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Essay / Ethics of Multinational Businesses - 1548
IntroductionThe conduct of multinational corporations in international trade depends greatly on how they ensure they adhere to business ethics that reflect globally accepted principles of right or wrong. In this context, multinational companies are therefore expected to develop ethical strategies that guide their action in international trade so that their operations do not violate these accepted principles. However, a number of ethical issues and dilemmas arise in international business, placing many multinational companies in extremely difficult situations. Such ethical problems and dilemmas have often been attributed to the various political systems, economic situations, regulations as well as cultures that exist across nations (Tricker & Tricker, 2014). Examples of the most common ethical questions and dilemmas in international business include, but are not limited to: Improper employment practices Corruption and bribery Immoral managerial behavior Human rights Corporate Social Responsibility of Multinational Corporations Environmental Regulation In most attempts to regulate the behavior of multinational corporations, different public policy strategies are adopted using a few frameworks (Kline, 2005). Among these frameworks is notably that on the ethical framework. BodyWhen multinational corporations operate in international business, they face diverse political systems, economic situations, regulations, and cultures that exist from one nation to another. Ethical questions and dilemmas are intertwined with the various legal options that multinationals must fulfill. Likewise, local customs and established norms add another layer of complexity to the already sour question of how to act both legally and ethically in an unfamiliar environment...... middle of paper ..... . should inform sufficiently with information relating to the regulation of public policies present in the different countries in which they will operate. Armed with this information, managers must integrate knowledge about these differences as a guiding rationale for behaving ethically in each given culture. Although not paying attention to these differences can lead to a number of legal and reputational problems, paying attention to them can greatly improve business performance. Therefore, the paper argues that multinational companies should focus on adopting ethical behavior in their operations, regardless of the countries in which they operate. In doing so, such actions will not only force them to comply with the regulations of the country concerned, but also provide them with an excellent image among their potential customers..