Role of Ethics in Global Business Decisions

Environmental responsibilty

Offshore labour

Outsourcing

reduced costs

Staff loyalty

Public Image

Recycling supplies, waste and being more efficient with resources

Working in a sustainable business with natural methods of lighting, heating and cooling is better for employees.

Satisfied and happy employees increase the overall moral of the business which in turn increases productivity and decreases absenteeism.

Businesses promote CSR to differentiate and a customer is more likely to support a 'Green' business.

Businesses should

Make environmental sustainability a part of business plan and of CSR as well as reducing their impact on the environment

In developing nations

Governments in lower developed countries might accept MNC's because they want to increase jobs.

Governments in developing countries wanting MNC's may not have comprehensive industrial relations legislation or choose not to enforce legislation. This leads to sweat shops.

Can create ethical dilemas

The poor are marginalised and do no have a voice

In developed nations

Honesty and fairness is valued within businesses

Unethical businesses may lose customers in developed countries

Also a financial basis for ethical businesses practices.

The contracting or non-contracting of non-core activities to free up cash, personal, time, and facilities for activities in which a company holds competitive advantage.

Often an integral part of downsizing or re-engineering.

Examples: BHP outsourcing for their IT because it's not their 'specialty'