IBT Reviewer - Business Ethics and International Trade PDF

Business Ethics and Corporate Social Responsibility What is business ethics?  It encompasses the moral principles and values that guide how businesses operate and make decisions.  Examples include honesty, fairness, and respect for stakeholders. Why are business ethics important?...

Business Ethics and Corporate Social Responsibility What is business ethics?  It encompasses the moral principles and values that guide how businesses operate and make decisions.  Examples include honesty, fairness, and respect for stakeholders. Why are business ethics important?  They build trust among customers, employees, and partners.  They enhance a company's reputation.  They contribute to long-term success and sustainability. What is Corporate Social Responsibility (CSR)?  It involves companies going beyond profit-making to engage in practices that benefit society and the environment.  Examples include environmental sustainability initiatives, ethical labor practices, and community involvement. Why is CSR important?  It aligns with and can enhance a company's financial performance.  It strengthens relationships with stakeholders.  It contributes to a positive social and environmental impact. Key Components of Business Ethics and CSR: 1. Integrity: o Upholding ethical and moral principles consistently. o Being honest and transparent in business dealings. 2. Fairness: o Treating all stakeholders equitably. o Avoiding discrimination and favoritism. 3. Respect: o Valuing employees, customers, and the community. o Protecting human rights and the environment. 4. Responsibility:  o Being accountable for the impact of business decisions. o Addressing social and environmental concerns. Ethical Decision-Making: 1. Identify the ethical issue. 2. Consider the stakeholders involved. 3. Evaluate potential courses of action. 4. Make a decision and take action. 5. Reflect on the outcome. Incorporating Business Ethics and CSR into Practice: 1. Develop a code of ethics. 2. Provide ethics training to employees. 3. Establish a CSR committee. 4. Set measurable CSR goals. 5. Engage with stakeholders. 6. Report on CSR performance. Important Considerations:  Business ethics and CSR are essential for building a sustainable and responsible business.  Ethical behavior and social responsibility contribute to a company's long-term success and reputation.  Companies should strive to integrate ethical considerations into all aspects of their operations. International Business and Trade 1. Globalization and International Marketing  Levels of Globalization: Globalization operates at different levels, including global, regional, and local.  Glocalization: The adaptation of global products or services to fit local markets.  International Marketing: Marketing strategies tailored to different countries or regions, considering cultural and consumer preferences.  The 7Ps of Marketing: Product, Price, Place, Promotion, People, Process, and Physical Evidence. 2. Multinational and Transnational Companies  Multinational Companies (MNCs): Operate in multiple countries, often with subsidiaries or branches in each country.  Transnational Companies (TNCs): Integrate and coordinate operations across borders, adapting to local needs while maintaining global efficiency. 3. Entrepreneurship and Intrapreneurs hip  Entrepreneurship: The process of identifying, developing, and bringing new ideas to market, often involving risk-taking and innovation.  Intrapreneurs hip: Similar to entrepreneurship but occurs within an existing organization, where employees develop innovative ideas and projects. 4. The International Financial System  Hegemony: A dominant state that exerts influence or control in international relations and the global economy.  Functions of Money: Money serves as a medium of exchange, unit of account, store of value, and standard of deferred payment.  Exchange Rate Systems: Determine the value of one currency against another. o Flexible Exchange Rate: The rate is determined by supply and demand in the foreign exchange market. o Managed Float Exchange Rate: The government intervenes to influence the currency's value. 5. International Relations  Unilateralism: A country acting independently in its foreign policy.  Multilateralism: Countries working together through international organizations or agreements.  Additional Concepts in International Business and Trade: 1. International Trade: o Exports: Selling goods or services to foreign markets. o Imports: Purchasing goods or services from foreign markets. o Benefits of Exports: Increased profitability, access to new markets, economies of scale. 2. Financial Sector Assessment Program (FSAP): o A joint program of the International Monetary Fund (IMF) and the World Bank. o Assesses the stability of a country's financial sector. o Provides recommendations for strengthening financial institutions and regulations. 3. Financial Technology (Fintech): o Technological innovations that are changing the financial industry. o Examples include digital currencies, blockchain, mobile payments, and online lending platforms. o Impacts cross-border payments, investment, and regulatory frameworks. 4. Myths about Entrepreneurship: o Entrepreneurs are always solo visionaries. o Entrepreneurs achieve instant success. o Entrepreneurs take unnecessary risks. Key Organizations in International Business:  World Health Organization (WHO): A specialized agency of the United Nations responsible for international public health.  International Monetary Fund (IMF): Promotes global monetary cooperation and financial stability.  World Bank: Provides financial and technical assistance to developing countries.