Explain whether it is appropriate for a multinational organization to be held accountable for more than merely adhering to the law and conducting its operations within international and domestic ethical norms. By considering several theories on social responsibility and describe the limits, if any, of the theory. Also explaining, using the critical thinking approach to legal reasoning, how an organization should balance the interests of various stakeholders.
The attached document is an example of theoretical approaches to global business ethical behavior. The link below provides some additional considerations for legal aspects.
For further discussion in the industry pressures section, you may wish to discuss how the regulatory and legal influences, such as reduction of emissions or or hazardous chemicals into waterways affects social responsibility and the balance between the responsibility to satisfy shareholders vs. those impacted by the environment.
A global organization that adheres to international law, abides by regulations of each country it
conducts business in, and adheres to ethical standards is demonstrating some form of social
responsibility, in as much as the organization is adhering to guidelines that may affect the social and
physical well being of communities and nations. However, ethical standards may vary greatly from one
organization to the next. Simply conducting business openly and honestly may be one organization's
standard for ethical behavior, while another may extend ethical behavior to consideration for the
environment and the company's impact on local or regional health and economic welfare.
The Influence Approach of Impacting Ethical Behavior
Ethical behavior also means considering the groups of people that may be negatively affected
When the organization supports a political party or government entity that abuses or takes advantage
of a disadvantaged group of people. "Good corporate governance at home and abroad, promoting
economic inclusiveness and community goodwill, are important elements of international security"
(Bennett, 2002, p.394). When an organization adopts guidelines of transparency in financial activities its
actions can have a positive impact on other organizations it benefits. Those organizations may then be
forced to publicly acknowledge financial benefit and show fiscal responsibility. An organization that
adopts a practice of recycling or insisting on supplies made of recycled materials may force suppliers to
consider the environment or take their business elsewhere. The message is clear, regardless of how
business partners may react.
Corporate Social Responsibility (CSR) means going beyond the legal and ethical norms
established by the global business community. It involves a continuing mindset of thinking about how business ...
The expert explains whether it is appropriate for a multinational organization to be held accountable for more than merely adhering laws.