By understanding and obeying the laws, rules and regulations of the host country, managers of multinational corporations could possibly resolve most of the ethical dilemmas faced.
The avoidance of such moral actions more often than not leads them into more dire situations and difficulties. The example of difference in employee remuneration is also apparent between male and female employees in the situation of gender bias.
In the attempt to resolve the issue of questionable payments, the following considerations are relevant in determining the moral acceptability of questionable payments the value of the payment, its purposes, the circumstances under which it is given, the position and sensitivity to influence of the person receiving the payment, accepted business practices, company policy, as well as what the law says.
Multinational corporations tend to remunerate their expatriate employees based on the wage scale of their country of origin which are often higher while paying those that are employed from the host country usually a less-developed country at a lower rate that is commensurate with local conditions.
The Case of Geletex, Inc. DeGeorge 15 raised the issue of whether it is immoral to hire anyone to do work or to work in a workplace that is in some way dangerous to his life or health.
What is the position and sensitivity to influence of the person receiving the payment or gift? Boatright discusses many of these ethical issues noted in figure below. The right to subsistence Donaldson T.
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When efforts are made to understand the differing or varying needs and requirements of the stakeholders in which a multinational corporation operates within, ethical dilemmas can be more easily resolved, or even avoided.
But it obliges the business community, too, to ask how it can help put things right. MNCs will need to decide which ethical standards should transcend national boundaries and thus represent hypernorms: Multinationals should respect the human rights of their employees. Hence, MNCs are often under a dilemma with ethical difficulties when operating in different countries.
Hence, the proper solution to ethical issues such as questionable payments need to involve both legislation at the government level, as well as policy and guidelines at the corporate level to guide employees on the ethical issues. Multinational corporations should not take pure advantage of transfer pricing aimed at benefiting from the different tax laws of the different countries that they operate in.
For example, according to the law of US, it is illegal for US companies to pay bribes in order to do business.
Instead of fighting a tax system that aims at appropriate redistribution of incomes, instead of preventing the organization of labor, and instead of resisting attempts at improving the health and safety standards of the host country, multinational corporations should be supportive of such measures.
Cultural Divide Culture plays an important role when considering the ethics of leadership in multinational business. Overseas employees should be developed so they are eligible for promotions. The challenge is not whether it is permissible to provide assistance, but rather to determine whether all parties are above the minimal threshold and if not, what can be done to move parties closer to the threshold within the limits of the exchange.
The seven moral principles or guidelines advocated by De George 15 should be considered by multinational corporations as the general moral norms that could be respected and practiced to escape the legitimate criticism contained in the dilemmas they are said to face.Hence, multi-national corporations (MNCs) face more challenges than ever before in the cultural contexts and different countries they operate due to different ethical and moral standards among different countries.
Ethical difficulties faced by multinational companies in other countries According to Robert Solomon (Solomon in Hartman,P), “Ethics is a matter of ethos, participation in a community, a practice, a way of life.
What special ethical issues face multinational corporations?
How should they, and society, respond to these issues? What are the objections to bringing ethics into business?
What special ethical issues face multinational corporations? How should they, and society, respond to these issues?
Get a 8 % discount on an order above $ Use the following coupon code: DIscount Order Now (Visited 4 times, 1 visits today). The way I approach it is I look at the issues companies are confronted with – social, environmental, ethical issues.
Multinational companies are faced with a wide variety of issues, for example, climate change, child labor and human rights, and they often operate in situations where the state is very weak, for example in conflict areas. responsibility” (p. 87). Many multinational companies have established well-developed CSR programs and adhere to their code of conduct to do businesses ethically, help the economy grow, create larger job markets, protect the environment, raise public attention on certain issues, and more areas to bring social goods to the world.Download