Globalization of Ethical Decision-Making

Nation's culture: Values are subjective, shaped by social and economic institutions to develop norms.
National culture includes tangible items (artifacts) and intangible entities (concepts, values).
International business transactions often involve differing values and beliefs.
Organizational culture is distinct but influenced by national culture.
Hofstede's cultural dimensions:
- Individualism/collectivism: The degree of self-orientation.
- Power distance: Inequality between superiors and subordinates.
- Uncertainty avoidance: Response to uncertainty or ambiguity.
Self-reference criterion (SRC): Unconsciously judging through one’s own cultural lens.
Cultural relativism: Morality varies; definitions of right and wrong differ between cultures.
Global common values:
- Desirable: Integrity, family unity, equality, honesty, sharing.
- Undesirable: Ignorance, greed, deceit, hypocrisy.

Global financial markets lack transparency and accountability.
Risk compartmentalization: Profit centers may overlook broader consequences.
Economic stability is influenced by supply and commodity price fluctuations due to political events.

Capitalism: Emphasizes free markets (Adam Smith), state intervention (Keynes), deregulation (Friedman).
Socialism: Equal distribution of wealth and power; influenced by Marxism and communism.
Rational economics: Predictable behavior, utility maximization.
Behavioral economics: Human actions are influenced by emotions and learned behaviors.
Bimodal wealth distribution: Shrinking middle class, increasing wealth concentration.

Multinational corporations (MNCs): Operate globally without nation ties;
faced with ethical dilemmas like job outsourcing and resource distribution.

International Monetary Fund (IMF): Short-term loans, regulates monetary relationships.
United Nations Global Compact: Advocates for human rights, sustainability.
World Trade Organization (WTO): Oversees trade agreements and dispute resolution.
Dumping: Selling products at low prices in foreign markets while overcharging domestically.

Global Ethical Risks: Political instability, power imbalances, social unrest impact foreign investments.
Bribery: Acceptance varies by country; U.S. prohibits foreign official payments under FCPA.
Antitrust activity: Encouraging fair competition.
Internet Security: Increasing hacking and privacy issues.
Human Rights: Defined by UN as inherent dignity.
Health Care: Key ethical issues include access, affordability, and patents.
Labor Rights: Fair compensation and union rights.
Consumerism: Belief in prioritizing consumer interests in economic structure.