Business Ethics Cultural and Economic Standards

Prepared by Fatima Solon

Why should businesses accept a universal standard?

A UNIVERSAL STANDARD per se means a benchmark or rule or regulation
that is accepted and followed by the members of a global and globalizing community

Answer: to SURVIVE and MAINTAIN interpersonal, inter-communitarian and cross-cultural relationships

Why should business accept a universal standard?

Issues that need a universal ethico-moral standard:
False advertising Child Labor Job Discrimination Sexual Harassment Issuance of Bouncing Checks Misrepresentation Rice Cartel

Technology Piracy
Corruption Stock Market Manipulation

Tax Cheating
Fraudulent Dealing

Are bad practices the same as cultural values?

Bribery

Guanxi

a popular culture in China Gift-giving that shows

respect to another person

A common unethical act Gift-giving with done in secret and without external evidence as much as possible Objective is to buy something of the other party which should not be bought or paid bought personal connection

Objective is to strengthen
interpersonal relationships

earned personal connection

Are bad practices the same as cultural Are bad practices the same as cultural values? values?
Answer: Bad practices should not be mistaken as cultural values. Cultural values are open and transparent even if not always accepted by other groups or communities. Bad practices are often conducted under-the-table or in secret due to the objectives that lay behind them.

Business Ethics and Legal Compliance

Prepared by Fatima Solon

What is the Bhopal industrial accident?

On December 2, 1984 a
company in East Asia had a deadly methyl isocyanate gas stored in a tank and was furiously boiling that night when some chemicals entered the tank

What is the Bhopal industrial accident?

Emergency valves exploded

and white toxic gas began shooting out of some big pipes. The towns Jaipraksh and Chola where infected by the lethal cloud causing spasms, burns, blindness, lesions, bronchial blockage and death to the citiznes.

What is the Bhopal industrial accident?

Over 2000 people were

dead and 200,000 were injured. This happened in a Union Carbide pesticide plant located in Bhopal, India.

What is the Bhopal industrial accident?

Answer: The Bhopal Industrial accident was

considered to be the worst industrial accident in human history.

For business to be ethical it is NOT ENOUGH to follow the law. Why not?

Requirements for all industries - Legal includes observance of the law - Ethical includes social and moral responsibility

For business to be ethical it is NOT ENOUGH to follow the law. Why not?

Answer: There are laws which are fairly low in standards

when it comes to protecting the community. It is the job of the company to provide for the weakness of such law because it is its responsibility to the community. That is the difference between business ethics and legal compliance.

What is law?
Answer: Traditional definition: Law is the ordinance of reason promulgated by someone in authority for the common good. It is not a recommendation or suggestion. It is obligatory.

It is PERSUASIVE.
It is reasonable, supported with study, evaluation and logic. Thus, IGNORANCE OF THE LAW EXCUSES NO ONE.

It is COERCIVE.
It is imposed. One can get arrested, be fined or imprisoned. It is promulgated, broadcasted, disseminated, published and made known to everyone.

What is law?

The law is for the common good and not

for the good of any individual or of a few.