BUSINESS ETHICS COURSE – A focus on the development of required language skills

Principles of Business Ethics

Ethics form the foundation for international economic activities. Ethical guidelines are essential in making business decisions. Business professionals have responsibilities to make decisions based upon ethical principles. In the 21st century, the role of ethics in international business transactions and interactions will receive more attention.

Materials in this exercise will help you to learn about, explore, and discuss ethics and ethical issues in international business.

Principles of Business Ethics is the theme of this lesson .The focus of these lessons is on the development of language skills needed to think, discuss, and write about business ethics. The students’ skills will improve as interest and personal involvement in the materials and the topic increases.

Background Information

Why discuss international business ethics? According to Donaldson, societies can and do have the right to expect business to function ethically. People in every country in the world make an agreement with business to carry out the necessary work to provide goods and services to society: “All productive organizations can be viewed as engaging in an implied contract with society. ” “Corporations must have bestowed upon them by society…. authority to own and use land and natural resources. In return, society has the right to expect that productive organizations will enhance the general interests of consumers and employees. Society may also expect that corporations honor existing rights and limit their activities to accord with the bounds of justice”  So, under this ‘social contract’ between society and business, what rules guide business? What are the minimal duties of business professionals? Should an international code of business ethics be adopted? If so, what should such a code contain?

Most companies have a Code of Conduct that guides workplace behaviors. A Code of Conduct is a description of what practices are expected of employees in the company. If employees follow the rules of the Code of Conduct, they succeed in their jobs; if employees violate the Code of Conduct, they may lose their jobs.

More and more companies conduct international transactions as a part of their daily operations. International situations are particularly prone to ‘gray areas’ because norms and practices that guide ethical behaviors vary across cultures. The ethical decision about what to do in some international business situations is not always clear. Sometimes, a decision about ethics is not ‘black or white,’ but is in the ‘gray area’. In this chapter, a description of a dilemma that requires discussion about international business ethics is presented.

Most experts in international business ethics agree that an international code of ethical practice, and not a code based on each individual culture’s unique norms and practices, is essential to global economic survival in the 21st century. Experts have created a list of principles to guide international. These principles are summarized here:

  • Principles of International Business Ethics
    Integration – Business ethics must permeate all aspects of organizational culture and be reflected in key management systems. Companies start by integrating ethics into goal setting and hiring practices. When promoting workers to higher levels within the company, ethical principles guide incentive programs.
  • Implementation – Ethical conduct is not just an idea, but requires the implementation of a plan of change in specific areas of work in the company. Some examples are efforts to modify personnel appraisal processes, promotion of improved environmental practices, and referrals to specialists, when needed.
  • Internationalization – Increased internationalization is necessary to all successful business in the 21st Internationalization is achieved through the formation of international partnerships, trading blocs, and implementation of GATT and other free trade agreements. Clarification of an organization’s own definition of integrity that transcends national borders is necessary. A resulting program is not culturally defined and requires little or no modification when applied in global contexts.

Principles of Business Ethics

Classroom Applications

Language classes are places in which interesting activities and discussions can lead to better understanding of ethics in business. In order to understand the importance of principles in business ethics, students work together using materials that are valuable for learning and interesting.

Preliminary Lesson Planning: Materials:

  • : Principles of International Business Ethics and Case Study
    1. Principles of International Business Ethics
      Integration
      – Business ethics must permeate all aspects of organizational culture and be reflected in key management systems. Companies start by integrating ethics into goal setting and hiring practices. When promoting workers to higher levels within the company, ethical principles guide incentive programs.
    2. Implementation – Ethical conduct is not just an idea, but requires the implementation of a plan of change in specific areas of work in the company. Some examples are efforts to modify personnel appraisal processes, promotion of improved environmental practices, and referrals to specialists, when needed.
    3. Internationalization – Increased internationalization is necessary to all successful business in the 21st Internationalization is achieved through the formation of international partnerships, trading blocs, and implementation of GATT and other free trade agreements. Clarification of an organization’s own definition of integrity that transcends national borders is necessary. A resulting program is not culturally defined and requires little or no modification when applied in global contexts.

