International Business Competing in The Global Marketplace 10Th Edition Hill Solutions Manual Full Chapter PDF

Chapter 05 - Ethics in International Business
International Business Competing in the

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Ethics in International Business 5

• Describe the different philosophical
approaches to ethics.
Learning objectives • Explain how managers can

incorporate ethical considerations
into their decision making.
• Understand the ethical
issues faced by
international businesses.
• Recognize an ethical
dilemma.
• Identify the causes of

unethical behavior by
managers.
5-1
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
This chapter looks at ethics in international

business. Ethics becomes an issue across
nations because of differing political systems,
economic systems, legal systems and cultural
values. What is acceptable behavior in one
nation may be considered unethical in
another.
First, some of the more common areas where

ethical issues arise in international business
such as employment practices, human rights,
environmental pollution, corruption, and
moral obligations are explored. Then the
discussion moves to the straw men
approaches to ethics. Next, the basic
philosophical theories that offer a foundation
for ethical decision-making are examined.
Finally, the roots of unethical decision-
making and how to make ethical decisions are
addressed.
The opening case explores the ethics of

exporting used vehicle and industrial batteries
to Mexico to extract and resell the lead
components in the batteries. Lead is a highly
toxic metal and the environmental impact on
workers and surrounding areas is extremely
hazardous. The closing case explores the
substandard working conditions in a Chinese
factory that supplies, directly and indirectly,
well-known computer companies including
Dell, Hewlett-Packard, and Microsoft.
5-2
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
OUTLINE OF CHAPTER 5: ETHICS IN INTERNATIONAL BUSINESS
Opening Case: Exporting Used Batteries to Mexico
Introduction
Ethical Issues in International Business

Employment Practices
Human Rights
Environmental Pollution
Corruption
Moral Obligations
Management Focus: Making Apple’s iPod
Management Focus: Unocal in Myanmar
Management Focus: Corruption at Daimler
Ethical Dilemmas
The Roots of Unethical Behavior

Personal Ethics
Decision-Making Processes
Organizational Culture
Unrealistic Performance Expectations
Leadership
Societal Culture
Philosophical Approaches to Ethics

Straw Men
Utilitarian and Kantian Ethics
Rights Theories
Justice Theories
Focus on Managerial Implications

Hiring and Promotion
Organization Culture and Leadership
Decision-Making Processes
Ethics Officers
Moral Courage
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Chapter Summary
Critical Thinking and Discussion Questions
Closing Case: Working Conditions in a Chinese Factory
CLASSROOM DISCUSSION POINT

Create a hypothetical business scenario, then ask students to consider the ethics involved.
For example, suppose a British manager pays a Saudi prince 1% of the contract he helps
negotiate in the Kingdom of Saudi Arabia.
Ask students whether the British manager acted ethically. Jot the responses of students on
the board according to whether students believe the action was ethical or unethical, and the
reasoning behind the argument.
Now, ask students about the following scenario. A U.S. law firm has box seats at all the
major professional games (baseball, hockey, basketball) and season tickets to the nearest
Big-10 conference university games. The partners take their prospective clients to these
games, wine and dine them, and play golf together at the firm’s expense at posh courses.
In ethical terms, what are the differences in these behaviors?

Do cultural differences influence responses?
OPENING CASE: Exporting Used Batteries to Mexico

Summary
The opening case describes the deplorable working conditions and the environmental
impact of extracting lead components for resale from used vehicle and industrial batteries.
Most of the exporting of lead batteries to Mexico is done by intermediaries in the United
States that buy up old batteries and then ship them over the border to the cheapest
processor, typically a Mexican company. Some of the larger U.S. companies in this type
of business try to adhere to U.S. standards—typically by building their own facilities in
Mexico. However, many of the smaller U.S. companies leave it up to their Mexican
suppliers to monitor employee health effects and environmental impacts to the local region.
Discussion of the case can revolve around the following questions.
1. Why do U.S. companies contract out to factories like the ones in Mexico? Discuss the
advantages and disadvantages of outsourcing to other countries.
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2. Should U.S. businesses that contract with Mexican companies be held responsible for
working conditions in the foreign facilities? Why or why not?
3. How do companies that outsource this dangerous lead recycling process contribute to
the harsh working conditions found at these facilities in Mexico? Explain your response.
Another Perspective: To learn more about Mexico’s lead-emissions standards, go to

{http://seattletimes.com/html/nationworld/2020640704_mexicobatteriesxml.html}.
LECTURE OUTLINE
This lecture outline follows the Power Point Presentation (PPT) provided along with this
instructor’s manual. The PPT slides include additional notes that can be viewed by clicking
on “view,” then on “notes.” The following provides a brief overview of each Power Point
slide along with teaching tips, and additional perspectives.
Slide 5-3 What Is Ethics?

Ethics refers to accepted principles of right or wrong that govern the conduct of a person,
the members of a profession, or the actions of an organization.
Slide 5-4 Ethical Issues in International Business

The most common ethical issues in business involve:
• employment practices
• human rights
• environmental regulations
• corruption
• the moral obligation of multinational companies
Another Perspective: The Carnegie Council on Ethics and International Affairs maintains
a very substantive and thought-provoking website at {http://www.carnegiecouncil.org/}.
This site contains publications that comment on many of the ethical issues that surround
globalization and international business.
Slides 5-5 and 5-6 Employment Practices

Often employment practices differ among nations. What is the MNC’s obligation?
Should home standards be followed, even in less developed countries? Should local
standards be embraced? What is the right basis for employment-related ethical
decisions?
Slides 5-7 and 5-8 Human Rights

The idea of what constitutes human rights varies considerably across national borders.
How can the tensions that this reality fosters be reconciled?
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Slide 5-9 Environmental Pollution

Ethical issues arise when environmental regulations in host nations are far inferior to
those in the home nation.
The tragedy of the commons occurs when a resource held in common by all, but owned
by no one, is overused by individuals, resulting in its degradation.
Another Perspective: Consumers International {http://www.consumersinternational.org/}

is dedicated to protecting the rights of consumers worldwide. In doing so, it promotes
ethical behavior on the part of companies. Go to the site and explore some of the
organization’s current efforts.
Slides 5-10 and 5-11 Corruption

The U.S. Foreign Corrupt Practices Act outlawed the practice of paying bribes to
foreign government officials in order to gain business.
Slides 5-12 and 5-13 Moral Obligations

Social responsibility refers to the idea that business people should take the social
consequences of economic actions into account when making business decisions, and that
there should be a presumption in favor of decisions that have both good economic and
good social consequences.
Slide 5-14 Ethical Dilemmas

Ethical dilemmas are situations in which none of the available alternatives seems
ethically acceptable.
The ethical obligations of a multinational corporation toward employment conditions,

human rights, corruption, environmental pollution, and the use of power are not always
clear cut.
Slides 5-15 through 5-18 The Roots of Unethical Behavior

The causes of unethical behavior are complex and reflect:
• Personal ethics
• Decision-making processes
• Organization culture
• Unrealistic performance expectations
• Leadership
• Societal culture
Business ethics reflect personal ethics (the generally accepted principles of right and
wrong governing the conduct of individuals). The personal ethical code that guides our
behavior comes from a number of sources, including our parents, our schools, our
religion, and the media.
5-6
Home country managers working abroad in multinational firms may experience more
than the usual degree of pressure to violate their personal ethics because they are away
from their ordinary social context and supporting culture, and they are psychologically
and geographically distant from the parent company.
Business people sometimes do not realize that they are behaving unethically simply
because they fail to ask the relevant question—is this decision or action ethical?
The term organization culture refers to the values and norms that are shared among
employees of an organization.
In a company with an organizational culture that de-emphasizes business ethics, all

decisions are reduced to the purely economic.
When there is pressure from the parent company to meet performance goals that are
unrealistic, and can only be attained by cutting corners or acting in an unethical manner,
unethical behavior may result.
Leaders are vital in helping a firm establish its organization culture, and setting examples.
If leaders are not acting ethically, other employees may not act ethically. Societal culture
can also influence behavior.
Slide 5-19 Philosophical Approaches to Ethics

There are several approaches to ethics including the straw men (the Friedman doctrine,
cultural relativism, righteous moralist, and the naïve immoralist), the Utilitarian
approach, the Kantian approach, and rights and justice theories.
Slides 5-20 and 5-21 Straw Men

Straw men approaches to business ethics are approaches that are raised by business ethics
scholars primarily for the purpose of demonstrating that they offer inappropriate
guidelines for ethical decision making in a multinational enterprise. Four such
approaches are the Friedman doctrine, cultural relativism, the righteous moralist, and the
naïve immoralist.
Slides 5-22 and 5-23 Utilitarian and Kantian Ethics

In contrast to the straw men, most moral philosophers see value in utilitarian and
Kantian approaches to business ethics. The utilitarian approach to business ethics dates
back to philosophers such as David Hume, Jeremy Bentham, and John Stuart Mill.
Utilitarian approaches to ethics hold that the moral worth of actions or practices is
determined by their consequences. An action is judged to be desirable if it leads to the
best possible balance of good consequences over bad consequences.
Slide 5-24 Rights Theories

