Chapter 4: Business Ethics in the Global Marketplace
Sample Discussion Answers
1. What are some of the key ethical questions facing companies doing business in a
global context? What is your view of how well business has done in facing and
addressing them?
While this is obviously not a complete list, some potential ethical questions that could be
mentioned include: global chain supply, product quality, competing cultural values, labor
2. What is a bribe? Why (and where) is it problematic? How is bribery different
from a grease payment? (p. 97)
The term bribe tends to refer to a particular type of gift that perverts judgment. This gift
presents a conflict of interest for an agent (bribee) who could be persuaded to stray from
pursuing the best interests of those represented.
Bribery has never been looked upon particularly positively in any culture or society.
Today, it is particularly problematic among poor developing countries as it appears that
corruption, poverty, and crime tend to go hand in hand. Estimates by various financial
organizations and international NGOs consistently find that corruption robs many
3. What are relativism (all four types), ethnocentrism, and principalism? Use an
example to illustrate how they are different. (p 99-100)
Relativism holds that all values are relative. This chapter primarily focuses on cultural
relativism, the idea that no one society’s values are superior to another’s – what is
“morally right” depends on each society’s mores (“When in Rome…”). But there are
Principalism is used here to refer to the spectrum of opinions that can fall somewhere in
between these two extremes. It is clear that neither relativism nor ethnocentrism gets it
right, but where one falls in between is a matter of great intellectual debate. Within
though it may be deplorable by our standards, we have no right to cast judgment on the
way of life of another people. An ethnocentric might argue that we do indeed not only
have the right to cast judgment on child labor, but also must judge it to be wrong and
But before the cultural relativist can chide the ethnocentric, one has to first ask what the
children and, more importantly, their parents would have wanted. Is it really the case that
the parents ultimately want their children to work in a sweatshop? Or is it more likely the
4. What are universal values and how are they (and Donaldson’s ethical algorithm)
helpful for sorting out how to act in a global economy? (p.102)
From our understanding of the relativist vs. ethnocentric debate, it seems that there is a
delicate path to tread between two undesirable extremes. There must be some way to
navigate the space in between. Universal values may provide guidance here. If a set of
5. In what ways are values and principles important for global markets as well as
investment decisions by firms? (p.105)
Values and principles are prerequisite for any market to function. Their role, however, is
often invisible and taken for granted. Take a moment, then, to consider the markets you
6. What other benchmarks exist for sorting out responsible from irresponsible
conduct? Which, in your view, are most helpful and which are problematic? Why?
(p. 108)
Davis Press and Meccan Madness*
Teaching Notes
Synopsis
Carol Davis, owners of a fledgling publishing company, is faced with the dilemma of
publishing a book that, while promising strong sales, may indirectly cause widespread
negative repercussions. The book in question, titled, Meccan Madness, comes after more
than a decade of conflict between the Western world and Muslim countries. In 1988,
Rushdie’s novel, The Satanic Verses, had created an uproar in Muslim countries, and a
fatwa was declared against Rushdie. Although the incident occurred almost 20 years ago,
it was still legendary in the publishing world. Since then, there had been the 1991 Gulf
War, the September 11, 2001 terrorist attacks on the World Trade Center, the subsequent
Objectives
“Davis Press and Meccan Madness” should stimulate student awareness to social and
cultural implications, both real and potential, of seemingly isolated business decisions;
and it underscores the subtle balance among freedom, rights, profit, and duty. The case
also seeks to facilitate an awareness and understanding of the increasingly complex and
extensive interactions between Western business endeavors and the Islamic world.
Meccan Madness is written as a case within a case. It describes the actual Rushdie
situation as a backdrop for Davis’s decision. The case presents the need for redefining
who the stakeholders of a firm are and for setting policy regarding responsibilities to
them in the context of unique circumstances. The context raises significant questions
about what option will be most likely to help her business financially, both in the short
and long term, as well as what she sees as her responsibilities to other stakeholders and to
moral ideals (e.g. like freedom of the press and not giving in to terrorist threats).
