The Four International Codes Of Ethics In Global Management

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Register to read the introduction… These codes were developed by the: International Chamber of Commerce. Organisation for Economic Cooperation and Development. International Labor Organisation. United Nations Commission on Transnational Corporations. Getz has integrated these four codes and organized their common underlying principles, thereby establishing MNE behavior toward governments, publics (any group, with some common characteristic with which an organization needs to communicate), and people (Getz, 1990). Taking all this into account, I shall proceed to explain the meaning of ethics and the role of managers for good management, the different views of ethics, & the factors that affect ethical behavior, followed by ethical issues in global management. 1.3 Ethics and the Role Managers Ethics deals with human action.It can be considered as philosophy,philosophical thinking about morality,moral problems and moral judgements. Ethics can also be defined as a study of what is good or right for human beings,what goals people ought to pursue and what actions they ought to perform. We are guided by our sense of maorality based on a combination of beliefs and values,stemming from individual and societal ideologies along with the various eastern and western religious cultures. All managers need to be aware that while they may be employed by an organization as its representative or decision maker, they bring with them entities; people,not organizations, make decisions. Organizations exist within society and as such should be bound by the expectaions and moral codes of that society and contribute to its betterment as well as furthering its own interests. 1.4 The Different Views of Ethics Utilitarianism – in this view you approach an ethical problem using the question, “Which course of action will do the most good and the least harm?” This view is based on the ideas of Jeremy Bentham …show more content…
Those norms are based on broadly accepted guidelines in religion, philosophy, the professions, and the legal system. Rules and Values The American approach is to treat everyone the same by making moral judgments based on general rules. Managers in Japan and Europe tend to make such decisions based on shared values, social ties and their perception of obligations. Variation of Standards The biggest single problem for MNCs in their attempt to define a corporate-wide ethical posture is the great variation of standards of ethical behavior around the world. U.S. companies are often caught between being placed at a disadvantage in doing business in some countries by refusing to go along with accepted practices, or being subject to criticism at home for going along with them to get the job done. Ethical Limits Whereas the upper limits of codes of ethics for international activities are set at any given time by the individual standards of certain leading companies, it is more difficult to set the lower limits of those standards. Laczniak and Naor explain: The laws of economically developed countries generally define the lowest common denominator of acceptable behavior for operations in those domestic markets. In an underdeveloped country or a developing country, it would be the actual degree of enforcement of the law that would, in practice, determine the lower limit of permissible behavior. (Laczniak and Naor, 1985) Questionable Payments A specific ethical issue for managers in the international arena is that of questionable payments. These are business payments that raise significant questions of appropriate moral behavior either in the host nation or in other nations. Such questions arise out of differences in laws, customs and ethics in various countries - whether the payments in question are political payments, extortion, bribes, sales commissions or “grease money” (payments to expedite routine transactions). Making the Right Decision What is the

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