 

Appendix B

Case Study
Grady is the president of an engineering firm. The firm is negotiating a contract in another country. The engineering firm has not previously worked in this country. A high-ranking official in this country tells Grady that it is an established and legal custom to give personal gifts to officials who are authorized to award contracts. This official also informs Grady that no further work will be awarded to Grady’s firm without such gifts. However, this condition will not be included in the contract. If Grady does not comply, the government will also be less cooperative in the completion of the first contract. Grady learns that other firms have given such gifts to officials.Adapted from NSPE Case and BER Judgment, summarized

 Learning Groups:

Student groups are important for classroom learning. Students may be grouped in pairs, small groups (46 students per group), half-class or whole class. Whatever the grouping scheme, how students interact – with whom, on what topics, and for how long – is an important aspect in planning a lesson. Variety of experiences is the key to effective learning in the classroom acquisition of language.

Vocabulary and Grammar:

Review readings and determine vocabulary and grammar points to be addressed. See Appendix A for a sample grammar review.

 Appendix A

Grammar Overview – Some Useful Rules and Ways of Using Them to Discuss International Business Ethics
The grammar rules that appear below may be of help to students and teachers in identifying areas of accuracy in grammar usage

Grammar Point #1:

Example Sentence from the text: See page 2: “If employees follow the rules of the Code of Conduct, they succeed in their jobs; if employees violate the Code of Conduct, they may lose their jobs.”

This sentence is a good example of the use of the hypothetical conditional. We use this form frequently. Rule: Use an if clause to introduce the topic. After that, it is not necessary to repeat the if clause in every sentence. It sounds unnatural to keep repeating if.

Grammar Point #2:

Example Sentence from the web text: See page 3: “Ethical conduct is not just ‘an idea,’ but requires the implementation of a plan of change in specific areas of work in the company.”

This sentence demonstrates the use of articles in describing a rule or principle. Notice the use of an, the and a. We use definite articles (the) to refer to what we have previously described and indefinite articles (a, an) to refer to ideas we want to introduce.

Warm Up Activity (approximately 15-20 minutes)

Goals:

  • To involve students in the topic
  • To teach new vocabulary
  • To generate a sense of basic understanding of what life applications the topic has for learners
  • To create an atmosphere of trust to discuss a sensitive and very important topic

Procedures:

  1. Warm up for Activity #1: Write a Code of Conduct for your school or company.
  2. Tell students that today’s lesson will be on the general topic of Business Ethics, with the focus on Principles of Business Ethics. PLEASE REFER TO BUSINESS ETHICS PAGES

TIME 3:15 – 5:30 UNIT #10 (PGS 78-85) TOPIC: ETHICS

SKILL FOCUS: RANK A LIST OF UNETHICAL ACTIVITIES

                            HANDOUT ON BUSINESS ETHICS    

                          

  • discussed and written a little on this topic
  • learned information on the topic that they did not previously have. Remember “Principles of International Business Ethics.”

Students share what they understand about Principles of International Business Ethics. A pair of students record the responses. Retain this record of student responses for later use.

  1. Student responses focuses on key words recorded on an overhead, blackboard or flip chart.
  2. Have students complete Handout #1: Self Assessment on International Business Ethics. Discuss their responses. Listen to what students say to get a sense of what they understand and know about this topic.
  3. Transition from Warm up to Activity #1 – Now, tell students that they will address the topic of the day – to learn about Principles of International Business Ethics.

