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* * * * * * * * * * * * * * * * * * * ? 2007 Prentice Hall, Inc. All rights reserved. 5–* Ethics in an International Context Ethical standards are not universal. Social and cultural differences determine acceptable behaviors. Foreign Corrupt Practices Act Makes it illegal to corrupt a foreign official yet “token” payments to officials are permissible when doing so is an accepted practice in that country. The Global Compact ? 2007 Prentice Hall, Inc. All rights reserved. 5–* Exhibit 5–11 The Global Compact Human Rights Principle 1: Support and respect the protection of international human rights within their sphere of influence. Principle 2: Make sure business corporations are not complicit in human rights abuses. Labor Standards Principle 3: Freedom of association and the effective recognition of the right to collective bargaining. Principle 4: The elimination of all forms of forced and compulsory labor. Principle 5: The effective abolition of child labor. Principle 6: The elimination of discrimination in respect of employment and occupation. Environment Principle 7: Support a precautionary approach to environmental challenges. Principle 8: Undertake initiatives to promote greater environmental responsibility. Principle 9: Encourage the development and diffusion of environmentally friendly technologies. Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery. Source: Courtesy of Global Compact. ? 2007 Prentice Hall, Inc. All rights reserved. 5–* How Managers Can Improve Ethical Behavior in An Organization Hire individuals with high ethical standards. Establish codes of ethics and decision rules. Lead by example. Set realistic job goals and include ethics in performance appraisals. Provide ethics training. Conduct independent social audits. Provide support for individuals facing ethical dilemmas. ? 2007 Prentice Hall, Inc. All rights reserved. 5
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