Ethically Responsible

4889 WordsSep 22, 201020 Pages
Running Head: How Ethically Responsible Should Companies Be For the Adverse Affects They Have On Countries They Enter To Do Business How Ethically Responsible Should Companies Be For the Adverse Affects They Have On Countries They Enter to Do Business Name of Student Name of University/College Name of Professor Course Abstract 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…show more content…
United States wages are the highest in the world, but should not be construed to be the moral and necessary norms for the whole world or for the U.S. firms abroad. This thing should not be confused either with standard appropriate to the United States or with standards set by the United States government. Some of the dilemmas of United States multinationals come from detractors such as false equations. (De George, 1986) In his book ' Ethics and the Multinational Enterprise ' De George (1986) outlined seven moral guidelines that generally apply to multinationals operating in third World countries: 1. MNCs should do no intentional harm. This restriction is clearly not unusual to multinational corporations. Yet is a basic norm that can be usefully applied in evaluating the conduct of MNCs. Any company that create intentional direct harm clearly violates a basic moral standard. 2. MNCs should produce more good than bad for the host country. This is an implementation of a general utilitarian principle. But this standard limits the extent of that principle. Generally, more goodwill is done by helping the greater needs rather than helping those that need less. Thus the functional analysis on this case does not consider that more harm than good might justifiably be done to the host country if the harm offset the
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