Activity #1 – Write A Code of Conduct (approximately 40-45 minutes)

Goals:

  • To use English in meaningful ways
  • To introduce Principles of International Business Ethics
  • To provide meaningful contexts for using new vocabulary and (often somewhat under-used) grammatical structures

Procedures:

  1. Students read the Principles of International Business Ethics.
  2. Have each student or group of students select one principle to describe in a paraphrase. Then, have students think of an example of a situation where this principle might apply.For example, students choose Integration [Principles] as the principle to discuss. A paraphrase of Integration might be this: A code of conduct must be obvious in all aspects of business operations. For example: When a candidate is interviewed for a job, the interviewer refers to ways in which the position requires ethical behavior, as defined by the Code of Conduct. Or, when goals are set for the year, the company vice-president outlines how goals might conflict with the company code of conduct and ways of avoiding those conflicts.
  3. Present an introduction to the activity. Say “Now, we see the role and importance of ethical behavior in international business. A “Code of Conduct” is a starting point for building a plan for ethical behaviors in a business. In the next activity, we are going to work in groups to develop a Code of Conduct. Each group’s Code must adhere as much as possible to the three Principles of International Business Ethics.” (10 minutes).
  4. In each group, there are two Scribes (they write down the comments made in the group discussion), a Coordinator (this person assures that the discussion stays on the topic and that all participants have their views heard) and two Proofreaders (these individuals are responsible for the final draft that will be shared with the class later on).Note: This scheme can be adjusted, depending on the size and needs of the group. However, for maximum effectiveness, all students should be assigned a role for this activity.
  5. In each group, ask students to please follow these steps (15-20 minutes):Read through and make sure you understand the Principles. Ask the teacher if you need more information or clarification.b. Review sample Codes of Ethics or Codes of Conduct from several professional groups at this web site:
    http://www.ethics.ubc.ca/resources/professional
  6. Now, write a Code of Conduct for your school or company. Use the format provided in Handout #2. The Coordinator generates ideas; and the Scribes write the list on a large piece of newsprint, poster board or other large paper (preferably, with wide markers).d. The Proofreader checks the Code and is responsible for finding mechanical (spelling, grammar, capitalization and formatting) errors. Note: See Appendix A for a brief grammar review.
  7. Tape each group’s Code of Conduct to the blackboard (5 minutes)
  8. Invite the class to read through each Code. Encourage students to discuss their Codes with each other as they walk around the room reading each group’s Code: Explain the rationale, and describe how each principle is represented in the Code. (15 minutes)
  9. Finally, the teacher gives feedback on the Code, referring specifically to the mechanics (see the grammar section in Appendix A for specific points on which to provide feedback) and the content. (Focus here is on how and to what extent that students’ Codes of Conduct address the Principles of International Business Ethics).
Appendix A

 Grammar Overview – Some Useful Rules and Ways of Using Them to Discuss International Business Ethics

The grammar rules that appear below may be of help to students and teachers in identifying areas of accuracy in grammar usage. Other grammar rules will be presented in later chapters.

Grammar Point #1:

Example Sentence from the text: See page 2: “If employees follow the rules of the Code of Conduct, they succeed in their jobs; if employees violate the Code of Conduct, they may lose their jobs.”

This sentence is a good example of the use of the hypothetical conditional. We use this form frequently.

Rule: Use an if clause to introduce the topic. After that, it is not necessary to repeat the if clause in every sentence. It sounds unnatural to keep repeating if.

Grammar Point #2:

Example Sentence from the web text: See page 3: “Ethical conduct is not just ‘an idea,’ but requires the implementation of a plan of change in specific areas of work in the company.”

This sentence demonstrates the use of articles in describing a rule or principle. Notice the use of an, the and a. We use definite articles (the) to refer to what we have previously described and indefinite articles (a, an) to refer to ideas we want to introduce.

Activity #2 – Read and evaluate the Case Study (Approximately 20-30 minutes)

Goals

  • To use English correctly in meaningful ways
  • To describe gift-giving practices and the ethical implications of those in international business settings
  • To improve vocabulary skills

Procedures:

  1. Warm up for Activity #2: Discuss gift-giving practices, since those are carried out in the students’ work or school environment.
  2. Teacher describes a gift-giving or gift-receiving experience he/she has had. Then, the teacher solicits ideas from the students. For example, the teacher asks: “What are the appropriate gifts for teachers in your school/ employees in your company?” Generate a class discussion on this topic. Get students to talk about this, without making judging comments.
  3. Ask students to complete the Questionnaire on Ethics of Gift Giving (Handout #3).
  4. Tell students that they will read through a description of a real-life situation in which gift giving is the subject of ethical judgment.
  5. Do a round robin reading of the Case Study.Note: In a round robin reading, each student has a copy of the text and reads one paragraph followed by the next student reading the next paragraph, until all students have had the opportunity to read once. Teacher correction here is on reading comprehension.
  6. Now, check for understanding. Make sure that students understand the short Case Study. See Handout #4 for a list of questions for students to answer (either in pairs, groups or individually). Give instructions for multiple choice and reading comprehension assessment. Ask students to read the questions first and then to re-read the passage.
  7. Solicit responses from students using their answers to the comprehension questions. Then, provide correct answers. Make certain students understand the case study.Note: If students do not seem to need the comprehension ‘test,’ omit Handout #4 and go on.
  8. Now, do Handout #3: Questionnaire on the Ethics of Gift Giving. Ask students to discover their own and others’ attitudes towards gift giving.Note: Teacher may or may not wish to summarize student responses to the Questionnaire at this point.
  9. Write a Code of Conduct for International Gift Giving for the class. Include a list of rules for gift giving based on the Principles and addressing the topic as it relates to the academic and/or professional contexts of students in the class.

Cool Down Activity: (approximately 10-15 minutes)

Goals:

  • To build on an atmosphere of trust and respect for others’ ideas
  • To close the lesson

Procedures:

  1. Summarize what we have done. Be certain to include another verbal listing of the Principles of International Business Ethics.
  2. Ask students to choose one of the Principles and discuss a way in which he/she might address it in his/her work/school life.
  3. Ask why gift giving is an important subject for international business professionals to address.
  4. Finally, ask students to say what they would like to know more about concerning international business ethics?


Handout #2

Handout #2: Code of Conduct for Use by XYZ School or Company

Prepared by
(names of group members here)_________________________________ _________________________________ _________________________________ _________________________________

_________________________________

Code Of Conduct Statement:

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Description of rationale on the basis of

Principle of Integration

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

_________________________________
_________________________________

Principle of Implementation

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

_________________________________
_________________________________

Principle of Internationalization

_________________________________
_________________________________
_________________________________
_________________________________

Handout #3

 Handout #3: Questionnaire on the Ethics of Gift Giving Practices
Answer the following questions by yourself; then discuss them with your teacher or a partner.
SA = Strongly Agree
A = Agree
NS = Not Sure
D = Disagree
SD = Strongly Disagree
1. ___ There should be no international code of ethics on gift giving.2. ___ Decisions about gift giving are best left to individual businesses.3. ___ I prefer to have rules about gift giving provided for my use in international business.

4. ___ All businesses should be required to follow rules of ethical gift giving behavior.

5. ___ Business professionals in individual countries should not be required to adhere to international rules on gift giving.

Handout #4

Handout #4: Comprehension Questions for use with Case Study

Circle the correct answer to each question:

  1. What happened to Grady?
    A. He was told to give a gift to an official.
    B. His wallet was stolen.
    C. The president of the company wanted a gift.
    D. He found out it was illegal to give gifts.
  2. What did the official say?
    A. Give a gift to the president.
    B. Give a gift to an official.
    C. Ask for payment when closing the deal.
    D. Bring a gift to a dinner with executives.
  3. According to the official, gift giving was considered
    A. Ethical, but rarely done.
    B. Commonplace, but unethical.
    C. Polite, but not required.
    D. A matter of choice.

Handout #1

Handout #1: A Self Assessment On International Business Ethics

SA = Strongly Agree
A = Agree
NS = Not Sure
D = Disagree
SD = Strongly Disagree
1. ___ It is better to avoid conducting business outside one’s own country because of the complexities that occur across national borders.2. ___ Ethics is a philosophical issue, not a business issue.3. ___ In business, keeping a code of ethics is like keeping wedding vows.4. ___ It’s better not to think about ethics when you are making a business deal.

5. ___ International business ethics is important to me.

