that we can say should apply to everyone. 1989). family. One asks. or should universal laws always be malleable in light of unknown or unpredictable consequences? The U. a valuable line of inquiry is. for example. however. Taft / BUSINESS ETHICS WITHIN THE GLOBAL CONTEXT 469 character should I have?” The aim of moral life is to develop moral virtues or general dispositions.

Actions are ethically sound when they produce the greatest good for the greatest number. benefits. regardless of the consequences. 2011 .g. 20th Century Ethical Perspectives in the Global Context In addition to the philosophical ethical traditions discussed above. liberty. and compensatory types of justice. (see above) Ethic of Care Deontological approaches: Rights perspective Justice perspective Virtue ethics Ethic of care lence regarding mandatory sentencing for criminals committing crimes with guns. attending to the other’s well-being. recent guidelines on a global scale translate philosophy into meaningful business Downloaded from jme. Includes distributive. Similar to some Eastern and Native American perspectives. retributive. Demands respect for the dignity of every individual through the application of objective and impartial decisions. Actions are based on obligations. Acting consistently with one’s own (or organization’s) self-interest is ethical. andcharity). courage. Confucian. regardless of the consequences to others. they are intrinsically good or bad in themselves. and not harming others.sagepub. also fits with deontological approaches as a duty toward others. and punishments are allocated by society based on equality of rights among all human beings. security of person. or actions.. Actions flowing from the disposition and internal qualities of individuals who consistently strive to lead a moral life (e. Acting responsibly and responsively toward others. ethical behavior via honesty. modesty.com at Dehli University Library Syst on June 16. and freedom from enslavement. represents the ethical tension of universal law versus appropriately designed individual punishments. compassion. Fundamental rights are accorded to human beings of all circumstances and backgrounds. such as the right to life.470 JOURNAL OF MANAGEMENT EDUCATION / August 2004 TABLE 1 Summary of Frameworks for Ethical Reasoning Approach Teleological approaches: Utilitarianism Egoism Description Actions are right or wrong based on their consequences. Core of Buddhist. and many Native American ethical traditions. with individual consequences taking priority. for example. may take the form of enlightened self-interest. integrity.

individual character A moral life: qualities. and practiced throughout life Moral virtues: generosity. learned. 2001). disposition. compassion. caring. practice. or society Intrinsically good (or bad) universal laws.com at Dehli University Library Syst on June 16. The guidelines originated in corporate or political contexts and from particular activities or problems that called for the development of countervening principles.White. and character internal to the individual that are sought. others. kindness. The declaration proclaims that no one shall be held in slavery or servitude. forgiveness Concern for continuity of relationships and strength of community Preference for harmony over truth. Here. others. UNITED NATIONS UNIVERSAL DECLARATION OF HUMAN RIGHTS The U. light of day) Deontological (human rights. restraint. justice. community. promoting justice and human rights worldwide. consequences to self. we summarize some of these guidelines. Universal Declaration of Human Rights was adopted by the General Assembly in 1948 (Schulz. 2011 . egoism. peace over justice Justice through cooperation Connection and interdependence with all living things. ethic of care.N. subjected to inhuman Downloaded from jme. ethic of care) Eastern approaches Confucianism Buddhism Native American What Matters Consequences to self. equanimity. The complete texts of these principles are found in the Appendixes. Taft / BUSINESS ETHICS WITHIN THE GLOBAL CONTEXT TABLE 2 471 Eastern and Western Approaches to an Ethical Life Approaches Western approaches Teleological (Utilitarianism. Of obvious relevance to global interorganizational relationships. nonharming. understanding.sagepub. virtue. offering principles teachers can use in working with business students (see Table 2). these capture the attention of the business student. It takes a deontological perspective. mindfulness. such as the abridgment of human rights or the threat of destruction to the environment. honesty.

