Please respond using the IRAC method below and a case source.
Multinational corporations and other firms must abide by the laws and regulations of their host countries. They must also understand the unwritten or informal rules of doing business there - rules based on culture, religious codes, and societal constraints. Sometimes these laws and rules can be very different from those in the firm's home country, and tolerated in another; bribery may be a crime in one country, and customary in another; and so on.
1. How does the multinational manager balance his or her social responsibility to the people of the host country with the companies overall objective of maximizing shareholder profit.
The IRAC method:
1. ISSUE: Identify the legal question which best addresses the problem posed by the fact pattern,
2. RULE: Find and then quote the legal rule(s) verbatim from the text which apply in the situation or fact pattern given and answer the question raised in the ISSUE section.
3. APPLICATION: Apply the legal rule(s) you identified in the RULE section to the given fact pattern. Your analysis should proceed in a step-by-step fashion and connect each point raised in the rule to the facts in the fact pattern.
4. CONCLUSION: Make a short conclusion based upon your analysis in the APPLICATION section. Be sure that your conclusion is supported by your discussion in the APPLICATION section.
The U.S. citizens must abide by the rules of the host country. One act that is forbidden by the most host countries is the bribery of the government officials of that country.
The case Source:
SECURITIES AND EXCHANGE COMMISSION,
100 F Street, N.E.
Washington, D.C. 20549
LUCENT TECHNOLOGIES INC., Defendant.
The spending of $10 million by Lucent on 1,000 Chinese officials that were employees of Chinese state-owned or state controlled telecommunications companies to travel to USA for training but instead visited tourist destinations in the USA constitutes bribery of the officials of China.
The Foreign Corrupt Practices Act enacted in 1977 and ...
This solution gives you a detailed discussion on host countries