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"Ethical Issues Facing Multinational Corporations"
Ethical Issues Facing Multinational Corporations
Amy Hetzel
Table Of Contents

1 Introduction 1

2 Ethical Difficulties Facing Multinational Corporations 2

3 General Principles For Ethical Dilemmas 8

4 The Problem of Questionable Payments 13

5 Conclusion 19

References 21

1 Introduction

The continuing process of globalization and the liberalization of world trade has resulted in many companies expanding overseas in order to move into new markets and increase their profits. In the process, this has created huge multinational corporations, with the capabilities noted in the above quote, which operate in multiple host countries. At the same time, the governments of these host countries are independent and set their own laws, rules and regulations to regulate, and sometimes to direct, how businesses are conducted in that country which may be different from that set by the home countries of such multinational corporations. Conflicts in ethics can arise if the norms and practices of the cultures in the host countries are vastly different from that accepted in the home country.

This paper discusses the ethical issues that can be faced by multinational corporations operating in multiple countries, and the general principles that may be applied to resolve such ethical problems In addition, this paper shall examine the problems relating to questionable payments faced by multinational corporations, and discuss the various appropriate solutions towards resolving it.

2 Ethical Difficulties Facing Multinational Corporations

Domestic corporations operate solely in the home country where there is only one set of legal requirements to meet, and even in a multicultural and multiethnic country, there is a single set of acceptable standards for social and ethical behavior, along with a reasonably homogenous, or at least reasonably integrated, cultural composition. On the other hand, multinational corporations must operate across many countries where each country can have its own culture and laws, and their own diverse social norms and ethical practices.

As such, "multinational corporations may find themselves perplexed...

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"Ethical Issues Facing Multinational Corporations." Jun 21, 2018
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