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Ethical Leadership

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ETHICAL DECISION

MAKING IN BUSINESS

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Utility Does it optimize the satisfaction of all?

Rights

Does it respect the rights of individualsinvolved?

Justice

Is it consistent with the canons of justice, laws

or company policy?

•Are there any overriding factors?

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A Businessman’s Personal

Responsibility

Annual Meeting with Corporate Attorney

Rollout to all Employees

Signed Agreement on Understanding of

Ethical Behavior

Agreement Filed with Human Resources andLegal

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A Businessman’s Personal

Responsibility Personal conduct

Privacy of information

Unauthorized voice or

data communications Conflict of interest

Inside information andsecurities investment

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Copyrighted works andproprietary information

Espionage andsabotage

Company records andcompany property

Fair competition andantitrust laws

Government classifiedinformation

Export control laws

Foreign economicboycotts

Company funds

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The Media and It’s Effect on

Business

Philippines

TV coverage of troops leaving

Joint venture decision at board

Vietnam

US Embargo on all business

MIA team in country

Secret task force of businessmen

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PRC

Joint venture discussions-2 years Tiananmen Square-TV event

Decision on pulling out

Turkey

Joint venture partner selected Financial crisis in local press

Largest competitor-Chapter 11

Palestine

US Govt. and business together Peace process falls apart

Largest competitor in discussions

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International Ethics Cases in 10Countries

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Taiwan

Successful Joint Venture

Need for Local Supplier

Managing Director Chooses Relative

Keep the Business in the Taiwan Family

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Thailand

Successful Sales Operation Successful Agent

Thailand Stock Market like Gambling

No SEC or Similar Controls

Agent Gives Managing Director Tips toSucceed in Stock Trades

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Italy

Government Encourages Local Acquisition ofCompany

Negotiations Go on for Months

Chief German Competitor Sends Funds to

Political Party

American Companies Cannot Make SimilarContributions

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Russia

Successful Services Joint Venture in Moscow

Additional Local Personnel Must be Hired

Russian Management Hires Relatives First

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Ukraine

Joint Venture Proposed in Odessa

Initial Payments Collected from Customers

Bank Selected by Ukrainian Partners

Money Laundering Occurs Through OurAccounts

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Korea

Long-standing Joint Venture with MajorCompany

Joint Factories and Joint Supply Warehouse

Korean Company Uses USA Components in

Korean Equipment

Equipment Shipped to Embargoed Country

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Hong Kong

Chinese Salesmen Have Company Car

Company Car is Part of Sales Compensation

Car Given to Wife as a Perk for Personal Use

During the Week

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Poland

Telecom Acquisition Encouraged by PolishGovernment

First Three Countries in Market Join a Cartel

Collaboration is to Protect Geography Pricing is Key Issue to Discuss or Not to

Discuss

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Ghana

All Business Involves the Use of Agents

Agent Fees are Out of Range

Advice from US Ambassador and CommerceDepartment

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USA

Top Sales VP Sponsors Award Event High-priced Gifts Bought for Spouses and

Guests

Cost Buried in Cost of Overall Event -GiftItems Not Identified

Voucher Meets Budget Projection

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Ethical Standards Tested Every Day

Have to Take a Stand Based on YourPersonal Ethics

Tested Every Day by Decisions Your People

Make Foreign Corrupt Practice is Rule of Law

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