These suggestions are in no particular order.

  1. What will be the purpose of your new code? Is it to regulate behaviour? To inspire?
  2. Different kinds of documents serve different purposes. Is your new document intended to guide people or to set out requirements? Is it really a Code of Ethics that you need? You might consider creating a Statement of Values, a Policy, a Mission Statement, a Code of Conduct…
  3. A code of ethics should be tailored to the needs and values of your organization.
  4. Many ethics codes have two components. First, an aspirational section, often in the preamble, that outlines what the organization aspires to, or the ideals it hopes to live up to. Second, an ethics code will typically list some rules or principles, which members of the organization will be expected to adhere to.
  5. Will your new ethics document include some sort of enforcement? If so, what kind?
  6. Often the principles or values listed in an ethics document will be listed in rough order of importance to the organization. The ordering need not be strict, but generally the value or principle listed first will have a natural prominence.
  7. Think carefully about the process by which you create your new code. Who will be involved? A small working group? Or all the people affected by the code? How will you distil the needs of your organization and the beliefs of your members into a document? The process may matter as much as the final product.
  8. How will your new code be implemented? How will it be publicized, both inside and outside of your organization? What steps, if any, will be taken to ensure that the values embodied in your code get implemented in organizational policies and practices?
  9. How / when will your code be reviewed / revised?

And remember that a code of ethics will not solve all ethical problems:

“But we must remember that good laws, if they are not obeyed, do not constitute good government. Hence there are two parts of good government; one is the actual obedience of citizens to the laws, the other part is the goodness of the laws which they obey…” (Aristotle, Politics 1294a3-6).

Organization: Business Software Alliance
Verified on: 06/17/02
Source:

Business Software Alliance: Software Code of Ethics

Previous Version(s): None
Disclaimers: Please note the codes in our collection might not necessarily be the most recent versions. Please contact the individual organizations or their websites to verify if a more recent or updated code of ethics is available. CSEP does not hold copyright on any of the codes of ethics in our collection. Any permission to use the codes must be sought from the individual organizations directly.
 (Historical) Software Code of Ethics
Unauthorized duplication of copyrighted computer software violates the law and is

contrary to our organization’s standards of conduct. We disapprove of such copying and

recognize the following principles as a basis for preventing its occurrence:

We will neither commit nor tolerate the making or using of unauthorized software copies under any circumstances.

We will provide legally-acquired software to meet all legitimate software needs in a timely fashion

 and in sufficient quantities for all our computers.

We will comply with all license or purchase terms regulating the use of any software we acquire or use.

We will enforce strong internal controls to prevent the making or using of unauthorized

 software copies, including effective measures to verify compliance with these standards

 and appropriate disciplinary actions for violation of these standards.

DATE TITLE
04/02/2003 Hynix Calls U.S. Commerce Department Preliminary Determination in Subsidy Trade Case ”Disappointing and Unjustified on the Facts and the Law”   
  

