Multinationals should produce more good than bad for the host country. The stakeholders of the multinational corporation are now also expanded to include the host country counterparts, along with various considerations such as local environmental issues and others. Companies have to prepare for epidemics, natural disasters and acts of terrorism to protect employees and the workplace from harm.
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. Scanlon, a Harvard philosophy professor, whom Hsieh referred to: Multinational corporations often operate in countries characterized by unrelenting poverty.
To the extent that local culture does not violate normal norms, multinationals should respect the local culture and work with it, not against it. To the extent that it is engaged in to avoid legitimate taxes, it exploits the host country, and the multinational corporation does not bear the fair share of the burden of operating in that country.
While a single universally agreed set of principles or guidelines to address the ethical dilemmas faced in conducting international business has not been established and agreed to by all, if not the majority of, both the multinational corporations and the governments of the world, many suggestions and ideas have been put forward by thinkers in business ethics.
Multinationals should respect the human rights of their employees. To do so, they may influence the government of the host nation to provide them with tax-free status or tax shelters, flexibility in employment regulations, relaxation in environmental regulations, unlimited access to local markets, preferential treatments on business and legal matters and such likes that are not enjoyed by local domestic firms.
Does that mean that when a multinational corporation operates in such a host country, it is expected of them to partake in such business practices even if these practices are viewed as wrong and unethical in their home country?
When questionable payments violate the law, they are clearly illegal and unacceptable. Balancing requires a manager to weigh the interests of different stakeholders, while prioritizing requires managers to think sequentially: The question then arises whether this make bribes acceptable.
As Hsieh has written: When multinational corporations undertake to tell the truth to its stakeholders, they are able to build considerable trusts and reputation, and escape the many complexities of ethical dilemmas faced.
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This principle is aimed at learning about the needs of the stakeholders, rather than deciding what is best for them. The case of an individual providing rescue — as with the drowning child — was seen as dramatically different from the corporation providing rescue.
This can undermine the motivation of local employees who are doing a job that requires the same skill set. An individual transferred from the American office to an overseas branch will make several times the pay of the local counterpart doing the same job.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.
What Are the Ethical Issues in Human Resource Management in Multinational Corporations?
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they face a world that's fragmented along cultural and political lines, and they also encounter regulations and standards that aren't found in the U.S. Safety and security are the most difficult challenges for HR in.
The Ethical Issues Facing Multinational Corporations. The Ethical Issues Facing Multinational Corporations Name: Institution: The Ethical Issues Facing Multinational Corporations They reinterpreted the existing accounting and finance standards to support their fraudulent activities and never accorded the shareholders with any form of.
Multinational corporations often operate in countries characterized by unrelenting poverty. “The annual revenue of the five largest corporations is more than double the GDP (gross domestic product) of the poorest countries in the world,” Hsieh said.
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.
What Special Ethical Issues Face Multinational Corporations How Should They And Society Respond To These Issues Abstract: In this paper we refer to a issues raised by the question: What kind of marketing should companies practice, in terms of ethics?Download