ETHICS, CORPORATE SOCIAL RESPONSIBILITY, & SUSTAINABILITY

INTRODUCTION Ethics - accepted principles of right or wrong that

govern the conduct of a person, the members of a profession, or the
actions of an organization.

 Business ethics - accepted principles off right or wrong governing

the conduct of business people
 Ethical strategy - a strategy or course of action, that does not
violate these accepted principles.

Corporate social responsibility (CSR) - is a strategy undertaken by

companies to not just grow profits, but also to take an active and
positive social role in the world around them.

Sustainability - refers to the ability to maintain or support a process

continuously over time. In business and policy contexts, sustainability
seeks to prevent the depletion of natural or physical resources, so that
they will remain available for the long term.

Ethical Issues in International Business

Many of the ethical issues in international business are rooted in the

fact that political systems, law, economic development, and culture
vary significantly from nation to nation. What is considered normal
practice in one nation may be considered unethical in another. In the
international business setting, the most common ethical issues
involve

 employment practices,
 human rights,
 environmental regulations,
 and corruption.

EMPLOYMENT PRACTICES When work conditions in a host nation

are clearly inferior to those in a multinational’s home nation, which
standards should be applied?

HUMAN RIGHTS Basic human rights still are not respected in many
nations. Rights taken for granted in developed nations, such as
freedom of association, freedom of speech, freedom of assembly,
freedom of movement, freedom from political repression, and so on,
are by no means universally accepted.

ENVIRONMENTAL POLLUTION Many developed nations have

substantial regulations governing the emission of pollutants, the
dumping of toxic chemicals, the use of toxic materials in the
workplace, and so on. Those regulations are often lacking in
developing nations, and according to critics, the result can be higher
levels of pollution from the operations of multinationals than would be
allowed at home.