The Moral Responsibilities of Multinational Corporations...

Multinational companies like Caltex have a moral obligation to improve the living conditions of the citizens who live and work in those countries. Their role cannot be limited to increasing shareholder value, while perpetuating and fortifying political regimes that persecute and discriminate a group, or groups of their citizenry. I liken this to reforestation, and the responsibility that governments and corporations have to our planet. A corporation cannot simply make a profit and deplete natural and human resources; it needs to give back to that country and its communities. Under South Africas apartheid government, the Black majority was not given the same opportunities to life, liberty and the pursuit of happiness as the White†¦show more content†¦Ã¢â‚¬ ¦ By investing in South Africa, American companies inevitably strengthen the status quo of white supremacy. †¦ The leasing of a computer, the establishment of a new plant, the selling of supplies to the military all have political overtones. †¦ And among the country’s white community, the overriding goal of politics is maintenance of white control. In the words of Prime Minister John Vorster †¦ â€Å"We are building a nation for whites only† (Velazquez, 2006, p. 58). Although I have spent my entire adult life in business, I am certain that I would have supported each of the stockholder resolutions that â€Å"the Interfaith Center on Corporate Responsibility announced† as â€Å"some of its subscribing members owned stock in Texaco, Inc. and in Standard Oil Co. of California (SoCal).† (Velazquez M. , 2006, p. 59). As the text further states, â€Å"Caltex was actively supporting policies that were unjust because they laid burdens on Blacks that Whites did not have to bear† (Velazquez, 2006, p. 59). As a proponent of justice and people’s rights, I do not agree with the â€Å"utilitarian standard of morality† (Velazquez, 2006, p. 59). I view the horrors of apartheid in a similar fashion as I view the Holocaust. As far as the resolutions are concerned; Caltex to terminate its operations, Caltex not to sell to the military or police of South Africa, and Caltex to implement the TutuShow MoreRelatedMultinational Corporations1110 Words   |  5 PagesEthical Dilemmas for Multinational Enterprise: A Philosophical Overview Part One: Review Question #1 Multinational Corporations have always been and are currently now under harsh criticism. They are mainly condemned for exploiting resources and workers of third world countries, taking jobs away from the US industry, and destroying local cultures. Although there are negatives of multinational corporations, there are also positives. Business done overseas provides jobs for the people of theRead MoreRole Of Mncs As A Political Actor1225 Words   |  5 Pageseconomies in the world, 51 are now global corporations, only 49 are countries1.† Furthermore, the united nations’ body estimates that multinationals account for one quarter of the worlds GDP1. While one may not accept GDP as a measure of a nation’s power, it is a prime determinant of its capabilities and limitations as a political actor. The same can be said for MNCs, which have been on the rise since World War II. This discussion focuses on the role of MNCs as a political actor within, between andRead MoreW hat Are the Sources and Limits of Mnc Power1627 Words   |  7 PagesWhat are the sources and limits of MNC power? Multinational Corporations in a Global Economy IR 120 - 201136597 - Catharina Knobloch 1. Introduction As MNCs are getting increasingly important as actors in political bargaining, the purpose of this essay is to provide a (more or less) detailed overview over the sources and limits of the power of multinational corporations (MNCs). In the first section, I am going to lead into this topic by giving some definitions. In addition to that, I amRead MoreEthically Responsible4889 Words   |  20 Pagesfuture relies on their aptitude to operate globally. Third world countries seek to attract American MNCs for the jobs they provide and for the technological transfers they promise. However, when these MNCs entered into countries to do business particularly in the third World Countries, many American condemn them (Hofffman Frederick, 1995) for exploiting the resources and workers of the Third World. MNCs are blamed for the poverty and starvation. How ethically responsible should these companies beRead MoreThe Theory And The Maximisation Of Economic Efficiency1595 Words   |  7 Pagesrelationship. Although the nature of multinational corporations (MNCs) as capitalist enterprises makes them a force for progress in terms of maximizing economic efficiency, that same nature is problematic when considering a wider under standing of progress. MNCs’ potential to be a force for progress ultimately depends on the country and industry that is concerned, but it is important to understand – excluding any normative considerations of moral responsibility – that MNCs are businesses, and thus seek profitRead MoreHow A Mnc Effect Or Effected By Home Host Country Environment1344 Words   |  6 Pagesof this report is to define understand how a MNC effect or effected by Home Host country environments. Due to increasing global competition, changes in economic political system business organisation are facing rapid change in business environment. The world is separated politically financially into 200 countries separate countries where each country has its own laws, judiciary system and boundary regulations. We will be discussing how a MNC adapt these differentials and contribute to improveRead MoreBusiness Ethics and Rules Essay1231 Words   |  5 PagesPersonally, I agree that Solomon s ethical fundamentals are a good moral foundation for a business. â€Å"Business ethics is the study of what constitutes right and wrong (or good and bad) human conduct in a business context.† (p25) From the lecture, we know that ethics matters because â€Å"how organizations behave have important implications for how they fulfill their social and economic roles† and â€Å"their success as well as the success of their employees, customers, etc.† Thus, running a business ethicallyRead MoreNigerian Development : The Face Of Oil Extraction And How Mncs Such As Shell Essay1593 Words   |  7 Pagesbe the country’s most economically marginalized region. A significant impetus of these tumultuous changes has been multinational oil corporations like Shell that have been extracting oil in Nigeria since 1956. This paper seeks to examine Nigerian development in the face of oil extraction and how MNCs such as Shell have played a role in the country’s develop ment. I will argue that MNCs, specifically Shell, have had an adverse effect on development within Nigeria as a result of oil extraction and theRead MoreBusiness Ethics and International Business3026 Words   |  13 Pagesï » ¿QUESTION  : Business and Ethical practices/Issues in International Business and the role of Multinational enterprises (MNEs) Introduction to Business and Ethics The ethical-related issues have represented the foundation of different religions and life styles. Ethics can be found in all aspects of human activity as the individuals have been preoccupied with the quality of their behavior towards the people around. Even if they do not purposefully intend to improve their relations with the othersRead MoreBusiness Practices And Modern Development2019 Words   |  9 PagesIs a multinational corporation doing business in a developing country obligated to pay its employees (contracted or subcontracted) a living wage? Today we live in a globalized society; in the recent times world has became a single magnificent globalized village but blinded by all the success we sometimes ignore the cost of turning into a global society. Powerful multinationals have played a huge part in globalizing us and much of the development in recent history can be attributed to these huge