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Chapter 4: Ethics in International Business Decision Making Processes A moral compass can help determine whether a decision is ethical. If a manager can answer “yes” to the following questions, the decision is ethically acceptable. does my decision fall within the accepted values of standards that typically apply in the organizational environment? am I willing to see the decision communicated to all stakeholders affected by it? would the people with whom I have significant personal relationships approve of the decision? Chapter 4: Ethics in International Business A five step process can also help managers think through ethical problems: business people should identify which stakeholders (the individuals or groups who have an interest, stake, or claim in the actions and overall performance of a company) a decision would affect and in what ways Internal stakeholders are people who work for or who own the business such as employees, the board of directors, and stockholders. External stakeholders are the individuals or groups who have some claim on a firm such as customers, suppliers, and unions. Chapter 4: Ethics in International Business Then, managers need to determine whether a proposed decision would violate the fundamental rights of any stakeholders Next, managers need to establish moral intent (the business must resolve to place moral concerns ahead of other concerns in cases where either the fundamental rights of stakeholders or key moral principles have been violated) The company should then engage in ethical behavior Finally, the business must audit its decisions, reviewing them to make sure that they were consistent with ethical principles Chapter 4: Ethics in International Business Ethics Officers To ensure ethical behavior in a business, a number of firms now have ethics officers Moral Courage It is important to recognize that employees in an international business may need significant
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