Rights theories recognize that human beings have fundamental rights and privileges that
transcend national boundaries and culture. Moral theorists argue that fundamental human
rights form the basis for the moral compass that managers should navigate by when
making decisions that have an ethical component.
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Slide 5-25 Justice Theories

Justice theories focus on the attainment of a just distribution of economic goods and
services. A just distribution is one that is considered fair and equitable. There is no one
theory of justice, and several theories of justice conflict with each other in important
ways. One important and influential theory of justice was set forth by John Rawls who
argued that all economic goods and services should be distributed equally except when an
unequal distribution would work to everyone’s advantage.
Slides 5-26 through 5-34 Ethical Decision Making

Five things an international business can do to make sure that ethical issues are
considered in a business decision are:
(1) Hire and promote people with a well grounded sense of personal ethics
(2) Build an organizational culture that places a high value on ethical behavior
(3) Make sure that leaders within the business not only articulate the rhetoric of
ethical behavior, but also act in manner that is consistent with that rhetoric
(4) Put decision-making processes in place that require people to consider the ethical
dimension of business decisions
(5) Develop moral courage
Not only should businesses strive to identify and hire people with a strong sense of
personal ethics, but it is also in the interests of prospective employees to find out as much
as they can about the ethical climate in an organization.
To foster ethical behavior, businesses need to build an organization culture that places a
high value on ethical behavior.
Business people need a moral compass to help determine whether a decision is ethical.
It is important to recognize that employees in an international business may need

significant moral courage.
Managers can also use a five-step process to think through ethical problems.
To ensure ethical behavior in a business, a number of firms now have ethics officers.
Slide 5-35 Summary of Decision-Making Steps

Not all ethical dilemmas have an obvious solution. In the case of a true dilemma, firms
must rely on the decision-making ability of their managers, and these managers need to
make as balanced a decision as possible.
5-8
CRITICAL THINKING AND DISCUSSION QUESTIONS

QUESTION 1: A visiting American executive finds that a foreign subsidiary in a poor
nation has hired a 12-year-old girl to work on a factory floor, in violation of the
company’s prohibition on child labor. He tells the local manager to replace the child and
tell her to go back to school. The local manager tells the American executive that the
child is an orphan with no other means of support, and she will probably become a street
child if she is denied work. What should the American executive do?
ANSWER 1: This question, which illustrates a potentially very real ethical dilemma
facing managers working in foreign subsidiaries, is designed to stimulate class
discussion. Students should recognize that neither alternative—violating the company’s
position on child labor, nor putting the child out on the streets—seems acceptable. In the
end, many students may agree that allowing the child to continue to work in the factory is
the lesser of the two evils.
QUESTION 2: Drawing upon John Rawls’s concept of the veil of ignorance, develop an
ethical code that will (a) guide the decisions of a large oil multinational toward
environmental protection, and (b) influence the policies of a clothing company to
outsourcing of manufacturing process.
ANSWER 2: John Rawls suggests that a decision is just and ethical if people would
allow for it when designing a social system under a veil of ignorance. Rawls’s veil of
ignorance is a conceptual tool that can contribute towards the moral compass that
managers can use to help them navigate through difficult ethical dilemmas. This question
can produce some interesting responses particularly in a class with a diverse group of
nationalities.
QUESTION 3: Under what conditions is it ethically defensible to outsource production to

the developing world where labor costs are lower when such actions also involve laying
off long-term employees in the firm’s home country?
ANSWER 3: This question is likely to stimulate some lively discussion, particularly if

students have personally felt the impact of this practice. Many U.S. companies are
outsourcing not only blue collar work, but also white collar positions to the developing
world. In fact, students today are facing a tenuous job market where positions that they
may have sought when they began their college degrees are being “shipped abroad.”
Some students will argue that companies have to do what is best for all stakeholders, and
if that means taking advantage of cheaper labor costs elsewhere, then that is the
appropriate strategy. Others, however, will probably argue that companies owe a social
debt to their home countries, and that loyalty from long-term employees should be
rewarded.
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QUESTION 4: Are facilitating payments (speed payments) ethical?
ANSWER 4: Students will probably be divided on this question, and a lively debate
should ensue. Certainly, the notion of when in Rome, do as the Romans do applies.
However, those taking this perspective should recognize that it may be difficult to draw
the line on exactly what is acceptable under this guise, and when bribery goes too far.
QUESTION 5: A manager from a developing country is overseeing a multinational’s

operations in a country where drug trafficking and lawlessness are rife. One day, a
representative of a local “big man” approaches the manager and asks for a “donation” to
help the “big man” provide housing for the poor. The representative tells the manager
that in return for the donation, the “big man” will make sure that the manager has a
productive stay in his country. No threats are made, but the manager is well aware that
the “big man” heads a criminal organization that is engaged in drug trafficking. He also
knows that the “big man” does indeed help the poor in the run down neighborhood of the
city where he was born. What should the manager do?
ANSWER 5: Students will probably approach this question in very different ways. Some
students will probably argue that because the “big man” in question is involved in
unethical behavior like drug trafficking, the manager should not even consider making
the “donation.” Other students may take the perspective that because drug trafficking is a
fact of life in some countries, this needs to be viewed differently. If the “big man” is
actually using his muscle to provide assistance to help the poor, then perhaps the manager
should consider making the donation.
QUESTION 6: Reread the Management Focus feature on Unocal and answer the
following questions:
a. Was it ethical for Unocal to enter into a partnership with a brutal military dictatorship
for financial gain?
b. What actions could Unocal have taken, short of not investing at all, to safeguard the
human rights of people impacted by the gas pipeline project?
ANSWER 6:
a. Unocal made its investment in Myanmar just as many other companies were leaving
the country in protest of the nation’s brutal military dictatorship. The company had
formed an agreement with the government that involved clearing a path for a new
pipeline. The investment became controversial when, in order to fulfill the agreement,
Myanmar’s army forcibly moved villagers and then forced them to work under slave-like
conditions. Unocal claims it had no knowledge of what was occurring, but this claim was
rejected by a judge who heard the case that was filed against Unocal on behalf of
Myanmar villagers.
b. Students will probably be familiar with the notion that even if something is not
explicitly forbidden, it does not mean it is right. This idea would certainly seem to apply
in this case. Ethical responsibility goes beyond the letter of the law to encompass the
idea of behaving in a certain way simply because it is the right thing to do. Students will
probably agree that the company failed to act in an ethical manner and that while it may
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not have directly participated in the brutality against villagers, Unocal did have a
responsibility to oversee what was going on and ensure that people were treated fairly.
CLOSING CASE: Working Conditions in a Chinese Factory
Summary
The closing case describes the deplorable working conditions at the Metai factory in China
that supplies computer parts directly to U.S. computer maker Dell, and indirectly to
Hewlett Packard and Microsoft. Workers at the factory work long hours doing monotonous
tasks and have just two days per month off. Wages are very low, and employees are
forbidden to converse, listen to music, or even take bathroom breaks while on the job.
When alerted to the conditions at the factory in early 2009, all three companies expressed
dismay and promised prompt investigations and appropriate action, however, by 2011, no
efforts to improve the situation for workers at the factory had been made. Discussion of
the case can revolve around the following questions.
QUESTION 1: What enables the owners of the Metai factory profiled in this case to get
away with such awful working conditions?
ANSWER 1: Companies involved in international business face these difficult issues on a

daily basis. Government officials, particularly in countries like China, are quick to look
the other way when it comes to ensuring that employee safety is a top priority in factories
that can be considered sweatshops.
QUESTION 2: Should U.S. companies like Microsoft, Dell, and Hewlett-Packard be held
responsible for working conditions in foreign factories that they do not own, but where
subcontractors make products for them?
ANSWER 2: Students’ opinions will vary and should make for a lively class discussion.
Although U.S. companies have control over their own manufacturing facilities, when it
comes to outsourcing work to companies halfway around the world they walk a fine line
between manufacturing components that are profitable and making sure employees of
their overseas vendors are treated fairly. This question brings the concept of moral
dilemma into the discussion and how much pressure global companies can bring to bear
on companies that do work for them.
QUESTION 3: What labor standards regarding safety, working conditions, overtime, and
the like should U.S. companies hold foreign factories to: those prevailing in that country
or those prevailing in the United States?
ANSWER 3: Student answers will vary to this thought-provoking question. Global

companies have sought off-shore vendors in an effort to produce products and
components as inexpensively as possible. It is unrealistic to think that foreign vendors
will adhere to the labor standards that are expected and required in the United States.
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However, these global companies need to continue to communicate their expectations in

terms of employee safety and product quality to their overseas vendors on a regular basis.
QUESTION 4: Do you think the U.S. companies mentioned in this case need to make
changes to their current policies? If so, what? Should they make changes even if they
hinder their ability to compete in the marketplace?
ANSWER 4: U.S. companies have a responsibility to be sure foreign vendors are doing
their best to ensure employee safety. In this era of social media, one wrong move on the
part of a foreign vendor with regard to hazardous conditions in their facilities could cause
global companies to experience backlash from their customers with regard to turning a
blind eye to sweatshop conditions in which their products are manufactured. U.S.
companies need to balance their ability to produce products at reasonable costs with the
ability to monitor and correct any conditions that they deem hazardous.
INTEGRATING iGLOBES
There are several iGLOBE video clips that can be integrated with the material presented
in this chapter. In particular, you might consider the following:
Title: Are Western Consumers Willing to Pay More for Apparel?

