The Responsibilities of Multinational Corporations

Are MNCs Responsible for the Ethics of International Subcontractors and Subsidiaries

As the economies of nations become more connected through globalization one of the most salient questions posed to multinational corporations (MNCs ) is , What moral obligation do we have to people in various nations ' The answer to that question is , It depends ' In to gain access to global markets , MNCs must establish relationships with subcontractors and subsidiaries in these various nations . Another , even more complex question asked of the managers of MNCs is , Are we morally responsible for the agents in other

nations operating on our behalf Again , the answer is , It depends ' This will address why MNCs are not (and are ) responsible for the behavior of their international subcontractors and subsidiaries because of the following (1 ) the owners of corporations (2 ) corporations are businesses and by their very nature are created to generate profits (3 ) the complexity and diversity of international laws , cultures and customs

According to the Oxford American College Dictionary , a corporation is defined as a company or group of people authorized to act as a single entity (legally a person ) and recognized as such in law (Lindberg 309 . The corporation is , however , owned ' by shareholders , defined as owners of shares in a company (Lindberg 1258 . According to the text , The History of the Corporation , a corporation is formed and exists to promote the interests of its owners or shareholders (Brown , 2004 Thus , MNCs , when using subsidiaries and subcontractors in other countries , are simply legal...