Module IV: Moral Frameworks in International Business
1. Business Ethics and Management of Change
1.1 Nature of Change
International businesses constantly change due to globalization, technology,
competition, and changing customer expectations.
Common changes include mergers, restructuring, automation, digital
transformation, and supply-chain changes.
1.2 Ethical Issues in Change
Changes affect employees, suppliers, communities, governments, and
investors.
Ethical change management requires fairness, transparency, and honest
communication.
1.3 Ethical Guidelines
Use fair criteria for layoffs and provide compensation, retraining, or support.
Respect employee rights, safety, privacy, and dignity.
Avoid harmful short-term decisions that create environmental or human-
rights problems.
2. Multinational Organizations and Business Ethics
2.1 Ethical Challenges for MNEs
Multinational companies work in different legal and cultural systems.
Common ethical issues:
o Corruption and bribery
o Labour exploitation
o Environmental damage
o Unsafe products or workplaces
o Manipulation in pricing and taxation
2.2 Global Ethical Standards
Many MNEs follow global codes of ethics for human rights, labour,
environment, and anti-corruption.
International frameworks:
o UN Global Compact
o OECD Guidelines
o ILO Conventions
2.3 Global vs Local Balance
Companies should respect cultural differences but not compromise universal
values.
Practices like child labour, forced labour, or bribery should never be
accepted.
3. Role of Leaders in Ethical Practices
3.1 Ethical Leadership
Ethical leaders show integrity, fairness, honesty, and responsibility.
Employees follow leaders’ actions more than their words.
3.2 Responsibilities of Leaders
Set clear ethical standards.
Reward ethical behaviour and long-term success.
Protect whistleblowers and take action against misconduct.
3.3 Restoring Ethics After Scandals
Leaders should accept mistakes and communicate corrective actions openly.
Improve governance, policies, and ethics training to rebuild trust.
4. Justice and Equality in Business
4.1 Key Concepts
Justice means fair treatment, fair procedures, and fair distribution of benefits.
Equality means no discrimination based on gender, caste, religion,
nationality, disability, etc.
4.2 In International Business
Workers in all countries should receive fair wages and safe working
conditions.
Equal pay, equal opportunities, and zero harassment are essential.
4.3 Importance of Justice and Equality
Fair treatment increases trust, commitment, and company reputation.
Unfair practices can lead to strikes, boycotts, and reputational damage.
5. Conflicts and Ethics Across Cultures
5.1 Cultural Differences
Ethical views differ across cultures.
Practices acceptable in one culture may be seen as unethical in another.
5.2 Approaches to Ethical Conflicts
Ethical relativism: follow local culture.
Ethical absolutism: follow only home-country standards.
Ethical universalism: respect cultures but follow universal ethical principles
like human rights.
5.3 Skills for Managers
Managers need cultural intelligence (CQ).
They should communicate with local stakeholders and use ethical decision-
making frameworks.
6. Business Ethics in the Technology Era
6.1 New Ethical Issues
AI, big data, and digital platforms raise issues of:
o Privacy
o Surveillance
o Cyber security
o Algorithmic bias
o Data misuse
6.2 Ethical Responses
Companies should ensure:
o Fairness
o Transparency
o Accountability
o Privacy protection
Human oversight is important in AI decisions.
6.3 Technology and Inequality
Technology can increase inequality and digital divide.
Ethical businesses should use technology for inclusion and avoid exploitative
data practices.
7. Business Ethics and “Viksit Bharat”
7.1 Meaning of Viksit Bharat
“Viksit Bharat” aims to make India developed, inclusive, sustainable, and
economically strong.
Businesses play an important role in this vision.
7.2 Role of Business Ethics
Ethical practices reduce corruption and support economic growth.
Fair wages, safe workplaces, diversity, and skill development improve society.
Environmental responsibility supports sustainable development.
7.3 Ethics, CSR, and SDGs
Companies can align CSR and ESG activities with:
o Education
o Health
o Infrastructure
o Renewable energy
o Digital inclusion
Ethical governance ensures real social impact and global competitiveness.