Glossary

11.4 Ethical decision-making in global business

10 min read•august 21, 2024

Ethical decision-making in global business is a complex challenge for multinational corporations. It involves navigating diverse cultural norms, legal frameworks, and stakeholder expectations while maintaining consistent ethical standards across operations.

This topic explores key ethical theories, global challenges, and practical frameworks for addressing moral dilemmas in international business contexts. It emphasizes the importance of ethical leadership, corporate governance, and stakeholder engagement in fostering responsible business practices worldwide.

Foundations of business ethics

  • Explores fundamental principles guiding ethical behavior in multinational corporate environments
  • Establishes a framework for decision-making in complex global business scenarios
  • Addresses the intersection of moral philosophy and international business practices

Ethical theories and frameworks

Top images from around the web for Ethical theories and frameworks

  • Weighing Stakeholder Claims – Business Ethics View original

    Is this image relevant?

  • Stakeholder Analysis View original

    Is this image relevant?

  • Weighing Stakeholder Claims – Business Ethics View original

    Is this image relevant?

1 of 3

Top images from around the web for Ethical theories and frameworks

  • Weighing Stakeholder Claims – Business Ethics View original

    Is this image relevant?

  • Stakeholder Analysis View original

    Is this image relevant?

  • Weighing Stakeholder Claims – Business Ethics View original

    Is this image relevant?

1 of 3
  • focuses on maximizing overall happiness or well-being for the greatest number of people
  • emphasizes duty and adherence to moral rules regardless of consequences
  • centers on developing moral character and virtues in business leaders
  • proposes ethical norms based on mutually beneficial agreements
  • considers the interests of all groups affected by business decisions

Cultural relativism vs universalism

  • argues ethical standards vary across cultures and should be respected
  • contends certain ethical principles apply globally regardless of local customs
  • risks imposing one culture's values on others without consideration
  • seeks common ground while respecting cultural differences
  • Multinational corporations navigate tensions between local norms and global standards

Corporate social responsibility

  • Integrates social and environmental concerns into business operations and stakeholder interactions
  • approach balances profit with people and planet considerations
  • Philanthropic initiatives contribute to community development and social causes
  • Sustainable business practices aim to create long-term value while minimizing negative impacts
  • Stakeholder engagement ensures diverse perspectives inform CSR strategies

Global ethical challenges

  • Addresses complex moral dilemmas faced by multinational corporations operating across borders
  • Highlights the need for ethical leadership in navigating diverse cultural and regulatory landscapes
  • Emphasizes the importance of balancing profit motives with social and environmental responsibilities

Corruption and bribery

  • Facilitation payments blur lines between cultural norms and unethical business practices
  • (FCPA) prohibits U.S. companies from bribing foreign officials
  • applies to both public and private sector corruption globally
  • 's ranks countries by perceived corruption levels
  • include due diligence, training, and internal controls

Human rights issues

  • exploitation persists in global supply chains (textile industry)
  • and affect vulnerable populations (seafood industry)
  • Indigenous land rights often conflict with resource extraction projects (mining operations)
  • Freedom of association and collective bargaining face challenges in certain regions
  • provide a framework for corporate responsibility

Environmental sustainability

  • requires reducing greenhouse gas emissions across operations
  • Circular economy principles promote resource efficiency and waste reduction
  • Biodiversity conservation efforts protect ecosystems affected by business activities
  • Water scarcity management addresses both operational and community needs
  • Sustainable sourcing practices ensure responsible use of natural resources (palm oil)

Ethical decision-making process

  • Provides a structured approach for addressing moral dilemmas in multinational corporate contexts
  • Enables leaders to systematically analyze complex ethical issues and their potential impacts
  • Incorporates diverse perspectives to arrive at balanced and justifiable decisions

Identifying ethical dilemmas

  • Recognize situations where values or principles conflict in business operations
  • Distinguish between legal compliance and ethical behavior in global contexts
  • Consider short-term vs long-term consequences of potential actions
  • Assess the ethical implications of emerging technologies and business models
  • Identify hidden ethical issues in seemingly routine business decisions

Stakeholder analysis

  • Map all relevant stakeholders affected by the ethical decision
  • Evaluate the interests, rights, and responsibilities of each stakeholder group
  • Consider power dynamics and potential conflicts between stakeholder interests
  • Prioritize stakeholders based on legitimacy, urgency, and influence
  • Engage in dialogue with key stakeholders to understand diverse perspectives

