Should A Multinational Company Reduce Ethical Standards? Essay

Should A Multinational Company Reduce Ethical Standards? Essay

Length: 985 words (2.8 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

Should a multinational company reduce its ethical standards to compete internationally? With technology revolutionizing the way businesses compete and obtain resources, the globe is appearing smaller every day. This allows businesses to outsource activities to other countries and save money on production costs and to expand their global reach by opening facilities anywhere in the world. Expanding internationally can be seen as a benefit for many companies however, if the business does not have a strong code of ethics, could cost the company a lot more than the benefits received. Governments of underdeveloped nations may not carry the same legal restrictions than the company’s home country. This could be seen as a temptation to cut costs by participating in practices that are not illegal in this country but are unethical and would not be tolerated otherwise.
Melissa Bajorek, a writer for the Internet self-help site “eHow,” states that there are four ethical dilemmas in doing business internationally. First topic discussed are labor issues are a common problem for businesses in developing countries. In many countries children are expected to work at young ages in order to help provide for the family. Many companies are faced with making the decision of having higher profits and employing children or slightly lower profits and employ adults.
Second dilemma faced by businesses is bribing officials. Although in the U.S. there are severe punishments faced for bribing government officials, that is not true everywhere. In some countries however it is customary for gifts to be exchanged when two companies are about to form a contract. An article published by The Economist discusses how the line between a ceremonial gift and a bribe can...


... middle of paper ...


... as a gift. Lastly, Thomas reminds us that context matters. Some practices are wrong in any setting, while others may be acceptable in a certain setting but unethical in another. Sometimes large machinery used everyday in a country like the U.S. is required for a job in a poorer country. The machinery is safe in qualified hands, but in the poorer country workers may not be suited to operate the machinery.
Ethical standards are an important part of all business activities. A company that attempts to make a quick profit by hiding unethical behavior in foreign will only end up hurting themselves in the long run. The expansion of the Internet and international communications is making it harder for companies to get away with unethical work done overseas. If a company wishes to succeed in the long run it needs to have a strong code of ethics that is put to use every day.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Large Multinational Corporations Essay

- Large multinational corporations today often struggle with the complex issues in managing and developing their local IT resources to support the primary goal of global information infrastructure (GII). Global information infrastructure, at a high level point of view, is the worldwide information and communication systems that process and transmit data inside and outside national boundaries (Bowker, G. C., Baker, K., Millerand, F., & Ribes, D, 2010). In this paper I will discuss the major components that support GII for multinational corporation; how architecture and the included components of a company’s GII affect core information technology (IT) capabilities; finally, how managers can acc...   [tags: IT resources, global information]

Strong Essays
911 words (2.6 pages)

Multinational Enterprises : Global Pressure For Greater Transparency And Disclosure

- Multinational Enterprises (MNEs) are facing global pressure for greater transparency and disclosure. With growing importance of capital markets, global trade and investment, there is an increase demand for more disclosure from MNEs. With that said, Multinationals Enterprises are motivated to engage in increased transparency of financial reporting and disclosures because they want to inform and influence investors in increasingly globalized capital markets and it can also reduce the cost of capital provided that transparency reduces information risk....   [tags: Corporate social responsibility]

Strong Essays
880 words (2.5 pages)

The Need for International Labor Standards Essay

- The Need for International Labor Standards "The statesman, who should attempt to direct private people in what manner they ought to employ their capitals, would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no single council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it" (Smith, 1776: 456) Introduction There is no question that the combination of the free market and rapidly advancing technologies has integrated the world economy to a level unsurpassed in history....   [tags: Economy Economics Essays]

Strong Essays
3623 words (10.4 pages)

