Management of Multinational Corporations ( MNCS )

Chapter 12 : Doing Business Ethically

Stakeholders Expectations

Employees
Shareholders
Suppliers
Customers
The Community and its Physical Environment

Environmental Management in MNCs

Pollution
Exploitation of Non
Renewable Energy
Environmental Degradation
Waste Disposal
Recycling

Dealing with Corruption and Bribery
Marketing Issues

Human Rights Violation by MNCs

Child Labour
Extended Hours of Work
Poor Safety Standards and Enforcement

Corporate Governance in MNCs

Chapter Summary

Business organizations face many ethical dilemmas because they have to deal with the conflicting demands of various stakeholders, like shareholders, employees, consumers, and society. MNCs that are spread across several countries are frequently confronted with such dilemmas. MNCs have to not only earn profits, they have to also ensure that their processes do not degrade the environment and that their subsidiaries are not violating the human rights of their employees.

In addition, they have to run a successful business without resorting to bribery or coercive promotion efforts. Corporate governance is the system by which business corporations are directed and controlled. Directors of MNCs are encouraged to attend training institutes to learn how to help MNCs conduct their business in an ethical and profitable manner.

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