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York University
MGMT 1040
William(bill) Woof

Chapter 12 - Ethics and Multinational Corporations Amultinational corporation (MNC) or enterprise (MNE), is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation. The International Labor Organization (ILO) has defined an MNC as a corporation that has its management headquarters in one country, known as the home country, and operates in several other countries, known as host countries. Some multinational corporations are very big, with budgets that exceed some nations' GDPs. Multinational corporations can have a powerful influence in local economies, and even the world economy, and play an important role in international relations and globalization. Businesses look to go global for a variety of reasons including cheaper labor and low costs on health and safety standards. This ensures them higher profits and a higher competitive edge against their competitors. It also helps them provide goods to their consumers (in NorthAmerica and beyond) at cheaper prices. Global trade encourages specialization and trade, which helps under-developed and/or developing countries grow and progress. Ethics and Relativism Many MNCs have a proven record of lowering ethical business standards in other countries in order to maximize profits. Many corporations have been accused to sex violations, child labor, improper working conditions, assassinations (Coca Cola), long working hours and employee exploitation in other countries. From a relativist point of view, any immoral behaviour conducted by companies outside of Canada would be considered ethical. Relativists ask us to measure and perform our ethical standards in conjunction with the standards accepted in the country that we are conducting business in. As a result, a relativist would approve any action committed by a MNC as long as it is approved by the local regulatory body in that country. However, according to the course material and Shaw, we are expected to take a non-relativist approach to business outside NorthAmerica.As managers doing business globally, we are expected to abide by the moral standards we use in Canada and stick to them when we go global. From a utilitarian point of view, Global trade would be considered good as i
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