2025_21514AU Week 3 Lecture

UTS BUSINESS SCHOOL

• Provider Code: UTS CRICOS PROVIDER CODE: 00099F 21514

• Course: Introduction to International Business Week 3

• Topics Covered: Ethics, Social Responsibility, and Sustainability

LECTURE RE-CAP

• Environment's influence on International Business:

  • Economic Environment: Economic systems

  • Political Environment: Ideology, political system, indicators

  • Legal Environment: Types of law and related issues

  • Technology Environment: Future technologies

LECTURE DESIGN

• Session Structure:

  • Introduction (L1)

  • Country Analysis (PESTLE)

  • Ethics, Social Responsibility and Sustainability (L3)

  • Economic, Political and Legal Considerations (L2)

  • Organizational Culture (L5)

  • Country Culture (L4)

  • Global Integration vs. Local Responsiveness (L7)

  • Organizational Structures (L8)

  • Managing Political Risks (L9)

  • Cross-culture Communication (L6)

  • Motivation and Leadership Across Cultures (L10)

  • International Human Resource Management Issues

  • Firm-specific challenges

QUESTIONS TO BE ANSWERED

1. Definition of Ethics

2. Evaluating Business from an Ethical Perspective (Ethical Theories)

3. Concept of Corporate Social Responsibility

4. Major Ethical Problems for Multinational Companies

5. Sustaining Sustainable Companies / ESG Concept

3.1 ETHICS

• Definition: Study of morality and standards of conduct.

• Cultural Relativism:

  • Ethical standards are shaped by cultural context.

  • No universal moral application due to varying cultural norms.

3.1.1 ETHICAL DILEMMAS

• Framework for identifying ethical issues:

  • Wrong vs. Right situations in business scenarios.

SHAREHOLDER VS. STAKEHOLDER PRIMACY

• Shareholder Primacy: Maximize profitability for shareholders.

• Stakeholder Primacy: Balance interests of all stakeholders.

A STAKEHOLDER VIEW OF FIRM

• Foundation in organizational ethics based on Donalson and Preston's theory.

3.1.1 ETHICAL DILEMMAS IN BUSINESS

• Key ethical conflicts include:

  • Employment practices

  • Human rights in the workplace

  • Corruption

  • Environmental concerns

3.2 ETHICAL THEORIES AND PHILOSOPHY

• Ethical Philosophical Traditions:

  • Kantian Ethics

  • Utilitarianism

  • Aristotelian Virtue Ethics

  • Eastern Philosophy

3.2.1 KANTIAN PHILOSOPHY

• Entities have responsibilities beyond self-interest.

• Ethical choices should imply a universal rule.

3.2.2 ARISTOTELIAN VIRTUE ETHICS

• Focuses on character formation and individual behaviors.

• Emphasizes social practices that contribute to good character.

3.2.3 UTILITARIANISM

• Actions judged by consequences, aiming for the best balance of good over bad.

• Issues arise in measuring benefits and considerations of justice.

3.2.4 EASTERN PHILOSOPHY

• Emphasizes integral human universality and long-term perspective.

3.2.5 IMPLICATION OF ETHICAL THEORIES IN BUSINESS

• Evaluating business decisions based on ethical standards.

3.3 CORPORATE SOCIAL RESPONSIBILITY (CSR) VS. ETHICS

• CSR: Voluntary actions to benefit society.

• Ethics: The study of morality, inclusive of legal considerations.

3.4 MAJOR ETHICAL PROBLEMS FACED BY INTERNATIONAL COMPANIES

• Human Rights Concerns:

  • Basics include life, freedom, and nondiscriminatory practices.

• Labor Policy Issues:

  • Challenges in establishing universal employment standards.

3.5 SUSTAINING SUSTAINABLE COMPANIES / ESG

• Sustainability: Meeting current needs without compromising future generations.

• Triple Bottom Line: People, Planet, and Profit

3.5.1 ESG ELEMENTS

• Environmental: Strategies addressing climate and biodiversity

• Social: Human rights, labor practices

• Governance: Compliance and ethical business practices

SUSTAINABLE DEVELOPMENT GOALS

1. No Poverty

2. Zero Hunger

3. Good Health

4. Quality Education

5. Gender Equality

6. Clean Water

7. Affordable Energy

8. Decent Work Growth

9. Reduced Inequalities

10. Sustainable Cities

11. Climate Action

12. Partnerships for Goals

3.6 CORPORATE SUSTAINABILITY GOVERNANCE

• Governance structure ensures alignment between business and sustainability objectives.

• Regular reporting and accountability practices established.

LESSONS LEARNED FROM H&M

• Importance of aligning business goals with social and environmental strategies.

• Transparency and stakeholder focus are critical for success.