Professional Documents
Culture Documents
Lectures 13 & 14
Lectures 13 & 14
&
International Business ethics
Lecture 13 & 14
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Introduction
Corporate Governance
4
The framework of rules and practices by which a
board of directors ensures accountability, fairness,
and transparency in a company's relationship with
its stakeholders (financiers, customers,
management, employees, government, and the
community).
Stakeholders in this case would include everyone ranging from the board of directors,
management, shareholders to customers, employees and society. The management of
the company hence assumes the role of a trustee for all the others.
Corporate Governance
5
The corporate governance framework consists of:
Explicit and implicit contracts between the company
and the stakeholders for distribution of
responsibilities, rights, and rewards
Procedures for reconciling the sometimes
conflicting interests of stakeholders in
accordance with their duties, privileges, and
roles, and
Procedures for proper supervision, control, and
information -flows to serve as a system of checks-
and-balances.
Corporate Ethics
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The study of proper business policies and
practices regarding potentially controversial
issues, such as corporate governance, insider
trading, bribery, discrimination, corporate
social responsibility and fiduciary
responsibilities.
Websters Dictionary
Code of Ethics
10
A written set of guidelines issued by an organization to its workers
and management to help them conduct their actions in
accordance with its primary values and ethical standards.
businessdictionary.com
Those group who are vital to the survival and success of the
corporation.
Lecture 14
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2
Introduction
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International Business Ethics
Requires that business decisions should not be made exclusively from the
narrow, economical perspective, but also the global social and ecological
concerns should be taken into account.
People who work in the business life should consider how their economical
decisions affect other people, environment or the society on the whole, not
only in the home country but also the host country. In other words, it means
that the interests of all the relevant parties, or "stakeholders" should be
acknowledged and weighed. Having defined the term theoretically, it should
be made clear that a uniform set of standards of business ethics, applicable to
the global community as a whole, is yet to be defined.
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4
Globalisation
Business Dictionary.com
w
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5
Multinational Corporation (MNC)
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Home/Host Country
Home
The country in which the MNC originated and in
most cases has its head office.
Host
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8
International Code of Conduct
General Principles:
National sovereignty
when in “Rome do as Romans do”
Equality
Everyone should be treated equally, non discriminatory
treatment.
Market integrity
Allows for property rights, fair competition, contracts
and other free market conditions to operate.
Human rights 2
9
Guidelines for MNC
Rights
Thomas Donaldson proposed that corporations have an obligation to respect
certain rights especially those to be recognised as fundamental international
rights.
Welfare
Richard De George offers seven basic guidelines.
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0
Guidelines for MNC
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1
Guidelines for MNC
3
3
Ethical Dilemmas of International Business
Labour Issues
3
6
Bribery
Careful selection of government projects, eliminating those that are most vulnerable to
bribery. Closely monitor the ones in implementation
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8
Transfer Pricing
investopedia.com
3
9
Ethical Standards
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1
Positive and Negative Freedom
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2
Negative Harm Principle
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3
Fundamental International Rights
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4
MNC’s code of conduct
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5
Faith and Learning
Genesis 1:28
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