MNE Ethics

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Recommended: Relevance of ethics in international business

Introduction The conduct of MNEs in international business depends hugely on how they ensure that, they observe business ethics that reflect the globally accepted principles of right or wrong. In this context, MNEs are thus expected to come up with ethical strategies which guide their course of action in the international business so that their operations do not violate such accepted principles. Nonetheless, a number of ethical issues and dilemmas in international business do manifest, consequently placing many MNEs in extremely difficult positions. Such ethical issues and dilemmas have often been attributed to the diverse political systems, economic situations, regulations, as well as cultures that exist from nation to nation (Tricker & Tricker, 2014). Examples on some of the most common ethical issues and dilemmas in international business include but not limited to the following: Improper employment practices Corruption and bribery Immoral behavior by managers Human rights Corporate social responsibility of multinational corporations Environmental regulations In most attempts of regulating the behavior of MNEs, different public policy regulation strategies are adopted using a couple of frameworks (Kline, 2005). Key among these frameworks includes the one on ethical framework. Body When MNEs operate in international business they encounter diverse political systems, economic situations, regulations, as well as cultures that exist from nation to nation. Ethical issues and dilemmas become entangled in various legal options that the MNEs have to fulfill. Equally, local customs plus the established norms add another layer of complexity to the already souring question of how to act both legally, as well as ethically in an unfamiliar... ... middle of paper ... ...ught to inform themselves sufficiently with the information relating to public policy regulation present in the different nations that they will operate in. Armed with such information, the managers ought to integrate the knowledge on these differences as their guiding rationale towards behaving ethically in every given culture. While failure to pay attention to such differences could result in a number of legal and reputational concerns, paying appropriate attention to them can immensely enhance corporate performance. Consequently, the paper contends that MNCs ought to focus on embracing ethical behavior in their operations irrespective of the nations that they operative in. In doing so, such actions will not only make them to be compliant with regulations in the respective country, but also it will provide them with an excellent image to their prospective clients.

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