1) Read Chapter 14 in the required textbook about the concept of "International Business Ethics", which is about ethics for global companies.
2) Access and read this study about the NIKE CORPORATION and pay special attention to Pages 9-21:
The Promise and Perils of Globalization: The Case of NikeMIT Working Paper, 2002https://ipc.mit.edu/sites/default/files/2019-01/02-007.pdf
QUESTION 1: From pages 9-21 in the case about NIKE, what is one ethical concept that you see that the NIKE corporation had the worst problems with?
QUESTION 2: Based on your response for Question 1, what solutions do you agree with that the NIKE corporation did well to solve their ethical problem?
Slide 1 Chapter 14 International Business Ethics © 2012 Pearson Education, Inc. All rights reserved. Introduction • More and more business is being conducted across national boundaries • Intense competition and profitable opportunities are – Forcing companies worldwide to enter the global marketplace © 2012 Pearson Education, Inc. All rights reserved. Different Standards • The main charge against multinational corporations is that – They adopt a double standard • Things they doing in less-developed countries are regarded as wrong if done here • Many criticized practices are legal in the countries in question © 2012 Pearson Education, Inc. All rights reserved. Absolutism versus Relativism • Absolutism – Business should be conducted in the same way everywhere with no double standards • Relativism believes that the only guide for business conduct abroad is – What is legally and morally accepted the given country where a company operates © 2012 Pearson Education, Inc. All rights reserved. Setting Wage Standards • In developed countries wages and working conditions are set – From the competition among employers for desirable workers • which compels them to offer high wages and good working conditions © 2012 Pearson Education, Inc. All rights reserved. What is Bribery? • A bribe is a payment made with a – Intention to corrupt – Accepted in a way that is corrupting • The Foreign Corrupt Practices Act forbids American corporations to offer bribes. © 2012 Pearson Education, Inc. All rights reserved. Strategies for Combatting Bribery • Alter the role of government in the economy. – Limit the government involvement – Increasing the prominence of free markets © 2012 Pearson Education, Inc. All rights reserved. Strategies for Combatting Bribery • Reform in civil service – More selective recruitment and better training • Building a more professional civil service – Increase pay • Reduce the temptation among low-paid officials to demand or accept bribes © 2012 Pearson Education, Inc. All rights reserved. Strategies for Combatting Bribery • More careful selection of government projects – Eliminate projects that are most vulnerable to bribery – Closely monitoring the projects that go forward © 2012 Pearson Education, Inc. All rights reserved. The Foreign Corrupt Practices Act • Facilitating Payments or Grease Payments – Made to expedite the performance of routine governmental action – Are legally permitted and are not constituted as bribes under the FCPA – Do not encourage anyone to violate a duty © 2012 Pearson Education, Inc. All rights reserved. Engagement versus Nonengagement • Constructive Engagement – Although human rights abuses do occur the company is making a positive contribution that • Would not occur in its absence • Nonengagement – Occurs when a company chooses not to enter a certain country