Evaluating alternatives

  • Generate multiple courses of action to address the ethical dilemma
  • Apply ethical frameworks (utilitarianism, deontology) to assess each alternative
  • Consider potential consequences and risks associated with each option
  • Evaluate alignment with corporate values and ethical standards
  • Conduct a cost-benefit analysis incorporating both financial and non-financial factors

Corporate codes of conduct

  • Establishes formal guidelines for ethical behavior within multinational corporations
  • Communicates organizational values and expectations to employees and stakeholders
  • Serves as a reference point for decision-making in complex global business environments

Purpose and implementation

  • Articulates company's ethical principles and standards of conduct
  • Guides employee behavior in various business situations and cultural contexts
  • Demonstrates commitment to ethical practices to external stakeholders
  • Provides a framework for addressing ethical dilemmas and conflicts
  • Supports compliance with legal and regulatory requirements across jurisdictions

Global vs local standards

  • Balances universal ethical principles with respect for local cultural norms
  • Adapts code language and examples to resonate with diverse cultural contexts
  • Addresses region-specific ethical challenges and regulatory requirements
  • Establishes minimum global standards while allowing flexibility for local interpretation
  • Considers implications of ethical standards on competitive advantage in different markets

Enforcement mechanisms

  • Internal reporting systems enable employees to raise ethical concerns confidentially
  • Ethics committees review and investigate potential code violations
  • Disciplinary actions for code breaches range from warnings to termination
  • Regular audits and assessments ensure compliance with the code of conduct
  • Incentive structures reward ethical behavior and decision-making

Cross-cultural ethical considerations

  • Addresses the complexities of applying ethical standards across diverse cultural contexts
  • Highlights the need for in multinational corporate decision-making
  • Explores strategies for reconciling conflicting ethical norms in global business operations

Cultural values and norms

  • influence ethical perceptions and behaviors
  • Gift-giving practices vary widely and may conflict with anti-bribery policies
  • Concepts of time and punctuality affect business relationships and negotiations
  • Hierarchical vs egalitarian cultures impact decision-making processes
  • Individualistic vs collectivist societies shape ethical priorities and responsibilities

Ethical relativism in practice

  • Challenges arise when local practices conflict with corporate ethical standards
  • Ethical dilemmas emerge from differing views on human rights and labor practices
  • Environmental standards may vary significantly between developed and developing nations
  • Gender roles and expectations influence workplace policies and practices
  • Religious beliefs can impact business operations and ethical decision-making
  • Develop cultural competence through training and cross-cultural experiences
  • Establish clear global minimum standards while allowing for cultural adaptations
  • Engage local stakeholders to understand and address ethical concerns
  • Create diverse, cross-cultural teams to inform ethical decision-making processes
  • Implement a global ethics council to address complex cross-cultural dilemmas

Ethical leadership in MNCs

  • Emphasizes the critical role of leadership in shaping ethical culture within multinational corporations
  • Explores strategies for promoting ethical behavior across diverse global operations
  • Addresses the challenges of maintaining consistent ethical standards in complex organizational structures

Role of top management

  • Set the tone for ethical behavior through personal example and communication
  • Integrate ethics into strategic decision-making and corporate governance
  • Allocate resources for ethics programs and initiatives across global operations
  • Hold middle management accountable for ethical performance in their units
  • Address ethical challenges proactively and transparently

Fostering ethical culture

  • Develop clear ethical values and integrate them into organizational mission and vision
  • Encourage open dialogue about ethical issues at all levels of the organization
  • Recognize and reward ethical behavior and decision-making
  • Establish ethical considerations as a key factor in performance evaluations
  • Create safe channels for reporting ethical concerns without fear of retaliation

Ethical training programs

  • Provide regular ethics training tailored to different roles and cultural contexts
  • Use case studies and simulations to practice ethical decision-making
  • Address specific ethical risks and challenges relevant to each business unit
  • Incorporate ethical dilemmas from real-world experiences within the company
  • Evaluate the effectiveness of training programs through behavioral metrics and feedback

Regulatory compliance

  • Addresses the complex landscape of laws and regulations affecting multinational corporations
  • Emphasizes the importance of integrating compliance with ethical decision-making processes
  • Explores strategies for managing regulatory risks across diverse global jurisdictions

