Executive Summary

Toward An Ethical Basis For Global Business

Charles M. Denny, Jr.
Chairmanof ADC Telecommunications Incorporated

August 1992

Over the summer months, the Minnesota Center for Corporate Responsibility has been preparing a draft document entitled, "Toward an Ethical Basis for Global Business." The paper is the work of representatives from 17 companies, all of whom made substantial contributions.

The project is a response to cultural and ethical conflicts experienced in foreign markets with behaviors which are considered unethical, if not illegal, here in the U.S.

Coincident with its developing interest in the conflict of ethical systems and its impact on world trade, MCCR participated with Twin Cities businesses in hosting two visits by the Caux Roundtable, a distinguished group of international executives who are seeking ways and means to alleviate the growing tensions among the major trading regions of the world. As a result of their visits to Minnesota, the executives invited MCCR to present a draft of an international code of conduct at their annual conference in Caux, Switzerland.

We began the project with the goal of writing a set of ethical guidelines for use throughout the world, but we quickly realized that we could not presume to speak for the other trading regions, because we lacked an understanding of the ethical systems which arise from their cultures. With appropriate humility, we refocused our efforts on a more modest objective: to begin a dialogue that could lead towards our ultimate goal.

We have prepared a statement of ethical principles that represents desired behaviors in the North American market, whose culture and values we believe we can competently represent. We are seeking similar statements from the other major trading regions that will reflect the unique ethical systems derived from their cultures. The purpose of these statements is two-fold: 1) to describe the ethical systems of each trading area so we may be aware of and sensitive to the behaviors most valued by our trading partners; and 2) to begin a process--based on these statements--that identified shared values and reconciles differing values so we may move toward developing a world standard of business behavior that is acceptable to and honored by all.

It is not possible to reprint the entire statement here, but the Preamble does capture the essence of the principles and is offered for your reactions and recommendations:

• Whereas business is increasingly international and global in its transactions and its effects;

• Whereas laws in such a context are necessary but insufficient guides for conduct;

• Whereas responsibility for a corporation's actions and policies and respect for the dignity and interests of its stakeholders are fundamental;

• And whereas shared values are as important for a global community as for communities of smaller scale;

• We offer the following propositions as a foundation for dialogue by business leaders in search of corporate responsibility.

• In so doing, we affirm the legitimacy and centrality of moral values in economic decision making because without them, stable business relationships and a sustain-able world community are impossible.

Center for Ethical Business Cultures

1000 LaSalle Avenue, TMH 331 ▪ Minneapolis, MN 55403-2005 ▪ USA

Phone: 651 962 4120 or 800 328 6819 Ext. 2-4120 ▪ Facsimile: 651 962 4042

Email: mail@cebcglobal.org

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