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Transcript
Business 303 Sheppard Business Society & Ethics, Week 10: Global Ethical Dilemmas BUSINESS ETHICS WEEK 10: MAIN QUESTIONS 1. Why & how are ethics different internationally? 2. What is the Relativism vs. Universalism debate? 3. Donaldson’s Hypernorms: A solution to the Relativism vs. Universalism debate? 4. What is the UN Global Compact? Wk. 9-2 1. Global: International diplomacy International diplomacy at the Global Level Influencing other countries Sending peacekeepers Canada's P.M. Lester B. Pearson led negotiations that established the U.N. Emergency Force in Nov. 1956. Pearson won a Nobel Prize for convincing the world that putting neutral military forces between the 2 opposing sides would be a way to ensure that a negotiated ceasefire held. 2. Organizational: Globalization Globalization & outsourcing • International HR practices • Internationally influencing governments / being influenced by them. • • Shell in Nigeria ~1997: complying with brutal government • Starbucks: branding includes international aid • Microsoft: from evil giant corp. to international philanthropist? • Blood Diamonds? 3. Individual: Ethical decision-making • Bribery • Consumer choices • Negotiation • Ethical decision-making • Intellectual property 4. What Drives Global Differences in Ethics? Culture Economic Development Wk. 10-6 4b. Cultural effects on ethics (1 of 2) Geert Hofstede’s Cultural Dimensions of International Bus. • Individualist vs. collectivist approaches to deciding who to hire? • ‘feminine’ vs. ‘masculine’ approaches to the environment? • High vs. low power distance approaches to responsibility for ethical decisions? Wk. 10-7 4b. Cultural effects on ethics (2 of 2) Kohlberg’s Model of Moral Development across Cultures ? • 1 - Obedience & Punishment • 2 - Individualism & Reciprocity These work in • 3 - Interpersonal Conformity almost all • 4 - Social System/Law & Order cultures • 5 - Social Contract These • 6 - Universal Ethical Principles don’t Wk. 10-8 Individualist, Western values. 4c. Economic Development & How it affects Ethics • Higher levels of econ. development higher standards of ethics • Maslow’s hierarchy of needs Wk. 10-9 5. Universalism vs. Relativism (1 of 3) • Big debate: – Are there Universal rules & Ethics – Or are all ethics relative to culture? • Answer: something in the middle Tom Donaldson Wk. 10-10 5. Universalism vs. Relativism (2 of 3) • Most readings centre on this debate. • Midgley’s argument against relativism: – Results in an inability to judge anything, including relativism, since relativism is a judgment against making condemnations of other cultures. – It’s Internally inconsistent: If one culture believes it’s okay to condemn others cultures, by relativist standards, there’s no way to tell them to stop. 5. Universalism vs. Relativism (3 of 3) • Donaldson’ arguments against absolutism (his term for universalism): - Not respectful - Ignores local context (e.g. economic development) - Assumes one set of concepts overrides all others. 6. Donaldson’s Hypernorms Model Moral Free Space From a Corporate Perspective: All Ethical dilemmas or problems • Allow local units to adapt to local standards • Support efforts to decrease corruption Hypernorms • Corporate standards as absolutes • Conditions of acceptance of buyers/ suppliers • Support efforts to decrease corruption Wk. 10-13 7. Donaldson’s Hypernorms (1 of 4) (aka core human values) 1) Respect for human dignity 2) Respect for basic rights 3) Good citizenship More specifically… Wk. 10-14 7. Donaldson’s Hypernorms (2 of 4) 1) Respect for human dignity – Treat people as ends in themselves Eg. corporate culture that respects customers & suppliers Eg. safe products, services & workplace Wk. 10-15 7. Donaldson’s Hypernorms (3 of 4) 2) Respect for basic rights • Support & protect rights of employees, customers & community • Avoid relationships that violate human beings’ rights to health, education, safety & adequate standard of living Wk. 10-16 7. Donaldson’s Hypernorms (4 of 4) 3) Good citizenship • Support essential social institutions, eg economic system, education system • Work with host government / other organizations to protect the environment. Now that we know that universal principles may exist, let’s look at a plausible source: Wk. 10-17 8. U.N. Global Compact (1 of 7) • UN Global Compact – the ten universal principles fall within four categories: – Human Rights – Labour Standards – Environment – Anti-Corruption Source: http://www.unglobalcompact.org/ Wk. 10-18 8. U.N. Global Compact (2 of 7) • Founded in 1999 by Kofi Annan - International ethics guide managers should know it. - Currently 2,900 firms signed in over 100 countries: - Eg. Bayer, BMW, BP, Cadbury, eBay, HP, Microsoft, ING, Nokia, Starbucks, Sun Microsystems, Unilever, VW • Vision: a more sustainable & inclusive global econ. - Companies use it as a platform to develop their own specific codes of conduct. - Companies publish how they are promoting the ten principles in annual report. - Non-enforceable Bluewash or a first step for UN to reach into world of business? Wk. 10-19 8. U.N. Global Compact (3 of 7) Sample Companies… • • • • HP (USA) Cosco (China) Tata Motors (India) Volkswagen (Germany) Wk. 10-20 8. U.N. Global Compact (4 of 7) Human Rights • Principle 1: Support & respect the protection of internationally proclaimed human rights; and • Principle 2: Do not comply with others in human rights abuses. Wk. 10-21 8. U.N. Global Compact (5 of 7) Labour Standards • Principle 3: Uphold freedom of association; • Principle 4: Eliminate forced labour; • Principle 5: Abolish child labour; and • Principle 6: Eliminate discrimination in employment. Wk. 10-22 8. U.N. Global Compact (6 of 7) Environment • Principle 7: Support a precautionary approach to environmental challenges; • Principle 8: Promote greater environmental responsibility; and • Principle 9: Encourage development & diffusion of enviro-friendly technologies. Wk. 10-23 8. U.N. Global Compact (7 of 7) Anti-Corruption • Principle 10: Work against all forms of corruption, including extortion & bribery. Wk. 10-24 9. Applications • • • • Yahoo in China Nestle infant formula The latest version of Wal-Mart What else… ? Bye Bye