International laws and regulations

  • Foreign Corrupt Practices Act (FCPA) prohibits bribery of foreign officials by U.S. companies
  • General Data Protection Regulation (GDPR) sets standards for data privacy in the EU
  • Dodd-Frank Act includes provisions on conflict minerals and extractive industry
  • International Labour Organization (ILO) conventions establish global labor standards
  • Basel III framework regulates bank capital adequacy, stress testing, and market liquidity risk

Industry-specific ethical guidelines

  • Pharmaceutical industry codes address clinical trials and marketing practices
  • Extractive Industries Transparency Initiative promotes open and accountable management of resources
  • Equator Principles guide financial institutions in assessing environmental and social risks
  • Responsible Care program sets standards for the chemical industry's environmental, health, and safety performance
  • Fair Labor Association establishes workplace standards for the apparel and footwear industries

Whistleblowing policies

  • Establish clear procedures for reporting ethical violations or concerns
  • Protect whistleblowers from retaliation through anonymity and non-retaliation policies
  • Provide multiple reporting channels (hotlines, online platforms, ombudsperson)
  • Ensure timely and thorough investigation of reported issues
  • Communicate outcomes of investigations while maintaining confidentiality

Ethical supply chain management

  • Addresses the challenges of ensuring ethical practices across complex global supply networks
  • Emphasizes the importance of transparency and in supplier relationships
  • Explores strategies for promoting sustainable and socially responsible sourcing practices

Supplier code of conduct

  • Establishes minimum standards for labor practices, environmental performance, and business ethics
  • Aligns supplier expectations with the company's own ethical values and commitments
  • Addresses industry-specific risks and challenges (conflict minerals, forced labor)
  • Requires suppliers to cascade standards to their own subcontractors and suppliers
  • Integrates code compliance into supplier selection and contract renewal processes

Auditing and monitoring

  • Conduct regular on-site audits of key suppliers to assess compliance with code of conduct
  • Utilize third-party auditors to ensure objectivity and expertise in local contexts
  • Implement continuous monitoring systems using technology (blockchain, IoT sensors)
  • Establish key performance indicators (KPIs) to track supplier ethical performance over time
  • Collaborate with industry peers on shared auditing programs to increase efficiency and impact

Fair labor practices

  • Ensure compliance with local labor laws and international standards (ILO conventions)
  • Address living wage issues in regions where legal minimum wages are insufficient
  • Promote freedom of association and collective bargaining rights for workers
  • Implement programs to prevent child labor and support education in at-risk communities
  • Establish grievance mechanisms for workers to report violations and seek remediation

Ethical marketing and advertising

  • Explores the ethical challenges in promoting products and services across diverse global markets
  • Addresses the responsibility of multinational corporations in shaping consumer behavior and societal values
  • Emphasizes the importance of balancing profit motives with social and environmental considerations

Truth in advertising

  • Ensure all claims are substantiated and avoid misleading or deceptive statements
  • Disclose material information that could affect consumer decision-making
  • Address cultural differences in interpreting advertising claims and promises
  • Comply with local and international advertising regulations and industry standards
  • Consider long-term reputational impacts of marketing strategies and tactics

Cultural sensitivity

  • Adapt marketing messages to respect local cultural values and norms
  • Avoid stereotypes and offensive imagery in global advertising campaigns
  • Consider religious and social taboos when developing product offerings and promotions
  • Engage local experts to review marketing materials for cultural appropriateness
  • Balance global brand consistency with local market relevance and sensitivity

Responsible product promotion

  • Address potential negative impacts of products (health risks, environmental concerns)
  • Promote responsible consumption and use of products (alcohol, gambling)
  • Consider vulnerable populations in marketing strategies (children, elderly)
  • Integrate sustainability messages into product marketing where relevant
  • Develop cause-related marketing initiatives aligned with goals

Corporate governance and ethics

  • Explores the role of governance structures in promoting ethical behavior within multinational corporations
  • Addresses the challenges of balancing diverse stakeholder interests in global business environments
  • Emphasizes the importance of transparency and accountability in corporate decision-making processes

Board responsibilities

  • Oversee development and implementation of corporate ethics programs
  • Ensure ethical considerations are integrated into strategic planning and risk management
  • Monitor ethical performance and compliance across global operations
  • Establish ethics committees to address complex ethical issues and dilemmas
  • Set the tone for ethical leadership and hold executives accountable for ethical conduct