Run Time: 9:21
Abstract: This video explores claims by garment workers in Cambodia that the
conditions in the factories in which they work and the wages they earn are substandard,
and responses, from customers including U.S. retailer GAP, to the allegations of human
rights violations.
Key Concepts: ethics, international labor rights, exports, global economy, global
production, competitive advantage, foreign investment, globalization, level of economic
development, human rights
Notes: Labor unrest in Cambodia is putting the spotlight once again on possible human
rights violations in the garment industry. Cambodian workers are claiming that their
working conditions are substandard, and that they are underpaid. The country’s booming
garment industry has grown from virtually nothing just 20 years ago, to a thriving
operation. Today, the country depends on the garment industry, and in particular garment
exports, for much of its revenue. Some 400,000 people work in 300 factories located in
or around Phnom Phen. The foreign-owned factories sell primarily to companies in
Europe and North America. Workers make about $61 per month. Now, however,
questions are being raised as to whether the country’s growth in the garment industry has
actually benefitted workers.
According to Ken Loo of Cambodia’s garment marketing association, the claims by the
workers are distorted. Ken Loo, who represents factory owners, believes that when
overtime pay is factored in, garment factory workers are actually paid closer to $91 per
5-12
month, and in fact out-earn many teachers, policemen, and civil servants. Ken Loo
worries that if there is too much pressure for higher wages, investors will simply switch
their operations to countries like Bangladesh were labor regulations are virtually
nonexistent.
Cambodia’s single biggest buyer of garments, U.S. retailer GAP, believes that the claims
of human rights violations are false. Indeed GAP spokesperson Bobbi Silten argues that
it was Cambodia’s strict ethical manufacturing standards that attracted GAP in the first
place. The country has been one of the firm’s top sourcing locations for the last decade.
Ken Loo challenges this claim though, noting that during the global recession, the
company shifted some of its sourcing to cheaper Bangladesh. In the end, the real issue
may come down to a basic debate between following ethically sound, but more costly
manufacturing processes versus providing goods at prices that are attractive to
consumers.
Discussion Questions and Answers
1. Consider the allegations by factory workers in Cambodia. Why do so many workers

continue to work in the factories when they are unhappy with the situation there? What
does this tell you about the challenges facing developing economies?
Answer: Workers in Cambodia claim they are being treated unfairly by their employers.
Allegations against factory owners include claims of long workdays, poor wages, and a
lack of health insurance and retirement benefits. Factory owners disagree with these
allegations claiming that workers are actually paid better than civil servants and
policemen. Moreover, they point out that workers are not forced to accept the jobs, they
can in fact, look elsewhere for better positions. Students will probably recognize that the
situation in Cambodia is not unlike that of many developing economies where people,
often young women, move to the city and take jobs in factories in order to support family
members in rural areas. Workers typically live in crowded rooms and endure long work
hours. Some students may point out though, that while these conditions are clearly not
optimal, it may not be the situation at the factory itself that is the issue, but rather the
problems in the rural areas where subsistence farming is the only option. In Cambodia
for example, garment workers are earning 40 percent more than national per capita GDP,
yet they are trying to support not only themselves, but entire families as well.
2. Discuss Cambodia’s growing dependence on the garment industry. What challenges

does this policy present in the long-term? What should Cambodia be doing to ensure that
its dependency on the industry does not prove to be a liability for the country?
Answer: The garment industry is a vital part of Cambodia’s economy. Not only does the
industry employ some 400,000 Cambodians, it is also responsible for three of every four
dollars that come into the country. Yet, just two decades ago, the industry was
nonexistent. Many students will recognize that while the success of the industry is to be
commended, the growing dependence on a single industry puts the country in a
vulnerable position. Indeed, during the recent global recession, the country saw some of
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its business being diverted to Bangladesh, a country where production is cheaper still.
Most students will probably suggest that Cambodia reduce its vulnerability by beginning
to diversify its industrial base by offering incentives to firms outside the garment industry
to invest.
3. Some people believe that pressure to increase wages for garment workers in Cambodia
will ultimately backfire as production moves elsewhere. Do you agree? Should garment
workers simply be happy they have a job?
Answer: Ken Loo of the Cambodian garment manufacturing association representing

factory owners, claims that the pressure for factory owners to increase wages will
ultimately backfire because production will simply be shifted to alternate locations.
Cham Prasidh, Cambodia’s minister of commerce, agrees noting that the factory owners
actually have very little margin to work with, and if higher wages were imposed, would
have little choice but to move elsewhere leaving thousands without jobs. Many students
will find this a challenging issue. On the one hand, they will be sympathetic to the plight
of the garment worker, but on the other hand, will recognize the realities of global
production and the importance of price. Some students will probably point out that the
country’s lack of a diversified industrial base has put it in a difficult position.
4. What role do companies like GAP play in this situation? Do they bear any
responsibility for ensuring that workers are paid higher wages? Would you as a
consumer really be willing to pay more for clothes if it ensured that workers in another
country had a better standard of living?
Answer: U.S. retailer GAP has bought its garments from Cambodia for the last decade.
Today, the country is one of its top ten sourcing locations. According to spokeswoman
Bobbi Silten, the country’s strong ethical labor standards are a major factor in this
strategic decision. Most students will probably agree that companies do indeed bear
some responsibility for ensuring that the factories they buy from are complying not only
with local regulations, but also basic ethical standards. However, students may also note
that determining exactly what constitutes a fair wage can be difficult to determine. In
Cambodia for example, factory workers make as much or more than teachers and civil
servants. Many students will probably agree that for most people, price is an important
factor in a decision to purchase. If companies like GAP are forced to price their products
higher in because of higher wages, they could find that their own sales drop. Students
taking this perspective will probably suggest that while many consumers say that they
support higher wages and better working conditions for workers in developing
economies, their purchasing decisions do not always support their claims.
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INTEGRATING VIDEOS
There are also several longer video clips that can be integrated with the material
presented in this chapter. In particular, you might consider the following from
International Business DVD Volume 6:
Title: Hazardous Manufacturing
Learning Objectives
The purpose of this video is to help you:
❖ Explore corporate social responsibility for multinational companies.
❖ Identify problems associated with offshore manufacturing and the buyer-supplier
relationship.
❖ Recognize the impact of foreign companies on the host country.
❖ Understand how companies can incorporate social responsibility into their strategies.
Key Words
❖ Corporate ethics
❖ Corporate social responsibility
❖ Foreign direct investment
❖ Impact of the multinational company on the host country
❖ Globalization
Synopsis
An investigation by the London Sunday Times has revealed that tons of waste is being
illegally dumped on the outskirts of Maseru in Africa. Some of the illegal waste is
tagged with the names of companies like Gap and Levi Strauss. The waste is coming
from garment manufacturers that supply large well-known multinational companies.
Each day, dozens of very poor children search through the waste looking for anything of
value that they can sell. It is a dangerous process. Hidden among the scraps of fabric are
sharp razors and needles used in the manufacturing process. Moreover, a fire is
continually burning at the dump filling the air with acrid smoke that gives many children
chest infections. Chemicals are also being dumped. One woman claimed that she was
covered with sores after touching chemicals hidden in the waste.
The arrival of garment manufacturing to the area was supposed to have been a good thing
for the region. Indeed, contracts with companies like Gap and Levi Strauss created
thousands of new jobs in Lesotho. However, as a condition of being awarded a
manufacturing contract, the companies agreed to adhere to strict codes of social and
environmental responsibility, promises they have seemingly broken. At the textile mill
that supplies denim to Gap and Levi Strauss a broken pipe spills untreated bright blue
waste water into the water table. According to local residents, the pipe has been leaking
for years. One woman claims that the water smells terrible and makes people ill. An
5-15
Another random document with
no related content on Scribd:
7, but it seems that there were four children in all. Those who write the more
common form of Suarez are more explicit, and deserve at least equal credit with
Gomara.
[68] Velazquez was married not long after his arrival in Cuba to the daughter of
Contador Cuéllar. The bride died within the same week. Herrera, dec. i. lib. ix. cap.
ix. ‘Velazquez fauoreciala por amor de otra su hermana, q̄ tenia ruin fama, y aun
el era demasiado mugeril.’ Gomara, Hist. Mex., 7. Delaporte, Reisen, x. 141-2,
assumes that Cortés won the love of her whom Velazquez wished to possess;
while Gordon, Anc. Mex., ii. 32, supposes that the bride had been the object of
Velazquez’ gallantry; hence the trouble. Folsom, on the other hand, marries one of
the Suarez sisters to Velazquez, and calls him the brother-in-law of Cortés.
Cortés, Despatches, 9, 11-12.
[69] Gomara, Hist. Mex., 7, insists that Velazquez had no motive for anger except
the refusal of Cortés to marry. The meeting of conspirators at his house gave
plausibility to the charges of his enemies. By others it is even stated that at these
meetings Cortés defended the governor against the charges of the conspirators
and overruled their plots. De Rebus Gestis Ferdinandi Cortesii, in Icazbalceta, Col.
Doc., i. 325-6. The preponderance of evidence, however, is against this
supposition.
[70] ‘Estando para se embarcar en una canoa de indios con sus papeles, fué
Diego Velazquez avisado y hízolo prender y quísolo ahorcar.’ Las Casas, Hist.
Ind., iv. 11. He was cast in the fort prison, lest the army should proclaim him
general. ‘Timebat ne si quis,’ etc. De Rebus Gestis Ferdinandi Cortesii, in
Icazbalceta, Col. Doc., i. 325 and 326-7.
[71] In De Rebus Gestis Ferdinandi Cortesii, in Icazbalceta, Col. Doc., i. 326-7, it

