Globalisation can be defined as the system of interaction among the countries around the world and serve as one of the purpose in developing the global economy. There are also some famous quotation about globalisation. Please refer to appendix 1. We will write a custom essay sample on Ethical Dilemmas Faced By Multinational Corporations or any similar topic specifically for you Do Not Waste HIRE WRITER Not only that globalisation also contributed to the increased in international trade, foreign direct investment, wider data flow and international cultural exchange in other words globalisation has minimised the barriers of entry into the global market.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. However, MNCs have also noticed that the more countries they enter, the more ethical issues appear. At best, even when MNCs are dealing with one only one culture, they are already facing ethical difficulties; as they encounter two or more different cultures, it would become extremely problematical.
Hence, multi-national corporations MNCs face more challenges than ever before in the cultural contexts and different countries they operate due to different ethical and moral standards among different countries.
Hence, MNCs are often under a dilemma with ethical difficulties when operating in different countries. Successful MNCs require stability for development, and to resolve ethical difficulties is one of the key issues that could affect such stability, this is the focus of this assignment: Business ethics is a function of the business ethos.
That is, MNCs would face more difficulties and complexities in making sound ethical business decisions: Below are some of the ethical difficulties MNCs could encounter when operating in different countries: Similar cases happened to Wal-Mart: My former employer, a SouthEast Asian based cruise liner company was faced with similar difficulties.
Thus, debates occur between crewmembers of similar position; doing same duties but getting different salaries; worse still the crew with higher position are paid less than lower positioned crew.
If equal salary system was applied, either the crew from developed countries will leave as they would prefer to find a job at home with a higher salary; or the company will have to pay more to balance all crew salaries.
After all, the company operates in a foreign country where all crewmembers spend the same amount of money to buy things they need.
Several salary adjustments were done for the past few years, yet the problem is still unresolved. In this example, what form of salary system should the company apply? Is there a principle that can be applied in this situation? In business, to what extent is gift giving considered bribery?
How to distinguish between facilitation payment and bribery? Although bribery is widely condemned, different countries with different culture, norms, laws and standards have brought increased difficulties for MNCs businesses in a host country.
For example, according to the law of US, it is illegal for US companies to pay bribes in order to do business. Even major corporations as Lockheed, Gulf Oil, Northrop, Carnation, and Goodyear were among those firms admitting to such payments.
For instance, Lockheed paid USD Carroll and Buchholtz In this case, the president of Lockheed claimed that giving bribes was a common practice and that it was expected in business in Japan. Do you think what he said is acceptable?
The Case of Geletex, Inc. Refer to Appendix One It has also raised questions on ethical decision making for MNCs — must a business adopt the ethical standards of a host country in order to succeed?
If yes, then are all of these actions ethical? If not, then how to handle ethical conflicts between the home and host countries?
Due to different cultures and traditions among society, attitudes towards gender from different countries are also varied. For example, in quite a number of developing countries, women are viewed as lower class to men; they are insufficiently protected by the government laws, and often experience discrimination and sexual harassment in the workplace.
In the case of Foreign Assignment Refer to Appendix TwoSara Strong felt that she has been discriminated by her clients and superiors; however she was told by her superior Vitam that it was caused by the customs of Latin America. So under such situations, does morality require respect for Maxian Practices, or does it require respect for Sara Strong?
In reality, in many countries, men in the workplace, whether intentionally or not, end up encouraging or condoning harassment. They know their behaviour makes women uncomfortable but they feel this is right from their traditions. Moreover, women in these countries do not receive equal opportunities.
According to Freeman and Gilbert, this is a conflict ethical difficulty between two principles: Child labor is a complex problem affecting all regions of the world, and it also confuses MNCs when operating in different countries.
As shown in Figure 2.
Poverty, absence of primary schooling, social structure and attitudes are the main factors that caused child labor in those countries. Hartman, On top of that, developed countries posses stricter and sound labor laws dealing with employment of children or minors, and those underdeveloped, less developed and developing countries would have less protection on child labor due to poorer law system.
If they do not employ child labour, the families of these children might have problem to survive. To solve this problem, Levi Strauss provided a new policy that the children would be paid when they continued studies in school and would become full time worker once they turned fourteen.Feb 26, · The purpose of this essay is to analyse the contemporary challenges facing the management of a Multi-National Corporation.
A multinational corporation (MNC) is a company engaged in producing and selling goods or services in more than one country.
Feb 26, · The purpose of this essay is to analyse the contemporary challenges facing the management of a Multi-National Corporation. A multinational corporation (MNC) is a company engaged in producing and . Sep 05, · There are indeed many more ethical difficulties that are constantly faced by multinational corporations when operating in several countries and those discussed above represents some of the more common ones faced in today’s international business environment.
Sep 05, · There are indeed many more ethical difficulties that are constantly faced by multinational corporations when operating in several countries and those discussed above represents some of the more common ones faced in today’s international business environment.
Ethical difficulties faced by multinational companies in other countries According to Robert Solomon (Solomon in Hartman, , P), "Ethics is a matter of ethos, participation in a community, a practice, a way of life.
New ethical issues for human resources managers have emerged with the globalization of commerce and the rise of increasingly large, complex multinational companies.