Back to course 'BUS613: Advanced International Business'

Topic outline

  • Unit 7: Social Responsibility and Ethics

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    Companies around the world are increasingly acknowledging the importance of social responsibility. Consumers also emphasize supporting companies who have a reputation for social responsibility and ethical behavior. How can companies improve their performance in these areas? This unit explores social responsibility and ethics that organizations may encounter while operating internationally.

    Completing this unit should take you approximately 2 hours.

    • Upon successful completion of this unit, you will be able to:
      • analyze how businesses can operate internationally with a focus on social responsibility and ethics;
      • examine the risks involved with a global company in terms of preserving ethical behavior;
      • explain global sustainability and understand how to pursue these opportunities in the international market;
      • compare and contrast return on investment (ROI) models for corporate social responsibility, such as those including community involvement and public perception; and
      • explain how the rule of law applies to maintaining social responsibility and codes of ethics, as well as business challenges related to the rule of law.

    • 7.1: Social Responsibility

      Corporate social responsibility has increasingly become an essential aspect of a company’s marketing structure. These days, consumers place a higher value on what companies do, not just the products they sell. As a result, global corporations have become very aware of how their company’s behavior is perceived, both at home and abroad.

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        Corporate Social Responsibility Page
        Students must
        Mark as done

        In this video, Michael Porter, the well known author and Harvard University professor, sits down to discuss corporate social responsibility at the World Economic Forum. As you watch, focus on the areas companies can promote social responsibility and advance their own corporate interests at the same time.

      • Environmental concerns are very important to many consumers, which creates expectations for companies to share their values. The BP Oil Spill in the Gulf of Mexico in 2010 highlighted the environmental disasters that multinational corporations can instigate. BP implemented an extensive marketing program after that incident to attempt to improve its image. Even when companies operate in countries with lenient or nonexistent environmental policies, consumers expect them to act responsibly.

      • Global companies face varying labor laws and standards in each country they operate in. They must maintain corporate labor standards that are acceptable in each of those countries. Corporations today are more aware of these issues than in previous decades, when companies often took advantage of low labor standards to exploit cheap labor. Today, it is much more likely that those kinds of practices will be exposed, and that companies will face backlash for them.

        HR departments can take certain steps to comply with labor laws and respect internationally-accepted standards for working conditions. Those could include developing an understanding of local working cultures, explaining the impact of cross-border regulations and labor laws to management teams and employees, and creating plans to ensure their organization stays in compliance.

      • Companies have responsibilities to many different groups, such as employees, shareholders, owners, and the communities they operate in. An international company that cares about their community will find ways to support programs for those areas. It is common for companies to donate to charities, schools, or other institutions to show their support. By doing so, companies can show their employees and customers that they care about their well being and quality of life. Some programs can also enhance the education or skill set of local workers, which could benefit the company when they seek qualified employees. These programs also expose people to the company and create an association between the company and its good acts. They can strengthen relationships within the market and demonstrate that the company is committed to a long-term market presence.

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        Free Trade vs. Fair Trade Page
        Students must
        Mark as done

        Do you know the difference between free trade and fair trade? You may have heard terms such as "fair trade coffee", but what does that mean? This video explores the differences between free trade and fair trade, and why balancing the two may be necessary to sustain our global economy.

    • 7.2: Ethical Issues

      Business partners, employees, and customers expect an organization to approach business with integrity and adhere to high moral and ethical standards. Ethical failures can severely damage a company's reputation, and companies now frequently value developing corporate policies to declare and enforce ethical standards.

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        Business Ethics over Time Book
        Students must
        Mark as done

        Ethics in business has changed over time. Read this section to learn more.

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        Corruption, Bribery, and the Foreign Corrupt Practices Act (FCPA) Page
        Students must
        Mark as done

        Corruption and bribery are severe issues in many parts of the world, but are present in all countries to some degree. In the United States has implemented a law, the Foreign Corrupt Practices Act (FCPA) applies to all American companies and individuals, whether they are conducting business in the United States or abroad. Read more about the FCPA in this article.

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        Corporate Responsibilities Page
        Students must
        Mark as done

        A corporation has many legal, economic, ethical, and philanthropic responsibilities to be considered well-rounded and in good standing with society. We have seen examples where companies do not live up to these standards and face the consequences. However, companies with robust corporate responsibility plans can set goals, benchmarks, and tracking methods to ensure they are on the right path. Learn more by reading this article.

    • 7.3: Global Sustainability

      Global sustainability is about balancing the importance of the economy, society, and the environment. It is a difficult task, but corporations need to take the lead in these areas. If any of these areas is not a priority, everyone will suffer. Today, business leaders are beginning to recognize the importance of this global sustainability and its significance for future generations.

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        Business and the Environment Book
        Students must
        Mark as done
        Read this chapter to learn how businesses can play a vital role in sustaining the environment.
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        Economic Sustainability Page
        Students must
        Mark as done

        It is possible to promote economic growth while also creating sustainable and environmentally-friendly practices. Can you think of an environmentally-friendly natural resource that can be used economically and for the benefit of everyone? The goal is to meet the present's needs without compromising the ability of future generations to meet their own needs. Watch this video, which presents economic models for sustainability and what they mean for our planet's future.

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        Environmental Sustainability Page
        Students must
        Mark as done

        Some say that economic growth and environmental sustainability cannot coexist, but technological innovations, sustainability policies, and corporate responsibility measures have proven that idea to be wrong. Can you think of environmental policies that would help the economy and society at large? Watch this video, which highlights the fundamental principles of environmental sustainability.

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        Social Sustainability Page
        Students must
        Mark as done

        Business leaders can play a leading role in establishing social sustainability, and anyone seeking a career in business should focus on social responsibility and sustainability. Watch this video, which highlights the fundamental principles of social sustainability.

    • Unit 7 Study Resources

      This review video is an excellent way to review what you've learned so far and is presented by one of the professors who created the course.

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        Unit 7 Review Video Page

        Watch this as you work through the unit and prepare to take the final exam.

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        Study Guide: Unit 7 URL

        We also recommend that you review this Study Guide before taking the Unit 1 Assessment.

    • Unit 7 Assessment

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        Unit 7 Assessment Quiz
        Students must
        Receive a grade

        Take this assessment to see how well you understood this unit.

        • This assessment does not count towards your grade. It is just for practice!
        • You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
        • You can take this assessment as many times as you want, whenever you want.