Question

Should a MNC reduce its ethical standards to compete internationally? For example, to compete in Brazil in the 1970s and 1980s, a period in Brazil of high inflation, many American companies bribed Brazilian officials in order to do business in Brazil. Yet, bribery in the U.S. would be considered an illegal activity.

Answer 1

MNC is the short form for Multi-National Companies- that means corporations operating in alternative countries likewise ,apart from its home country- however head-quartered in its home country.In the home country it competes with alternative corporations in similar trade . Likewise whereas operative internationally , its competition will increase mani-fold as well as alternative countries likewise.

In no matter scale it operates , the company's main objective is to maximise its shareholders' wealth. to this end, whereas doing business at the international level, the corporate is justified in increasing its comparative advantage with relation to manufacturing products/services distinctive to its home country- utilising the distinctive resources on the market there and showcasing its talent pool .It is conjointly very traditional for a well-established country poised for growth to expand into international markets ,to maximise wealth and earn additional profits for the stakeholders.

To this end,the MNCs are expected to be ethically sound- ie. following sure set of fine previous ethical character and fibre-- to not the extent of strangulating growth potentials.

Ethical standards, except for some core values, slightly vary from country to country .Rarely, sometimes,something ethically correct for one country could get it wrong for the opposite or vice-versa.So, MNCs ought to be wakeful and aware of assorted standards of all the countries which enable their opertaions and contribute to their wealth, with none exception. There ought to be completely no compromise on moral standards ,in whichever level , an organization operates.But it ought to adapt to the various standards of the assorted counties within which the company will business- separately and severally.

Thus for an MNC -the primary and foremost demand - to expand its operations into another country /countries ought to undoubtedly educate itself with completely different moral practices prevailing altogether such countries- analyse people who clash together with his home country and modify them to suit the country of operation/s.

Hence within the above situation like in Brazil, bribery isn't the approach ,to enter Brazil.Things will be sorted out at the official/government levels. Respect for every other's ethics is a very important think about establishing international trade and relations.After-all bribery is extremely unethical ,by all standards, to any or all countries.