Transparency and disclosure

  • Provide clear and accurate financial reporting in compliance with international standards
  • Disclose material non-financial information related to environmental and social impacts
  • Communicate ethical policies and performance to stakeholders through sustainability reports
  • Establish open channels for stakeholder engagement and feedback
  • Address ethical controversies and violations promptly and transparently

Shareholder vs stakeholder approach

  • Balance short-term profit maximization with long-term value creation for all stakeholders
  • Consider impacts on employees, communities, and the environment in decision-making
  • Engage with diverse stakeholder groups to understand their interests and concerns
  • Develop metrics to measure and report on stakeholder value creation
  • Align executive compensation with broader stakeholder performance indicators

Ethical crisis management

  • Addresses the challenges of maintaining ethical standards during high-pressure crisis situations
  • Emphasizes the importance of preparedness and proactive risk management in multinational corporations
  • Explores strategies for rebuilding trust and reputation following ethical breaches or controversies

Preparedness and prevention

  • Develop comprehensive crisis management plans addressing potential ethical scenarios
  • Conduct regular simulations and tabletop exercises to test crisis response capabilities
  • Establish clear roles and responsibilities for crisis management teams across global operations
  • Implement early warning systems to identify potential ethical issues before they escalate
  • Foster a culture of ethical awareness and proactive risk management throughout the organization

Ethical communication strategies

  • Prioritize transparency and honesty in all crisis communications
  • Acknowledge mistakes and take responsibility for ethical breaches
  • Provide timely and accurate information to affected stakeholders
  • Address cultural and linguistic differences in global crisis communication efforts
  • Utilize appropriate channels to reach diverse stakeholder groups effectively

Rebuilding trust and reputation

  • Develop and implement comprehensive remediation plans to address root causes of ethical failures
  • Engage in genuine dialogue with affected stakeholders to understand concerns and expectations
  • Demonstrate commitment to change through concrete actions and measurable improvements
  • Collaborate with independent third parties to verify and validate ethical performance
  • Integrate lessons learned from crises into ongoing ethical training and governance processes

Key Terms to Review (32)

