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Craig E. Johnson, Organizational Ethics, Third Edition
Instructor Resource
protesting abhorrent local customs
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•The Case for the Existence of Common Moral Ground
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•Punishment of crimes against humanity
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•Activities of responsible multinational corporations
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•Response to the “trolley problem”
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•Three Universal Ethical Standards
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•United Nations Universal Declaration of Human Rights
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•Global Business Standards Codex
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•The Caux Principles
United Nations Universal Declaration of Human Rights
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•Premise : Human rights are granted based on our status as persons
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•Protect inherent dignity of every individual regardless of background
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•Rights violations deny human value and potential
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•Key rights
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•Freedom from slavery
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•Freedom from arbitrary arrest and torture
Craig E. Johnson, Organizational Ethics, Third Edition
Instructor Resource
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•Freedom of movement
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•Property ownership
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•Freedom of thought, conscience and religion
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•Adequate standard of living
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•Right to an education
Global Business Standards Codex
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•Premise : business codes of ethics relect universal ethical principles
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•Universal Principles
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•Fiduciary principle: act on behalf of the company and investors
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•Property principle: respect and protect property of owners
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•Reliability principle: honor all commitments
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•Transparency principle: do business in a truthful manner
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•Dignity principle: respect the dignity of all who come in contact
with the business
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•Fairness principle: deal fairly with everyone
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•Citizenship principle: act as a responsible member of the
community
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•Responsiveness principle: engage with groups that have
Craig E. Johnson, Organizational Ethics, Third Edition
Instructor Resource
concerns about the company and work with other groups to beneit
society
The Caux Principles
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•Based on twin ethical ideals: kyosei (living and working together for
the common good) and human dignity (sacredness and value of every
person)
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•Principles
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•Principle 1. Respect stakeholders beyond shareholders
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•Principle 2. Contribute to economic, social and environmental
development
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•Principle 3. Build trust by going beyond the letter of the law
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•Principle 4: Respect rules and conventions
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•Principle 5. Support responsible globalization
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•Principle 6. Respect the environment
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•Principle 7. Avoid illicit activities
Resolving Ethical Cross-Cultural Conlicts: Integrated Social Contracts Theory
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•Social contracts spell out obligations or duties
Craig E. Johnson, Organizational Ethics, Third Edition
Instructor Resource
•
•Macrosocial contracts lay the groundwork for social interaction
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•Microsocial contracts govern relationships between members of
particular communities
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•Hypernorms serve as the ultimate ethical standards
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•Moral free space is the moral latitude of local communities to create
their own rules
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•Give priority to hypernorms and norms generated by larger
communities when making choices
Resolving Ethical Cross-Cultural conlicts: HKH Model
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•Designed to guide managers of multinational corporations
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•Six Questions
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•What is the Questionable Practice (QP) in this situation? (ethics
or customs?)
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•Does the Questionable Practice violate any laws that are
enforced?
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•Is the QP simply a cultural diference, or is it also a potential
ethics problem?
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•Does the QP violate the irm’s core values or code of conduct, an
industry wide or international code to which the irm subscribes, or a
irmly established hypernorm?
Craig E. Johnson, Organizational Ethics, Third Edition
Instructor Resource
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•Does the irm have leverage (something of value to ofer) in the
host country that allows the irm to follow its own practices rather
than the QP?
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•Will market practices in the host country improve if the irm
follows its own practices rather than the QP in the host country
marketplace?
