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Business Ethics and Social Responsibility for the Multinational Corporation (MNC)

Business ethics and social responsibility in multinational corporations (MNCs) are more and more challenging, because they are operated in culturally varied environments, which vary from host to host country of each foreign subsidiary and are often very different from the MNC headquarters’ (HQs) home country culture. A host country’s societal and cultural factors, combined with local economic conditions and business practices, play major roles in determining the preferred business ethics and social responsibility in each foreign subsidiary. An MNC’s global HQ should partner with all foreign subsidiaries to determine the global corporate business ethics, social responsibility core, general values, and objectives. Further, each foreign subsidiary should develop in partnership with the HQ, the customized details of its business ethics, social responsibility objectives, goals, strategies, and specific programs for its host country’s environment.