Should an MNC Reduce Its Ethical Standards to Compete Internationally?

Point

Yes. When a U$.$S$.-$based MNC competes in some countries, it may encounter some business norms there that are not allowed in the United States. For example, when competing for a government contract, firms might provide payoffs to the government officials who will make the decision. Yet in the United States, a firm will sometimes take a client on an expensive golf outing or provide skybox tickets to sporting events; this practice is no different than making a payoff. If the payoffs are bigger in some foreign countries, the MNC can compete only by matching the payoffs provided by its competitors.

Counterpoint

No$.$ A U$.$S$.-$based MNC should maintain a standard code of ethics that applies to any country, even if it is at a disadvantage in a foreign country that allows activities that might be viewed as unethical. In this way, the MNC establishes more credibility worldwide.

Who Is Correct?

Use the Internet to learn more about this issue. Which argument do you support? Offer your own opinion on this issue.