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AN ASSIGNMENT ON

The Case Study on the Social Responsibility & ethics in International marketing decision

Submitted to Professor, Dr.Md.Kamal Uddin Professor, Department of International business, Faculty of Business studies, University of Dhaka.

Submitted by MD. hasibur Roll No: 14 Md.kiol Hossen Roll No: 67 Batch: BBA-15(IB-8nd) Course No-208 Department of International Business. University of Dhaka. Date of submission: March 30, 2011.

Table of contents

SUMMERY KADER Enterprise Ltd KADER Enterprise Ltd, located in china`s special economic zones, Hong Kong`s largest toy market, manufactures toys under contract for a variety of U.S companies. KADER employees 12000maind land Chinese who used to work 14-hours days, seven days a week that was prohibited by Chinese law .so KADER Enterprise Ltd faced several problems such as hiring child labor , long shift work sedule etc regarding to the social responsibilities . To consider other perspective & the social responsibilities KADER Enterprise Ltd tried to change the working condition but such working conditions are not limited to toy manufacturing. For overtime work KADER Enterprise Ltd paid its workers in highly priced Hong Kong dollars. If any workers refused overtime he /she would be blacklisted from getting extra hours in the future. Such tactics are also illogical under Chinese provincial law and KADER`s chairman was claimed. But Chinese employee is happy and productive with extra paid. Here the dilemma of KADER Enterprise Ltd.

Exporting U. S.Cigarette Consumption In the United States, 600 billion cigarettes are sold annually, but sales are shrinking rapidly. Sales have been down by almost 5 percent in the last 6 years. Recently, a major U. S. tobacco company signed a joint-venture agreement with the Chinese government which has with more than $200 million smokers, produces and consumes about 1.4 trillion cigarettes per year, more than any other country in the world, to produces cigarettes in China. China has more smokers than the United States has people. Just 1 percent of that 1.4 trillion cigarette market world increases the U.S. tobacco companys overseas sales by 15 percent and would be worth as much as $300 million in added revenue. The world health organization has launched a world No-Smoking Day. Tobacco companies operating in Spain and other European countries have agreed to pull television and radio spots and to limit advertising in other media. Consumers throughout the developing world, using catchy slogans, obvious image campaigns, and single cigarette sales that fit a hard-pressed customers budget. Indonesias per capita cigarette consumption quadrupled from 1973 to 1981. In purchasing Third World markets, tobacco companies operate unburdened by many of the restraints they face in the West. Radio and television advertising is generally unrestricted, and cigarette package do not have to carry health warnings. However, in Zimbabwe, where monthly earnings average are the equivalent of $70 U.S. and a single cigarette costs the equivalent of about 2U.S. cents. People in developing countries, dont have enough life expectancy to worry about smoking- related problem if there is no ban on TV advertising, then we are not going to be an idiot.

Several consistencies in for appropriate behavior as well as respect for the host countrys general value structure:

Expand code of ethics to be worldwide in scope. Expressly consider ethical issues when developing worldwide corporate strategies. If the firm encounters major ethical dilemmas, consider withdrawal from the problem market. Develop periodic ethics-impact statements, including impacts on host parties.

Question 1: What social issues faced by MNCs in their treatment of foreign workers could bring allegations of misconduct in their operations? The social issues which faced by MNCs in their treatment of foreign workers could allegations of misconduct in their operations are unethical use of offshore workers in poorer region of the world. Question 2: Would the use of third-party independent contractors insulate MNCs from being attacked? Would that practice offer MNCs a good defensive shield against charges of abuse of their employees? Yes, the use of third party independent contractors insulates MNCs from being attacked. Yes, that practice offer MNCs a good defensive shield against charges of abuse of their employees. Question 3: Do you think the statements by companies that describe good social and moral conduct in the treatment of their workers are part of the image those companies create and therefore are part of their advertising message? Do consumers judge

companies and base their decision on their perception of corporate behavior and values? Is the historic made in question now being replaced by a made by inquiry? Yes, I think that statements by companies that describe good social and moral conduct in the treatment of their workers are part of the images those companies create and therefore are part of their advertising message. Yes, consumers judge companies and base their buying decision on their perceptions of corporate behavior and values. The historic made in question now is being replaced by a made by inquiry.

Question 4: Given the principles noted in the case, how can company comment on their positive actions to promote human rights so that consumers will think well of them? Companies can comment on their positive actions to promote human rights so that consumers will think well of them by focusing consumers need, their right actions. I would propose, a company should construct a corporate code of ethics to overcome this type of problems

Question 5 : Discuss why both companies would continue to distribute each others products after the joint venture failed. What impact might the public statements about the failure have on this relationship? What are their social responsibilities? Ans: Both companies would like to continue distribute each others products because of their cultural differences in the decision-making process. Cornings public statements about the failure of their relationship were that they think Mexicans Vitro Companys decision making process is time consuming than Corning. Vitros public statements about the failure of their relationship were that Americans are forward. Question 6: Can you recommend alternative strategies or solutions to the dilemmas? Are they feasible? What is the price of ethical behavior? Answer: Diversity among employees of different cultural backgrounds and with varying specialties and expertise is strength of an organization. After merger, two different companies become close and they can share their feelings, ideas, plans, perspectives, viewpoints etc. It is very much helpful to overcome complexity and tackle problems. Both companies can consult from their own perspectives and think which strategy is better for the specific problem. Experience, another important issue. of business, can help the companies to survive in the competitive world.