SAN JOSE, Calif.–(BUSINESS WIRE)–April 1, 2003–“The U.S. Commerce Department’s preliminary determination that Hynix received countervailable subsidies from the Korean Government is disappointing for us,” Mr. Oh-chul Kwon, Vice President, said today. “We believe that this preliminary determination is unjustified on both the facts and the law.”
“Under U.S. law, these additional duties should only be assessed when the facts prove that a foreign government has been subsidizing exports of a product,” Mr. Kwon stated. Mr. Kwon noted that “in this case Hynix and its Washington counsel and advisors provided extensive proof that the Korean government was not behind the restructuring measures adopted by Hynix’s creditors in 2001 and 2002. Rather, the evidence demonstrated that the bank restructurings that were the focus of the allegations in this case were wholly decided by the Hynix’s creditors based on market principles.”
Mr. Kwon also noted that “this case is far from over.” The decision issued by the Commerce Department today was just a preliminary determination. The Commerce Department is scheduled to issue a final determination in the middle of June. Mr. Kwon stated that “it appears that the Commerce Department was overwhelmed with all the information and data that they received and needs more time to digest and analyze it.” Mr. Kwon stated that he is confident that the Commerce Department will agree that the Korean Government was not behind the restructuring efforts after they have more time to understand all of the complex transactions.
Mr. Kwon also noted that the Commerce Department’s decision is not that only ruling that maters. Under U.S. law, extra CVD import duties cannot be imposed unless and until both the Commerce Department makes a final determination that the Korean Government provided impermissible subsidies, and the U.S. International Trade Commission (ITC) makes final determination that subsidized exports from Korea caused the U.S. industry to suffer material injury. The ITC’s final determination will not be made until July 29th.
“I have no doubt,” Mr. Kwon stated, “that at the end of this case Hynix will prevail and no additional import duties will be imposed on Hynix’s shipments.”
“Today’s determination will not affect Hynix’s commitment to provide our customers with the most advanced, highest quality products and to remain a world-class competitor. Hynix will continue to manufacture state-of-the-art products at home and in our facility in Eugene, Oregon, where we have invested over $1 billion and employ over 1000 skilled American workers.” Today’s decision by the Commerce Department will have no affect on the ability of our Eugene facility to supply U.S. customers.”
 
 
 Characteristics of Effective Team Leaders

TWELVE TIPS FOR TEAM BUILDING

Business Sim-1

 DOOSAN-REVISED SCHEDULE
 telesis-business-plan  
DATE TITLE
04/25/2003   HYNIX SAYS EC DECISION IGNORES REAL FACTS
DATE TITLE
07/24/2003   Hynix Says U.S. ITC Decision On DRAM Case Is “Very Disappointing,” But It Will Not Affect Hynix’s Overall Business Operation Worldwide
  

Seoul, Korea, July 24, 2003 — An official of Hynix today stated that “Hynix is very disappointed by the International Trade Commission’s affirmative injury determination in the DRAMs case.” He cautioned, however, that it was difficult to offer much comment on the ITC’s determination because the ITC’s written rationale was not yet available. “Today we just learned the outcome, not the reasons why.” According to the official, Hynix will receive the ITC’s written rationale in a couple of weeks, and then Hynix will review its options. Two options are possible: (1) appealing the ITC’s decision to the Court of International Trade, and/or (2) having the Government of Korea appeal the decision to the WTO. Both options could be pursued at the same time. The official also said that today’s determination, although disappointing, will not bring any significant changes in Hynix’s DRAM production and business operation. He said that Hynix has prepared a thorough plan in advance to minimize the impact of any unfavorable ITC determination. For example, “Hynix will increase the production of DRAMs in its Eugene, Oregon fab, which is not subject to the CVD duty imposition, to continue to provide quality DRAMs to its U.S. customers.” “Therefore, our existing customers in the U.S. will not be affected at all by today’s decision,” the official emphasized.
 

 

 

 

 