sickness. detention. if necessary. old age. and the abolition of child labor. these principles promote the sacredness of each person (human dignity) and the value of working together for the common good. widowhood. or other lack of livelihood in circumstances beyond his control. or subjected to arbitrary arrest. production of safe products. disability. and other environmental goals. equal pay for equal work. elimination of discrimination in access to employment. It includes the right to equal pay for equal work and to just and favorable remuneration ensuring for all persons and their families an existence worthy of human dignity.com at Dehli University Library Syst on June 16. and has the right to work. The Caux Principles: Formed by an organization of business leaders from Europe.sagepub. CERES Principles: Ten voluntary principles that commit signatories to protection of the biosphere. Everyone has the right to a standard of living adequate for the health and well-being of him. 2011 . to free choice of employment. These include freedom of association & protection of the right to organize. conservation. and to protection against unemployment as a result of discrimination. sustainable use of natural resources. The above guidelines are available from the Web sites of the respective organizations or from the authors upon request. or degrading treatment or punishment. or exile. and the right to security in the event of unemployment. is far from reality. seven core conventions have been ratified by varying numbers of ILO member-nations. human rights. eight principles for corporate social responsibility related to justice. clothing. International Labour Organization’s (ILO) Core Labor Conventions: Adopted in 1982. supplemented. including food. It goes on to proclaim that everyone has the right to life. including the reasonable limitation of working hours and periodic holidays with pay. The universal application of these principles. & equal opportunity in global operations. by other means of social protection. The Global Sullivan Principles: Originally developed in the 1970s. however.472 JOURNAL OF MANAGEMENT EDUCATION / August 2004 TABLE 3 Twentieth Century Ethical Guidelinesa United Nations Universal Declaration of Human Rights: Adopted in 1948. Downloaded from jme. Japan. timely informing of the public regarding any health or safety dangers. is entitled to equal protection against any discrimination in violation of the declaration. liberty. just working arrangements. to just and favorable conditions of work. security. and a reasonable standard of living. and security of person. and medical care and necessary social services.or herself and of his or her family. housing. Individual Corporate Codes of Conduct a. abolition of forced labor. tolerance. proclaims the rights of peoples worldwide to freedom. reduction of wastes. & the United States in 1986. protection. The declaration proclaims the right to form and join trade unions for the protection of workers’ interests and the right to rest and leisure.

labor unions. It underscores the rights of workers to a decent quality of life before the right to profit or. In the United States. and related nongovernmental organizations have confronted governments and corporations through actions such as direct appeals to executives and government officials. Varley. commit signatory firms to the protection of the biosphere. and age continue. International human rights groups. 1998). religious groups. sustainable use of natural resources. take the higher moral ground. and electronics assembly. and environmental. and other corporations continue to operate and do business in these countries (Schulz. foundations. and other environmental goals. gender. energy conservation. Throughout the United States. we see ongoing corporate violations of these universal human rights. risk reduction. foreign relations and trade with China and the case of Unocal in Burma both exemplify the difficulty of implementing corporate social responsibility principles. to forced adult and child labor in Burma. greed. Nevertheless. its extreme. to the trading of children for work on the cocoa plantations in western Africa. garment manufacturing. labor organizations. consumer boycotts of PepsiCo products and fast food services. Lawrence.White. protest demonstrations. and comply with human rights guidelines. 2002.S. The CERES Principles apply only to business conduct in a single area of a company’s operations: its environmental activities. THE CERES PRINCIPLES The Coalition for Environmentally Responsible Economies (CERES) is a nonprofit coalition of socially responsible investors. health care. from the skilled crafts and trades to whitecollar professions in academe. boycotts. prison labor. & Weber. 2001). religious. The 10 voluntary principles. 2011 . teleological in orientation. Taft / BUSINESS ETHICS WITHIN THE GLOBAL CONTEXT 473 Throughout the world. and negotiations. public pension funds.sagepub. urging corporations and governments to end abuses. stockholder resolutions. Examples include work of the Interfaith Center on Corporate Responsibility with corporate executives and its work developing and presenting shareholder resolutions at annual shareholder meetings. Bethlehem Steel. and financial services. the Universal Declaration of Human Rights serves as an agreed-upon globalscale ideal for human behavior toward other humans. demonstrations at the World Trade Organization meetings or Nike corporate headquarters.S. and public interest groups. and direct-mail campaigns to both governments and corporate directors and executives. U. Downloaded from jme. yet U. from Nike’s sweatshops in Vietnam and Indonesia (Post. China and Burma have committed widespread violations of human rights.com at Dehli University Library Syst on June 16. episodes of discrimination based on race. these rights are violated in areas of agriculture.

