Organizations that operate across national borders encounter ethical challenges shaped by different laws, cultures, political systems, economies, technologies, and markets. This lesson introduces common global risks and explains how multinational enterprises (MNEs) can meet legal responsibilities while contributing positively to the countries where they operate.
All flashcards
Foreign Corrupt Practices Act (FCPA)
A U.S. law that prohibits bribing foreign officials and requires accurate records and internal accounting controls.
UN Global Compact
A framework of ten business principles covering human rights, labor, the environment, and anti-corruption.
Social audit
An assessment that measures and reports a company’s ethical, social, and environmental impacts.
Global ethical culture
An organizational culture that values multicultural perspectives, merit, openness, and cultural awareness.
Local economic contribution
Business activity that supports local employment, partnerships, skills, technology, or productivity.
Quiz questions
Why can operating across national borders increase ethical risks for organizations?Answer: Organizations encounter different laws, cultures, political systems, economies, and stakeholder expectations.
Which measures are relevant to the FCPA’s accounting provisions?Answer: Accurate records supported by internal accounting controls.
Which four areas are covered by the UN Global Compact’s ten principles?Answer: Human rights, labor, the environment, and anti-corruption.
How can workplace diversity strengthen an organization beyond its ethical value?Answer: It can improve market understanding and support innovation.
When company standards conflict with local norms, what should an ethical response prioritize?Answer: Protecting affected people while seeking a workable solution consistent with core principles.
Based on Principles of Management by David S. Bright, Anastasia H. Cortes, Eva Hartmann, K. Praveen Parboteeah, Jon L. Pierce, Monique Reece, Amit Shah, Siri Terjesen, Joseph Weiss, Margaret A. White, Donald G. Gardner, Jason Lambert et al. (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.