DATE TITLE
04/25/2003   HYNIX SAYS EC DECISION IGNORES REAL FACTS
     Vows to continue fight against ‘unjustified’ ruling   
Seoul, 25 April 2003 – Hynix Semiconductor reacted strongly to today’s decision by the European Commission to impose provisional countervailing duties on certain types of dynamic random access memory (DRAM) semiconductor chips produced in South Korea. “We are deeply disappointed by this decision,” said Mr. Oh-Chul Kwon, Vice President of Hynix in Korea. “The Commission staff seems to have either misunderstood or ignored both the actual facts of Hynix’s restructuring and the competitive realities of the global DRAM market. We will work vigorously to ensure that the EU’s final decision properly reflects the actual facts. – The EC’s finding of a countervailable subsidy is based on invalid factual conclusions The EC found two instances in which it could claim that Hynix benefited from a Korean Government subsidy (1) a debenture programme aimed at temporarily providing a market-based measure to normalize the bond market and managed by the publicly-owned Korean Development Bank (KDB); and one part of the Hynix restructuring (in October 2001) which included a a debt-to-equity swap and a new loan by several commercial banks. In each case, the EC’s decision is based on an improper understanding (or deliberate ignorance) of the actual facts. With respect to the KDB program, the Commission ignores the fact that Hynix actually obtained substantial new capital at precisely the time that the Commission alleges no commercial entity would extend credit to Hynix. The Commission confuses severe liquidity problems in the Korean bond market with Hynix inability to obtain capital. As importantly, refinancing under the KDB programe was strictly on commercial terms and actually cost Hynix more than comparable purely commercial loans obtained at the same time. Under the law, there cannot be any “benefit” when the refinancing was more expensive, not less expensive, than purely commercial new loans actually obtained at the same time. And with respect to the October 2001 financial restructuring, the EC Commission wrongly concludes that the Korean Government somehow controls the lending decisions of Citibank, a purely private U.S. commercial bank and also the Korea Exchange Bank, a private Korean commercial bank largely controlled by Commerzbank. With lending decisions in both cases being made by foreign nationals answering to foreign companies, it is nonsensical to “find” that these decisions were somehow being directed by the Korean Government. – The EC’s finding that the alleged subsidies to Hynix caused EC producers to suffer material injury ignores market competitive realities Every available independent market analysis contradicts the Commission’s allegations that the worldwide downturn in DRAM prices was caused by the subsidisation of Hynix. Rather, all knowledgeable DRAM market observers understand that 2001 was the worst market for DRAM suppliers in more than a decade. Demand in 2001, the time period at issue, was far below the long-term average, and every DRAM producer suffered. EU chip-maker Infineon, which brought the case to the Commission, was particularly hard-hit due to its investment choices and decision to shift to certain products before the market was ready for those product. Under the law, a company’s own business decisions are not supposed to justify imposing import duties. Indeed, the Commission’s “finding” that Hynix shipments caused harm to EU producers ignores the fact that over the past few years, Hynix has lost share in the EC market, not gained it. Hynix’s market share declined by 2.7 percentage points between 2000 and 2001. It is hard to see how declining market share by Hynix could be the causes of any difficulties for Infineon. In contrast, Samsung gained 7.3 percentage points and Micron 3.3 percentage points over this same period. It is clear from these figures that shipments from Samsung and Micron, rather than Hynix, caused volume difficulties for Infineon. – The Only Conclusion Possible Is That The EC Decision Was Politically Motivated The EU authorities haven’t even been able to show that there was improper subsidisation. They certainly haven’t shown a causal link to the problems suffered by EU industry or demonstrated that the Community interest will be served by imposing duties. Having reviewed the weak argumentation put forward by the Commission, we cannot see that it could be anything but politically motivated. The possibility of this scenario clearly raises the question of whether this is an appropriate use of EU law. – Hynix Will Continue To Press Its Arguments To The Member States The EC case is not yet over. The EC Commission has only made a preliminary determination. Under law, the EC Member States have the final say on whether to impose the extra duties. Hynix believes that, when properly advised of all the facts, the Member States will reverse the Commission’s preliminary decision.
 

 

DATE TITLE
05/15/2002   HYNIX ALERTS CUSTOMERS OF COUNTERFEIT DRAMS
  

SAN JOSE, California, May 14, 2002 – Hynix Semiconductor Inc., a leading semiconductor memory manufacturer and premier supplier of high-performance DRAM products, today disclosed that it has discovered counterfeit copies of its 128-Megabyte 133-MHz SDRAM module. The fraudulent modules, packaged in Taiwan with a counterfeit Hynix label, are being distributed in China, Taiwan and Europe. Based on Hynix’s initial investigation, it appears that the counterfeit parts contain low-grade die from various memory manufacturers and are being sold into the open market as the Hynix brand. Hynix has achieved worldwide brand recognition due to the highest quality standards, and as a result, is very concerned and is warning all customers and buyers to proceed with caution. Product purchases should only be through authorized distribution channels to avoid obtaining unqualified counterfeit parts.
 

http://exchanges.state.gov/forum/journal/business.htm

Advertisements

2 thoughts on “BUSINESS ETHICS COURSE – A focus on the development of required language skills

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s