Problem: Should an MNC Reduce Its Ethical Standards to Compete Internationally?
Point: Yes. When a U.S.-based MNC competes in some countries, it may encounter some business norms there that are not allowed in the United States. For example, when competing for a government contract, firms might provide payoffs to the government officials who will make the decision. Yet in the United States, a firm will sometimes take a client on an expensive golf outing or provide skybox tickets to sporting events; this practice is no different than making a payoff. If the payoffs are bigger in some foreign countries, the MNC can compete only by matching the payoffs provided by its competitors.
Counter-point No. A U.S.-based MNC should maintain a standard code of ethics that applies to any country, even if it is at a disadvantage in a foreign country that allows activities that might be viewed as unethical. In this way, the MNC establishes more credibility worldwide.
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