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Ethics in IB
Ethics in IB
International business impacts daily life around the world and also affects ethical decisions in business.
It is necessary to work in the global environment in an ethical and legal way in order to sustain effective global trade.
ethics
a set of moral principles by which people conduct themselves personally, socially, or professionally
a set of ideas about how a company business should conduct business in relation to ethics legal, social, and environmental issues
a statement that explains what a code of ethics company or group believes is proper and improper conduct
stakeholders
the various individuals or groups of people who have a direct interest, involvement, or investment in something
Local Level
People can buy products from firms around the world. Customers expect local businesses to keep up with local and international trends.
State and provincial governments seek ways to sell regional products globally. Businesses located in one state look to build relationships with international companies and national governments.
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National Level
Highly developed countries seek to keep a balance between exporting their products and importing products. Countries with few natural resources or goods to export have trouble with economic stability.
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International Level
Taxes and tariffs can be imposed on a country that is gaining an unfair advantage by pricing its exported products too low. A recession in one country can affect the economies of other countries.
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ethics a set of moral principles by which people conduct themselves personally, socially, or professionally
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Business ethics have to do with doing the right thing in business. Business ethics include practicing business legally, morally, and fairly.
business ethics a set of ideas about how a company should conduct business in relation to legal, social, and environmental issues
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Social Responsibility
To promote social responsibility, businesses can: 1. Eliminate negative activities. 2. Perform positive activities.
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Social Responsibility
code of ethics a statement that explains what a company or group believes is proper and improper conduct
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Stakeholders
stakeholders the various individuals or groups of people who have a direct interest, involvement, or investment in something
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Stakeholders
labor unions
employees
Stakeholders in a Business
suppliers
stockholders
customers
governments
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Stakeholders
Every ethical issue, from unfair wages to tax evasion, has a specific impact on a stakeholder group.
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Factors affecting ethical decisions include: The culture and history of a country Union issues Government regulations
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Consequences
Some consequences of unethical decisions include: Lawsuits Government intervention Jail Loss of business partners internationally Loss of customers
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Relate Do you think it is fair for one country to sell goods to buyers in other countries at much lower prices if companies in the sellers home country pay low wages to employees?
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Global business has expanded with the Internet, technology, and transportation. The growth of global business requires responsible action by businesses around the world.
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