Sun Oil.d. the hotel industry.474 JOURNAL OF MANAGEMENT EDUCATION / August 2004 Polaroid. An example of a recent CERES project is its Green Hotel Initiative that seeks to increase green lodging and meeting options by catalyzing market supply and demand. and to assist with greater tolerance and understanding among peoples.. Leon Sullivan.com at Dehli University Library Syst on June 16. and the Calvert Social Investing (Mutual) Fund have endorsed the CERES Principles (Lesser. . thereby. Japan. para.sagepub. nongovernmental organizations. The Caux Round Table’s Principles for Business have at their core two basic ethical ideals: kyosei and human dignity. para. including racial and gender diversity on decision making committees and boards. supervisory and management opportunities. while the Caux Round Table’s concept of human dignity refers to the sacredness of each person as an end. n. 2000). Its original purpose was to focus on the development of constructive economic and social relationships between participant countries. 1) Downloaded from jme. Sullivan developed a set of guidelines for corporate social responsibility for companies in their operations around the world. helping to improve the quality of life for communities. 2011 . (Sullivan. academia. and the United States. This multistakeholder effort—involving business.). workers and children with dignity and equality. to support human rights and to encourage equal opportunity at all levels of employment. and political justice by companies where they do business. THE GLOBAL SULLIVAN PRINCIPLES The human rights perspective is advanced as well by the Rev. Rev. social. and environmental advocates— encourages environmentally responsible hotel services and encourages meeting planners and travel buyers to stimulate the hotel market (CERES. General Motors. 1997. begun in 1986. THE CAUX PRINCIPLES The Caux Round Table.d. n. not as a means to the fulfillment of others’ purposes. the objectives of the Global Sullivan Principles are to support economic. The Caux Principles combine elements of the ethic of care (between participant countries) and those of both human rights and virtue ethics. . who authored a set of principles in the 1970s designed to guide companies in improving the lives of Blacks in South Africa. labor. In 1999. focused attention on the importance of global corporate responsibility in reducing social and economic threats to world peace and stability” (Caux Round Table. to train and advance disadvantaged workers for technical. 2. their “urgent joint responsibilities toward the rest of the world . is an organization of business leaders from Europe. Specifically. 3). The Japanese concept of kyosei refers to living and working together for the common good.

addressing issues such as forced labor. A current bill under consideration in the U. have ratified conventions that they do not honor (Varley. Other countries with very low standards. which does not recognize basic human rights of free speech. contractors. working conditions. absence of coercion and harassment. 1998). discrimination in the workplace.d. and freedom to unionize. DaimlerChrysler. and Tata Industries of India. business. As of 1996. manufacturers. absence of forced or compulsory labor. the right of collective bargaining. nondiscrimination. The United States had ratified only 1. are manufactured with the use of forced labor and child labor. free press.com at Dehli University Library Syst on June 16. INTERNATIONAL LABOUR ORGANIZATION’S LABOR CONVENTIONS The International Labour Organization (ILO) was created in 1919 as a tripartite organization of government. it has adopted 177 lengthy labor “conventions” or standards. CORPORATE CODES OF CONDUCT Companies such as Anheuser-Busch. and union representatives from 174 nations. free association. banning of child labor. A good example is the Downloaded from jme.). freedom of religion. and Wal-Mart have standards for vendors. only 27 ILO membernations had ratified all 7 core conventions. 2011 . Home Depot. Pfizer. freedom of association. and the minimum age for employment. such as Burma. Kmart. British Airways. to impose a ban on all imports coming from Burma because the military government of Burma imposes a 5% export tax on all exports. Roebuck. Senate is Bill 926. Ford Motor Company. Sears. Levi Strauss. equal pay for men and women. American Airlines. Since then.sagepub. and water systems also are under the direct control of the military junta. n. These standards cover issues including a safe and healthy workplace. Kmart. Federated Department Stores. and ethical conduct (Varley. energy. including clothing imported to the United States and elsewhere. Liz Claiborne. Gap. whereas the building of roads. and 12 had not ratified any of the 7. 1998). JCPenney.White. Taft / BUSINESS ETHICS WITHIN THE GLOBAL CONTEXT 475 Among the many corporations that have endorsed the Global Sullivan Principles are Fannie Mae. In 2001. Certain countries have refused to ratify conventions because they may be in opposition to national laws. protection of the environment.S. asking Congress to implement the ILO call for a ban on imports from Burma (International Labor Organization. usually in the form of ethical standards or codes of ethical conduct. Chevron. Dayton Hudson. Hershey Foods. including the United States. fair wages. Disney. the ILO called for governments. Most goods produced in Burma. Seven of these are considered fundamental human rights. and employees.

