Notably, multinational corporation operates in an extremely complex environment. In that respect, most of the corporate governance challenges facing these organizations include but not limited legal issues, governance structure, and compliance with various corporate governance guidance. Multinationals are involved in the undeveloped countries in form of foreign direct investment. The basic reason is that undeveloped countries have an economic potential to exploit and the existence of emerging markets (De Kluyver, 2012). In this sense, the governance quality at home and in foreign markets differs. With these contradictions, the governance policy at home may not be applicable in foreign markets. Most of the government in undeveloped countries put pressure on the multinationals to redress and measure these imbalances (Gregory, 2000). Additionally, corporate governance is a theoretical phenomenon and a concept that is not scientifically proven and its standards confirmed. Therefore, depending on the operating environment, multinationals may develop their own codes of governance with no reference to their home country’s policy and “match” them to their entity’s codes (Tricker and Tricker, 2015) .
According to Chinese workers' organization based in the US, the worker who was working with a firm that produces Apple’s iPhones jumped from a building and died. This report was also confirmed by the China Labor Watch (CLW). The suicidal act of this worker was related with the poor working conditions as in February 2012 more than 150 employees in a Foxcom factory which is a production line of iPhone protested over the same issue. In my view, the worker may have been depressed after a transfer to a location where the conditions were "unbearable." Conversely, it is unclear how this could have been possible whereas Tim Cook, the Apple CEO has greatly focused on the welfare of contract-manufacturing workers. For instance, due to the vastly higher legal standards governing employment welfare, the working environment has to be in good condition. Further, it is not a must that suicidal thoughts must be caused by employment-related issues.
Delegate your assignment to our experts and they will do the rest.
References
DeKluyver (2012). Chapter 1.2 Corporate Governance Elsewhere in the World, pp. 17-20.
Gregory, H. J. (2000). International comparison of corporate governance guidelines and codes of best practice. New York, Weil. Gotshal & Manges LLP: i .
Tricker, R. B., & Tricker, R. I. (2015). Corporate Governance: Principles, policies, and practices . Oxford University Press, USA.
