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Business Ethics and Corporate Social Responsibility

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The corporations whose business facilities and assets are situated in countries more than one (home country) are known as multinational firms. These firms operate across different economies, either on the basis of centralization or decentralization. Over time, the amount of competition faced by multinational firms has considerably heightened (Goodness, 2012). These companies at present operate on the basis of strategic management, which primarily instructs them to implement adaptive strategies across nations, besides standardized business rules.

However, it is expected that these firms would follow similar ethical, management and social activities across different nations. Business ethics basically relates to a set of formal rules that examines the ethical problems and principles of the business environment. It explains the intricate ethical rules that corporate firms are expected to follow. It is claimed that business ethics possess both normative and descriptive dimensions. Ethical practices of multinational companies are dissimilar across markets, where they operate (Goodness, 2012). This is because cultural and social dimensions of different marketplaces are not similar. Multinational organizations believe that their brand value in the global market would improve if they are able to effectively convey ethical and social consciousness to the business world. In order to enhance a social image, multinational companies in the present scenario are improving all corporate social responsibility (CSR) related aspects of the business.

The CSR activities of a firm are self-regulating, built-in activities, which are undertaken in order to ameliorate the welfare aspects of its marketplaces (Goodness, 2012). The multinational companies function on the basis of triple bottom line principle, where they try to enhance factors relating to people, planet and profit. Even so, CSR activities of multinational companies are different acrossseparate nations.