Ethical policies for mncs

It is upon the top management to ensure that these policies are made in a rational and systematic manner. Introduction Application of ethical decisions is significant to operations of any business. As a matter of fact, the manner of leading and managing organizations to offer goods and services in the local and international market could raises a number of ethical issues that could be detrimental if not taken with precision. There is even a greater implication when Multinational Corporations (MNCs) are involved since these companies operate in complex and dynamic environment with numerous discrepancies in the perception of what is considered right or wrong (Banai & Sama, 2000). As a leader, one is often faced with critical moments that call for prudent decision making.

However, MNCs should not have a universal code of cultural practice and force it down the throats of everyone among its subsidiaries. In the international business, the concept of “going glocal,” or even “glocalization” has recently emerged to simply what is commonly known as cultural relativism. A good example of glocalization is the case provided by Vorhauser-Smith (2012) where KFC severs porridge for breakfast and Peking Duck burgers for lunch while Starbucks serves green and aromatic teas in Beijing, China. She points out that even though these brands are indisputably western, they have had to adapt to the local values and tastes in order to emerge successfully. Similarly, as an MNC leader, I will enact a cultural diversity management policy that allows every subsidiary company to conform to cultural needs of the host country.

As a leader, I would come up with a hiring policy stipulating that the working age in my company is determined by the policies of the host country since some countries have varying minimum working age. This policy will also go hand in hand with the requirements of the International Labor Organization (ILO) which through its International Program on the Elimination of Child Labor (IPEC) program, works to progressively eliminate child labor. According to ILO Convention No. 138, the general minimum age for full-time basis of work is 14 to 15 (UNICEF, 2014). This is slightly higher than the international standards that recognize 13-14 years as a minimum working age, especially for light duties. Ultimately, this policy should not be confused with what is commonly referred to as double standards as thinking along those lines could impair its effectiveness.

Corporate-wide Code of Conduct Policy A multinational company requires uniform principles to help curb varying ethical issues in its subsidiaries. According to Olaru & Gurgu (2009), having a resilient corporate code of conduct allows employs to understand the basic principles guiding everyday operations and decisions made in the organization. Therefore, as a multinational company manager, I would craft this document and make it part of the company policies. The good thing about values is that they are not only applicable almost universally, but are also easy to remember. Conclusion Indeed, multinational companies conduct their business activities in dynamic areas with varying socio-cultural and ethical contexts posing significant ethical dilemmas to their leaders. As a leader, it is prudent to come up with policies that can help one to cope with these ethical dilemmas.

The policies include hiring policies towards the local, cultural relativism, promotion of global corporate culture, establishment of a corporate-wide code and engagement of global employees in compliance with ethical principles. Since it is beneficial for MNCs to customize and conform to the socio-cultural values of their host countries, every international organization must strive to achieve this using the most appropriate policies. Leaders of multinational companies have a moral obligation to make ground-breaking decisions that if not well-thought can plunge the company into a crisis of ethical issues. , & Moore, D.  A.  Judgment in managerial decision making (7th ed. New Jersy, NJ: John Wiley and Sons Inc. Godiwalla, Y. 1023/b:busi. da Khan Academy. Cultural relativism article. Retrieved from https://www. khanacademy.  World Journal of Social Science, 4(1), 22.