Ethics in Multinational Companies
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Ethics in Multinational Companies
Ethics in business are the principles that are required to govern employees. In businesses there are ethical strategies in place that guarantee non-violation of these principles. Ethical concerns that are most applicable in multinational companies include human rights, corruption, environmental policies or systems, employment procedures and the multinational company’s moral responsibility (Sroka, 2018).
There are several steps that multinational companies should take to ensure the subcontractors are behaving in an ethical manner towards their employees (Sroka, 2018). The managers should hire people with strong ethical values. Unethical subcontractors should not be promoted and should be warned about their behavior. If they do not change, the managers can dismiss them. The managers should also ensure that the company is built on a strong organizational culture that values high ethical behavior. They should give emphasis to the importance of code of ethics in the organization that should be observed (Sroka, 2018). A system of inducements should be set up to distinguish people who engross ethical behavior to those who do not. Also, decision making procedures should be placed which enables people to contemplate the ethical scopes of the business decisions. The employees and co-workers should also be asked whether they endorse the decisions.
There are also several ways that multinational companies take to make human rights part of their policies (Hess, 2017). The companies should ensure there is freedom of speech, movement, association and assembly among their employees. Companies should ensure their employees’ safety at work, health and labour rights. The employees should also have a right to privacy and freedom of expression in the company. Also, staff have a right to feel secure in their places of work. Employees are entitled to these rights in an organization. When employees feel safe and happy in their workplaces, the company performance increases (Hess, 2017).
References
Hess, D. (2017). Business, corruption, and human rights: Towards a new responsibility for corporations to combat corruption. Wis. L. REv., 641. https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/wlr2017§ion=26
Sroka, W., & Szántó, R. (2018). Corporate social responsibility and business ethics in controversial sectors: Analysis of research results. Journal of Entrepreneurship, Management and Innovation, 14(3), 111-126. https://www.ceeol.com/search/article-detail?id=705527