Historical Ethical Dilemma

Historical Ethical Dilemma

The global business environment demands that international manager take a stance on issues of environmental protection, social responsibility, and ethical behavior. However, several large companies still have ethically questionable business practices. These large companies are known as multinational companies. “A multinational company is a company that is registered and operating in more than one country at a time” (Merriam-Webster, 2010). The multinational company is powerful and many have budgets that exceed the competitions. Multinational companies have an influence on the local and global economy in addition to, an important role in globalization and international relations. Multinational companies are usually Japanese, American, and western European. Common multinational companies are Coca-Cola, Nike, Wal-Mart, and Honda. When Multinational companies behave unethically the company’s image is usually tainted because of the company’s unethical behavior. Multinational companies behave unethically for short term gains and to avoid an additional loss in profit. However, the company’s behavior usually leads to a greater loss than what it would have cost the company to fix the problem when the company realized it was an issue.

Managers and employees encounter issues that challenge their individual beliefs and standards. When a company is under pressure to compete with other leading companies it becomes difficult for the individuals to make ethical decisions. This paper will highlight a global business historical ethical dilemma.

Controversy surrounded the Nestle Company in 1977, when the company was accused of using unethical marketing practices. The marketing practices endangered consumers’ health to promote the companies infant formula in a developing nation (Sokol, n.d.). The unethical behavior of the Nestle Company resulted in a boycott of the company’s products. UNICEF (International code of Marketing Brest-Milk...