Accountability: Accountability refers to the obligation of individuals or organizations to report, explain, and be answerable for the consequences of their actions. In the context of global business, accountability is crucial for maintaining ethical standards and fostering trust among stakeholders, as it emphasizes transparency and responsibility in decision-making processes.
Anti-corruption compliance programs: Anti-corruption compliance programs are structured initiatives implemented by organizations to prevent, detect, and respond to corruption and bribery. These programs are essential for promoting ethical behavior, ensuring adherence to legal standards, and fostering a culture of integrity within multinational operations.
Child labor: Child labor refers to the employment of children in work that deprives them of their childhood, education, and potential, often in dangerous or exploitative conditions. This practice raises significant ethical concerns in global business, as companies may engage in or benefit from labor practices that violate children's rights, leading to calls for responsible sourcing and corporate social responsibility initiatives.
Climate change mitigation: Climate change mitigation refers to efforts aimed at reducing or preventing the emission of greenhouse gases, thereby minimizing the impacts of climate change. It encompasses a range of strategies including renewable energy adoption, energy efficiency improvements, reforestation, and changes in consumption patterns. These actions are essential for achieving sustainability and ethical responsibilities in global business practices.
Corporate Social Responsibility: Corporate social responsibility (CSR) refers to the ethical framework that an organization adopts to contribute positively to society while balancing the interests of various stakeholders. This concept highlights the responsibility of corporations to not only generate profits but also to address social, environmental, and economic issues in their operations and decision-making processes.
Corruption Perceptions Index: The Corruption Perceptions Index (CPI) is a global measure that ranks countries based on their perceived levels of public sector corruption, as assessed by expert surveys and opinion polls. It provides insights into how corruption is viewed within various nations, impacting their political stability, economic development, and ethical decision-making in global business practices.
Cultural Intelligence: Cultural intelligence is the capability to relate and work effectively across cultures. It involves understanding cultural differences and adapting one's behavior accordingly, which is crucial for successful interactions in diverse environments. This skill is important for navigating various dimensions like communication styles, leadership approaches, teamwork dynamics, ethical considerations, and risk management in global settings.
Cultural Relativism: Cultural relativism is the idea that a person's beliefs, values, and practices should be understood based on that person's own culture rather than be judged against the criteria of another culture. This perspective emphasizes that ethical standards are not universal but are shaped by cultural context, making it crucial in navigating the complexities of global business ethics.
Deontological Ethics: Deontological ethics is an ethical theory that emphasizes the importance of following rules and duties in determining what is morally right or wrong. It posits that certain actions are inherently right or wrong, regardless of their consequences, meaning that the morality of an action is judged based on its adherence to established rules or principles. This approach is often contrasted with consequentialist theories, which focus on the outcomes of actions rather than the actions themselves.
Environmental Sustainability: Environmental sustainability refers to the responsible management of resources and practices that ensure the health and viability of ecosystems for future generations. This concept emphasizes the importance of balancing economic growth with environmental protection, aiming to minimize ecological damage while promoting social equity and economic development. The interconnection of these elements is crucial, as businesses and governments must collaborate to create policies that foster sustainable practices in a global context.
Ethical audits: Ethical audits are systematic evaluations of an organization's ethical practices and compliance with ethical standards. They involve assessing a company’s policies, procedures, and operations to ensure alignment with both internal values and external regulations. This process helps identify areas where ethical issues may arise, thereby guiding organizations in their decision-making and fostering a culture of accountability and transparency.
Ethical relativism: Ethical relativism is the belief that moral principles and values are not absolute but are shaped by cultural, social, or personal circumstances. This perspective suggests that what is considered right or wrong can vary significantly across different societies and that there is no universal standard for morality. In the context of global business, ethical relativism plays a crucial role in understanding how companies navigate varying ethical standards in diverse cultural landscapes.
Ethical universalism: Ethical universalism is the belief that certain ethical principles and standards are universally applicable to all individuals, regardless of culture or context. This perspective emphasizes that there are fundamental moral truths that transcend cultural differences, asserting that ethical behavior should be consistent across different societies and situations. It contrasts with ethical relativism, which suggests that morality is shaped by cultural contexts and varies from one society to another.
Forced labor: Forced labor refers to situations where individuals are coerced to work against their will, often under threat of punishment or harm. This unethical practice can occur in various forms, including human trafficking and debt bondage, and is prevalent in industries that exploit vulnerable populations. Understanding forced labor is crucial for ethical decision-making in global business, as companies must recognize their responsibilities in preventing such practices within their supply chains and operations.
Foreign Corrupt Practices Act: The Foreign Corrupt Practices Act (FCPA) is a U.S. law enacted in 1977 that prohibits American companies and citizens from bribing foreign officials to gain or retain business. This act aims to promote ethical business practices and enhance transparency in international transactions, holding companies accountable for their actions abroad. The FCPA's provisions highlight the importance of complying with legal regulations while also fostering ethical decision-making and reporting in global business operations.
Hofstede's Cultural Dimensions: Hofstede's Cultural Dimensions is a framework for understanding how cultural differences can impact behavior and values in a business context. Developed by Geert Hofstede, it identifies six key dimensions that illustrate how cultures vary around the world, helping multinational corporations navigate cultural complexities in their operations and ethical decision-making. By applying these dimensions, businesses can better comprehend local customs, improve communication, and create effective organizational structures that respect cultural nuances.
