Multinational corporations should not be held to different moral standards than the corporations that operate domestically. This is because the moral standards of a corporation are based on the laws of the country they operate in. Although multinational corporations operate between different countries, this is not reason enough to treat them any different from corporations that operate domestically. Also, it is worth noting that one of the core principles governing moral standards is equality and equity. By way of explanation, there is no path for superiority or suppression of the minority in moral standards. Both the multinational and domestic corporations should adhere to the moral standards of corporations and to the law of the country they are operating in.
When it comes to ethics and moral standards, there are no compromises and each corporation is needed to serve as an example. It is by having uniform moral standards that both corporates adhere to that make them successful. Furthermore, it is through the integrity of the corporations that social responsibilities of the corporations are adhered to. Consequently, both the multinational and domestic corporations must take responsibilities if found to violate the moral standards ( Comer & Schwartz, 2017) . The factors that determine the moral responsibility of the corporation are the knowledge and the free will.
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Moral standards and legal standards differ considerably. Therefore, following rules does not necessarily make a corporate ethical. It is by the goodwill of following the moral duties and ethics in business that a corporate maintains moral standards. In case of paying tax, both the corporation should be taxed as per the law of the state they are operating in says.
In conclusion, there is a great criticism against the multinational corporations due to reported incidences of non-adherence to human rights and low environmental standards. The increase in mobility of the multinational corporation benefits the company and other stakeholders, key among them the community and workers. Setting moral standards parameters should be done skeptically, and should be based on equality and equitability. Any corporation that breaks moral standards should be held accountable, regardless its size or capital.
Reference
Comer, D. R., & Schwartz, M. (2017). Highlighting Moral Courage in the Business Ethics Course. Journal of Business Ethics , 146 (3), 703-723.