is related that Cortés broke the ropes holding him by means of a stick, and filed
the padlock of the chains. Seizing a bludgeon he advanced on the sleeping jailer,
resolved to break his head if he moved. But Cristóbal de Lagos either slept or
pretended not to hear the noise as Cortés seized the sword and shield at his head.
Swinging open a small window, Cortés slid down and hurried to the sanctuary,
giving on the way a word of cheer and advice to the conspirators who were held
within the prison.
[72] ‘Cortés ... tuuo por cierto q̄ lo embiariã a santo Domingo o a España.’
Gomara, Hist. Mex., 7. There would have been no reasons for his fears on this
score, if he possessed papers implicating Velazquez, as Gomara states. Another
version is that the alcaldes imposed a heavy sentence on Cortés, after his
capture, and that Velazquez, on being appealed to by Duero and others, was
noble-minded enough to grant a pardon. He discharged him from his service,
however, and had him placed on board a ship for Española. Torquemada, i. 348.
Herrera says that Catalina lived near the church, and while Cortés was making
love to her an alguacil named Juan Escudero, whom Cortés afterward hanged in
Mexico, came up behind him and pinioned his arms, while the soldiers rushed to
his assistance. Dec. i. lib. ix. cap. ix.; Cortés, Residencia, i. 63, etc. Las Casas,
Hist. Ind., iv. 11; De Rebus Gestis Ferdinandi Cortesii, in Icazbalceta, i. 327-8, give
minutely the mode of capture.
[73] Broke the pump and crawled through, ‘Organum pneumaticum,’ etc. De
Rebus Gestis Ferdinandi Cortesii, in Icazbalceta, Col. Doc., i. 329.
[74] The current of the Macaguanigua River did not allow him to enter it, and
elsewhere the breakers would upset the boat. Stripping himself, he tied to his
head certain documents against Velazquez, held by him as notary of the
ayuntamiento and clerk of the treasurer, and thereupon swam ashore. He entered
his house, consulted with Juan Suarez, and reëntered the temple, armed.
Gomara, Hist. Mex., 7. De Rebus Gestis Ferdinandi Cortesii, in Icazbalceta, vi.
329-30, refers to a friend of Cortés chained in the same ship’s hold, and states
that Cortés rowed ashore. On the way to the house of Suarez he narrowly
escapes a patrol. Having secured arms, he proceeds to cheer his captive
partisans, and then enters the sanctuary. At dawn the captain of the vessel from
which Cortés escaped comes also to the temple, to secure himself against
Velazquez’ wrath, no doubt, but is refused admission into the sacristy by his
fellow-refugee, who suspects the man, and fears that the provisions may not
outlast the siege. In Herrera, dec. i. lib. ix. cap. viii., Cortés drifts about on a log
and is finally cast ashore.
[75] So the story was current at the time, and I doubt not it contains some degree
of truth, notwithstanding Las Casas, Hist. Ind., iv. 11-12, scouts it as a pure
fabrication. He knew both men; Velazquez as a proud chief, exacting the deepest
reverence from those around him, and making them tremble at his frown; while
Cortés was in those days so lowly and humble as to be glad to curry favor with the
meanest servants of the governor. The good bishop is evidently prejudiced. In De
Rebus Gestis Ferdinandi Cortesii, in Icazbalceta, Col. Doc., i. 332-4, the facts are
a little elaborated and contradictory, as usual. Cortés escapes the guard round the
church, and reaches the farm. ‘Halloh, señores!’ he shouts, ‘Cortés is at the door,
and salutes Señor Velazquez, his excellent and gallant captain.’ Velazquez is
astonished, yet pleased, at the arrival of one whom he always had regarded as a
friend and beloved brother. He orders supper and bed to be prepared; but Cortés
insists that none shall approach, or he will lance them. He demands to know what
complaints there are against him. He abhors the suspicion of being a traitor, and
will clear himself. ‘Receive me,’ he concludes, ‘in your favor with the same good
faith that I return to it.’ ‘Now I believe,’ answers Velazquez, ‘that you regard as
highly my name and fame as your own loyalty.’ They shake hands, and Cortés
now enters the house to fully explain the misunderstanding. After supper they
retire to one bed. In the morning the messenger, Diego Orellana, arrives to
announce Cortés’ flight, and finds them lying side by side. Cortés will not proceed
with the expedition just then; but after arranging his affairs he joins, to the delight
of the general, who follows his advice implicitly, as he had done in former
campaigns. After their victorious return Cortés enjoys greater honors than ever.
Peralta, who also gives the story at length, states that Cortés surprised Velazquez
asleep. At the request of the governor he gave himself up to the jailer in order to
be formally released. Nat. Hist., 58-62. Still Peralta is a little confused.
[76] She was received by Cortés in Mexico, after the conquest, with great
distinction; but died in about three months after her arrival.
[77] Las Casas, who, as usual, will have a fling at Cortés, writes: ‘Tuvo Cortés un
hijo ó hija, no sé si en su mujer, y suplicó á Diego Velazquez que tuviese por bien
de se lo sacar de la pila en el baptismo y ser su compadre, lo que Diego
Velazquez aceptó, por honralle.’ Hist. Ind., iv. 13. Among Cortés’ children a natural
daughter by a Cuban Indian is mentioned, Bernal Diaz, Hist. Verdad., 238, but it is
not likely that Cortés would ask the governor to stand godfather to a natural child.
The same writer makes Velazquez the groomsman or sponsor at the marriage.
‘Fue su padrino, quando Cortés se velò con Doña Catalina;’ Id., 13; Vetancvrt,
Teatro Mex., pt. iii. 109. Although compadre is not unfrequently used as a mere
term of friendship, it is not likely to have been applied by a marriage padrino;
hence the title of co-father indicates that it originated at the font.
[78] An office granted only to men of note and to leading conquistadores. Solis,
Hist. Mex., i. 46. It conveyed the title of ‘muy virtuoso señor,’ the governor being
called ‘muy magnífico señor,’ Pacheco and Cárdenas, Col. Doc., xii. 225, and
permitted the holder to walk side by side with the governor. Herrera, dec. ii. lib. iii.
cap. xii. ‘Auia sido dos vezes Alcalde en la Villa de Sãtiago de Boroco, adõde era
vezino: porque en aquestas tierras se tiene por mucha honra.’ Bernal Diaz, Hist.
Verdad., 13. He does not refer to him as alcalde at Santiago de Cuba, where the
fleet is fitting out, as he clearly states. Gomara, Hist. Mex., 4, mentions merely that
he was here before the quarrel with Velazquez. Some writers assume that
Santiago de Cuba is the same as Santiago de Baracoa, but Herrera, loc. cit., and
others, observe the distinction.
CHAPTER V.
SAILING OF THE EXPEDITION.
1518-1519.
The Quality of Leader Desired—Instructions Issued to Hernan Cortés,

