Question

Question No. 1: As we know that Global Financial markets have impact on companies’ performance which arise many ethical issues in multinational companies. According to you, what are the main ethical issues/problems you can think of in any multinational company? Explain in detail. (Select a multinational company of your own choice)

Answer 1

Ethics can be defined as rules and regulations that govern our behavior. There is always a scope for multinational companies to face problems regarding ethical issues. It is important to follow positive ethical practices as it boosts the positive image of the organization. The culture of any organization affects the employees' behavior. It is therefore important to implement a code of ethics in the organization as it helps in building the reputation. It also provides fair opportunity to the employees for receiving training and promotion. This in return allows the employees to stay committed to the organization's goal and be productive. Some of the unethical practices that the multinational organizations face includes: dishonesty, deception, exploitation of the general public who are vulnerable, misleading information, discrimination on the basis of gender and disability, increasing pollution and breaking governments law, carrying out harmful acts, experiment on animals etc. Wal-Mart is one such multinational company and employs a large number of people every year. The company claims to sell goods that are manufactured U.S, however, they have goods in their shelves   that are manufactured in the foreign countries. Also, Wal-Mart does not have union. They operate on open-door policy and believes that they do not need the intervention of the third parties. However, this open-door policy does little or no help when employees are in difficult situations. The organization does not allow their employees to talk to union representatives.