Multinational business decisions in terms of social and ethical responsibility can be a bit disturbing. Decision makers may face different situations for expanding to countries that have different cultures and beliefs. I see the decision tree for incorporating ethical and social responsibility very effective, which reveals the change that could affect the managers’ decisions in many different countries. For example, somewhere in the developing countries have lower tax restrictions on tobacco. This will definitely overturn the decision that need to be taken towards ethical and social responsibility.
2. Can …show more content…
In regards to tobacco industry, the better thing to do is to evaluate the consumption of cigarettes in the US and then compare that rate in different countries. This way American companies can prove that limiting the tobacco consumption in US will not stop consumers from smoking, which they can always sneak their cigarette from different country. The price of ethical can be a big loss of revenue to all tobacco companies that comply with ethical rules and regulation.
2. Should the U.S. government support U.S. tobacco company interests abroad?
NO, The case explains that national self-interest is not limited to third World countries alone. On one hand, the State department sent a directive to all U.S. diplomatic posts in 1998 with instructions for them not to promote American tobacco products abroad. Tobacco will be coped as a product dangerous to health.
At the same time it explains that the directive also stated that the government would continue to oppose trade policies abroad that favor local tobacco products over those made in the U.S.
4. Should a company be forced to stop marketing a product that is not illegal, such as