ABSTRACT
Multinational corporations are continually seeking sources of competitive advantage. In addition to strategic, technological, financial, and organizational capabilities as sources of competitive advantage, this paper argues that ethical capability also can be an important source of sustainable advantage. The paper presents the challenges of ethics in an international context, discusses the resource-based view of competitive advantage, and describes how a multinational company can develop and sustain ethical capability through the related processes of transformational leadership, organizational learning, and human resource management.
