Ethical Standards for MNCs

“You are a $tockholder (and/or perhaps, a manager) in a large U.S. multinational company (MNC) that manufactures athletic shoes in several different countries in Southeast Asia, and sells these shoes both here in America, and in many other countries around the world.

Is it acceptable for your company to lower its ethical standards (perhaps those commonly followed in the U.S.) to compete internationally?

International ethical issues commonly confronted by a MNC might include:

[1] foreign countries with liberal child labor laws

[2] foreign countries with liberal environmental standards

[3] foreign countries with lower product quality standards

[4] foreign countries with lower worker safety requirements

[5] foreign countries where bribery and other forms of corruption are commonplace

Solution Preview

As a result of globalization and the ease of business activities derived from outsourcing some of the processes in the production process, different companies have found themselves operating on the international platform, which has also increased the level of exposure…

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