INTERNATIONAL BUSINESS ETHICS
EXPGP III (2008-2011)
TERM -IX
(10- 26 January 2011)
COURSE OUTLINE:
Global business with transnational operations and cross-cultural interaction has to operate in complex cultural environment, high risk of political interference and wavering market conditions. The local laws, rights and duties vary from nation to nation. The growth and survival of international business to a great extent depends on proper understanding of socio-economic system of the host country. A culture sensitive handling of the following three types of strakeholders is required to carry out international business. (i)Commercial Stake-holders (e.g.Suppliers, Competitors, Distributors, Retailers),
(ii)Host culture, standardards and values (e.g. Local employees, Pressure groups, Host country Government, Host country community, Host country Environment),
(iii) Home culture (Domestic) standards and values (e.g. Domestic country employees, Shareholders, Domestic country customers, Domestic Government).
So International Business as a field of study has ethical implication of more complex kind than what a business enterprise confined to a specific country has. In order to conduct business in an international context special care has to be taken about the value systems of both the home and host country. One has to be extra cautious about customary moral standard of different geographical regions.
This course aims to discuss some basic concepts of international business and will critically examine the cultural environment of international business. It will sensitize the students to different dimensions of culture and culture specific value system. This course will help students to properly handle the ethical issues and follow the standards, which can be rationally acceptable across the cultures. They will be able to recognize and respect the certain practices which are very deeply held and widely shared in an alien culture. Sessions: Session: 1 Understanding international business.
Why study international business ethics? Session: 2 Key Entry Strategies of international business: First Order and Second Order Entry. Session: 3 Impact of Globalization on Management Thought: From Ethnocentric to Geocentric. Session: 4 The New World Order: It is not just free movement of goods, services and capital across borders rather a positive contribution to host country's economic development. Sessions: 5&6 Concept and Dimensions of Culture: Definition of culture, Identification of major dimensions of culture (Both Hofstede and Trompenaars' research findings will be discussed in the class). Sessions: 7 Cultural dimensions and its impact on international business environment. Sessions: 8&9 How to manage the Cultural values when ethics travels?
The Integrated Social Contract Theory (ISCT) of Donaldson&Dunfee.
Application of ISCT model for ethical consistency: Hyper Norms & Moral Free Space.
The Problem of Bribery and Gift. Sessions: 10 MNCs and their Responsibility to Human Rights. Sessions: 11- 15 Case Analysis and Article Review CASES: 1.Cultural Differences Doom a Seemingly Perfect Alliance Between Corning and Virto
2.The Road to Hell
3.Is Information Technology Japan’s Achilles Heel?
4.Global Integration Vs: Local Differentiation Lessons to be learned from Successful MNCs.
5.Questionable Strategy at the Pebble Beach Golf Links: An International Investor Goes off Course
6.Gillett’s prescription for International Business Success: In-House Training and Expat Experience.
7.Colgate’s Distasteful Toothpaste
8.Levi’s Takes Its Ethical Aspirations
9.Globalizing a Local Strategy: The Illycaffe Company.
10.Global Localization: Congnos Inc. in Japan.
11.Bhopal the Cultural Variable – Thomas Donaldson.
12.Motorola: Ethical Challenges in a Multicultural Environment. E. Brain Peach, Kenneth L. Murrell.
13.Lévi-Strauss and company, John E. Gamble,
14.Cultural Intelligence, by P. Christopher Earley & Elaine Mosakowski, HBR, Oct.04 Article
15.Norsk Hydro’s Utkal Venture in Orissa, India , by Siri AnnTerjesen, in International Management: Cross Boundary Challenges, by Paul Goode ham and Odd Nordhaug, Blackwell Publishing ltd 2003.
Cases 1 to 8 are from, Richard M. Hodgetts and Fred Luthans, International Management, McGraw Hill, 1997. Selected Articles: 1. Private morality and Capitalism: Learning from the Past, By Deepak Lal.
2. An Ethical Framework for the Global Market Economy, By Hans Kung.
3. Institutions & Morality: An Economist’s Appraisal, By Alan Halmlin.
4.Transformation of society: Implications for Globalization, By Jack N. N. Hebrman.
