Topic > Ethics of Multinational Corporations - 1548

Introduction The conduct of multinational corporations in international business depends largely on how they ensure compliance with corporate ethics that reflect globally accepted principles of right and wrong. In this context, multinationals are therefore expected to devise ethical strategies that guide their course of conduct in international affairs so that their operations do not violate such accepted principles. However, a number of ethical issues and dilemmas arise in international trade, which consequently place many multinationals in extremely difficult positions. Such ethical issues and dilemmas have often been attributed to the different political systems, economic situations, regulations, and cultures that exist from nation to nation (Tricker & Tricker, 2014). Examples of some of the most common ethical issues and dilemmas in international business include, but are not limited to the following: Improper employment practices Corruption and bribery Unethical behavior by managers Human rights Corporate social responsibility of multinational corporations Environmental regulations In most attempts to regulate the behavior of multinational corporations, different public policy norms strategies are adopted using a pair of frameworks (Kline, 2005). Among these reference frameworks is the one on the ethical framework. BodyWhen multinationals operate in international business, they encounter different political systems, economic situations, regulations and cultures that exist from nation to nation. Ethical issues and dilemmas are intertwined in various legal options that multinationals must satisfy. Likewise, local customs and established norms add a further layer of complexity to the already bitter question of how to act both legally and ethically in an unknown context... means of paper... one must inform oneself sufficiently with regulatory information of the public policies present in the various nations in which they will operate. Armed with such information, managers should integrate knowledge about these differences as a driving motivator toward ethical behavior in any given culture. While failure to pay attention to these differences can lead to a variety of legal and reputational issues, giving them due attention can greatly improve business performance. Consequently, the paper argues that multinationals should focus on adopting ethical behavior in their operations, regardless of the nations in which they operate. Thus, such actions will not only make them compliant with the regulations of the respective country, but also provide them with an excellent image to their potential customers.