Ethics And Social Responsibility Of Multinational Companies

The idea that companies should embrace its social responsibilities and not be solely focused on maximizing profits. Social responsibility entails developing businesses with a positive relationship to the society which they operate in (Investopedia). Social responsibility is also the obligation of an organization 's management team towards the welfare and interests of the society in which it operates in. Ethics is the study of proper business policies and practices regarding potentially controversial issues, such as corporate governance, insider trading, bribery, discrimination, corporate social responsibility and fiduciary responsibilities. Business ethics are often guided by law, while other times provide a basic framework that businesses

Man argue that, since MNCs operate in a global context, they should use their capital, skills, and power to play proactive roles in handling worldwide social and economic problems and that , at the least, they should be concerned with host-country welfare. Whereas ethics deals with decisions and interactions mostly on an individual level, decisions about social responsibility are broader in scope, tend to be made at a higher level, affect more people, and reflect a general stance taken by a company or a number of decision makers (International Management Pg. 40). Therefore, both ethics and social responsibility of Multinational Companies (MNCs), plays a great role in all countries, but especially in less developed countries due to visibility and opportunity.

Business ethics and social responsibility in multinational corporations (MNCs) are more and more challenging, because they are operated in culturally varied environments, which vary from host to host country of each foreign subsidiary and are often very different from the MNC headquarters’ (HQs) home country culture. A host country’s societal and cultural factors, combined with local economic conditions and business practices, play major roles in

Therefore, developing each country to continue to overcome poverty and provide equal opportunity to every country in the world, the environment, consumer concerns, and employee safety and welfare would be a sustainable way to establish great social responsibility and ethics. China has a significant growth of social responsibility and increase by 10% every year. China is an antipoverty country which thrives on design and direction to reduce and abolish poverty. China’s social responsibility entails developing businesses with a positive relationship for growth and new ideas for growth. India has triple in growth and has a 6% growth yearly. India is no longer seen as corporate social assistance or philanthropy, but as essential to a good business strategy, helping reduce investment risks and enhancing business profits by improving transparency and accountability. It is about working together - with government, with civil society, and with the community - to improve the lives of millions of people by making growth more inclusive (www.worldbank.org). Africa is the most restraint to growth and actually has a negative percentage of growth. Although, Africa has a negative percentage of growth, but the country is optimistic to spread light and