do you think MNCs(multinational corporations) should be bound by the prevailing
ID: 2748200 • Letter: D
Question
do you think MNCs(multinational corporations) should be bound by the prevailing morality of their home country, or should they follow the practices of the host country? Are there special ethical standards that apply when business is conducted across national boundaries? Include some discussion of wages and working conditions, foreign bribery, the variety of ethical outlooks, cultural differences and summarize what you believe should be the appropriate standards for international business. If you would like, you can choose a country to use as you discuss the above topics.
Topic: business ethics
Explanation / Answer
Each country has its own rules and regulation that constrains international business activities undertaken by company based there but that operate in other countries. Ethical and legal principals that exist in one nation are common in many other nationals. The UN global compact outlines ten Principles business should do:
* Support and respect internationally proclaimed human rights
* Uphold the freedom of association and recognition of the right to collective bargaining
* Elimination all form of forced and compulsory labor
* Abolish of child labor
* elimination discrimination in respect of employment and occupation
* Support for environmental challenges
* Undertake initiatives to promote greater environmental responsibilities
* Use of environmental friendly technologies
* Work against corruption against all it forms.
Wages and Working Conditions : Besides of many benefits of multinational companies, there are long list of wrongs that is include like low wages, substandard working conditions and use of child labor. The wages paid by multinationals are usually above minimum wage and the prevailing market rate. For working condions , multinational adopt code of conduct guidelines.
Bribery : Bribery is when someone offers something of value with the understanding that in exchange in value will promote the interest of persons or violate the duty of loyalty. Instead of paying a bribe, business want to pay a highly visible donation or goods to local charity or creating jobs that are offered to persons in host country.
Cultural differences : AS globalization advances, business practices are increasingly uniform. Business education is much the same every ware and managers use same prentices in all over world.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.