4.2: Ethical Dilemmas

Question 1

What are ethical dilemmas MNCs may face?

Answer 1

MNCs can face dilemmas related to employment conditions, human rights, corruption, environmental pollution, and use of power, where the ethical course of action is not always clear.

Question 2

How can cultural perspectives influence what is considered ethical in international business?

Answer 2

Ethical standards can vary between cultures, leading to different interpretations of what is ethical in various international contexts.

Question 3

What ethical dilemma is presented by the case of a Canadian executive finding a 12-year-old working in a foreign subsidiary?

Answer 3

The dilemma involves adhering to the company’s ethical code against child labor versus the practical consequences of enforcing this code, which can harm the child’s livelihood and well-being.

Question 4

What can be the unintended consequences of an ethical decision against child labor?

Answer 4

Enforcing a ban on child labor can sometimes lead to worse outcomes for the children involved, such as pushing them into more dangerous or exploitative situations.

Question 5

Why do managers need a moral compass or an ethical algorithm?

Answer 5

Managers need guidance to navigate through complex ethical dilemmas where all alternatives have significant negative consequences, to find the most ethically acceptable solution.

Question 6

Why are ethical decisions often complex and difficult in the real world?

Answer 6

Ethical decisions can be challenging due to the complexity of situations, difficulty in framing the problems, and the unpredictable nature of first, second, and third-order consequences.

Question 7

What is an ethical Dilemma?

Answer 7

A situation in which none of the avaliable alternatives seem ethically acceptable.