BUSI 472 – Chapter 10
Global Business
brings together people from countries that have different
cultures, values, laws, and ethical standards
ISO 26000 & ISO 1400
ethics and social responsibility
Risk Compartmentalization
when various profit centers within corporations are
unaware of the consequences of their actions on the firm
as a whole
Multinational Corporations
accused of the misuse and misallocation of scarce
resources
Self-reference Criterion
the idea that "we" differ from "them"
Consumerism
interests of consumers, rather than those of producers
should be dictate the economic structure of a society.
Dumping
practice of selling goods in domestic markets at a high
price and selling them in international markets at a low
price, sometimes below cost
Behavioral Economics
people do not act rationally because of genetics, learned
behavior and heuristics, or rules of thumb.
Culture
everything in our surroundings made by people, both
tangible items and intangible concepts and values
Multinational corporations (MNCs)
are public companies that operate on a global scale
without significant ties to any one nation or region?
World Trade Organization
legally binding ground rules for international commerce
and trade policy
Global Compact
asks businesses to adhere to human rights and labor
standards defined in international treaties.
Bimodal Wealth Distribution
middle class shrinks, leaving a nation with its wealth
concentrated among the very rich and with large
numbers of poor people.
Made-to-Break
planned obsolescence, products are better for business in
that they keep consumers returning to buy more.
Vertical System
channel member has control of the entire business
system.
Business for Social Responsibility
trends and best practices; provides training and assists
organizations in developing practical business ethics
tools.
Rational Economics
people are predictable and will maximize the utility of
their choices relative to their needs and wants.
Cultural Relativism
morality varies from one culture to another.
Country Cultural Values
social environment, develop norms that are socially and
legally enforced.
National Culture
broad, tangible and intangible items like artifacts
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