Commander-in-Chief—The Character of Cortés Undergoes a Change—
Cost of the Expedition—By whom Borne—Places Established for
Enlistment—The Banner—Cortés Puts on the Great Man—More of his
Character—The Scene at Santiago Harbor—The Governor’s Jester—
Dark Suspicions of Velazquez—Departure from Santiago—Cortés at
Trinidad—Fresh Recruits—Verdugo Receives Orders to Depose
Cortés—The Fleet Proceeds to San Cristóbal, or The Habana—Review
at Guaguanico—Speech of Cortés—Organization into Companies—
Departure from Cuba.
With relations so lovingly established, and with a personal

knowledge of the military genius of Cortés, and the strength and
versatility of his character, it would seem that here would be the first
instant choice of the governor for the command of the important
expedition now in preparation. But the quality of the man required did
not altogether hinge on merit. As we have seen, Velazquez required
for his purpose an anomalous creation. He must be able but humble;
able to command men, and able likewise to obey his chief; honest to
Velazquez, but false, if necessary, to all the world else. It was not an
Alexander or an Alcibiades that was wanted; not so much a man as
a thing: “Piper, non homo,” as Petronius Arbiter said; pungent as
pepper, and not a human being.
Be this as it may, the sordid friendship of Láres and Duero
prevailed with the governor, and on the 23d of October, 1518, his
instructions to Hernan Cortés, commander-in-chief of the expedition,
were drawn up before the notary, Alonso de Escalante, in
accordance with the permission granted by the authorities at Santo
Domingo, which limited the enterprise to exploration; the privilege to
colonize depending on royal favor for which Velazquez must sue in
Spain.[79]
One would think that after these twenty-five years of experience
there could be found no ecclesiastic or ruler so childish as to expect
morality or humanity from the wolves of Spain let loose among the
naked and defenceless of America. And yet we find the friars of
Española, in pursuance of the devout and high-minded views
expressed by Velazquez, subscribing to instructions which enjoin
Cortés to observe a conduct befitting a Christian soldier, as if there
were any reasonable hope of his doing so. He must prohibit
blasphemy, licentiousness, and gambling among his men, and on no
account molest the natives, but gently inform them of the glory of
God, and of the Catholic king. Possession must be taken in
Velazquez’ name and the secrets of the country ascertained. Search
must be made for Grijalva and Olid, and for the Christian captives
supposed to be in Yucatan. We might again mark the double-dealing
of the governor, who discharges Grijalva for not having settled
contrary to his instructions, while charging the new commander not
to seize the country, yet expecting him to do so.[80] The instructions
consist of thirty clauses, and the document reflects no credit on the
scrivener.[81]
Man and his character are subject to environment. Neither is
finished until decay has well set in. Long before the receipt of his
commission the adolescent Cortés was a creation of the past; even
the adult Cortés was a different being before and after his
appointment. His action now was the expression of new intuitions.
Always under the influence of turbulent emotions, his ambition had
suddenly become more aggressive. In pure impulses, in refined
feelings, in noble instincts, he was essentially defective. He harbored
no ideal of duty, such as we have seen in the mind of Grijalva. His
code of ethics was neither broad nor catholic. And notwithstanding
his great respect for religion, so great indeed as to excite suspicion
that he cared very little for it; notwithstanding his outward piety, and
his devotion to the church, the lighter immoralities fitted him with an
ease and grace that hampered his movements not in the least. Yet
for all this the alcalde of Santiago suddenly became a great man, not
in name only, but actually; wellnigh revolutionizing the society of
which he himself was the product. To him, and to others, his
commission was a match applied to explosive material, letting loose
the latent force. The leaders of the first gulf-shore expeditions,
Córdoba, Grijalva, and Cortés, present themselves before us in
relatively increasing proportions. Córdoba, the first, was least,
though a most gentlemanly and kind-hearted pirate. Grijalva, though
second to Cortés in talents and fame, was far before him in honesty.
During the preparations which quickly followed the appointment of
Cortés, the inherent qualities of the man developed to a degree
alarming alike to friends and enemies, and astonishing to himself. He
found his nature a strong one, with magnetic attractions, and an
affinity with danger. He found himself possessed of that higher
courage of the mind which begets self-confidence, breeds the hero,
and ends in the achievement of the uttermost. And genius was there;
he began to feel it and to know it: the genius of ambition and
egotism, whose central figure was himself, an all-prevailing
sentiment, before which right, religion, humanity, and even life itself,
must be subservient. His rapidly evolving will was becoming
ponderous, overwhelming. Fame was becoming to him what
ambition was to Columbus; only he possessed his idea instead of
being possessed by it. Sufficiently educated for the purposes of
statecraft, opportunity alone was needed to enable him to turn every
weapon to the furtherance of his own designs. Without attempting to
pry into the occult, he now began to see things with a large and
liberal eye. Life was assuming tremendous realities, which bridled
impulse; yet it was an ordeal he believed he could face. While in
sophistry he found himself equal to Euripides, he began to put on
bombast such as Æschylus could not have scorned, and to display
an energy as sublime as that of Archilochus; yet all this time his
good sense was supplemented by graceful courtesy. All who worship
the bright wit and intellectual versatility that flatter ambition and yield
unscrupulous success may henceforth bow the knee to Hernan
Cortés.
No sooner was his commission sealed than Cortés set himself
about the task of collecting his many requirements. His own few
thousand pesos of ready money were quickly spent; then he
mortgaged his estates, and borrowed to the uttermost from his
friends. Velazquez was free with everything except his substance;
free with his advice and ostentation, free with the ships of others,
and willing to sell to the expedition the products of his farm at
exorbitant prices. Nevertheless the investment to the governor, as
well as to Cortés, was large, the former furnishing some ships of his
own and some money, the whole cost of vessels and outfit being
about twenty thousand ducats.[82]
Establishing places of enlistment throughout the island, Cortés
roused to action his many friends, both in person and by letter. At
principal settlements the expedition was proclaimed about the
streets, in the king’s name, by the beating of drums and the voice of
the crier. One third of the proceeds of the adventure was promised
the soldiers and subalterns, two thirds going to the outfitters.[83] A
banner of black taffeta was embroidered with the royal arms in gold,
and blue and white flames surrounding a red cross, and round the
border it bore the inscription, “Amici sequamur crucem, si nos
habuerimus fidem in hoc signo vincemus.” Friends, let us follow the
cross, and if we have faith under this sign we shall conquer.[84]
Assuming a dress and bearing more fitting a military
commander, Cortés threw open his doors, and by judiciously
combining the frank joviality of a soldier with the liberal hospitality of
a man of wealth, he rapidly drew to his adventure all the available
men of the island. There were not lacking those to sneer at this
assumption of preëminence, which flaunted it so bravely with plume
and medal, with martial music and retinue, saying, here was a lord
without lands.[85] But they little knew the strength and firmness of
him who, having once put on the great man, would lay the livery
down but with his life. This soldierly display, always taking to the
Castilian fancy, could scarcely be called affectation, for the genius
which commands success was present, and the firmness of resolve
was covered with such pleasing affability as to render its presence
scarcely suspected. With his fine soldierly qualities were financial
and executive ability, and fair common sense, a rare combination in
a Spanish cavalier. While loving adventure he did not altogether hate
ideas. His world now spread itself before him, as divided into two
unequal classes, those that use others, and those that are used by
others, and he resolved himself forever into the former category. Like
Diogenes, though enslaved at Crete, Cortés felt that if he could do
one thing better than another it was to command men. Coupled with
this egotism was the sensible intuition that the mastery of others
begins with self-mastery. Indeed his command over himself, as well
as over others, was most remarkable. “By my conscience!” was a
favorite oath, which implies not brutal passion. At times a swelling
vein in the forehead, and another in the throat, indicated rising anger,
manifested also by a peculiarity of throwing off his cloak; but the
voice would remain decorous, and the words seldom passed beyond
a “Mal pese á vos!” May it bear heavily upon you. To the insolent
soldier, whom we shall often find overstepping the bounds of
prudence, he would merely say, “Be silent!” or “Go, in God’s name,
and be more careful if you would escape punishment.” Equally
composed in argument, he wielded his persuasive powers to their
best advantage. Rio de Avenida, the Rushing River, was at one time
a nickname, and later he affected long hair and lawsuits. At the
gaming-table, to which he was greatly addicted, he won or lost with
equal sang-froid, ever ready with a witticism to smooth the varying
course of fortune. Though he did not hesitate as gay Lothario to
invade the family of another, most unreasonably he was very jealous
lest his own family should be invaded. While liberal to friend or
mistress, and ready to sacrifice almost anything to gain an object, he
was not always regarded as over-generous by his men, too many of
whom were of that class, however, that nothing would satisfy.
Although a fair eater, he drank but little, and confined himself to
simple diet. This moderation also extended to dress, which, before
his elevation, was not only neat but tasteful in its rich simplicity,
ornamented with few but choice jewels, and with little diversity. A
love of pomp, however, developed with his rising fortunes, more
particularly in the way of showy residences and a large retinue,
which accorded well with the courtly manners native to the Spaniard
claiming noble blood. Cervantes says that in the army even the
niggardly become prodigal.
Cortés found the way of throwing into his cause not only himself,
but others, in some respects as able as himself. His liberal measures
and enthusiasm became infectious, and brought to enrolment
wealthy volunteers, who furnished not only their own outfit, but
helped to provide others.[86] Within a short time there joined over
three hundred men, among them some high in the service and
confidence of the governor—instance, Francisco de Morla his
chamberlain, Martin Ramos de Láres a Basque, Pedro Escudero,
Juan Ruano, Escobar, and Diego de Ordaz mayordomo of
Velazquez, and instructed by him to watch proceedings and secretly
report.
The harbor of Santiago at this time presented a busy scene.
There were the hurrying to and fro of laborers and recruits, the clang
of carpenters’ hammers upon ships undergoing repairs, the
collecting of goods, and the loading of vessels. Every day the
landing was enlivened by the presence of the governor, often arm-in-
arm with his most dutiful and compliant captain-general, surrounded
by gayly dressed attendants and followed by half the town. On one
of these visits of inspection, while engaged in friendly conversation
respecting the progress of affairs, the Governor’s jester,
Francisquillo, who was present, as usual, performing his antics
before his master, cried out, “Ah, friend Diego!” Then to Cortés, “And
how fares our brave captain, he of Medellin and Estremadura? Be
careful, good master, or we shall soon have to beat the bush for this
same Cortés.” Velazquez laughed heartily, and turning to his
companion exclaimed, “Compadre, do you hear this fool?” “What,
señor?” replied Cortés, pretending preoccupation. “He says you will
run away with our fleet,” replied Velazquez. “Pay no attention to the
knave, your worship; I am very sure these infamous pleasantries
never emanated from his mad brain,” rejoined Cortés, deeply
chagrined. And ere the laugh died away on the lips of the governor
his timid breast was chilled by fearful forebodings. What if it were
true, thought Velazquez, and this fellow, whom I have lifted from his
low estate, should declare for himself on reaching New Spain? Then
he called to mind his late quarrel with Cortés, and the courage,
energy, and determination displayed by the latter throughout. The
governor trembled when he thought of it. About him were enough of
the disappointed only too ready to fan these suspicions into a flame.
[87]
I regret having to spoil a good story; but the truth is, the drama
reported by Bartolomé Las Casas, and reiterated by Herrera and
Prescott, was never performed. It tells how Cortés put to sea,
Prescott asserts the very night after the jester’s warning; and that in
the morning, when the governor, early roused from his bed, rushed
down to the landing with all the town at his heels, Cortés returned
part way in an armed boat and bandied words with him. Beside
being improbable, almost impossible, this version is not sustained by
the best authorities.[88] The fact is, some time elapsed, after the
suspicions of the governor had first been aroused, before the sailing
of the fleet, during which interval Grijalva with his ships returned.
Gomara states that Velazquez sought to break with Cortés and
send only Grijalva’s vessels, with another commander; but to this
Láres and Duero, whose advice was asked by the governor, made
strong objection, saying that Cortés and his friends had spent too
much money now to abandon the enterprise, which was very true;
for like the appetite of Angaston which came with eating, the more
Cortés tasted the sweets of popularity and power, the more stomach
he had for the business. And the more the suspicions of the
governor grew, the greater were the captain-general’s assurances of
devotion, and the firmer became the determination of Cortés and his
followers to prosecute this adventure, in which they had staked their
all.[89]
Warned by Láres and Duero of every plot, Cortés hurried
preparations, sending friends to forage, and shipping stores with the
utmost despatch, meanwhile giving secret orders for all to be ready
to embark at a moment’s notice. Finally, the hour having come, on
the evening of the 17th of November, with a few trusty adherents,
Cortés presented himself before the governor, and politely took his
leave. It fell suddenly on Velazquez, in whose eyes all movements
relating to the expedition had of late become the manœuvres of men
conspired to overreach him. But having neither the excuse nor the
ability to stop the expedition he let the officers depart.
By playing with the devil one soon learns to play the devil. From
the governor’s house Cortés hastened to the public meat depository,
seized and added to his stores the town’s next week’s supply, and
left the keeper, Fernando Alfonso, a gold chain, all he had remaining
wherewith to make payment.[90] It was a dull, dry, gray November
morning, the 18th, very early, after mass had been said, when the
squadron, consisting of six vessels, sailed out of Santiago harbor
amidst the vivas of the populace and the inward cursings of the
governor.[91] But of little avail was Velazquez’ remorse; for Cortés
carried no Æolian wind-bags to drive him back from his destination.
Despatching one of the vessels to Jamaica[92] for provisions,

