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Ethical Effect to Mns's

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Ethical Effect to Mns's
Comparative issues in international management
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Business entities have adopted globalization in conformity with modern trends. In view of businesses becoming global entities, it is imperative that aspects of business ethics and social responsibility be incorporated into the organizational structures of multinational corporations. Multinational companies are being put on the spotlight over the positive and the negative effects of their activities. Aware of this fact, MNCs are getting involved in activities that are inclined to benefit the society and give them a competitive advantage over local firms. The involvement is gauged using the society laws of interdependence and the laid out human rights and standards of living. This paper explores the social responsibility practices of MNCs when they operate in foreign countries and highlights the extent that their code of conduct mirrors their home country’s ' institutional characteristics in the foreign lands (Amaeshi, 2008). It looks at the globalization aspects of these companies’ activities and their impacts to a country’s culture, belief system, people skills, the impact on employment practices, and the effect on the environmental in the given countries.
Multinational companies are defined as any enterprise comprising of entities in two or three countries regardless of the legal form and fields of activities they are involved in (Zentes, 2010). According to strategic international management (2010), a subsidiary is taken as any unit under the control of a multinational corporation (MNC) that is located in another country. With the melting down of international boundaries in business, MNCs have ventured to developing countries in a step aimed at broadening the scopes of their markets. This has not been without consequences. Such strategic expansions by global corporations have had both positive and negative impacts in the targeted markets. Consequently, it is now becoming a requirement in



References: Amaeshi, K. O. (2008). Corprate social responsibility in Transnational space. Aswathappa, A. (2005). International business. Noida,UP,India: TataMCcGraw-Hill Education. Lawrence, B. (2010). A Strategic and tactical approach to global business ethics. New jersey: Momentum Press. Mellahi, F. (2005). Global strategic management. New York: Oxford. Robbins, S. P. (2008). The truth about managing people. New York: Prentice Hall. Zentes, K. (2010). Strategic international management:Text and cases. Gabler.

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