OnePageSummary5thFebruary2010

BusinessEthic,andFormalizationofCorporationIntregrity Businessethiccouldbeapproachedinformalandstructurebasedwithaframeworkofthebasicaspect(dutiesand rights),andtheoptionaladdingvalueaspect(bestpracticeandcommitment).Thisframeworkshouldbereviewed continuouslytomaintaintheobjectivityofitsapplication,becauseitsapplicationtoallofbusinessstakeholderwill beverysituationaldependsontimeandcultureonesizedoesntfitall. ForexampleinPhilipMorriscase,inmyopinion,althoughtheypracticalbusinessofsinfulbusinesscompliedtothe right,justiceandlawinmakinggreatbusinessprofitanddevelopment,theircareaspecttocommunitiesstillarises issueswhichthenresulting120pendinglawsuits,besidesthe300lawsuitsclosed.Itsmoreonmoralexcellent(to prioritizehumanlifehigherthaneconomicbenefit),ratherthanlawandrightcompliance. Moral excellent other name for integrity, significantly correlate to the reputation of a company, altough the reputation not necesarilly correlate with business profitability in economical scale, but as an intangible asset, reputationwilldefinitelyenhancethetrustlevelofitsstakeholderglobally,whichwillbringmorepositivebenefitto supportthebusinesssustainability.Organisationcouldsupportsintegritybyhavingcodesofconductandcompany culture with integritybasedstrategy context, but still, it will be depended on each of the personels believe and valueaboutmoralinconductingbusiness,whethertheyheldthevalueoftrustandtrustworthinessornot. AsH.BFullersadhesivegluecasesariseinCentralAmericaforitsmissused,inmyperspective,thewayhowthey conducted continuous effort on aspects within their control to reduce the missuse of adhesive glue reflects an excellent point of integrity. To overcome the issues, the related stakeholder should work altogether to minimize such missuse. The statement in 1995 form H.B Fuller Headoffice could be easily missunderstood by some stakeholderasitmightreflectslackofcareaccordingtocommunities.Butinmypointofview,thefocusofthe statementismoretothelimitationofthelegalimpactsratherthanhavinglackofintegrity. ComparingH.BFullercasetoJohnson&JohnsonsTylenolCase,theintegrityvalueisthesame,theonlydifferentis thelevelofcommitmentandthestrategytocommunicateittostakeholder.AsPublicRelationsfunctionplaysan important and strategic role in order to communicate a message effectively to public (in this Johnsons case, the messagewascompanysstrongcommitmenttoheldthecorevalueofintegrityatanycost),Johnsonhadmadethe crisisnotonlyaproblemtosolve,butalsoamomentumtogainpositivereputationfortheirsocialresponsibility. Definingglobalcodesofconduct(tocomplywithcommonlyagreeddefinitionofright,justiceandlaw)forabusiness to operate globally will probably raise some problems in practical daytoday operation because of cultural and standard norm difference in each country. Therefore, such codes of conducts should be reviewed periodically in some standarized mechanism to ensure the validity and the compliance to general business ethic and law, while maintainingthemainbusinessobjectivetogaintheeconomicalbenefitasconductedbyDowCorningCooperation. OneofotherbestpracticesimplementedsuccessfullybysomeMNCcompaniesinordertobesuccessfulonrunning theirbusinessandoperationabroadwithmaximumlawandethicscomplianceistocooperatewithlocalNGO.Not onlyhavingknowledge(andconcern)aboutthelocalstandardnormandcodesofconducts,suchNGOdefinitelyhas particular and valuable information about how to be successful on the local market. So, the possibility to create positivevaluestocommunity,aswellashavingadvantagesineconomicalperspective,thecooperationofMNCand NGOcouldcocreatebusinesssnewsocialcompact.

MM5001BusinessEthicsandLaw

February4,2010

ViolisonMartheo