4 Ethics, CSR & Sustainability in International Business

Vocabulary flashcards cover key terms from the lecture on ethical, CSR and sustainability issues, their causes, and managerial responses in international business.

Ethics

Accepted principles of right and wrong that guide the decisions and actions of individuals and organisations.

Corporate Social Responsibility (CSR)

A firm’s voluntary commitment to operate in an economically, socially and environmentally sustainable manner beyond legal requirements.

Sustainability

Meeting present needs without compromising the ability of future generations to meet their own, balancing environmental, social and economic pillars.

Employment Practices

Work-related standards covering child labour, forced labour, wages, safety and non-discrimination within global operations.

Human Rights

Fundamental freedoms—e.g., speech, association, movement—expected to be respected by firms wherever they operate.

Corruption

Misuse of entrusted power for private gain, including bribery, extortion and nepotism.

Bribery

Offering, giving or receiving something of value to influence the actions of an official or business decision maker.

Extortion

Obtaining advantage through coercion, threats or force while abusing one’s power.

Nepotism

Favouring relatives or friends for jobs or contracts, abusing entrusted authority.

Environmental Pollution

Harmful contamination of air, water or land resulting from business activities such as toxic discharge or deforestation.

Tragedy of the Commons

Overuse and degradation of a shared resource because individual users act in their own self-interest.

Moral Obligation

The perceived duty of multinational enterprises (MNEs) to give back to societies that enable their growth.

Personal Ethics

An individual manager’s own moral principles that influence business behaviour.

Decision-Making Processes

Organisational routines and analyses that should integrate ethical considerations into choices.

Organisational Culture

Values and norms within a firm that shape employees’ behaviour, including attitudes toward ethics.

Unrealistic Performance Goals

Targets set so high that employees may feel pressured to meet them through unethical means.

Leadership (Ethical Context)

Top managers’ role in modelling and enforcing ethical behaviour throughout the organisation.

Societal Culture

National cultural dimensions (e.g., individualism, power distance) that influence a firm’s ethical emphasis.

Foreign Corrupt Practices Act (FCPA)

U.S. law prohibiting bribery of foreign officials to obtain or retain business.

OECD Anti-Bribery Convention

International agreement obliging member states to criminalise bribery of foreign public officials.

Facilitating Payments (Speed Money)

Small payments to expedite routine governmental actions; excluded from some anti-bribery laws but still ethically contentious.

Stakeholder Analysis

Systematic identification of all parties affected by a decision and assessment of potential impacts on them.

Moral Courage

Willingness to walk away from profitable but unethical actions and to speak up against wrongdoing.

Code of Ethics

Formal document outlining an organisation’s principles and standards of ethical conduct.

Noblesse Oblige

The notion that people or firms with power and privilege have a moral duty to act generously and responsibly toward the less fortunate.

Sustainable Strategy

Business approach that seeks profit while protecting the environment and promoting social responsibility for all stakeholders.