Chapter 5, Ethics, Corporate Social Responsibility, and Sustainability Video Solutions, Global Business Today

Problem 1

A visiting American executive finds that a foreign subsidiary in a less developed country has hired a 12 -yearold girl to work on a factory floor, in violation of the company's prohibition on child labor. He tells the local manager to replace the child and tell her to go back to school. The local manager tells the American executive that the child is an orphan with no other means of support, and she will probably become a street child if she is denied work. What should the American executive do?

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03:16

Problem 2

Drawing on John Rawls's concept of the veil of ignorance, develop an ethical code that will (a) guide the decisions of a large oil multinational toward environmental protection and $(b)$ influence the policies of a clothing company in their potential decision of outsourcing its manufacturing operations.

Megha Nayar

Numerade Educator

00:28

Problem 3

Under what conditions is it ethically defensible to outsource production to the developing world where labor costs are lower when such actions also involve laying off long-term employees in the firm's home country?

Jennifer Stoner

Numerade Educator

02:02

Problem 4

Do you think facilitating payments (speed payments) should be ethical?

Jennifer Stoner

Numerade Educator

03:22

Problem 5

A manager from a developing country is overseeing a multinational's operations in a country where drug trafficking and lawlessness are rife. One day, a representative of a local "big man" approaches the manager
and asks for a "donation" to help the big man provide housing for the poor. The representative tells the manager that in return for the donation, the big man will make sure that the manager has a productive stay in his country. No threats are made, but the manager is well aware that the big man heads a criminal organization that is engaged in drug trafficking. He also knows that the big man does indeed help the poor in the rundown neighborhood of the city where he was born. What should the manager do?

H M

Numerade Educator

01:01

Problem 6

Milton Friedman stated in his famous article in the New York Times in 1970 that "the social responsibility of business is to increase profits."* Do you agree? If not, do you prefer that multinational corporations adopt a focus on corporate social responsibility or sustainability practices?

Riham Bassal

Numerade Educator

Problem 7

Reread the Management Focus on Unocal, and answer the following questions:
a. Was it ethical for Unocal to enter into a partnership with a brutal military dictatorship for financial gain?
b. What actions could Unocal have taken, short of not investing at all, to safeguard the human rights of people affected by the gas pipeline project?

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