5. A Universal Culture of Human Rights & Freedom’s Habits: Caritapolis, By Michael Novak.
6. On The Political Relevance of Global Civil Society, By Richard Falk.
7. The Business Community: Social Responsibility & Corporate Values, By Robert Davies.
8. Global Social Justice: The Moral Responsibilities of the Rich to Poor, By Shirley Williams. Source: Making Globalization Good: Moral Challenges of Global Capitalism; edited by John H. Dunning, Oxford University Press, New York, 2003.
9.Distributive Justice as an International Public Good: A Historical Perspective, By Ethan B Kaptsein.
10.Global Justice: Beyond International Equity: By Amartya Sen.
11.New Strategies for the Provision of Global Public Goods: Learning from International Environmental Challenges, By Geoffrey Heal.
12.Knowledge as a Global Public Good, By Joseph Stiglitz. Source: Global Public Goods: International Cooperation in 21st Century, Edited by Inge Kaul, Isabell Grunberg and Marc A. Stern, Oxford University Press,New York,1999. READINGS: 1.Daniels, John D, and Radebaugh, Lee H, International Business: Environments and Operations, Addison Wesley 2000. (Text)
2.International Business Ethics: An Introduction – Dr. B.P. Patra
3.The International Business Environment: Introduction – Anant K. Sundaram J. Stewart Black. Prentice Hall, 1995.
4.Forces of Globalization – Anant K. Sundaram J. Stewart Black. Prentice hall, 1995.
5.The Ethical and Social Responsibility Environment of International Business – Anant K. Sundaram, J. Stewart Black
6.The cultural Environment of International Business, Anant K. Sundaram, J.Stewart Black
7.A Conceptual approach to International Business – Franklin R. Roof, in International Business classic, J.C. Baker et al. (Ed), Lexington Boxes, 1988.
8.The concept of culture – Maneck S. Wadia in International Business classic, J.C. Baker et.al. (ed.) Lexington Boxes, 1988.
9.Values in Tension: Ethics Away From Home – Thomas Donaldson, HBR, sept.- Oct. 1996
10.Ethics and Australian International Business which Way to Asia, Daniel W. Skubik, Journal of Business Ethics, Vol.14 1995
11.The Cultural Context for International management: Meanings and Dimensions of Culture, International Management, Hodgett, Richard M, McGraw Hill – 1997
12.First Act Locally then Globally – Amulya K.N. Reddy. Hindu Survey of Environment, 1995.
13.Critical Reflections on Globalization, James Petras and Chronic Polichroniou, EPW, Sept. 1997.
14.Globalization versus Regionalization: Which way for the multinationals? Allen, David and Kendall. American Management Association, New York. 1991.
15.When Ethics Travel, Donaldsons & Dunfee, Ties that Bind, Harvard Business School Press, 1999 REFERENCE BOOKS: 1.James C. Baker, et.al. (Ed) International Business classics, Lexington Books, 1988.
2.Sundaram, Anant K. And Black, Stewart J: The International Business Environment, Prentice Hall 1955.
3.Hogget, Richard M, and Lufthansa: International Management McGraw Hill, New York 1997.
4.Bartlett, C.A. and Sumant Ghosal: Managing Across the Borders: The Transnational Solution, Harvard Business School Press 1989.
5.Thomas Donaldson: The Ethics of International Business, Oxford University Press,1989.
6. Parker Barbara, Globalization and Business Practice: Managing Across Boundaries;Sage Publication, London, 1998.
7. John H. Dunning, Making Globalization Good: Moral challenges of Global Capitalism; edited by John Oxford University Press, New York, 2003.
8 .Daniels, John D. and Radebaugh Lee H, International Business: Environment and Operations, Addison Wesley, 2000.
9. Hibbert P.Edgar, International Business: Strategy and Operations, Macmillan, London 1997.
10.Mead Richard, International Management, Blackwell, Massachusetts, 1999(2nd.edition). Evaluation: Quizzes: 20%
Case Analysis: 20%
Assignments to be completed within the OCS (NOT TAKE HOME): 20% (term paper on challenges and opportunities of globalization: socio-cultural and ethical issues).
End Term: 40%