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In: Business and Management

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CHAPTER 2: MANAGING INTERDEPENDENCE
Social Responsibility and Ethics

1. The Social Responsibility of MNCs • MNCs: Multinational corporations ( corporate social responsibility • Issues of social responsibility: the poverty, the lack of equal opportunity, the environment, consumer concerns, employee safety and welfare. • A domestic firm should demonstrate range from one extreme to another extreme ( produce goods and services, serve its shareholders’ interest – anticipate and try to solve problems in society. • Exhibit 2-1: managers are faced with not only considering stakeholders in the host country but also with weighing their rights against the rights of their domestic stakeholders. 2. Ethics in global management
The term ‘international business ethics’ refers to the business conduct or morals of MNCs in their relationships with individuals and entities. Ethics is based on largely on the cultural value system and ways of doing business in each country or society. 3. Bribery
MNCs are often caught between being placed at a disadvantage by refusing to go along with a country’s accepted practices, such as bribery, or being subject to criticism at home for using “unethical” tactics to get the job done.
A specific ethical issue for managers in the international arena is that of questionable payments which are business payments that raise significant questions of appropriate moral behavior either in the host nation or in other nations
( Questionable payments: • Paying mail carriers to prevent them from losing mail • Paying extra money to get a computer picked up from a rainy dock • Coffee money to immigration officer to expedite stamping on passport • Paying grease money to apply for business license
( Political payments, extortion, bribes, sales commissions, or grease money which payments to expedite routine transactions...

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