The problem is multi-faceted and involves at least some discussion of moral duty – to
whom the individual owes allegiance and why? Beyond its direct shareholders and
employees, does Davis Press have a responsibility to independent booksellers and
purchases? How about to the overall Muslim community in terms of respect for
individuals and their beliefs? Can Carol Davis anticipate adverse public reaction to this
book, and if so, should her decision take that reaction into account? What, if any,
obligation does she have to protect the free-speech rights of the author? Meccan Madness
is written for a Western audience, most likely non-Muslim. Does Davis have any reason
to take into account a population that is outsider that readership? In summary, with what,
exactly, should Davis be concerned in making her final decision?
Questions for Discussion
1. What is at stake in this decision for Carol and for Davis Press? Why?
2. Who are the stakeholders here? To whom (or what) does Davis owe her allegiance?
3. What factors were most important to you as you thought about the case, particularly as
potential concerns or as reasons to support a particular decision? How did the threat of
potential violence factor into your thinking?
4. Does and American publisher have a moral obligation to further free speech? What are
the limitations on free speech? Can the author have their free speech rights regardless of
whether Davis publishes the book or not?
5. What, if any, assumptions have we made about Islam? Are these assumptions sound
and how does our perspective change if we take a different view of Islam?
6. Make a decision – publish or don’t publish – and offer your best arguments for your
choice. Which stakeholders are you most concerned with addressing as you offer your
rationale?
Suggested Lesson Plan (85 minutes)
1. Question 1 (10 minutes): Open the floor to suggestions. At this point, it would be
valuable to get as many perspectives as the students can provide. This decision
2. Question 2 (15 minutes): This question aims to broaden perspectives as to who
and what would be affected by this decision. Davis Press as a company, Davis
3. Question 3 (15 minutes): This case aims to make students weigh and consider
competing factors in their thinking before arriving at a decision. It allows you to
dig into their thinking and what jumped out at them from reading the case and
4. Question 4 (15 minutes): What are the publisher’s obligations both towards
supporting freedom of the press while also maintaining social harmony? There
certainly seems to be an element towards not starting fires in crowded theatres,
5. Question 5 (10 minutes): This case provides an opportunity to reflect on our
assumptions about Islam and to challenge them. Try to help students see parallels
between Islam and other religions and avoid stereotypes that are both inaccurate
6. Question 6 (20 minutes): This provides an opportunity to bring the discussion
together and to crystallize student sentiment about the main two options on the
table – publish or not – and to think through the rationale for both sides. Students
* This teaching note is based on the teaching note prepared by Rosalyn Berne, Executive
Director of the Olsson Center for Applied Ethics and revised by Research Assistant Jenny
Questionable Payments
Teaching Notes
Synopsis
The questionable payments case provides a whole series of short scenarios, each of which
is based on real events, that should challenge students to think about whether the payment
in question is acceptable or not. Most of the scenarios come from contexts outside the
US, but most of the scenarios are things that could well happen domestically. The cases
cover everything from small payments to customs officials, to lavish entertainment
provided to company decision-makers, to pharmaceutical companies giving gifts to
physicians, to large payments to senior officials to win a contract.
Objectives
While bribery seems like a clear and simple term, it is often difficult to pin down in
practice – especially in a global business environment. Each of the scenarios is designed
to help students think through whether the particular payment involved constitutes a bribe
or extortion. Beyond getting more skilled in identifying what constitutes a bribe, the
scenarios should also push students to think more about good decision-making in
international business – what is at stake in these requests? As I use my framework for
decision-making, what issues emerge in this case that are important and which I have to
deal with in order to make a good decision? How might context, and where I’m
operating, play a role in thinking about what is right to do?
Questions for Discussion
1. What is bribery? Why is it a problem?
2. Why do we need to talk about this? What do you need to learn about this topic to
become better managers?
3. Which scenarios were most interesting for you? Which ones did you want to talk
about the most? Why?
4. What is at stake in this payment?
a. Who do I become if I make this payment?
5. What insights or wisdom can you share with your peers about how to handle
requests for bribes or questionable payments?
6. Who is harmed by bribery? What is it going to take to reduce the incidence of
bribery?
