ABSTRACT
This chapter reviews some of the costs that accrue from unethical practices such as bribery and corruption. Ethical standards vary from society to society, but individuals within the society are expected to maintain these standards. Social responsibility is a concept of ethics that businesses should act in the interests of society at large, taking into consideration all of its stakeholders and not only stock holders. One of the tools available to business firms is to compile a code of ethics. An ethics code stipulates a set of acceptable behaviors. In order to implement an ethics code, it is necessary to appoint an ombudsman, a manager who has the responsibility for coordinating ethical policy throughout the organization and who serves as an advocate for employees and board members who report or are involved in an ethical dilemma. Corporate social responsibility in the international business environment is more challenging because there are many more and diverse stakeholders of international business firms.
