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
The ethical implications of businesses polluting in a poorer area would be they are careless about the environment, the people, and the future of that country. Development is the process of continuously learning and improving to achieve a greater goal. Therefore, when a manufacturer is making economic progress, the development would be coming up with a better way to handle the manufacturing wastes. A responsible business can be making economic progress and handling pollution at the same time and still be making money. It does not have to be one or the
Multinational companies operate in more than one country outside of its originating country. Due to the vast sizes of most MNC local communities are developed by the creation of jobs and increasing community wealth. The growth strategy of MNC have positive and negative effects on the host countries economy via the reduction in market and production costs and increasing technology and efficiency. The largest down fall is from the competitor stand point as most MNC will put surrounding store owners out of business. Wal-Mart is currently if not the world largest MNC and throughout this discussion I will critically discuss the cost and benefits likely to have occurred as a result of its takeover of Asda.
Changes in the business environment have presented a number of challenges to establish ways of doing business. Thus, managers realized that the survival and growth of firms today and in the future relies on their aptitude to operate globally. Third world countries seek to attract American MNCs for the jobs they provide and for the technological transfers they promise. However, when these MNCs entered
Over the years, Multinational enterprise have matured and developed into large companies that they are now part of our everyday lives. Form the use of mobile phones to the cars, personal computers and their software and even the beverage we drink, most of these products are supplied by Multinational companies. Their existence has great impact on our lives. In the world today, Multinational enterprises are powerful companies and they own resources in excess that most host countries possess. These companies are so powerful that they turn out to be power centers that can manipulate the host countries and even international organizations and at times the affairs in its home country.
This paper compares the three most common types of environmental responsibility that most businesses will follow due to law, business ethics, or their own need. The articles differ due to the type of business, and also which responsibility they either chose or are forced to follow. The first article addresses how the laws can force the fishing industry to follow the limits it imposes in the marine reserves found across the world. The second article addresses how ensuring future production can force a company to address the responsibility of finding a different type of product to use in order for the other to repopulate and ensure the use of it in later years. Finally, the third article relates to how a company follows its own business
Nowadays, the employment of ethical principles and standards to the decision and actions of business organizations-better known as Business ethics- is a crucial issue for its strategic management; businesses are expected to have a formal code of ethics or policy that encourages corporate environmental sustainability. To do so, businesses have used different frameworks such as the eco-efficiency, natural step, triple bottom line, ecological footprint and so on, in fact, along with the TBL approach the CSR programs are the most commonly used, it is defined as the “management of stakeholder concern for responsible and irresponsible acts related to environmental, ethical and social phenomena in a way that creates corporate benefit” (Vaaland et al., 2008, p. 931), and can help business to display a more congruent and coherent identity that consequently will lead to enduring and substantial relationships with stakeholders.
Ethics is defined as the study of right and wrong conduct (Ruggiero 2008). Ethics have been studied for centuries now. It is a topic that has been studied by scholars for a very long time. Environmental ethics has not been studied as much as ethics have. Some people think that we do not need ethics because we already have so many laws (Ruggiero 2008). But it is because of ethics that we have laws. If we had no ethics, then there would be no laws. Throughout this paper I will discuss some environmental issues that the world is facing right now and I will discuss what we need to do to change it or help the situation.
Did you know the air we breathe on a daily basis can be harmful to our health? According to a study published in The Journal of Environmental Research Letters, “Air pollution kills more than 2 million people each year” (Bradford). One of the most significant problems the world is facing today is pollution. It has affected many lives of humans and animals, and is still continuing to do so. Pollution can be fixed by people being educated on what it is doing to the lives of many people. Understanding what the sources of pollution are, realizing what illnesses it causes to animals and humans, and coming up with a solution for stopping it at its source will reduce the effects of pollution greatly.
Imagine going to the local lake or driving hours on a family vacation to the beach, and to just see the surface of the water discolored with litter as far as the eye can see. Pollution has been one of the most talked about issues within our society. It damages the air we breathe and the water we drink every day. There is even an event happening in Flint, Michigan where their drinking water had a series of problems that culminated with lead contamination, creating a serious health hazard for the public. The corrosive Flint River water caused the lead from aging pipes to seep into the city’s water supply. The pollution of water is causing human death across the nation and even across the world. Pollution is also responsible for weakening the
To begin with, legal and economic hurdles are some of the most significant problems MNEs seeking to further enhance their global presence encounter. Each and every country conducts its political, legal, and economic undertakings in a unique way. For this reason, MNEs seeking to exploit opportunities in emerging markets have to contend with various taxation, institutional, as well as legal challenges that effectively make their forays into the said markets even more complicated. MNEs also encounter problems in regard to language differences. This is more so the case given the relevance of effective communication in business transactions. Cultural differences could also make internationalization much more challenging. Some of the largest multinational corporations with operations across the globe include but they are not limited to Gillette, Pampers, and Coca-Cola. These three companies according to Gitman and McDaniel (2008) rake in more revenues from their global operations than they do from their home markets. In addition to saving significant sums of money in labor costs, multinational corporations according to Gitman and McDaniel (2008) can also be able to further enhance their operations by taping new technology from across the world.
However, some companies have been starting to recognize that being more ecological and having in consideration moral principals, can represent an advantage. Multinationals, which are companies that deliver services or produce goods in more than one country, can provide benefits for the host country, but it can also create ethical dilemmas. The fact that it operates in different societies, it make international managers have to deal with employees that may not share the same beliefs and be in a society that can have differentiated rules, regulations and values. In that case, ethics pay an important role because there’s the necessity to respect and follow the companies’ practices used in the home country but most importantly, to respect the employees that have the right to be treated according the universal moral principals. On the other hand, as countries has its differences, it is possible to observe that most of the developing countries have weaker rules in terms of the environment, pollution, the social rights and other various points and as a consequence some firms see this as an advantage and opportunity for the company to in some way increase production’s output by adopting unethical practices or work methods.
Many industries wriggle out of environmental responsibility and manage to bypass laws regulated by the Ministry of Environmental Protection and national pollution control board as a direct result of inefficient policies and poor enforcement. Previously in some cases the fines of breaking the environmental laws were so low it was cheaper to violate environmental limits than install pollution-reducing equipment. Moreover, the public education and awareness of environmental pollution and its effect is insufficient. In modern times, hundreds of factories are being built that don’t use the treatment plants and recycling methods. When an entrepreneur establishes a new industry, their only concern is the product and profit which makes it almost
economies served as mere outsourcing locations for the MultiNational Companies (MNCs) of the West. However, the changing
TNCs’ environmental responsibilities are becoming particularly a matter of urgent concerns, heavy emphasis and worthy research. All corporates should be theoretically obligated to fullfil their social accountabilities including the environmental ones because their manufacturing and managing activities impact on the environment, but TNCs are playing a more crucial role in their host countries’ sustainable development because of their massive sizes and powerful strength. They can cast the governments aside and have the power to move all or part of their business overseas.They should not treat the host countries as their pollution pouring zones and profit from overseas weak environment.
Principle one requires that business should respect human rights including those in the Universal Declaration of Human Rights. And businesses are asked to do something to undertake more environmental responsibility under principle eight. “As an established industry leader in the areas of human rights and ethical business”(see Embedding Human rights in