2 Pages: in-text citations and citation: 10% originality outside research is required: in your own words. Colin Kaepernick has made a name for himself with the Nike Brand. Nike however has not been socially responsible in its supply chain-often poluting and underpaying labor. Review the four philosophies of business ethics and research the following: which one of the four does nike use to conduct business and which one do you think it SHOULD follow. make sure to give proof or evidence from your research. Use concept or theories in the textbookuse outside research no wikisprovide specific proof and evidence: data…specific data to support your answers, must credits next to the data and proof must use APA citation as Paraphrases; use in-text citations please list page numbers or paragraph number Use at least 4 resources Note: Do not plagiarism!!!!!!! Support materials Nike and Colin kaepernick https://www.thecut.com/2018/09/nikes-colin-kaepernick-ad-raises-issues-of-workers-rights.html Why companies can no longer afford to ignore CSR http://business.time.com/2012/05/28/why-companies-can-no-longer-afford-to-ignore-their-social-responsibilities/ Chapter 3 lecture check attached Textbook (click to download the E-BOOK) https://drive.google.com/uc?id=1NU1o0YWchSL-o5EiAR2NfBo4vTXncyRA&export=download
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3
CHAPTER THREE
POLITICAL ECONOMY
AND ETHICS
Copyright © 2016 Pearson Education, Inc.
Chapter 3-1
Learning Objectives
1. Describe the key features of each form of political system.
2. Explain how the three types of economic systems differ.
3. Summarize the main elements of each type of legal system.
4. Outline the global legal issues facing international firms.
5. Describe the main issues of global ethics and social responsibility.
Copyright © 2016 Pearson Education, Inc.
Chapter 3-2
PepsiCo’s Global Challenge
❑Targeting international sales
❑Pepsico’s international sales
comprise 40 percent of total
revenue
❑Investing aggressively in India
❑Moving the company’s product
line in healthier directions
❑Decreasing the company impact
on the environment
❑Taking care of the company’s
workforce
Copyright © 2016 Pearson Education, Inc.
Chapter 3-3
Political Systems
❑Political System: Structures, processes, and activities by which a
nation governs itself
Totalitarianism
Anarchism
Pluralism
Both private and public
groups need to balance
each other’s power
Every aspect of
people’s lives must be
controlled to preserve order
Only individuals and
private groups can
preserve personal liberties
Copyright © 2016 Pearson Education, Inc.
Chapter 3-4
Totalitarian Governments
Political Systems
Totalitarianism
Imposed Authority
Lack of Constitutional Guarantees
Restricted Participation
Copyright © 2016 Pearson Education, Inc.
Chapter 3-5
Political Systems
Totalitarianism (Cont.)
Theocratic
Totalitarianism
Communist
Totalitarianism
Secular
Totalitarianism
Tribal
Totalitarianism
Totalitarianism
Right-Wing
Totalitarianism
Copyright © 2016 Pearson Education, Inc.
Chapter 3-6
Political Systems
Democracy
❑Democracy: Political system in
which government leaders are elected
directly by the wide participation of
the people or by their representatives
❑Representative Democracy:
Democracy in which citizens elect
individuals from their groups to
represent their political views
Copyright © 2016 Pearson Education, Inc.
Chapter 3-7
Representative Democracy
Political Systems
Democracy (Cont.)
Freedom of Expression
Periodic Elections
Full Civil and Property Rights
Minority Rights
Nonpolitical Bureaucracies
Copyright © 2016 Pearson Education, Inc.
Chapter 3-8
Quick Study 1
1. What features characterize the political ideology called pluralism?
2. Communists believe that a violent revolution is needed to seize
control over resources, wish to eliminate political opposition, and
do what else?
3. What does a representative democracy strive to provide for its
people?
4. By what other name is capitalism often referred?
Copyright © 2016 Pearson Education, Inc.
Chapter 3-9
Economic Systems
Figure 3.1
Range of Economic Systems
Copyright © 2016 Pearson Education, Inc.
Chapter 3-10
Centrally Planned Economy
Origin and Decline
Origin
Decline
❑Rooted in Collectivism
❑Failure to create economic
value
❑Popularized by Karl Marx in
the nineteenth century
❑Implemented in the twentieth
century by means of violent
upheaval
❑Failure to provide incentives
❑Failure to achieve rapid growth
❑Failure to satisfy consumer
needs
Copyright © 2016 Pearson Education, Inc.
Chapter 3-11
Mixed Economy
Origin and Decline
Goals
Decline
❑Low unemployment and
poverty
❑Lack of accountability, rising
costs, and slow economic
growth
❑Steady economic growth
❑Equitable distribution of wealth
❑Move toward market-based
systems
❑Move toward privatization
Copyright © 2016 Pearson Education, Inc.
