Ch 2: Managing Interdependence

  • The Social Responsibility of MNCs

    • CSR- an action that appears to go beyond the social good (environmental, social welfare, philantrophy, ethical labor)

      • Ex. Nike’s feminist iniative

    • Corporate Social Responsibility Dilema

      • Profit is MNCs only goal

        • Innovated products, making profit

      • MNCs should solve and anticipate social needs

      • Can a company truly be successful if they don’t focus on the greater good

      • Do you want to focus on profit or solving social problems

      • Internation CSR is more difficult than domestic CSR

    • Business Benefits from CSR

      • Improved access to capital

        • Tesla committed to sustainability and they got millions

      • Secured license to operate

        • Ford invested in electric vehicles

      • Revenue increase and cost and risk reduction

      • Improved brand value and reputation with customer attraction and retention

        • People being against shein or temu because of their bad reputation

      • Improved employee recruitment, motivation, and retention

    • Confusion about Cross-Cultural Dilema

      • Engaging stakeholders in a dialogue

      • Establishing principles and procedures for addressing difficult issues such as labor standards for suppliers, environmental reporting and human rights

      • Adjusting reward systems to reflect the company’s committment to CSR

    • General Guidelines

      • Moral Universalism

        • Addressing the need for a moral standard that is accepted by all cultures

        • Applied a universal standard to all countries

        • Ex. Child labor and fair wages

      • Ethocentric Approach

        • Applying the morality used in home country-regardless of the host country’s system of ethics

      • Ethical Relativism

        • Adopting the local moral code of whatever country in which a firm is operating

    • Creating shared value

    • International Code of Conduct

      • The Sweatshop Code of Conduct

        • developed by PResident Clinton

        • Provides healthy work environment, fair wages, and no child labor

      • Electronic Industry Code of Conduct

      • Social Accountability 8000

      • Guidelines for MNCs developed by:

        • International Chamber of Commerce

        • Organiz

  • International Business Ethics

    • Refers to the business conduct or morals of MNCs in their relationships with inviduals

    • Ethics vary based on cultural value system and gernerally accepted ways of doing business in each soceity

    • Corporations face ethical dilmnas

      • New Zealand is the least corrupt country in the world