ETHICAL BEHAVIOUR OF MULTINATIONAL COMPANIES IN HOST COUNTRIES
When multinational starts or operate their business in host countries they normally neglect the tradition, values norms and especially the environment of host countries.
For example china produce china produce product and sell their product in the host countries which are very much inferior in quality normally and less in price. On the other side they are affecting the domestic industry/firm by introducing their product at lower price and on the other hand the products made by china are not durable for long period of time.
So countries like china when started their operations in host countries they neglect these ethical issue/behaviors.
In past UK is an ideal place for investment by the multinational companies due to which their culture emerged in cultures of different nation’s culture.
Many multinational companies ignore the problem of environment of environmental pollution and global warning, e.g. multinational which operate in host countries on tobacco industry are on the other side damaging the health of the resident of the host country.
Some multinational instead of investing the money or revenue which they have earned from the host country transferred to their home countries.
Although its benefits their home country but is also puts some adverse affects on the economy of the host country due to which their GDP rates gets affected which is not illegal but it is ethically wrong.
Multinationals should set an example in their wage and social policies. Applying the standards of local industry or simply observing the legal minimum is, in many cases, inappropriate for the social conditions in poor countries.
A multinational corporation which operates in different legal and social frameworks, and which strives for uniform ethical standards, is well advised to develop corporate policies for sensitive activities in the developing world whether in marketing, environmental protection or other areas. Not everything legal is morally acceptable.
ATIF UR REHMAN(mba) iqra university islamabad