Cortés touched at Macaca for further supplies, and thence steered
for Trinidad, where he was received with demonstrations of
enthusiasm by the alcalde mayor, Francisco Verdugo brother-in-law
of Velazquez, and by other hidalgos, who placed their houses at his
disposal. Raising his standard before his quarters, he proclaimed the
expedition and invited volunteers, as he had done at Santiago. Soon
his force was augmented by over one hundred of Grijalva’s men.
Here also joined several captains and hidalgos, afterward famous in
New Spain adventure. There were the five brothers Alvarado, Alonso
de Ávila, Gonzalo Mejía afterward treasurer at Mexico, Cristóbal de
Olid, Alonzo Hernandez Puertocarrero cousin of the count of
Medellin, Gonzalo de Sandoval who became so great a friend of
Cortés, Juan Velazquez de Leon a relative of the governor, and
others.[93] From the plantations of Santi Espíritu and elsewhere
came many. This Cortés beheld with proud satisfaction, and
welcomed these important acquisitions with martial music and peals
of artillery.
In seeking supplies Cortés paid little heed to rights of property,
so long as he obtained what he needed; he was subsequently not a
little proud of his success. “By my faith,” he boasts in Spain in 1542,
“but I did play the corsair genteelly.” Among the arbitrary purchases
was that of a vessel from Jamaica laden with provisions for the
mines, for which the owner might accept promissory notes or
nothing.[94] Another vessel from the same place, on the same
mission, Cortés sent Ordaz to seize and convey to Cape San
Antonio, or perhaps to San Cristóbal where we afterward find him,
there to await the fleet. This captain, it will be remembered, was the
spy of Velazquez, and to him, therefore, rather than to another, was
given this mission, to prevent his watching proceedings at Trinidad.
The commander of the seized vessel was Juan Nuñez Sedeño, who
was induced to join the expedition.[95] Meanwhile in the breast of
Velazquez was stirred afresh the poison of jealousy by an astrologer,
one Juan Millan, employed by the enemies of Cortés to work on the
fears of the governor. The result was the arrival at Trinidad, in hot
haste, of two messengers from the governor, with orders for Verdugo
to detain the fleet, the command of which had been transferred to
Vasco Porcallo. Moreover, all the retainers of Velazquez were called
upon to aid in deposing Cortés. It was no difficult matter, however,
for Cortés to persuade Verdugo of two things: first, that there were
no grounds for Velazquez’ fears, and secondly, if there were, force
would now avail him nothing. So strong was Cortés in his position
that he could easily lay the town in ashes should its authorities
attempt to interfere in his purposes. Taking one of the messengers,
Pedro Lasso, into his service, by the other Cortés wrote Velazquez,
in language most respectful, begging him to believe that he would
always be true to his God, his king, and his dear friend and governor.
In like notes the robin and the screech-owl muffle their voices when
danger is near, so as to conceal the distance, and make themselves
seem far away. Thus passed twelve days, according to Bernal Diaz,
at Trinidad, when one of the vessels was despatched to the north
side of the island for supplies, and the fleet departed for San
Cristóbal, then Habana,[96] while Pedro de Alvarado, with fifty
soldiers and all the horses, proceeded thither overland, adding to
their number at the plantations on the way.
One night during the voyage to San Cristóbal, the flag-ship was
separated from the other vessels and stranded on a reef near Isla de
Pinos. With skill and promptness Cortés transferred the contents in
small boats to the shore, set free the lightened vessel, and,
reloading, joined his captains at San Cristóbal. This accident delayed
him seven days, during which time there was no small stir among his
men at San Cristóbal as to who should command the fleet in case its
captain-general failed to appear. Conspicuous among these
questioners was Ordaz, who claimed precedence as Velazquez’
representative. But the arrival of the commander put an end to the
controversy and spread unbounded joy throughout the armada.
Landing, he accepted the hospitality of Pedro Barba, lieutenant of
Velazquez. Among those who joined him here were Francisco
Montejo, the future conqueror of Yucatan, and Diego de Soto, who in
Mexico became the mayordomo of Cortés. Again the commander rid
himself of Ordaz by sending him with a vessel to the plantations near
Cape San Antonio, there to await the fleet. The artillery was landed
and cleaned; the cross-bows were tested and the firelocks polished.
Cotton armor was secured. More provisions being required,
Quesada, the Episcopal tithe-collector, contributed his stock.
Warranted, as he thought, by his success and prospects, and
well aware of the effect on the Spanish mind of some degree of
ostentation and military display, Cortés put on the paraphernalia of
still greater leadership, and appointed a chamberlain, a chief butler,
and a mayordomo, in the persons of Rodrigo Rangel, Guzman, and
Juan de Cáceres, which pomp he ever after maintained.[97] Gaspar
de Garnica now arrived with letters from Velazquez to Barba, Ordaz,
Leon, and others, ordering and entreating them to stop the fleet,
arrest Cortés, and send him a prisoner to Santiago. It was of no
avail, however. Soldiers, officers, even Barba himself, were
enthusiastic for Cortés, who once more wrote the governor, in terms
as courteous as they were costless, and shortly afterward, on the
10th of February, 1519, the fleet again set sail.[98] Guaguanico, on
the north side of Cape San Antonio, was the place appointed for
muster and apportionment.[99] Meanwhile Pedro Alvarado was sent
forward with sixty soldiers in the San Sebastian to bring Ordaz to the
rendezvous, but driven by a gale beyond his goal and near to
Yucatan, he thought it useless to return, and so proceeded to
Cozumel Island, where he arrived two days before the others. The
expedition consisted of twelve vessels, the flag-ship or capitana of
one hundred tons, three others of from sixty to eighty tons, and the
rest small brigantines and open craft, including a transport
commanded by Ginés Nortes. The soldiers numbered five hundred
and eight, and the sailors one hundred and nine, including officers
and pilots. The priests present were Juan Diaz and Bartolomé de
Olmedo, of the Order of Mercy. Under Juan Benitez and Pedro de
Guzman were thirty-two crossbowmen; thirteen men only carried
firelocks, the rest being armed with swords and spears. The artillery
consisted of ten bronzed guns and four falconets, and was in charge
of Francisco de Orozco, aided by Mesa Usagre, Arbenga, and
others. About two hundred Cuban Indians, together with some native
women and negro slaves, were brought for service, despite the
prohibitory clause in the instructions. Sixteen horses receive the
minute description and glowing encomium of the soldier Diaz, and
play an important part in the coming campaign. The supplies
included some five thousand tocinos, or pieces of salt pork, six
thousand loads of maize and yucca, fowl, vegetables, groceries, and
other provisions. For barter were beads, bells, mirrors, needles,
ribbons, knives, hatchets, cotton goods, and other articles.[100]
The force was divided into eleven companies, each under a
captain having control on sea and land. The names of the captains
were Alonso Hernandez Puertocarrero, Alonso de Ávila, Diego de
Ordaz, Francisco de Montejo, Francisco de Morla, Escobar, Juan de
Escalante, Juan Velazquez de Leon, Cristóbal de Olid, Pedro de
Alvarado, and Cortés, with Anton de Alaminos as chief pilot.[101]
From this list it will be seen that those but lately regarded as of
the Velazquez party received their full share in the command. This
cannot be attributed so much to the captain-general’s sense of
fairness, which forbade him to take advantage of interests voluntarily
intrusted to his care, as to a studied policy whereby he hoped to win
for his purposes certain men of influence, whom it would, for that
matter, have been dangerous to remove.
Before the review, Cortés addressed his soldiers in a speech as
shrewd and stirring as that of Marcius at Corioli. Pointing to the
thousands of unbaptized, he awakened their religious zeal; dwelling
on the grandeur of the undertaking, he stimulated their ambition;
referring to the vast wealth these lands contained, he excited their
cupidity. Greater and richer lands than all the Spanish kingdoms, he
called them, and inhabited by strange races, only awaiting
submission to their invincible arms. Their whole fortune was invested
in the fleet that carried them; but who would regret so trifling an
expenditure when compared with the glorious results to follow? They
were setting out upon a career of conquest in the name of their God,
who had always befriended the Spanish nation; and in the name of
their emperor, for whom they would achieve greater deeds than any
ever performed. Riches lay spread before them; but like good and
brave men they must look with him to the higher and nobler reward
of glory. “Nevertheless,” he archly added, “be true to me, as am I to
you, and ere long I will load you with wealth such as you have never
dreamed of. I will not say it is to be won without hardships; but who
of you are afraid? We are few, but we are brave. Let us therefore on
with the work so well begun, joyously and confidently to the
end!”[102] There is no passion so artful as avarice in hiding itself
under some virtue. Sometimes it is progress, sometimes patriotism,
but its warmest cloak has ever been religion. There is a double profit
to the devotee whose religion gratifies his avarice, and whose
avarice is made a part of his religion.
On the morning of February 18th mass was said, the campaign
standard blessed, and Saint Peter invoked, whereupon the prows
were pointed toward the islands of the west. All the vessels were to
follow the flagship, whose light should be their guide by night; in
case of separation they were to steer for Cape Catoche and thence
proceed to Cozumel.[103]
FOOTNOTES
[79] ‘Fray Luys de Figueroa, fray Alonso de santo Domingo, y fray Bernaldino
Mãçenedo, q̄ eran los gouernadores, dieron la licencia para Fernando Cortés
