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Chapter 12 Global
Business Ethics
Managing Organizations in a Global
Economy: An Intercultural Perspective
First Edition
John Saee
Copyright  by South-Western, a division of Thomson Learning. All rights reserved.
International organizations must
be concerned with how they
carry out their business and
social responsibility in other
nations. This is because ethical
behavior of businesses has
become a major issue throughout
the world.
How are Ethics Learned?
Ethics are basically learned by
members of a given society through a
number of channels including:

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
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Family groups
Religious beliefs
Educational institutions
Reflection of social values, for example,
as expressed through media
Moral Philosophies and Their
Relevance to Business Ethics
Teleology
 Deontology
Theory of Justice
 Cultural Relativism
Teleology
It tends to advocate that a behavior or
action is acceptable in a society for as
long as it produces desired outcomes.
Two key teleological
philosophies: Egoism and
Utilitarianism.
Egoism
 It is primarily based on the pursuit of
individual self-interest.
Utilitarian View
 The goal of utilitarianism is about
maximizing the greatest good for the
largest number of individuals.
Deontology: The Theory of
Rights
Is an ethical theory holding that acting
from a sense of duty rather than
concern for consequences is the basis
for establishing our moral obligation.
Doing the “right thing” is a universal
moral duty.
Theory of Justice
Be equitable
Be fair
Be impartial
Cultural Relativism in Ethical
Decision Making
There is no single right way;
therefore, people should not impose
their own standards and values on
others.
Business Ethics Defined
 Business ethics are the standards for
conduct perceived as right and moral
by individuals within an enterprise,
taking into account the human
welfare of those affected by
decisions and behavior (Holt 1998).
Ethical versus Legal Behavior
 As long as businesses abide by laws
relating to their operations, then they
have conducted themselves ethically.
Put simply, if the law is not breached,
is it moral ???
Why are Business Ethics Needed?
To prevent businesses from abusing
the rights of the general public.
To protect employees from being
subjected to unethical practices.
To ensure businesses remain
economically viable by complying to
the value system of a society.
Why are Business Ethics Needed?
To act as major motivator for ethical
employees.
To protect business itself from
unethical practices of employees.
Ethical Dilemmas in Business
Practices around the Globe
Bribery
False Information
Dealing with Competitors
Gender Equality
Environmental and Ecological
Concerns
Social Responsibility
Corporate social responsibility reflects
an organization's obligation to conduct
business in a way that safeguards the
welfare of society as it pursues its own
interests (Holt 1998).