Ethical Implications of Pollution

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Abstract Ethical implications of pollution created by businesses in the third world countries are grave. From ecology destruction and environmental abuse to issues such as deterioration of water and air quality, the business ethics principles based on stakeholder theory of ethics apply on environmental issues as well. The MNCs establish business operations in third world countries to reduce their cost of doing business and earn greater profits. This shall not be achieved at the cost citizens of host countries. The host country population shall also have a 'moral right' to live in a clean environment where health and safety hazards from environmental deterioration are prevented by their governments. The wealthier nations only have the responsibility to ensure that the MNCs that establish manufacturing operations abroad comply with a self-regulated environmental protection standard as is adopted by the companies in their host countries. Primary responsibility of pollution control lies on governments of third world countries. A corporate body of pollution control under the guidance of UN named as Pollution Control Authority (PCA) shall be formed. Introduction Private businesses operate to earn profits and the theoretical basis on which their economic activity rests in the maximization of profit. In the pursuit maximization of profits, multinational corporations (MNCs) often expand their businesses to countries having lower labor cost, comparatively decreased cost of doing
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