Ethics in global
business
Navigating Ethical Challenges in a Globalized Economy
INDEX
• Introduction
• Cultural sensitivity in global business
• Preventing cultural appropriation and insensitivity
• Combating Bribery and Corruption
• Strategies to Prevent Bribery and Unethical Practices
• Upholding Human Rights
• Protecting Labour Rights and Preventing Exploitation
Introduction
What is Business Ethics?
Building Trust and Reputation:
• Enhances stakeholder confidence
• Strengthens Brand loyalty
Impact on long-term sustainability & success:
• Promotes sustainable practices
• Ensures regulatory compliance
Challenges unique to Global Operations:
• Cultural Diversity
• Complex regulatory environments
Cultural sensitivity in global business
q Understanding and Respecting Cultural Differences
• Recognize and value diverse beliefs, practices, and traditions.
• Essential for effective communication and strong relationships in global
markets.
q Importance of Local Customs and Traditions
• Acknowledging local customs fosters trust and collaboration.
• Adapt strategies to align with cultural norms for effective marketing.
q Avoiding Cultural Appropriation and Insensitivity
• Be respectful and mindful of cultural elements, using them ethically.
• Promotes inclusivity and respect, preventing misunderstandings in
international interactions.
Preventing Cultural Appropriation
and Insensitivity
q Definition - Using elements of a culture not your own
without understanding or respecting their significance.
q Examples in Business - Misusing cultural symbols in
marketing, or adopting traditional attire without context.
q Strategies to ensure cultural respect
• Ensuring Cultural Respect
• Partner with local communities
• Implement mandatory cultural sensitivity training
• Use inclusive decision-making processes
Combating Bribery and Corruption
1. Definition and Forms of Bribery and Corruption
• Bribery: Offering or receiving something of value to influence the actions of an
individual in a position of authority.
• Corruption: Abuse of power for personal gain, often involving bribery,
embezzlement, or other unethical behaviour.
• Forms
a) Kickbacks
b) Nepotism
c) Extortion
Combating Bribery and Corruption
2. Overview of Key Anti-Corruption Laws
• Foreign Corrupt Practices Act (FCPA)
• UK Bribery Act (2010)
3. Consequences of Engaging in Corrupt Practices
• Legal Consequences
• Reputational Damage
• Financial Impacts
Strategies to Prevent Bribery and
Unethical Practices
• Implement strict compliance programs.
• Train employees on ethical standards.
• Establish clear reporting mechanisms.
• Conduct due diligence on business partners.
• Promote transparency and accountability.
Upholding Human Rights
q Importance of human rights in global
business
§ Labour Rights
§ Fair wages
§ Justice for human rights
Protecting Labor Rights and
Preventing Exploitation
1. Core Labour Rights
. Freedom of Association
. Elimination of forced or compulsory labour
. Abolition of child Labour
. Elimination of discrimination
2. Preventing Exploitation
. Fair wages
. Safe working condition
. Opposition to forced and child labour
3. Corporate social Responsibility
. Ethical souring
. Fair trade initiative.
Protecting Labor Rights and
Preventing Exploitation
4. Challenges in Global supply chain
. Weak labour laws
. Hidden violations
5. Legal and Ethical Accountability
. United Nations Guiding principles on
Business and Human rights (UNGPs)
. National Laws and Regulations
6. The Role Of Consumers and Investors
7. Technological Tools for monitoring
Case Study: IKEA
Upholding Labor Rights in Global Supply Chains
How IKEA addressed Labour Rights.
1. Partnership with NGOs
2. IWAY Code of Conduct
3. Regular Audits and Monitoring
4. Supplier Training and Support
Promoting Fair Competition
Fair competition is competition that is based on
quality, price, and service rather than unfair
practices
Importance:-
1) Promotes Innovation
2) Ensures Lower Prices
3) Prevents Monopolies
4) Protects Consumers
Promoting Fair Competition
Examples of anti-competitive behavior:-
1) Price fixing- where companies collude to set prices,
effectively dismantling the free market by not engaging
in competition with each other.
2) Exclusive Dealings- where a retailer or wholesaler is
obliged by contract to only purchase from the contracted
supplier.
3) Dumping- also known as predatory pricing, is a
commercial strategy for which a company sells a product
at an aggressively low price in a competitive market.