como capitan y armador cõ Diego Velazquez.’ Gomara, Hist. Mex., 12. The
Fathers no doubt required to know the name of the commander. ‘His litteris
Cortesius confirmatus,’ is the statement in De Rebus Gestis Ferdinandi Cortesii, in
Icazbalceta, Col. Doc., i. 344, in reference to their permit. This authority intimates
that Salcedo, at a later date probably, obtained license from the Fathers for
warfare in Yucatan and for the settlement of the mainland, but this is not confirmed
anywhere. Id., 350.
[80] Evidently Velazquez desired his captains to disobey instructions and colonize.
He could not officially authorize them to do so, not having as yet received
permission from Spain. Neither Velazquez nor Cortés had any intention in this
instance of confining this enterprise to trade, or protecting the natives, or imposing
morality upon the men. It was well understood by all that licentiousness and
plunder were to be the reward for perils to be undergone. ‘Atque etiam quod
Grijalvae prætentâ causa auxilii ferendi quod Alvaradus postulabat, ire licebat,’ is
the pointed observation in De Rebus Gestis Ferdinandi Cortesii, in Icazbalceta,
Col. Doc., i. 343-4. Bernal Diaz, Hist. Verdad., 13, refers to promises of Indian
repartimientos in the new regions as an inducement for volunteers. Cortés’
statement at Vera Cruz, that he had no order to settle, means nothing in view of
the motives then actuating him. Secret agreements between governors and
lieutenants for defrauding the crown and promoting their own aims were only too
common; and this is overlooked by those who trust merely to the instructions for
arguments on this point.
[81] The full text of the instructions is to be found in Pacheco and Cárdenas, Col.
Doc., xii. 225-46; Col. Doc. Inéd., i. 385, 406; Alaman, Disert., i. App. ii. 1-27, with
notes, reproduced in Zamacois, Hist. Méj., ii. 791-815. The Muñoz copy, given in
Prescott’s Mex., iii. 434-9, preserved the original spelling in the preamble, but the
clauses are abbreviated, though Prescott does not appear to be aware of it.
[82] The ownership of the expedition has been a moot question, some authors
regarding it as pertaining chiefly to Velazquez, while others accord it wholly to
Cortés and his friends. According to Gomara, after receiving the vessel brought by
Alvarado, and another provided by Velazquez, Cortés, aided by his friends, bought
two large and two small vessels before leaving Santiago; and at least two more
were bought after this with bills forced upon the owners. The rest of the fleet
appears to have been made up from the transport spoken of and from Grijalva’s
vessels. The latter is to be regarded as Velazquez’ contribution, for in the
testimony before the royal council in Spain, Montejo, the trusted friend of the
commander, declares that on delivering them over to the governor he received the
order to join Cortés, with the vessels, of course. His statements, and those of the
captain Puertocarrero, confirmed by the letter of the ayuntamiento of Villa Rica to
the emperor, agree that, from their own observations and the accounts given by
others, Cortés must have contributed not only seven vessels, but expended over
5000 castellanos on the outfit, beside procuring goods and provisions, while
Velazquez furnished only one third, chiefly in clothes, provisions, wines, and other
effects, which he sold through an agent to the company, the witnesses included, at
exorbitant prices. Montejo had heard that Velazquez contributed three vessels, but
whether these were exclusive of Grijalva’s fleet is not clear. He is also supposed to
have lent Cortés 2000 castellanos, and to have given twelve or thirteen hundred
loads of bread, and 300 tocinos, beside 1800 castellanos in goods, to be sold to
the party at high prices. Every other supply was furnished by Cortés, who
maintained the whole force without touching the ship’s stores, while remaining in
Cuba, no doubt. Col. Doc. Inéd., i. 487-90. Puertocarrero adds that Cortés’
liberality to men in advancing means and outfits was generally admitted. He
himself had received a horse from the commander. He gives a list of the
outrageously high prices charged by Velazquez for his supplies. Id., 491-5.
Another member of the expedition states that Cortés furnished seven vessels, and
Velazquez three, two more belonging to the latter joining the fleet afterward.
Cortés paid for all the outfit. Extract appended to Carta del Ayunt. de V. Cruz, in
Col. Doc. Inéd., i. 419-20: ‘Casi las dos partes ... á su (Cortés) costa, asi en
navios como en bastimentos de mar.’ ‘Todo el concierto de la dicha armada se
hizo á voluntad de dicho Diego Velazquez, aunque ni puso ni gastó él mas de la
tercia parte de ella.... La mayor parte de la dicha tercia parte ... fué emplear sus
dineros en vinos y en ropas y en otras cosas de poco valor para nos lo vender acá
(V. Cruz) en mucha mas cantidad de lo que á él le costó.’ Carta de la Justicia de
Veracruz, 10 de julio, 1519, in Cortés, Cartas, 8; Pacheco and Cárdenas, Col.
Doc., xiv. 37. Claiming to have no ready money of his own, Velazquez took for the
expedition 1000 castellanos from the estate of Narvaez in his charge. Gomara,
Hist. Mex., 12-13. ‘Salió de la Isla de Cuba ... con quince navíos suyos.’ Cortés,
Memorial, 1542, in Cortés, Escritos Sueltos, 310. Peter Martyr assumes that
Cuban colonists furnished the fleet with the governor’s consent, and elected
Cortés commander. Dec. iv. cap. vi. Solis, Hist. Mex., i. 61, considers that
Velazquez held only a minor share in the expedition. Montejo stated in a general
way that he spent all his fortune on joining the expedition. Cent. Am., 1554-55,
127-30, in Squiers MS. In De Rebus Gestis Ferdinandi Cortesii it is asserted that
Cortés expended 6000 pesos of his own, and 6000 ducats borrowed money,
beside what Velazquez lent him; his expenditures being in all 15,000 pesos.
Velazquez gave not one real, but merely sold goods at exorbitant figures, or made
advances at a high interest, even the vessels provided by him being transferred to
the commander under an expensive charter. ‘Sunt pretereà, multi Hispani viri boni
qui et nunc vivunt, et qui cum ea classis de qua agimus, apparabatur, aderant. Hi
in hujus causæ defensione, cujus apud Consilium Regium Indicum Cortesius est
accusatus, testes jurati asserunt Velazquium nihil omnino ex propriâ facultate in
Cortesii classem impendisse.’ This would indicate that Montejo and
Puertocarrero’s testimony was confirmed by many others. The agent, Juan Diaz,
who attended to the sale of the goods and the collection of the advances, fell in
the retreat from Mexico, and his money was lost. Icazbalceta, Col. Doc., i. 345-9.
This testimony by members of the expedition merits the foremost attention in the
question, particularly since the fewer statements on the other side are based
wholly on supposition. It is somewhat qualified, however, by the consideration that
both Montejo and Puertocarrero were stanch friends of Cortés, and that the letter
of the ayuntamiento was prepared in his presence. It must also be borne in mind
that a goodly proportion of the share attributed to him consisted of vessels and
effects obtained upon his credit as captain-general of the fleet, and also in a semi-
piratical manner. The statements in Cortés, Memorial, and in De Rebus Gestis
Ferdinandi Cortesii, indicate, beside, a hardly warranted attempt to regard
Velazquez’ contribution chiefly as a loan to the commander or to the party, his
vessels being spoken of as chartered. Another proportion belonged to wealthy
volunteers. On the whole, however, it may be concluded that Cortés could lay
claim to a larger share in the expedition than Velazquez; but the latter possessed
the title of being not only the discoverer, through his captains, of the regions to be
conquered, but the projector of the expedition. Oviedo, while believing that the
fleet belonged with more right to the governor, feels no pity for the treatment he
received, in view of his own conduct to Diego Colon. Complacently he cites the
proverb: ‘Matarás y matarte han: y matarán quien te matare.’ As you do unto
others, so shall be done unto you. Oviedo asserts that he has seen testimony
showing that Cortés and his men did not sail at their own expense, but from his
own statement it appears that the instructions of Velazquez, wherein he speaks of
the expedition as sent in his name, is the chief feature in this so-called testimony;
i. 538-9. Las Casas naturally sides with Velazquez, and estimates that he
expended over 20,000 castellanos; he had no need for, nor would he have
stooped to a partnership, at least with a man like Cortés. Hist. Ind., iv. 448.
Herrera, dec. ii. lib. iii. cap. xi., copies this, and Torquemada, i. 359, reverses this
figure in favor of Cortés.
[83] Testimonio de Puertocarrero, in Col. Doc. Inéd., i. 491. ‘Mãdo dar pregones, y
tocar sus atambores, y trompetas en nombre de su Magestad, y en su Real
nombre por Diego Velazquez para que qualesquier personas que quisiessen ir en
su compañía à las tierras nuevamente descubiertas â los conquistar y doblar, les
darian sus partes del oro plata, y joyas que se huviesse, y encomiendas de Indios
despues de pacificada.’ Bernal Diaz, Hist. Verdad., 13. Mark here the promise of
encomiendas to the volunteers. The word ‘doblar’ doubtless meant to explore or to
sail round the new islands. Bernal Diaz does not fail to observe that the royal
license had not yet arrived to warrant these proclamations.
[84] See Landa, Rel. de Yuc., 23; Tapia, Rel., in Icazbalceta, Col. Doc., ii. 554;
Fancourt, Hist. Yuc., 27, leaves out the middle sentence; Gomara, Hist. Mex., 15;
Torquemada, i. 364, and others give only the Spanish translation. Prescott says
the flag was of velvet, and attributes the sign to the labarum of Constantine, which,
to say the least, is somewhat far-fetched. Bernal Diaz, Hist. Verdad., 13, places
the motto upon ‘estandartes, y vanderas labradas de oro cõ las armas Reales, y
una Cruz de cada parte, juntamente con las armas de nuestro Rey.’
[85] ‘Se puso vn penacho de plumas con su medalla de oro.’ Bernal Diaz, Hist.
Verdad., 13. ‘Tomo casa. Hizo Mesa. Y començo a yr con armas, y mucha
compañía. De que muchos murmurauan, diziendo que tenia estado sin señorio.’
Gomara, Hist. Mex., 13.
[86] Cortés himself was very liberal in advancing money or necessaries.

