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Exhibit 15.8: A Code of Conduct for the Multinational Company

Exhibit 15.8: A Code of Conduct for the Multinational Company

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Exhibit 15.8: A Code of Conduct for the

Multinational Company



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Exhibit 15.8: A Code of Conduct for the

Multinational Company



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Exhibit 15.8: A Code of Conduct for the

Multinational Company



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Exhibit 15.8: A Code of Conduct for the

Multinational Company



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Exhibit 15.8: A Code of Conduct for the

Multinational Company



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Exhibit 15.8: A Code of Conduct for the

Multinational Company



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Two Basic Rationales for the

Code of Conduct for the

Multinational

•• Basic

Basic deontological

deontological principles

principles dealing

dealing with

with human

human

rights

rights

•• History

History ofof experiences

experiences inin international

international business

business

interactions

interactions

•• However,

However, despite

despite the

the existence

existence ofof extensive

extensive

agreements,

agreements, multinationals

multinationals may

may not

not always

always follow

follow

ethical

ethical principles.

principles.



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Why Multinationals Might Not

Follow Ethical Principles

••

••

••

••



Governments

Governments make

make agreements

agreements

The

The agreements

agreements have

have only

only voluntary

voluntary compliance

compliance

Not

Not all

all governments

governments subscribe

subscribe toto the

the agreements

agreements

Each

Each agreement

agreement isis an

an incomplete

incomplete moral

moral guide

guide toto the

the

company

company



Copyright© 2005 South-Western/Thomson Learning All rights reserved



“Best Practices” Steps

••

••

••

••



Leading

Leading by

by example

example

Making

Making ethics

ethics part

part ofof the

the corporate

corporate culture

culture

Involving

Involving employees

employees atat all

all levels

levels

Setting

Setting and

and monitoring

monitoring goals

goals



Copyrightâ 2005 South-Western/Thomson Learning All rights reserved



Best Practices Steps









Effective

Effective integration

integration inin business

business processes

processes

Open

Open discussion

discussion ofof ethics

ethics and

and other

other ethical

ethical issues

issues

Governments

Governments make

make agreements

agreements



Copyright© 2005 South-Western/Thomson Learning All rights reserved



The Ethical Dilemma in

Multinational Management:

How Will You Decide?

•• Ethical

Ethical relativism

relativism vs.

vs. Ethical

Ethical universalism

universalism

•• Ethical

Ethical relativism:

relativism: each

each society’s

society’s view

view ofof ethics

ethics must

must

be

be considered

considered legitimate

legitimate and

and ethical

ethical

•• Ethical

Ethical universalism:

universalism: basic

basic moral

moral principles

principles that

that

transcend

transcend cultural

cultural and

and national

national boundaries

boundaries

Difficulty

Difficulty inin following

following either

either ethical

ethical relativism

relativism or

or

universalism

universalism

Copyrightâ 2005 South-Western/Thomson Learning All rights reserved



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Exhibit 15.8: A Code of Conduct for the Multinational Company

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