Many Multinational Enterprises (MNEs) have recently incorporated the ethical dimension in their investment and business model and strategy. Ethics in MNEs is gaining ground and becoming increasingly important, and managers have to strike a delicate balance between value maximization and ethics.
1. Choose one of the companies listed below and describe some of its ethical practices. In this context you need to discuss the main reason behind this behavior and its influence on the achievement of the maximization of shareholders’ wealth.
2. Who are the main stakeholders for this company? Does the company consider the needs of these stakeholders when it formulates the ethical policy? Justify your answer.
3. Analyze and evaluate the impact and the consequences of ethical issue on the company’s image and perception of the MNE’s stakeholders.
4. Based on your above analyses, propose a recommended plan showing how the company can improve its ethical policy explaining feasibility, opportunities and challenges of adopting this plan.