Essay about Grassroots Boycott: The Fight for Human Rights

- ... While the rich have many options and can choose those that’ll increase their profit rate, in other words: make them richer. Perkins comments, “Our own government , in alliance with the big corporations and banks, has created an empire that brings servitude, misery, and death to millions of people.” (Perkins 268) Thus, advocating the realism of exploited workers and their sacrifice in making American goods. John Perkins practices global peace and prosperity in ways he included on cutting back on oil consumption and shopping; being aware of products bought as well as the companies one supports....   [tags: multinational corporations, capitalism]

Strong Essays
728 words (2.1 pages)

Multinational Organizations : Multinational Companies Essay

- MNC also called as Multinational Corporation, is an enterprise operating in several countries but managed from home country, for example, Nike, Coca-Cola and BMW. Such companies have offices and factories in different countries also have head office where they co-ordinate global management. Multinational firms arise because capital is much more mobile than labour, since cheap labour and raw material are located in other countries, multinational firms establish there. The advantages of multinational companies including, create jobs, wealth and improved technology in countries that are in need of such development, benefit from economies of scale, and lower output by purchasing automated equipm...   [tags: Multinational corporation, Globalization]

Strong Essays
1052 words (3 pages)

International Law And Human Rights Abuses Essay

- which fosters socially responsible companies committed to the development of society (Kemp, 2011; Kemp & Vanclay, 2013; Wettstein, 2009). Despite the volumes of documents from the United Nations discussing the responsibilities of states, international organizations, and global corporations; traditionally international law has played a very weak role in protecting human rights (Graham & Ngaire, 2006; Wheeler, 2015). Although governments have agreed to enforce international law by holding corporations accountable for human rights abuses, they have had difficulties because of the complex structure of the international legal system....   [tags: Human rights, Law, Multinational corporation]

Strong Essays
1873 words (5.4 pages)

Multinational Corporation ( Mnc ) Essay

- Nam Pham CWID #: 802 140 244 Finance 370 Part 3 – Short Paper Topic: Multinational Corporation Multinational Corporation (MNC) is a corporation that has asset in other country other than its local country. It is sometimes called international corporation, a transnational or stateless corporation. Some companies also have their factories and offices worldwide. Multinational Corporation began to evolve since the nineteen century with American and European countries. According to Hymer, the multinational corporation was based on the perspective of the American....   [tags: Multinational corporation, Corporation]

Strong Essays
953 words (2.7 pages)

Essay about Multinational Corporations And The United Kingdom

- Multinational corporations are trying to maximise their profit in any way. They can go around the law and almost do not pay taxes. They do not think about people’s reaction, government reactions or their reputation. They know that they are going to have supporters no matter what they are doing. But can they actually maximise profit and pay less taxes than their employees. It started in the United Kingdom when some MPs accused the HMRC that they are not collecting enough taxes from big corporations....   [tags: Corporation, Tax, Multinational corporation]

Strong Essays
1011 words (2.9 pages)

Essay on The Multinational Corporation ( Mnc )

- A multinational corporation (MNC) is a company engaged in producing and selling goods or services in more than one country. (Shapiro, A; 2010) Globalization has given rise to the number of multinational corporations resulting from the ease of communication, transportation and management, compounded by the constant and rapid growth and development in information and technology. Management of MNCs face the challenges of different government, laws, market, culture, and language (just to name a few), which varies from country to country, this means that managers of MNCs have to be very adaptive in their approach to management....   [tags: Globalization, Multinational corporation]

Strong Essays
768 words (2.2 pages)

Japan Should Adopt The International Financial Reporting Standards Essay

- This report examines the benefits and drawbacks of whether Japan should adopt the International Financial Reporting Standards (IFRS) over its current standards (GAAP). Improvements in information’s quality, long-term cost saving and other motivating factors that IFRS will bring, have been reflected in the benefits aspect. Though this standard undertook numerous benefits for the financial statement permitted by, there are various drawbacks that country must be overcome. These obstacles mostly relate to conversion costs and political issues....   [tags: International Financial Reporting Standards]

Strong Essays
1035 words (3 pages)