Multinational Companies

In: Business and Management

Submitted By chicodutep
Words 480
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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 these host countries are very different from those set by the home country of such multinational companies.

Multinational companies find themselves confused by these laws, rules and customs of the host nation in which they conduct business. Should they do as the locals do or should they conform to the different and even conflicting cultural and ethical guidelines of their home countries? What could be viewed as ethically right in the home country may be absolutely considered wrong in the host country, and vice versa. 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…...

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