Ethical Issues Of Multinational Corporations Essay

1407 Words6 Pages
ETHICAL ISSUES IN MULTINATIONAL CORPORATIONS
Introduction
A multinational is defined as an enterprise operating in several countries but managed from its home country.
Ethics as a philosophy is defined as the discipline concerned with what is morally good and bad, right and wrong.
Ethical issues arise when one is unsure of what is the right course of action to be taken at a single time. This problem becomes exponentially complex when applied to a multinational organization.
Globalisation has enabled many companies to venture abroad in an attempt to grow their market presence while also boosting profitability, acquire cheaper raw materials, and gain access to low cost of labor.
Generally, any company or group that derives a quarter of its revenue from operations outside of its home country is considered a multinational corporation.
There are four categories of multinational corporations: a multinational, decentralized corporation with strong home country presence a global, centralized corporation that acquires cost advantage through centralized production wherever cheaper resources are available an international company that builds on the parent corporation 's technology or R&D a transnational enterprise that combines the previous three approaches.
Multinational corporations operate across many countries, and each country has its own laws and cultures and also diverse ethical practices and social norms.
Some of the most notable multinationals include
Apple
Barclays
IBM
Get Access