Business Ethics and Corporate Social Responsibility

What is business ethics?

 It encompasses the moral principles and values that guide how businesses operate and
make decisions.
 Examples include honesty, fairness, and respect for stakeholders.
Why are business ethics important?
 They build trust among customers, employees, and partners.
 They enhance a company's reputation.
 They contribute to long-term success and sustainability.
What is Corporate Social Responsibility (CSR)?
 It involves companies going beyond profit-making to engage in practices that benefit
society and the environment.
 Examples include environmental sustainability initiatives, ethical labor practices, and
community involvement.
Why is CSR important?
 It aligns with and can enhance a company's financial performance.
 It strengthens relationships with stakeholders.
 It contributes to a positive social and environmental impact.
Key Components of Business Ethics and CSR:
1. Integrity:
o Upholding ethical and moral principles consistently.
o Being honest and transparent in business dealings.
2. Fairness:
o Treating all stakeholders equitably.
o Avoiding discrimination and favoritism.
3. Respect:
o Valuing employees, customers, and the community.
o Protecting human rights and the environment.
4. Responsibility:
 o Being accountable for the impact of business decisions.
o Addressing social and environmental concerns.
Ethical Decision-Making:
1. Identify the ethical issue.
2. Consider the stakeholders involved.
3. Evaluate potential courses of action.
4. Make a decision and take action.
5. Reflect on the outcome.
Incorporating Business Ethics and CSR into Practice:
1. Develop a code of ethics.
2. Provide ethics training to employees.
3. Establish a CSR committee.
4. Set measurable CSR goals.
5. Engage with stakeholders.
6. Report on CSR performance.
Important Considerations:
 Business ethics and CSR are essential for building a sustainable and responsible business.
 Ethical behavior and social responsibility contribute to a company's long-term success
and reputation.
 Companies should strive to integrate ethical considerations into all aspects of their
operations.

International Business and Trade

1. Globalization and International Marketing
 Levels of Globalization: Globalization operates at different levels, including global,
regional, and local.
 Glocalization: The adaptation of global products or services to fit local markets.
 International Marketing: Marketing strategies tailored to different countries or regions,
considering cultural and consumer preferences.
 The 7Ps of Marketing: Product, Price, Place, Promotion, People, Process, and Physical
Evidence.
2. Multinational and Transnational Companies
 Multinational Companies (MNCs): Operate in multiple countries, often with
subsidiaries or branches in each country.
 Transnational Companies (TNCs): Integrate and coordinate operations across borders,
adapting to local needs while maintaining global efficiency.
3. Entrepreneurship and Intrapreneurship
 Entrepreneurship: The process of identifying, developing, and bringing new ideas to
market, often involving risk-taking and innovation.
 Intrapreneurship: Similar to entrepreneurship but occurs within an existing
organization, where employees develop innovative ideas and projects.
4. The International Financial System
 Hegemony: A dominant state that exerts influence or control in international relations
and the global economy.
 Functions of Money: Money serves as a medium of exchange, unit of account, store of
value, and standard of deferred payment.
 Exchange Rate Systems: Determine the value of one currency against another.
o Flexible Exchange Rate: The rate is determined by supply and demand in the
foreign exchange market.
o Managed Float Exchange Rate: The government intervenes to influence the
currency's value.
5. International Relations
 Unilateralism: A country acting independently in its foreign policy.
 Multilateralism: Countries working together through international organizations or
agreements.
 Additional Concepts in International Business and Trade:
1. International Trade:
o Exports: Selling goods or services to foreign markets.
o Imports: Purchasing goods or services from foreign markets.
o Benefits of Exports: Increased profitability, access to new markets, economies of
scale.
2. Financial Sector Assessment Program (FSAP):
o A joint program of the International Monetary Fund (IMF) and the World Bank.
o Assesses the stability of a country's financial sector.
o Provides recommendations for strengthening financial institutions and
regulations.
3. Financial Technology (Fintech):
o Technological innovations that are changing the financial industry.
o Examples include digital currencies, blockchain, mobile payments, and online
lending platforms.
o Impacts cross-border payments, investment, and regulatory frameworks.
4. Myths about Entrepreneurship:
o Entrepreneurs are always solo visionaries.
o Entrepreneurs achieve instant success.
o Entrepreneurs take unnecessary risks.
Key Organizations in International Business:
 World Health Organization (WHO): A specialized agency of the United Nations
responsible for international public health.
 International Monetary Fund (IMF): Promotes global monetary cooperation and
financial stability.
 World Bank: Provides financial and technical assistance to developing countries.