Puertocarrero, loc. cit. This cavalier received a horse which Cortés bought at
Trinidad with gold fringes taken from his mantle. Bernal Diaz, Hist. Verdad., 14.
‘Dio a muchos soldados ... dineros con obligaciõ de man comun.’ Gomara, Hist.
Mex., 12.
[87] Las Casas, Hist. Ind., iv. 450-1; Herrera, dec. ii. lib. iii. cap. xi. Bernal Diaz,
Hist. Verdad., 13, relates the incident as having occurred on the way to Sunday
mass. The fool, whom he calls Cervantes, was walking in front of his master and
Cortés, uttering nonsense in prose and rhyme; finally he said in a louder voice, ‘By
my faith, master Diego, a nice captain have you chosen: one who will run away
with the fleet, I warrant, for he has courage and enterprise.’ Duero, who walked

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Chapter 05 - Ethics in International Business

International Business Competing in the

Full download at link:

Solution Manual: https://testbankpack.com/p/solution-manual-

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Ethics in International Business 5

Learning objectives • Explain how managers can

• Identify the causes of

This chapter looks at ethics in international

First, some of the more common areas where

The opening case explores the ethics of

OUTLINE OF CHAPTER 5: ETHICS IN INTERNATIONAL BUSINESS

Opening Case: Exporting Used Batteries to Mexico

Ethical Issues in International Business

Management Focus: Making Apple’s iPod

Management Focus: Unocal in Myanmar

Management Focus: Corruption at Daimler

The Roots of Unethical Behavior

Philosophical Approaches to Ethics

Focus on Managerial Implications

Critical Thinking and Discussion Questions

Closing Case: Working Conditions in a Chinese Factory

CLASSROOM DISCUSSION POINT

In ethical terms, what are the differences in these behaviors?

OPENING CASE: Exporting Used Batteries to Mexico

Another Perspective: To learn more about Mexico’s lead-emissions standards, go to

Slide 5-3 What Is Ethics?

Slide 5-4 Ethical Issues in International Business

Slides 5-5 and 5-6 Employment Practices

Slides 5-7 and 5-8 Human Rights

Slide 5-9 Environmental Pollution

Another Perspective: Consumers International {http://www.consumersinternational.org/}

Slides 5-10 and 5-11 Corruption

Slides 5-12 and 5-13 Moral Obligations

Slide 5-14 Ethical Dilemmas

The ethical obligations of a multinational corporation toward employment conditions,

Slides 5-15 through 5-18 The Roots of Unethical Behavior

In a company with an organizational culture that de-emphasizes business ethics, all

Slide 5-19 Philosophical Approaches to Ethics

Slides 5-20 and 5-21 Straw Men

Slides 5-22 and 5-23 Utilitarian and Kantian Ethics

Slide 5-24 Rights Theories

Slide 5-25 Justice Theories

Slides 5-26 through 5-34 Ethical Decision Making

It is important to recognize that employees in an international business may need

Slide 5-35 Summary of Decision-Making Steps

CRITICAL THINKING AND DISCUSSION QUESTIONS

QUESTION 3: Under what conditions is it ethically defensible to outsource production to

ANSWER 3: This question is likely to stimulate some lively discussion, particularly if

QUESTION 4: Are facilitating payments (speed payments) ethical?

QUESTION 5: A manager from a developing country is overseeing a multinational’s

CLOSING CASE: Working Conditions in a Chinese Factory

ANSWER 1: Companies involved in international business face these difficult issues on a

ANSWER 3: Student answers will vary to this thought-provoking question. Global

However, these global companies need to continue to communicate their expectations in

Title: Are Western Consumers Willing to Pay More for Apparel?

Discussion Questions and Answers

1. Consider the allegations by factory workers in Cambodia. Why do so many workers

2. Discuss Cambodia’s growing dependence on the garment industry. What challenges

Answer: Ken Loo of the Cambodian garment manufacturing association representing

Title: Hazardous Manufacturing

[71] In De Rebus Gestis Ferdinandi Cortesii, in Icazbalceta, Col. Doc., i. 326-7, it

The Quality of Leader Desired—Instructions Issued to Hernan Cortés,