Ethical Responsibility of Multi National Corporation
Ethical Responsibility of Multi National Corporation

Ethical Responsibility of Multi National Corporation

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  • Pages: 3 (1169 words)
  • Published: September 30, 2021
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Ethics relates the behavior of individuals. It concerns the individuals thinking about morals, moral judgment, and moral problems. Ethics is also about what is right or good for human being, what aims people should pursue, and what actions need to be done. Individuals are guided by a sense of morality to do what is right and good. Ethics are based on a combination of values and beliefs, coming from the societal and individual ideologies together with the cultures.

Managers are employed as decision makers or representatives of an organization and carry with them entities; individuals, not corporations, make a decision. Every organization operates within society and for this reason, they should follow the morals and expectation of society and ensure they contribute towards making the community in which they operate in better than they found it.


Multi National Corporations are supposed to meet some ethical responsibilities for a continued operations and success in what they do. Today, corporate managers are quite sensitive to every issue that involves ethical behavior and social responsibility because of pressure from an interest group, government and legal issues, the public expects them to have a set standard for other small corporations and media coverage. It is not very clear where to configure the line between the concerns of the companies and the social responsibility, or between the different contradictory expectations of ethical behavior in the various countries (Crane and Matten 2007: 32)


. Ethics regulate how multinational corporations carry out their operations.
Every multinational corporation international managers at times feel that the ethical responsibility expectations are outside the realm of their authority. Ethical behavior is considered both in terms of the ethical behavior of every manager and the social responsibility the corporation. It is very crucial that the managers and the organization be ethical in all their undertakings to develop a good relationship with their host countries.


Although it’s hard to have a universal code of ethics and morality in every country, existence of such guidelines provide a foundation of judgments regarding some specific situations. Moral universalism is about developing a standard that can be accepted and that can function in all the countries. Ethnocentrism is a good approach to ethical responsibility, and a corporate should apply the morality they use in their countries of origin. If the managers decide to follow ethical relativism, they should observe the moral and ethics of the country they operate in.

Multi-National Corporations have a moral responsibility towards human rights. The priorities and perception of people in different countries define what constitutes “human rights” at that nation. The best way to be ethical in guarding human rights is by coming up with common international ethics principles to make ethical standards in the different countries standard (Ruggie 2013: 24). By having standard human rights, it will be easy for the authorities in a country to identify the unethical corporations which fail to defend and protect human rights. The human rights differ depending on a state. The multinational corporations operating in different countries face challenges of how they deal with human rights issues. But th

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differences occur due to differences in customs, laws, and ethics in the various countries the Multi-National Corporation operate in.

The best approach to gaining ground on human rights around the world would be for the government and multinational corporations to take a united stance (Ruggie 2013: 22). Several multinational corporations which are image conscious are developing a corporate code of conduct for their suppliers, buyers, and contractor and have strict procedures that ensure human rights ethics are adhered to in their corporation. An example of human rights that the multinational company needs to observe is not to use forced labor or employ children.

When this rule is made international and adopted by all corporations, it will be applied internationally, and any corporation which violates that rule will face just punishment. When human rights are determined by priorities and perception, different people will argue differently, and some might even go unpunished when they break the standard ethics law. Human rights are protected to protect the minority from being mistreated by the mighty. Ethics require those people who manage the multinational corporations to treat the minority with respect and dignity.

Multi-National Corporations have some ethical responsibility to conduct their business in a transparent manner. The standard of performance is part of ethical behavior. Every corporation should, therefore, apply the highest levels of ethical behavior and avoid double standards (Crane and Matten 2007: 42). Multi-National Corporation should ensure that their rules and principles are observed in all the countries they operate in. The managers are expected to run the branches they represent in a transparent manner without hiding any detail of the organization’s operations. The books of accounts should be accurate to ensure that the corporations pay the right taxes to the authorities.

The Multi-National Corporations also take care of the environment as part of their responsibility. The operations and decisions of these corporations have a direct link to the environment in which they operate. The activities of these organizations affect the environment and determine the future performance of that business. Many companies have realized that taking care of the environment has better results since it creates better customer relation, better sale, and continuity of the corporation to the future. It is an ethical responsibility of the Multi-National Corporations to ensure they only engage in what they are licensed to do to make sure they do not put the lives of the community around them at any risk.

It is ethical to take care of where you operate from. Hence Multi-National Corporation must support efforts relating to ecological interdependence (Crane and Matten 2007: 32). They need to integrate strategic planning with ecological interdependence factors. They should look for raw materials that will not destroy the ecology either by producing harmful wastes or by its extraction. They may have to consider looking for an alternative because ethics require them multinational corporations to make the life of the people living around them better and not worse than they found them.


Ethics relate to the activity or conduct of people whether it is done consciously or knowingly. Ethics apply to organizational life. Decisions in an organization are made by people on

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