ABSTRACT
https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9780203850626/2d411f73-7a33-4cbd-abe0-e61b9c5a5de6/content/inline_1_B.tif" xmlns:xlink="https://www.w3.org/1999/xlink"/> Every company doing business abroad faces numerous legal and ethical issues. The multinational corporation (MNC) faces legal issues raised by “home country” laws, “host country” laws, regional regulations or directives, bilateral and multilateral treaties, and international standards and certifications. Ethical issues become entwined in various legal options, and local customs and norms add another layer of complexity to the question of how to act both legally and ethically in an unfamiliar environment. This chapter offers general guidance on these complexities. We contend that MNCs are wise to focus on four kinds of ethical challenges: these are (1) bribery, competition, cronyism and public governance as they relate to supporting competitive market capitalism; (2) human rights issues; (3) environmental issues; and (4) social equity issues. While failure to focus on these can result in significant legal and reputational consequences, paying proper attention to them can improve corporate performance and enhance the functioning of economies that embrace capitalism.
