IBUS6002 Lecture Notes - Lecture 5: Risk Aversion, Individualism, Sweatshop

• School: University of Sydney
• Department: International Business
• Course: IBUS6002
• Professor: Connie Chui S. Chan

Document Summary

Stages in the rational decision-making process: defining the problem, gathering and analysing relevant data, considering alternative solutions, deciding on the best solution, implementing the decision, reflection. An unconscious process created out of distilled experience. Individualism vs collectivism personal interest above group in the former; collectivism and shared responsibility underlies japanese ringi system of decision making. Objective vs. subjective approach basing decisions on rationality versus basing decisions on emotions. Risk tolerance vs risk avoidance varies considerable across cultures. Locus of control internal (managers in control of events), or external (managers have little control over events) To u(cid:374)de(cid:396)sta(cid:374)d the so(cid:272)ial (cid:396)espo(cid:374)si(cid:271)ilit(cid:455) of (cid:272)o(cid:396)po(cid:396)atio(cid:374)s to(cid:449)a(cid:396)d thei(cid:396) (cid:448)a(cid:396)ious (cid:272)o(cid:374)stitue(cid:374)(cid:272)ies a(cid:396)ou(cid:374)d the world, in particular their responsibilities toward human rights. To acknowledge the strategic role that ethi(cid:272)s (cid:373)ust pla(cid:455) i(cid:374) glo(cid:271)al (cid:373)a(cid:374)age(cid:373)e(cid:374)t a(cid:374)d p(cid:396)o(cid:448)ide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world. To recognize the importance of managing interdependence and include sustainability in thei(cid:396) lo(cid:374)g- term plans.