11 Global Ethics
What is Global Business Ethics?
What is the Nature of Differences in Ethics?
Key Global Ethical Issues
Labor Issues
• Labor issues: the many ethical dilemmas pertaining to labor.
• Women workers and their rights: key ethical issues pertaining to the employment of
women by multinationals.
Bribery
• Bribery also refers to gifts or payments to someone to expedite a government action or to
gain some business advantages.
• Two major reasons for ethics concerns:
o First, companies put themselves at serious financial risk if they engage in bribery.
• The World Bank argues that bribery often creates obstacles to doing business.
o As multinationals consider foreign investment decisions, they may be dissuaded
because of bribery demands.
• Companies typically make up for bribery by increasing the contract price by the amount
of the bribe.
• Corruption and bribery usually result in higher public spending, lower-quality projects,
undermined competition, and the inefficient allocation of resources.
• The OECD members’ ratified guidelines to combat bribery:
o Members agree to take measures to make bribery a criminal offense.
o Members are expected to provide legal assistance to each other to prosecute
nationals who are engaged in bribery.
• Reason-to-know provision: a firm is liable for bribes or questionable payments made by
agents hired by the firm, even if members of the firm did not actually make the payments
or see them being made.
Multinational Ethics: Going Local or Global?
What Can Multinationals Do to Become More Ethical?
Codes of Ethics
Whistle-Blowing