INTERNATIONAL BUSINESS ETHICS

INTERNATIONAL BUSINESS ETHICS
PGDM-BM-(2011-2013)
TERM -VI

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
International Business:An Over View
International business ethics: The foundation to built robust corporations that ensures operation at optimum efficiency.

Session:2
Impact of Globalization on Management Thought: Ethnocentric, Poly centric and Geocentric. management style.
Entry Strategies of International Business:First Order and Second Order Entry.

Session:3
The Ethical and Legal Environment: MNCs Responsibility to Human Rights.
The New World Order:It is not just free movement of goods ,services and capital acrossborders rather a positive contribution to host country's socio-economic development.
Sessions:4&5
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:6
Cultural dimensions and its impact on international business environment.
Sessions:7
Governing coruption through Global cooperation.
Human rights, Intellectual property right
Sessions:8
Objectivity in Transnational Governance:Responsibility of developed countries

Sessions:9
How to manage the Cultural values when ethics travels?,Cultural matrix, and the iceberg of culture
Sessions:10&11
The Integrated Social Contract Theory(ISCT) of Donaldson&Dunfee.
Application of ISCT model for ethical consistency.

Sessions:12&13
Contribution of local culture(LC) to globalization:Authentication and institualisation of LC for economic valu.
Cultural Capital:How to convert cultural capital into economic capital.
Sessions:14&15
Global Envrironmental Crisis: Plantary Humanism
Sessions-16-20
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)

Text Book:Deresky Helen,International Management:Managing Across Border,
Pearson, New Delhi 2011

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%