ABSTRACT
The presence of transnational corporations in developing countries is brought about by a social contract between the transnational corporation and the developing country. Because of the size and power of the transnational corporation, obligations arise that go beyond economic and legal rights and duties. This creates a complex situation in which transnational corporations’ need for profit maximization may conflict directly with developing countries’ need for economic growth and development. How transnational corporations act in such situations involves questions that lie within the realm of ethics and morality. A perspective is presented for thinking about and evaluating the activities of transnational corporations in developing countries.
