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International Business Ethics and Incipient Capitalism: A Double Standard Richard De George • If ethical mores differ from society to society what rules do you follow? – Business ethics depend on the structure of a society – Business ethics is socioeconomic – Business ethics must take into account existing infrastructure BUSINESS IN RUSSIA • Translating from communism/socialism to capitalism – Legal system in flux – Basic norms should be honored (murder, extortion) – No need to reinvent just modify ethical norms – Corruption should be stopped now – Transition will be difficult – Some unethical acts may need to continue (bribery) Values in Tension: Ethics Away From Home Thomas Donaldson • CULTURAL RELATIVIST – Country has the right to establish it own health and safety regulations • ETHICAL IMPERIALISM – Do everything exactly the same as in their home country – Absolutists PROBLEMS WITH IMPERIALISM • Different cultural traditions must be respected • There is more than one set of concepts to define moral truth • Context helps shape ethical practices GUIDING PRINCIPLES • Respect for Core Human Values – Good Health – Right to Economic Advancement – Must not treat people as tools • Respect for Local Traditions • Context Matters STAGE OF ECONOMIC AND SOCIAL DEVELOPMENT • CONFLICT OF RELATIVE DEVELOPMENT • CONFLICT OF CULTURAL TRADITIONS CORPORATE GUIDELINES • Treat Corporate Values and Formal Standards of Conduct as Absolutes • Control Relationships with Suppliers and Customers • Allow Foreign Business Units to Formulate Ethical Standards • Support Efforts to Decrease Institutional Corruption • Exercise Moral Imagination