International business faces a host of social issues. They include business ethics, social responsibility, environmental factors and labor standards. Business ethics refers to a set of moral principles that needs to be followed while doing business. For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc

1. Chapter 23
Some Issues In International Business
International Marketing Ch-23 Some Issues in International Business

2. Objectives
What is business ethics
What is the social responsibility of
business
what are environmental issues
What are labor issues
International Marketing Ch-23 Some Issues in International Business

3. Introduction
There are several important issues in
international business.
This chapter consider four of them:
1. Business ethics
2. Social responsibility
3. Environmental factors
4. Labour standards
International Marketing Ch-23
Some Issues in International
Business

4. Business Ethics
The varying ethical norms and social values,
make the international business environment
very intricate and perplexing
The term business ethics refers to the
system of moral principles and rules of
conduct applied to business
If the harmful effects of a product outweigh
the benefits, a company with sound ethics
will not do business in that product even if
there is no legal objection.
International Marketing Ch-23
Some Issues in International
Business

5. Social Responsibility Of
Business
In the environment of modern economic
development the corporate sector no
longer functions in isolation.
If the plea of the companies that they are
performing a social purpose in the
development of the country is to be
accepted, it can only be judged by the
social responsiveness shown to the needs
of the community by the companies.
International Marketing Ch-23
Some Issues in International
Business

6. Singhania has classified the nature of
the social responsibility of business into
two categories.
1. The manner in which a business carries
out its own business activity.
2. The welfare activity that it takes upon
itself as an additional function.
International Marketing Ch-23
Some Issues in International
Business

7. Primary Objectives Of a
Responsible Company
1. The extension, development and
improvement of the company’s business
and the building up of its financial
independence.
2. The payment of fair and regular dividends
to the shareholders.
3. The payment of fair wages under the best
possible conditions to the workers.
4. The reduction in the prices to be charged to
consumers.
International Marketing Ch-23
Some Issues in International
Business

8. Secondary Objectives Of a
Responsible Company
1. To enhance labor welfare
2. To enhance customer service and
goodwill.
3. To assist in developing and promoting
the amenities in the locality.
4. To assist in developing the industry of
which the firm is a member.
5. To contribute to national goals.
International Marketing Ch-23
Some Issues in International
Business

9. Environmental Issues
Increasing discussion the international
horizon
Developed nations some time raise
environmental issues as a trade barrier
or a coercive measure rather than for
genuine reasons.
International Marketing Ch-23
Some Issues in International
Business

10. Labor Issues
Ill-treatment of labor and children
Some multinationals are criticized for
sourcing products from developing
countries benefiting from the sweat
labor.
Another important issue is right of trade
unions
International Marketing Ch-23
Some Issues in International
Business

11. Summary
Some of the most important social
issues international business includes:
business ethics, social responsibility,
environmental factors, and labor
standards.
Business ethics refers to the system of
moral principals and the rules of
conduct applied to business.
International Marketing Ch-23
Some Issues in International
Business