Business ethics within business is crucial to the world economy and more importantly to expansion of the MNCs which are growing to meet the needs of the world economy. However there are clear perspectives to take into account when resolving these ethical issues, primarily human rights, acceptance by the MNCs of foreign cultures and by contrast corruption and exploitation arte closely monitored.
Human rights movements are clearly restricted by the United Nations as it prevents any child labour or exploitation by large MNCs of the poorer nations.
As illustrated in Boatright, J.R (1993), Ethics and the Conduct of Business, the MNCs adaptability to local culture and business environments are more likely to prosper unlike others who try to enforce a foreign culture into the new business environment. This is particularly evident when U.S based MNCs expand into Asia where it has proven difficult to adapt in the early stages. Custom and culture often provide ethical issues in business environments.
Further to this Boatright, J.R (1993), Ethics and the Conduct of Business also highlights the need for there to be an increased focus on international agreements and codes of conduct to alleviate any ethical standard issue compromises. However as both cultures differ in the first place, this may be hard to find common ground.
As stated in “Business Principles For Countering Bribery” (2003), corruption and exploitation have been prevalent in recent decades with the expansion of MNCs into third world countries. Cheap labour and cheap materials prove to gain massive profits for the MNCs who are constantly looking at improving the bottom line.
Further to this, as noted in Kahn, J. A Nation of Guinea Pigs, the exploitation by Boehringer Ingelheim into Asia where it provided medical funding in return for testing the latest stroke prevention drug. This was viewed as exploitation by primarily due to the difference in living standards and the bribery of paying the...
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