The Pros And Cons Of Multinational Corporations

Improved Essays
Many Global Organizations have a reputation of unfair practices regarding the treatment of their employees when it comes to environmental issues and social responsibility. It appears that the reason for this is there are no real ties to any one local organization or party. “This criticism of multinationals is valid to a point, but it must be remembered that no corporation can successfully operate without regard to local social, labor, and environmental standards, and that multinationals in large measure do conform to local standards in these regards” (Multinational Corporations 597).

The concept of multinational corporations obtained its beginnings in the United States. They in initially began as organizations or manufactures tied to consumable
…show more content…
Good business judgement is sound advice in any organization, home or abroad. There is a tendency for a deficiency in ethical decision making once overseas in international business operations. One of the basis for this is the rate interchange in incomes. If you listen to local or even national news, frequently you will hear that workers in other countries earn pennies on the dollar in comparison to U.S. workers. Additionally, that the working and living conditions are deplorable, the housing is nonexistent and that basically the operations could be defined as sweat …show more content…
standards is usually not realistic and often simply disrupts the established market, so an alternative to fair business practices is to develop company standards which protect workers while fitting into the local economy” (Markgraf, 2016).

The consideration the management of any global organization faces is whether or not their presence is causing more harm than good. “The ethical issue becomes whether the presence of an international organization supports the current abusive regime or whether the company’s presence can serve as a catalyst for human rights improvements” (Markgraf, 2016). Who is ultimately responsible for the ethical growth, maintenance and impact on foreign relations with in an organization, management.

“The way that responsibilities within an organization are delegated or given to its employees changes the way that employees behave within their organization and how the organization performs (“3 main differences in management culture between the US and china,” 2011). Essentially, and because actions by organizations have a direct impact on the lives of real human beings, multinational organizations must out forth concerted effort towards fair trade practices, humanitarian rights and act with good

Related Documents

  • Great Essays

    Corporations, especially Corporate America, have usually nothing to do with the livelihood of the work force to gain economic power. It is much more interested in the stockholder's profit margin. Why do we allow corporations to replace our liberty, and the pursuit of happiness for the individual in favor of the stockholder? How can the employees even know what their rights are, if they are working in excess of 50 hours a week? Isn't it about time we start changing the basic structure of corporate America?…

    • 1401 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    No Logo Summary

    • 463 Words
    • 2 Pages

    Naomi Klein, author of the book No Logo, shares in this documentary of the same name that she wrote the book to raise awareness of the rise of multinational companies and the negative affects they have on the world. Klein discusses how she began to realize this shift in the mid-90s, where companies stopped just producing products and started producing “images of” products. Companies were no longer just interested in the things they made; they became aware that their brand needed a face that would be known globally. They began advertising lifestyles that could only be fulfilled with their products. Because less concern was going into the manufacturing aspect, more and more companies started to outsource in order to expand and cheapen.…

    • 463 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    In the Article "Reconciling the Irreconcilable: The Global Economy and the Environment," Deborah Poff argues that third world countries and the environment are not being treated justly due to the fact of the interaction between business and government and how they interact in the global system. Poff introduces two different strategies but states they both are wrong and she responds with her own solution as a better way to think about how a business and the government can interact without hurting the environment. In order to understand Poff's view, it is important to recognize the background. The International System which is comprised of different separate countries was developed in the early 20th century. The government plays an important…

    • 1175 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    Ethics can be described as the discipline that deals with good and bad judgment as well as with moral expectations and obligations (Aras, 2006). In the conventional approach to business ethics (Schaefer, 2016), decisions and actions are influenced by norms and expectations of human behavior in a given society. Whether or not one is ethical is defined by the prevailing thought processes in that society (Beauchamp, 1983). One of the biggest challenges with this approach is mainly posed by the fact that norms vary considerably within the society as well as from society to society.…

    • 1110 Words
    • 5 Pages
    Great Essays
  • Superior Essays

    Looking at the top 100 multinational corporations, they are all using universalism. “Universalism is needed today more than ever, especially in multinational corporations. “(David C. Wyld, 2011) As the world is becoming a smaller place because of globalization and Internet, universalism makes more sense in dealing with multinational issues. It can help the company to develop not only the standard of work environment, but also the reputation of the corporations.…

