Question

You work for a large international corporation. The director of your department has called a meeting. He states that the company must always consider international issues when conducting business globally. Safe work environments, fair wages, abuse of child labor, unfair treatment of workers, the environment, and legal business practices are all topics that are unfortunately in the news all too often. Previously, these were problems or issues that were present in the United States. Fortunately, the legal system and regulations, for the most part, have made these issues a thing of the past. However, in many foreign countries, these problems still exist. Societies are bound to repeat their mistakes if they do not learn from the past. Therefore, consider an ethical issue faced by American businesses in the international arena. What should be the legal and ethical reaction of the business community for these types of violations?

If the issue was domestic, what would the proper solution be? How does conducting business internationally change your analysis? Do we have to consider ethics universally or it is specific to practices within a country?

Answer 1

Multinational companies or MNC’s have become a huge source of Jobs across the world. MNC companies have set up holding companies in most countries based on the type of resources a country can provide. Some provide cheap labour while others provide raw materials. While this has helped most countries in developing their economies, there has been constant issues being raised about the working conditions in most of these companies and the reluctances of governments in ensuring the safety and welfare of the employees.

Business ethics is a branch of science that helps in understanding ethical principles and moral or ethical problems that can arise in a business environment. Over the years this branch has evolved and helped people to understand the ethical issues involved in working environments. Many MNC companies use this branch of science in understanding the issues and find a solution to them. However it has been highlighted by many instances that the same ethics that the company preaches on its domestic land is not followed in foreign lands and there has been rampant human rights abuse in the form of child labour, unfair wages and timings and unsafe environments.

These issue have to be addressed both at domestic and international level with proper laws and Efforts from the companies to move from profit orientation to employee orientation. Proper mechanism to ensure the rights of employees are maintained should be both by the governments as well as the employer.

Looking into these issues as an employer from a domestic perspective should be that all the laws setup for labour welfare are effectively followed. Steps should be taken to be compliant with all legal protection provided to employees and also it is important to have an ethical discretion when engaging with employees, making sure it’s their welfare that remains the priority.

Internationally it should be ensured that all the international laws pertaining to the welfare of labour is maintained and followed. Even though the people engaged are not from the company’s domestic land it should in no way be an excuse to treat them in a different manner. The policies should remain the same across the world.Multinational companies or MNC’s have become a huge source of Jobs across the world. MNC companies have set up holding companies in most countries based on the type of resources a country can provide. Some provide cheap labour while others provide raw materials. While this has helped most countries in developing their economies, there has been constant issues being raised about the working conditions in most of these companies and the reluctances of governments in ensuring the safety and welfare of the employees.

Business ethics is a branch of science that helps in understanding ethical principles and moral or ethical problems that can arise in a business environment. Over the years this branch has evolved and helped people to understand the ethical issues involved in working environments. Many MNC companies use this branch of science in understanding the issues and find a solution to them. However it has been highlighted by many instances that the same ethics that the company preaches on its domestic land is not followed in foreign lands and there has been rampant human rights abuse in the form of child labour, unfair wages and timings and unsafe environments.

These issue have to be addressed both at domestic and international level with proper laws and Efforts from the companies to move from profit orientation to employee orientation. Proper mechanism to ensure the rights of employees are maintained should be both by the governments as well as the employer.

Looking into these issues as an employer from a domestic perspective should be that all the laws setup for labour welfare are effectively followed. Steps should be taken to be compliant with all legal protection provided to employees and also it is important to have an ethical discretion when engaging with employees, making sure it’s their welfare that remains the priority.

Internationally it should be ensured that all the international laws pertaining to the welfare of labour is maintained and followed. Even though the people engaged are not from the company’s domestic land it should in no way be an excuse to treat them in a different manner. The policies should remain the same across the world.

Ensuring the good working conditions of the workforce should be priority irrespective of the place of business,