Ethics in an International Business Context

This study focuses on the ethical conduct of multinational enterprises. Based on investigations and revelations by the U.S. Securities and Exchange Commission (SEC) involving about two hundred multinational firms, the study summarises some of the factual material on unethical conduct, and stresses the necessity to differentiate between multinational firms that initiate unethical practices, and those that simply become victims of extortive demands. The largest part of the study deals with specific proposals which have been advocated as means to correct unethical practices by multi‐national firms: (a) international agreements on corrupt practices; (b) unilateral restrictive legislation; (c) regulatory measures by administrative agencies; (d) inter‐governmental agreements on codes of conduct; and (e) corporate codes of conduct as affirmation of company policies on ethical issues.