    • 1612 Words
    • 7 Pages
    Superior Essays
  • Brilliant Essays

    Transnationals and the Third World: The Struggle for Culture, JSTOR. Hanson, G. H. (2001). Should countries promote foreign direct investment?, UN. Kostova, T. and S. Zaheer (1999). "Organizational legitimacy under conditions of complexity: The case of the multinational enterprise.…

    • 353 Words
    • 2 Pages
    Brilliant Essays
  • Improved Essays

    Busted labor unions, pollution, unsafe workplaces, and economic instability result when multinational corporations hold us all hostage to their whims. " Many different people believe that same as Erik Loomis but they also believe that other countries better than others. What if every country had the same laws would this type of problem would be…

    • 567 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    One of the most important components of the globalization of business is management. Without proper management, work life would be chaos. While there are many pros and cons to managing a global business, I will take you through a select few today. Not only do managers need to worry about managing their own employees, but now they must coordinate with other managers around the world. However, working with different people all over the world then makes them more aware of the environment and making sure that their companies are being conscious of their own carbon footprints.…

    • 743 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    We must not make unethical, immoral decisions that place people’s lives or welfare in danger but, on the other hand, globalization has provided these individuals with the ability to earn money to have a better like and rescue the weak and the needy (Psalm 82:3-4). One must educate themselves on the culture, their traditions and the way in which business is conducted before conducting business with another country. Even though some ethical and moral concerns may be raised, after discussing the situation with leadership and advisors one must ensure the transactions are deemed successful and morally legitimate by the dominant corporations. If the business in which one works for is morally legitimate an ethical attempt will be made to end poverty and governance throughout the international…

    • 1305 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    Transnational corporations, also referred as multinational corporation, “are incorporated or unincorporated enterprises comprising parent enterprises and their foreign affiliates” (“Transnational corporations (TNC),” n.d.). It all started during the 19th century, when industrial corporation started developing factory systems, better storage techniques and found a way of a faster means of transportation. The United States and a few western European nations started transnational expansions of their corporations in Latin America, Asia, Africa, and in the Middle East. After World War II, there was "major technological advances in shipping, transport (specially by air), computerization, and communications accelerating transnational corporation's increasing internationalization of investment and trade, new…

    • 458 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Environmental justice differentiates itself from the general term of environmentalism in that it fights for environment equality for people of minority races and low socio-economic status. While the environmental justice movement began in the 1960’s in the US parallel to the civil rights movement, it attracted enormous attention in the 1990’s due to Robert Bullard’s book “Dumping In Dixie” which highlighted evidence of discrimination in locations chosen for toxic waste dumps in the US (Carder, E. n.d). Today with the globalization of multi-national corporations and foreign direct investment (FDI), it has evolved into a world issue of unequal environmental damage between developed and undeveloped nations. Moral questions are being raised concerning…

    • 1011 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Walmart’s policy of Global Ethics incorporates four systems of beliefs that guide the company’s leaders in making decisions: respect, customer service, excellence, and integrity. The policy provides ways for company associates to voice their concerns when ethical issues arise. Walmart promotes integrity in the workplace, in the marketplace, and in the community using the same four systems of belief. One of the main goals in using these beliefs is the desire to create and maintain a culture of respect that promotes positive work, corporate, and community environments. In 2005, Walmart’s policy of Global Ethics was challenged when the company’s Mexican executives were caught in a bribery scheme.…

    • 968 Words
    • 4 Pages
    Great Essays
  • Brilliant Essays

    International Management Leadership: The Primary Competitive Advantage. Binghamton, NY: Internatinal Business Press. Trevino, L. N. (2010). Managing Business Ethics: Straight Talk About How To Do It Right. Hoboken, NJ: John Wiley & Sons, Inc. U.S. Securitites and Exchange Commission.…

    • 1804 Words
    • 8 Pages
    • 6 Works Cited
    Brilliant Essays
  • Great Essays

    Identify the problem While companies have been outsourcing various activities for centuries, in recent decades, the increased growth of products and services that businesses have moved offshore has not only contributed to increased global economic growth and prosperity but also has faced much controversy and debate while Americans today attempt to protect the domestic business against offshoring. The overall problem includes transportation costs, disruption in innovation and productivity, reduction of quality of products and services, job displacement, and more importantly the loss of 3.3 million domestic jobs (Sao & Gupta, 2013). From an ethical standpoint, Kantian ethics states that people should never treat other as a “means to end, but…

    • 2963 Words
    • 12 Pages
    Great Essays