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Multinational Companies Essay

480 words - 2 pages

Multinational Companies
Raul A. Murguia
June 19, 2012
Research and prepare a discussion that addresses the ethical dilemmas that face multinational companies. Pay particular attention to the problem of different standards for business practice. Cite your sources using proper APA style. Respond to at least two of your classmates' postings.

Multinational companies face ethical dilemmas magnified by the international context. Multinational companies operate across many countries; each country has its own culture and laws, and their own diverse social norms and ethical practices. In order to move into new markets and increase their profits they operate in multiple host countries. The laws, rules and regulations that govern how business is conducted set by the governments of ...view middle of the document...

In this sense, what constitutes an ethical act depends on where the multinational company is operating.

A society’s culture is a good indication of what type of business behavior is considered right or wrong. Charles Mitchell and Jeffrey Edmund (2008) write,
“Culture is a set of learned core values, beliefs, standards, knowledge, morals, laws and behaviors shared by individuals and societies that determines how an individual or a groups acts, feels and views itself and others. A society’s culture is passed from generation to generation and aspects such as language, religion, custoturems and laws are interrelated. A society’s view of authority, morals, and ethics will manifest itself in how an individual does business, negotiates a contract, deals with a crisis or cultivates a potential business relationship.”
In reality, perceptions of what is ethical and what is not vary widely all over the world and it is safe to assume that multinational companies as well as governments of host countries rely heavily on their respective personal values when deciding what ethical or unethical behavior is.

The three most crucial cultural components that relate to business transactions and the ethics that govern them are: language, religion, and values and attitudes. Understanding the differences between the home country and the host countries on each of these components can help you unwrap the enigma and will provide some logic and motivation behind behavior and ethics.

References
Boatright, J. (2009). Ethics and the conduct of business (6th ed.). Upper Saddle River, NJ :
Prentice Hall. ISBN: 9780205667505
Mitchell, C. and Edmund, J. (2008). Short Course in International Business Ethics: Combining
Ethics and Profits in Global Business (3rd ed.). Petaluma, CA: World Trade Press. ISBN:
9781607800736

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