In this article. Ethical theory and business (4th ed. 159-163). Inc. Upper Saddle River. M. In D. Our work: The CERES principles. 5. TX: University of Texas.. J. In Business and Society (10th ed. from http:/ www. M. & Weber. (1998). (1993).. T. M. (1998). H..htm#Section%201. Retrieved January 4. Upper Saddle River. References CERES. On employee-employer relations: Velasquez. 101-103). Fuller in Honduras: Street children and substance abuse. pp. pp. On moral responsibility of corporations: Bowie.ceres. In T.. Two different shorter versions of the case are published in Beauchamp. 2004. CA: Mayfield.d. Downloaded from jme. As our students encounter increasingly complex ethical situations in global business. Business ethics concepts and cases (4th ed. 58-63).. N. (1998). Ellen Moore (A): Living and working in Bahrain. In Business ethics: Concepts and cases (4th ed.. & Bowie. New York: McGraw-Hill Irwin. Austin.. & Lane.20Preamble Deloria. 4.)..org/our_work/principles.. & Lenway.. N.). Lawrence. Donaldson & P. NJ: Prentice Hall. a company that makes none of its own clothes but works with thousands of factories in more than 50 countries. (n. Retrieved January 4. 2011 . and charitable giving are part of the organization’s statement of social responsibility (Gap Inc.476 JOURNAL OF MANAGEMENT EDUCATION / August 2004 social responsibility policies of Gap Inc. American Indians. (1999). we have presented traditional and contemporary Western and non-Western frameworks and theories to assist faculty as they help students understand and resolve ethical issues and quandaries in our global business environment. (1983). H. V. (2002). Adams & E. Maine (Eds.itcilo. NJ: Prentice Hall. On ethical principles: Velasquez. (1998). environmental protection. On diversity: Ellement. The Gap. NJ: Prentice Hall. (n. from http:// www. we are challenged to learn more about teaching and learning business ethics.d. pp. A. pp. 3.. Pepsi’s Burma connection. 2004. Upholding fair labor standards.. pp.).). Upper Saddle River. Upper Saddle River. Mountain View. B. Maznevski. American justice. and Velasquez. pp. J.d. Appendix Recommended Cases for Teaching Ethics in a Global Context 1. Our current global context provides dynamic opportunities to examine and apply diverse philosophical and psychological perspectives in approaching ethical dilemmas and problems. Upper Saddle River. 486-493).it/english/actrav/telearn/global/ilo/code/caux. S. 2. Ethical issues in business (6th ed. On ethical relativism: Post.com at Dehli University Library Syst on June 16. Business ethics for the 21st century (pp. n. G. M.htm Caux Round Table principles for business. Salt Lake City and the Olympics bribery scandal. NJ: Prentice Hall. 325-337). NJ: Prentice Hall. Wehane (Eds. 515-523)...). 58-68).sagepub. In Business ethics: Concepts and cases (4th ed.

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