Human trafficking: Human trafficking is the illegal trade of human beings for the purposes of forced labor, sexual exploitation, or other forms of coercion. This crime often involves the use of deception, manipulation, or threats to control victims and can occur both domestically and internationally. The complexities surrounding human trafficking demand ethical considerations for businesses operating globally, as they must navigate laws and moral responsibilities to prevent complicity in such violations.
ISO 26000: ISO 26000 is an international standard that provides guidance on social responsibility, helping organizations contribute to sustainable development. It outlines principles and practices that promote ethical behavior, transparency, and accountability in business operations, guiding companies to operate responsibly in a global context.
Milton Friedman: Milton Friedman was a prominent American economist and a leading figure in the Chicago School of economics, known for his strong belief in free markets and minimal government intervention. His work has had a profound impact on economic theory and policy, especially regarding the importance of individual freedom and the role of businesses in society. He argued that the primary responsibility of a corporation is to maximize profits for its shareholders while adhering to the law and ethical customs of society.
Moral imperialism: Moral imperialism refers to the imposition of one culture's ethical standards and values onto another culture, often justified by the belief that one's own morals are superior. This concept highlights the tension between cultural relativism and universalism in ethical decision-making, especially in global business contexts where companies navigate diverse cultural norms and practices.
Peter Singer: Peter Singer is a prominent Australian moral philosopher known for his work in bioethics and his advocacy for animal rights and effective altruism. His utilitarian approach emphasizes the importance of making ethical decisions that maximize overall well-being, often challenging traditional views on morality, especially in a global business context where ethical decision-making plays a critical role.
Social Contract Theory: Social contract theory is a political and philosophical concept that posits that individuals consent, either explicitly or implicitly, to surrender some of their freedoms and submit to the authority of a governing body in exchange for protection of their remaining rights. This idea underpins many modern political systems and has significant implications for ethical decision-making, particularly in the context of global business practices where companies must navigate diverse cultural norms and regulatory environments while maintaining ethical standards.
Stakeholder Theory: Stakeholder theory posits that organizations should consider the interests and well-being of all parties affected by their operations, rather than solely focusing on shareholders. This approach encourages businesses to recognize the interconnectedness of various groups—including employees, customers, suppliers, communities, and the environment—leading to a more sustainable and ethical business practice that goes beyond profit maximization.
Transparency: Transparency refers to the practice of openly sharing information and being accountable in actions and decisions within an organization. It emphasizes the importance of clear communication with stakeholders and ensures that operations are conducted in a manner that is open and honest, promoting trust and integrity. This concept is critical for fostering strong relationships with stakeholders and guiding ethical decision-making in a global context.
Transparency International: Transparency International is a global non-governmental organization that aims to combat corruption and promote transparency in governance. Founded in 1993, it is best known for its Corruption Perceptions Index, which ranks countries based on perceived levels of corruption in the public sector. This organization plays a crucial role in encouraging ethical decision-making in global business by advocating for accountability and integrity in both public and private sectors.
Triple Bottom Line: The triple bottom line is a sustainability framework that evaluates a company's commitment to social, environmental, and economic responsibilities. It emphasizes that businesses should focus not only on profit but also on the impact of their operations on people and the planet. This approach encourages organizations to measure their success through three interconnected pillars: people (social equity), planet (environmental stewardship), and profit (economic viability).
UK Bribery Act: The UK Bribery Act is a comprehensive piece of legislation that addresses bribery and corruption both within the UK and abroad. It prohibits offering, promising, or giving any financial or other advantage to another person with the intention of influencing them in their role, and it establishes strict penalties for individuals and companies found guilty of such offenses. This act emphasizes ethical decision-making in global business by promoting transparency and integrity.
UN Guiding Principles on Business and Human Rights: The UN Guiding Principles on Business and Human Rights are a set of international standards designed to protect human rights in the context of business activities. They outline the responsibilities of businesses to respect human rights, the obligations of states to protect those rights, and the need for effective remedies for victims of human rights abuses. These principles emphasize that businesses should avoid causing harm and take proactive measures to identify, prevent, and mitigate human rights risks.
Universalism: Universalism is an ethical theory that asserts that certain principles or values are universally applicable to all individuals, regardless of culture or context. This perspective emphasizes the idea that there are fundamental ethical standards that transcend local customs, making it crucial for global business practices to consider a common moral ground when making decisions.
Utilitarianism: Utilitarianism is an ethical theory that suggests that the best action is the one that maximizes overall happiness or utility. In global business, this means evaluating decisions based on their consequences for all stakeholders, aiming to produce the greatest good for the greatest number. This approach emphasizes a cost-benefit analysis, taking into account the positive and negative impacts of decisions on employees, customers, and communities.
Virtue Ethics: Virtue ethics is an ethical theory that emphasizes the importance of moral character and virtues in determining what is right and wrong, rather than focusing solely on rules or consequences. This approach encourages individuals to develop good character traits, such as honesty, courage, and compassion, which guide their behavior in various situations. In a global business context, virtue ethics plays a significant role in ethical decision-making by promoting the idea that leaders and organizations should cultivate virtuous characteristics that lead to positive outcomes for all stakeholders.
Whistleblower protections: Whistleblower protections are legal safeguards designed to protect individuals who report unethical or illegal activities within an organization from retaliation. These protections encourage transparency and accountability in organizations, as they help ensure that employees can speak out without fear of losing their jobs or facing other forms of discrimination. Strong whistleblower protections are vital for fostering an ethical culture in businesses operating across borders, as different countries have varying laws and attitudes towards whistleblowing.
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
Back
Practice QuizGlossary
Practice QuizGlossary
Next guide