International Business and International Marketing

Chapter 18 : Ethics and Social Responsibility

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. Firms with a presence across several countries are frequently confronted with such dilemmas. They not only have to earn profits, but also ensure that their processes do not degrade the environment and that their subsidiaries do not violate 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.