The Importance of Establishing an Ethical Corporate Culture

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According to Manuel Velasquez, multinational corporations are free from moral obligations due to the absence of a single governing body in international business. The cultural and social differences among nations create a complex business environment in which multinational corporations may reject individuals’ values and beliefs in order to gain a competitive advantage in the global market. He argues that individual members of an organization have a low and temporary impact on a company as a whole, because they are transient and their influence is limited by the company’s goals and objectives. Velasquez states that the principles of morality are based on individual’s values and beliefs and therefore should not apply to international business affairs, bearing in mind the complex diversity of a global market. The competitive nature of the global market creates a state in which morality could be overlooked for business opportunities. A multinational company must pursuit competitive advantages in the global market in order to achieve its primary objectives. The absence of a governing b...

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