Summary International Management - lectures, book & theories Questions and Answers (Distinction)

Business Ethic - -A part of the broader concern for ethical behavior, which affects people and their welfare -Ethics deal with the - -"shoulds" of life - the rules and values that determine actions people should follow when dealing with other human beings -International Business Ethics - -unique ethical problems faced by managers operating across national boundaries. -International business ethics differ from domestic business ethics in two ways - --International business is more complex, as different cultures do not agree on what one "should" do. -MNCs often have power and assets that are equal to foreign governments, raising more ethical concerns over the use of such power. -Corporate Social Responsibility (CSR) - -the idea that businesses have a responsibility to society beyond making profits -CSR is - --closely related to business ethics. -concerned with ethical consequences of company policies and procedures. -Practicing CSR, a business must take into account the - -welfare of other constituents in addition to stockholders -Primary Stakeholders - -those who are directly linked to a company's survival; (i.e., customers, suppliers, employees, and shareholders) -Secondary Stakeholders - -those who are less directly linked to the company's survival, but have impact; these include the media, trade associations, and special-interest groups -Teleological ethical theories - -Morality of an act based on consequences -Utilitarianism - -greatest good for greatest number -Deontological ethical theories - -Actions are good or bad in and of themselves -Contemporary philosophy - -Moral Languages -Six basic ethical languages - --Virtue and vice -Self-control -Maximizing human welfare