Chapter 3-12
Market Economy
Origin, Essence, and Features
Origin and Essence
Features
❑Private ownership
❑Free choice
❑Alternative purchase options
❑Interplay of two forces: supply
and demand
❑Emphasis on individualism
❑Laissez-faire economics
❑Economic freedom
❑Free enterprise
❑Firms choose products and
markets
❑Price flexibility
❑Prices follow supply and
demand
Copyright © 2016 Pearson Education, Inc.
Chapter 3-13
Market Economy
Government’s Role
Government’s Role
Enforce antitrust laws
Preserve property rights
Provide fiscal and monetary stability
Preserve political stability
Copyright © 2016 Pearson Education, Inc.
Chapter 3-14
Quick Study 2
1. What factors contributed to the decline of centrally planned
economies?
2. Which economic system strives toward low unemployment, low
poverty, steady economic growth, and an equitable distribution of
wealth?
3. Laissez-faire economics calls for less government interference in
commerce and what else?
4. Countries with the greatest amount of economic freedom tend to
have what?
Copyright © 2016 Pearson Education, Inc.
Chapter 3-15
Legal Systems
❑Legal System: Set of laws and regulations, including the processes
by which a country’s laws are enacted and enforced and the ways in
which its courts hold parties accountable for their actions.
❑A country’s political system also influences its legal system.
❑Legal systems are frequently influenced by political moods and
upsurges of nationalism.
Copyright © 2016 Pearson Education, Inc.
Chapter 3-16
Legal Systems (Cont.)
❑Common Law
❑Tradition: A country’s legal history
❑Precedent: Past cases that have come before the courts
❑Usage: How laws are applied in specific situations
❑Civil Law
❑Legal code
❑Theocratic Law
❑Based on religious teachings
Copyright © 2016 Pearson Education, Inc.
Chapter 3-17
Quick Study 3
1. Which legal system decides cases by interpreting the law on the
basis of tradition, precedent, and usage?
2. Which legal system is based on a detailed set of written rules and
statutes that constitute a legal code?
3. A legal tradition based on faithless teaching is called what?
Copyright © 2016 Pearson Education, Inc.
Chapter 3-18
Global Legal Issues
Intellectual Property
Figure 3.2
Business Software Piracy
❑Intellectual Property
❑Property Rights
❑Industrial Property
❑Patents
❑Trademarks
❑Copyright
Copyright © 2016 Pearson Education, Inc.
Chapter 3-19
Global Legal Issues (Cont.)
❑Product Safety and Liability
❑Responsibility for damage, injury, or death
❑Taxation
❑Income, sales, consumption, and VAT
❑Antitrust Regulations
❑Prevent market sharing, price fixing, and unfair advantage
Copyright © 2016 Pearson Education, Inc.
Chapter 3-20
Quick Study 4
1. What are some examples of intellectual property?
2. What are the different types of industrial property?
3. Laws that hold manufacturers, sellers, individuals, and others
responsible for damage, injury, or death caused by defective
products are called what?
Copyright © 2016 Pearson Education, Inc.
Chapter 3-21
Ethics and Social Responsibility
Corporate Social
Responsibility
(CSR)
Traditional
Philanthropy
Risk
Management
Copyright © 2016 Pearson Education, Inc.
Strategic CSR
Chapter 3-22
Ethics and Social Responsibility
Philosophies of Ethics and Social R esponsibility
Philosophies
Friedman
View
Cultural
Relativist
View
Righteous
Moralist
View
Copyright © 2016 Pearson Education, Inc.
Utilitarian
View
Chapter 3-23
Ethics and Social Responsibility
Key Issues
❑Bribery and Corruption
❑Labor Conditions and Human Rights
❑Fair Trade Practices
❑Environment
Copyright © 2016 Pearson Education, Inc.
Chapter 3-24
Quick Study 5
1. The essence of which philosophy is captured by the expression,
“When in Rome, do as the Romans do”?
2. Possible consequences of corruption include what?
3. What are some criteria a product must meet in order to be Fair
Trade certified?
4. The environmental impact of greenhouse gases that result from
human activity is called what?
Copyright © 2016 Pearson Education, Inc.
Chapter 3-25
MAMOUN BENMAMOUN
ASSISTANT PROF OF INTERNATIONAL BUSINESS
BOEING INSTITUTE OF INTERNATIONAL BUSINESS
JOHN COOK SCHOOL OF BUSINESS
SAINT LOUIS UNIVERSITY
Copyright © 2016 Pearson Education, Inc.
Copyright © 2016 Pearson Education, Inc.
Chapter 3-27

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