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Copy of Global

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Dorothy Cheung

on 21 October 2013

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Transcript of Copy of Global

Global Economics Environment
Ethics in International Business

Question 1
“Exporting Used Batteries to Mexico”
Question 2
Closing case “Working Conditions in a Chinese Factory”
What is Business Ethics?
Question a
What enables the owners of the Metai factory profiled in this case to get away with such awful working conditions?
Question b
Should U.S. companies like Microsoft, Dell, and Hewlett-Packard be held responsible for working conditions in foreign factories that they do now own, but where subcontractors make products for them?
Question c
Do you think the U.S. Companies mentioned in this case need to make any changes to their current policies?

If so, what?
a) Why certain types of environmental pollution can be characterized as a “global tragedy of commons.”
Employment Practices
Eliminate Outsourcing suppliers
Global tragedy of commons:
- brings private benefits
- has adverse global consequences -> pollution originates
General Contractors/ Contract Manufacturers/
Metai Factory in Guangdong
Group Four

Chu Ka Kin , Stephen
Chung Cheuk Kei , Cheryl
Cheung Ting Ting , Dorothy

Working Condition
Living Condition
Are U.S companies recycling acting to
a socially and ethically
responsible way?
Weak law and control
High Standard
Damage the nervous system, kidneys, and reproductive system
Should the companies in Mexico be held to the higher standards the United States demands?

Adhere to international environmental standards

Consider the standard for employee’s blood level and its working condition
Voluntarily follow U.S. recycling standards, even though it puts them at a cost disadvantage
Will you pay more for a new battery or to have your old battery recycled if Johnson Control passed these additional costs on to the consumer?
Promotion the concept of enterprise conscience to these companies
Reduce the need to consume natural resources
Helps conserve important metal and protects natural habitats for the future
- Atmospheric pollution
Global Warming
- emission of carbon dioxide -> green house effect
- trap heat & reflect back

- Largest carbon dioxide emitter
- Decline in the economy

the production cost-> competitiveness
- Unfair
b) When it came to the Kyoto protocol on reducing the emission of greenhouse gases, why did developed countries like USA, Australia etc. refuse to act independently and ratify the protocol in the absence of guarantees by developing countries like China, India etc. to substantially regulate their own greenhouse emissions?
Large emitter of CO2 :China, India-> exempted
Refuse to sign -> private benefits
Greenhouse gas : remain same level
Global warming
(c) International businesses frequently find themselves facing ethical dilemmas. Define an ethical dilemma.
Ethical Dilemmas

Give a specific example of a
scenario where the adoption of a uniform ethical code by international businesses that is blind to the prevailing conditions in the host country could lead to an ethical dilemma?
Alternatives are not ethically acceptable
Child Labor
1) Hiring and promote

people with personal ethics
2) Ethical

organizational culture
3) Leaders act out

ethical theories
Hire underage labor ->
Save production cost
Children perspective:
Earn a living
= >
Hire child labour
Other Factory
Other Factory
Metai Factory in Guangdong
Moral Consideration
Rights Theories
Unrealistic Performance
Human Rights
Punishments to U.S. companies upon accuse of exploiting freedoms from suppliers on their production chains
Should they make changes even if they hinder their ability to compete in the marketplace?
Social Responsibility
Moral Obligation
Give back positive message to the society
Warm Glow effect
Provide a collective 'warm-glow' to employees

Increase loyalty and productivity

Increase competitiveness in the marketplace
Prevail business ethics
Moral consideration
How does this contribute to the global tragedy of commons?
Poor working environment
Consider their own interest

Accepted principles of right or wrong governing the conduct of individuals engaged in business activity
Social Responsibility
Concept which people and companies should recognize the social consequences of any economic decisions

Follow the regulation of lead in Mexico
Third largest exporter to Mexico
Exported 67,000 metric tons (147,400,000 pounds) of batteries in 2010.
Operating its own smelter in Mexico, M3 Resources’ facility is five miles from the U.S. – Mexico border. (New York Times)

Health Problem
Water pollution
Air pollution
Reference List
Hill, Charles W.L., Krishna Udaysankar and William Hernandez Requejo,Global Business Today,8th Global Edition,New York: McGraw-Hill/Irwin, 2011

Lead From Old U.S. Batteries Sent to Mexico Raises Risks , New York Times

Daniels, J.D., L.H. Radebaugh and D.P. Sullivan, International Business: Environments and Operations , 11 th Edition, London: Prentice - Hall, 2004.

Friedman, T.L., Hot, Flat, and Crowded , New York: Farrar, Straus & Giroux, 2008.

Stiglitz, Joseph, Globalization and Its Discontent , London: Penguin Books, 2002

Worse job
Force into prostitution
See thing from different perspective
Full transcript