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:
 foreign countries with liberal child labor laws
 foreign countries with liberal environmental standards
 foreign countries with lower product quality standards
 foreign countries with lower worker safety requirements
 foreign countries where bribery and other forms of corruption are commonplace
Answer 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 to different business cultures. Essentially, laws have often been different in different environments, resulting in varying degrees of cultures within the business context (Appelbaum, Roy, & Gilliland, 2011). Consequently, a company may have to deal with strict labor laws in the United States, but such may not be the case in a Far East country, where the business conducts some of its production activities. Nonetheless, it would be important for the business in question to maintain the same business standards it has in the United States in the Far East host country, as such an effort ensures that the business maintains its cultural identity………….
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