IBE(PGDM-PT)-2010-2013)

INTERNATIONAL BUSINESS ETHICS
PDBM- PT (2010-2013)
TERM -VIII

COURSE OUTLINE:
Global business with transnational operations and cross-cultural interaction has to operate in complex cultural environment, high risk of political interference and unstable socioeconomic system. The local laws, rights and duties varies from nation to nation. The growth and survival of international business depends on proper culture sensitive handling of (i) commercial stake holders (e.g.Suppliers,Competitors,Distributers,Retailoras),(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 careful about prevailing 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 formulate moral standards, which are rationally acceptable across the cultures.
Sessions:
Session:1
The definition of 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 Ethical and Legal Environment: MNCs Responsibility to Human Rights.
Session:5
The New World Order:It is not just free movement of goods ,services and capital acrossborders rather a positive contribution to host country's economic development.
Sessions:6,7&8
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). Cultural dimensions and its impact on international business environment.
Sessions:9&10
Business and Global Governance:World Intellectual Property Organization,Subjectivity in Transnational Governance, Global Climate Governance,Governing coruption through Global cooperation.
Sessions:11&12
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.
The Problem of Bribery and Gift.Cultural Capital:How to convert cultural capital into economic capital.
Sessions:13-15
Case Analysis
CASES:
1. The Road to Hell
2. Cultural Difference Doom a seemingly perfect Alliance Between Corning and Vitro
3. Is Information Technology Japan’s Achilles’ Heel?
4. Global Integration Vs: Local Differentiation Lessons to be learned from Successful MNCs.
5. Colgate’s Distasteful Toothpaste
6. Levi’s Takes Its Ethical Aspirations
7. Questionable Strategy at the Pebble Beach Golf Links: An International Investor Goes off Course
8. Gillette's Prescription for International Business Success: In-House Training and Expert Experience.
Source: The above eight cases are taken from Hodgetts, R.M and Luthans, F, International Management, McGraw Hill 1997.

9. Globalizing a Local Strategy: The Illy Caffe Company.(Global Management,pp669-673)
10. Global Localization: Congo’s Inc. in Japan.(Global Management,pp673-678)
11. Bhopal the cultural variable –-( Thomas Donaldson, Ethics of International Business,pp 110-115)
12. Motorola :Ethical Challenges in a Multicultural Environment ,by E.Brain Peach& Kenneth L.Murrell.(From;Strategic Management :Concept and Cases,Thompson andStrickland,12th ed. Tata McGraw -Hill,2001)

INTERNATIONAL BUSINESS ETHICS

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. 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 Ragionalization: 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 BusinessSchool Press,1999

REFERENCE BOOKS:
1. James C. Baker, et.al. (ed) International Business classics, Lexington Books, 1988.
2. Sundaram, Anant K. an Black, Stewart J: The International Business Environment, Prentice Hall 1955.
3. Hodgett, Richard M, and Luthans: 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. Daniels, John D. and Radebaugh Lee H, International Business: Environment and Operations, Addison Wesley, 2000.
8. Hibbert P.Edgar, International Business: Strategy and Operations, Macmillan,London 1997.
9. Mead Richard, Internatinal Management, Blackwell, Massachusetts, 1999(2nd.edition).
10. John J et al. (Ed) Labour, Environment and Globalisation, New Age International (P) Publishers, New Delhi, 1996.

Evaluation
Quizzes: 20%

Case Analysis: 20%

Assignments: 20%(term paper on challenges and oppotunities of globalization:socio-cultural and ethical issues).
End Term: 40%