Textbook: Hill, Charles, W. L. & Hult. G. T. (2019). International business: Competing in the international marketplace (13th ed.).
Chapter Five: Ethics, Corporate Social Responsibility, and Sustainability.
Ethics is a personal decision for everyone. Unethical practices may be very rewarding or could result in heavy fines and long-term incarceration. Similarly, companies must act ethically and maintain some social responsibility for the community they serve. Companies do this by practicing fair employment practices, recognizing and respecting human rights, preventing pollution, and avoiding corrupt tendencies. Corporations do this in order to foster sustainability. For example, TOMS shoes donates a certain number of shoes to charity for the total number of pairs of shoes sold. TOMS is able to sustain a reasonable profit margin under profitable conditions in spite of their social commitment to provide free shoes where they are needed.
