What is the Role of Ethics in International Marketing?

• We will analyze the Nestle case regarding the design of infant formula and its introduction to lesser-developed nations
• Was the product introduced properly?
• Could a typical consumer understand the product? Does the consumer have the information they need to choose?
• What would be the typical consumer behavior of residents of these countries?
• What would Nestle need to know in order to make ethical judgments?

Bribery

• Payoffs are a way of life in some cultures. They are expected and it is difficult to do business without them.
• Suppose you are competing with companies from other countries who see bribes as a normal part of business?
• US Foreign Corrupt Practices Act prohibits US businesses from paying bribes

Definitions

Bribery: voluntarily offered payments by someone seeking unlawful advantage

• Lubrication: small sum or gift to facilitate normal business
• Subornation:  large gift to encourage illegal act

What Decision Areas are Likely to Require Ethical Thought?

• Employment practices and policies
• Consumer protection
• Environmental protection
• Political payments and involvement in political affairs of the country
• Basic human rights and fundamental freedoms

Suppose We are Doing Business in a Country with Weak or Unclear Laws?

• Many countries are in a state of development and the laws are under debate or not clearly codified
• Many countries may not have overseeing governmental branches that protect consumers, such as the FDA
• Suppose that there is no law against using ingredients that are forbidden in the US by the FDA?

Ethical Principles

• Utilitarian Ethics:  does the action optimize the common good or benefits of all constituencies?
• Rights of the parties:  Does the action respect the rights of the individuals involved?
• Justice or fairness:  Does the action respect the canons of justice or fairness to all parties involved?

 

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