Suggested Lesson Plan (85 minutes)
1. Question 1 (10 minutes): push students to come up with a concise understanding
of bribery that makes sense – that isn’t just a rehash of the discussion in the
2. Question 2 (10 minutes): take some time to get them to talk about why this
matters for them and what about this discussion may be of help to them.
3. Question 3 (10 minutes): given that you likely won’t have enough time to go
through all the scenarios, it is helpful to get a sense of which ones the students
4. Question 4 (30 minutes): spend time letting the students talk through some of the
individual scenarios, thinking through the issues, how they relate to their
5. Question 5 (15 minutes): this is a chance to brainstorm about how to deal with
the challenges of doing business, especially in contexts where bribery may be
either an appealing or necessary part of doing business. What should you do?
6. Question 6 (10 minutes): push the students to think about the effects of systems
of bribery on key stakeholders. Studies show that the poor tend to be differentially
affected by bribery, that it tends to impede economic development and economic
growth, and that there are often clear and tangible harms that result from specific
bribes: for example buildings that collapse during an earthquake that otherwise
GE Healthcare in India
Teaching Notes
Synopsis
In 2006, GE became the largest provider of medical equipment in India. GE Healthcare’s
pioneering efforts in investing in a developing country and developing ultrasound
machines that are more mobile and affordable made many medical treatments accessible
to the poorer people of rural India. The company’s decision to invest in India by itself
made it easier for people who previously could not afford a sex-selective abortion to have
one. Additionally, critics argue that making the ultrasounds mobile so that they may
better reach more people in rural areas has also made them harder to monitor.
Objectives
We want to figure out what GE Healthcare should do in this situation and, in general,
what managers can learn from this case about working in countries with different social
norms. The case is complicated because there are controversies regarding what the social
Questions for Discussion
1. Should GE Healthcare have foreseen the abuses of its medical machinery?
2. What are the effects of ultrasound devices in India? Would the people of India
have been better or worse off without this technology?
3. Is the treatment of women in India an example of a regional social norm that
should be respected, or a violation of universal human rights? Justify your
4. Would restricting or eliminating the availability of ultrasound machines curtail or
eliminate the practice of female infanticide? If controlling the misuse of
5. What about GE Healthcare’s approach to its marketing? To what extent is that a
contributing factor in this situation? If so, how does it need to change?
6. What should GE Healthcare managers do to address this issue?
Suggested Lesson Plan (85 minutes)
1. Questions 1&2 (15 minutes): If GE should have foreseen the abuse of its product,
then it would have an obligation to take measures to safeguard against potential
abuses. If GE could not have reasonably been expected to predict the abuse of its
2. Question 3 (15 minutes): Companies working in the global marketplace often
find themselves condemned for complying with local human rights abuses or
condemned for imposing their values upon a local population. This question
should force students to navigate between the extremes of naive relativism and
3. Question 4 (20 minutes): Just as a good doctor should target the causes of a
disease and not the symptoms, any serious attempt by GE Healthcare to tackle this
problem needs to look beyond the immediately obvious manifestations of the
problem. For example, some economists suspect that many of the missing girls
died not from systematic abortions, but from systemic neglect as a consequence of
poverty. Poor families cannot afford much healthcare, so priority goes to the sons
and not daughters. Thus, through continued neglect, in poor families, girls have a
higher-than-average mortality rate. If it is the case that most of the sex gap can be
4. Question 5 (15 minutes): the specific sales tactics, the financing structures, and
the overall incentives that result from sales to different customers may end up
5. Question 6 (20 minutes): Let students consider GE Healthcare’s options. There
are many courses of action that GE can take. For example, a few of those options
may include:
a. Complying with the letter of the law
b. Actively seeking to change the lot of women
c. Programming ultrasounds to restrict access
d. Implementing greater oversight of the ultrasound machines (e.g.
background checks on doctors, monitoring, etc)
Virtually every proposed solution will have drawbacks. Complying with the codes
and statutes enacted by the Indian government is the least that the company can
GE Healthcare may try to be more discerning in its choices of locations to
operate. Some regions in India, such as Kerala, show no sex ratio gap and