ethics in business negotiations
DESCRIPTION
This is a project work about Ethics, Global Codes of Ethics and its influence on business negotiations!TRANSCRIPT
Prof Dr. Helen Rogers
Hofmann SarahJurado AlejandraGöther RobertBarbuletiu AntoniaZaplatnikov Leonid
2009
Friedrich-Alexander Universität Erlangen-NürnbergLehrstuhl für Internationales Management
International Business Negotiations
Ethics in negotiations Global Code of Ethics Conclusion Sources Questions
See an example on
http://www.youtube.com/watch?v=4HC3xwlfcFM
Ethics in negotiations Global Code of Ethics Conclusion Sources Questions
Ethics in negotiations
Global Code of Ethics
Advantages and Feasibility
Organisations and Rankings
UN Global Compact
Conclusion
Sources
Questions
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Bribery
Buying information
Buying influences
Use instrumental communication
Use contracts and clauses
Be unloyal
Ethics in negotiations Global Code of Ethics Conclusion Sources Questions 5
Source: Ghauri, Ursunier: Intern. Bus. Neg., 2nd Ed.
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Is a formal written statementsformal written statements of the values and business practices of a firm.
Describes how employees are expected to carry out to carry out their duties their duties and conduct themselves.conduct themselves.
Across allall the world, in allall branches and companies. Across allall the world, in oneone global branch. Across allall the world, in oneone global company.
Ethics in negotiations Global Code of Ethics Conclusion Sources Questions
INTERNATIONAL TOBACCO PRODUCTS MARKETING STANDARDS
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Key topics:
Content restrictions
Media usage restrictions
Promotion standards
Why Global?
accepted by 3 biggest companies in a branch
acting all over the world
in all the countries and culturesSource: www.bat.com
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To be consistent To be consistent in a firm’s actions across different societies and situations
CongruenceCongruence in perceptions and expectations will certainly result in less ethical conflicts
IIt can give practical advicespractical advices before and during negotiations, such as...
Ethics in negotiations Global Code of Ethics Conclusion Sources Questions 9
Ethics in negotiations Global Code of Ethics Conclusion Sources Questions
Global code of Global code of ethics in IBNethics in IBN
Potential positive Potential positive consequencesconsequences
ConstraintsConstraints
• Individual level
• Organisational level
• Industrial level
• Cultural Dimensions
• Societal Level
““Could be feasible BUT...“Could be feasible BUT...“
By adressing these constraints a gloal code of ethics will be more acceptable in different countries.
By adressing these constraints a gloal code of ethics will be more acceptable in different countries.
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Source: Rallapalli, Kumar C
Ethics in negotiations Global Code of Ethics Conclusion Sources Questions
1.1. Individual Level Individual Level moral reasoning
2.2. Organisational Level Organisational Level corporate code of ethics
3.3. Industrial Level Industrial Level different practices
4.4. Cultural Dimensions Cultural Dimensions individualism / collectivism
power distance
uncertainty avoidance
masculinity / femininity
5. Societal Level Societal Level level of economic developement
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Source: Rallapalli, Kumar C
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U.S. Federal Corruption Practices Act 1977.
Anty-bribery laws apply extrateritorially.
Firms: internal audit control.
Illegal to influence foreign officials.
Claims: - competitive disadvantage for U.S. companies.
- Destabilisation of foreign regimes.
However american multinationals reduced substantially these practices.
Source: Ghauri, Ursunier: Intern. Bus. Neg., 2nd Ed.
FCPAFCPA
Ethics in negotiations Global Code of Ethics Conclusion Sources Questions
• Growing tendency of investigations
• Example: Universal Corporation
• On-Going Investigation because of illegal payments of subsidiarys in an amount of $ 1 million for 5 years
• Ethics complaint hotline
• Full cooperation of the Audit Commitee
• Possible no terrible penalisation because of business ethics policy
FCPAFCPA
Source: FCPA Digest of Cases
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Ethics in negotiations Global Code of Ethics Conclusion Sources Questions 14
Ethics in negotiations Global Code of Ethics Conclusion Sources Questions 15
Ethics in negotiations Global Code of Ethics Conclusion Sources Questions
Strategic policy initiative
10 principles10 principles for business: to human rights
labor standards
environment
anti-corruption
Largest corporate citizenshipcitizenship and sustainabilitysustainability initiative in the world
Over 47004700 corporate participants and stakeholders from over 130130 countries
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Source: www.unglobalcompact.org
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Source: Schwartz, Mark S.
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Ethics in negotiations Global Code of Ethics Conclusion Sources Questions
Business Ethics are an important factor in IBN.
Global Codes of ethics are possible, BUT...
Difficult implementation, has to consist of global values and specific behaviour (cultures, branches, economic development).
ConclusioConclusionn
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Ethics in negotiations Global Code of Ethics Conclusion Sources Questions
Certificatates (ISO) for ethics management, global certification of codes of ethics.
Importance of ethics growing tendency Ethics as a competitive advantagebetter differentiation, cost advantage.
ProposalsProposals
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Ethics in negotiations Global Code of Ethics Conclusion Sources Questions
Ghauri, Pervez N. ; Usunier, Jean-Claude: 2003, International Business Negotiations (2nd Edition), Pergamon, pp. 438-459
Newcomb, Danforth; Urofsky, Philip: 2008, FCPA Digest of Cases and Review Releases Relating to Bribes to Foreign Officials under the Foreign Corrupt Practices Act of 1977, Sherman & Sherman, pp. 4, 229
Rallapalli, Kumar C.: 1999, A Paradigm for Development and Promulgation of a Global Code of Marketing Ethics, Journal of Business Ethics 18, pp. 125-137
Schwartz, Mark S.: 2005, Universal Moral Values for Corporate Codes of Ethics, Journal of Business Ethics 59, pp. 27-44
Zabid, Abdul Rashid; Jo, Ann Ho: 2003, Perceptions of Business Ethics in a Multicultural Community, Journal of Business Ethics 43: pp. 75–87.
British American Tobacco Official Site, Int. Tobacco Products Marketing Standards http://www.bat.com/group/sites/UK__3MNFEN.nsf/vwPagesWebLive/DO52ADRK?opendocument&SKN=1 (stand 25.01.2009)
Ethisphere Institut Official Site, 2008 World’s Most Ethical Companies, http://ethisphere.com/wme2008/ (stand 17.01.2009)
10 Principles of the UN Global Compact, www.unglobalcompact.org/ AbouttheGC/TheTENPrinciples/index.html (stand 25.01.2009)
Films
Reitman, Jason (2005), Thank You For Smoking, FOX Searchlight
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