Moral Responsibilities of Multinational Corporations in the Global Context - Coursework Example

Moral responsibilities of multinational corporations in the global context Introduction Multinational corporations are organizations that operate in several countries other than the home countries although they have their central office in the home countries. Therefore, they serve large markets and have interactions with many people from different states. Arnold (156) articulates that, there is also a diversity of culture in the market they operate and serve and also a wide range of commodity goods and services. Multinational corporations are expected to show some level of moral responsibility towards the stakeholders who may be the government, consumers, suppliers, and the society at large. It is a way of giving back to the society. However the level of responsibility varies from a multinational corporation to another and the question of how wide the moral responsibility of multinational corporations extends in global context is based on several side constraints which are either strong or weak. The libertarian theories of corporate and global capitalism consider these theories in light of normative core of the corporations, in the context of the global capitalism and actual corporate behavior (Donaldson 140) The weak side constraint is seen as unsatisfactory while the strong side constraint regards the lack of enough theories of rights. Many times the multinational corporations concentrate on their objectives, especially the profit maximization and the shareholders wealth maximization, disregarding the social responsibility that calls for their ethical ways of giving back to the society. According to Arnold (160), the management of any multinational corporation has an obligation of determining the social activities that an organization should be involved in. These corporations operate globally and take part in the global market. Multinational corporations (MNCs) are extraordinary powerful actors on the global stage and their influence is increasing. In that aspect they should come with forums where they can help in emerging issues such as incase of a disease outbreak and also participate in activities that are directed to welfare of developing countries. Multinationals have been viewed to disregard the public policy from the failure to participate in moral responsibility activities. Non governmental organizations (NGOs) lead systematic campaigns to counter what they regard as disproportionate influence MNCs over public policy at all levels. The multinational corporations should instead find and practice ways of improving public policy in their operations in the global market. This is because the operations of these multinationals lead to issues such as environmental degradation, at times exploitation of employees and other stakeholders thus they should come up with ways of making up to the society with social responsibility activities (Arnold 169). Rights in the global market place The global market place involves the participation of all the corporations that operate across the borders of the home country. Therefore, Donaldson (142) points out that there is participation and interaction of multinational corporations, with other such corporations from other countries. The multinational corporations take part in this market and hold a great stake. There is therefore the involvement of many people and many multinational corporations are seen to violate the rights of the people, which in the sense of moral responsibility are supposed to be coming up with global rules of how to protect. The multinational corporations are seen to disregard the public social regulation and thus failing to regard the rights and taking measures that protect these rights in the global marketplace. The achievement of the economic globalization of these multinational corporations has been achievement thus creating the presence of a global market place. However, the social regulation in the global market place still lags behind. Out of globalization, there has been emergence of global political institutions which have over time been regarded too weak to regulate global corporate power and the national governments lacking the reach for the regulation of the large multinationals (Donaldson 150). Some corporation seem to be making efforts towards corporate responsibility and regulation but the efforts have turned un effective due to lack of participation by other multinational corporations. This has been evidenced over the years by rise of inequality between countries and some other countries having a decline in per capita income. It therefore calls for participation of all the multinational corporations in the global marketplace. Multinational corporations have been viewed not to consider human rights in their operation in the global marketplace which they are expected to observe as a form of being morally responsible. The multinational corporations should come up with policies that enhance this. Multinational corporations have an obligation to honor and encourage the protection of rights (Donaldson 159). It has therefore been brought out that the multinational corporations observe several ways of protecting human rights. The corporations come up with methods of protecting the rights such as refraining from hiring and employing minors, coming up with ways of environmental protection, and observing the safety of workers.  In 1988, safety standards went up in United States so cost of waste disposal shot up and every country on West Coast of Africa was approached to take this waste (Donaldson 152). Different multinational corporations come up with different ways of exercising environmental rights. Some participate in clean up activities, other come up with ways of disposing toxic waste products, others come up with programs of waste materials disposal and others still find ways of recycling their waste products such that they are disposed in their less harmful states and also to reduce waste. Nevertheless, O’Neill (182) articulates that multinational corporations still observe the worker safety regulation. The worker safety regulation however is compromised by issues such as difficulty in determining the minimum moral standards set in different countries in which their operations take place, and also corruption that leads to the management of the corporations not taking to account the worker safety. Worker safety implies that the employees are safe and secure in their job for instance from vices such as being injured while at work by equipments or even by toxic substances. In respect of observance of human rights in the global marketplace, the multinational corporations establish ways of determining and observing the rights. They therefore develop international rights that ought to be observed by all players in the marketplace. However the observance and extent of observing these rights by the multinationals is dependent on the economic development of the home country of the participant multinational corporations and the cultural values and beliefs in these countries. However all the corporations are subject to observance of these international rights. Agents of Justice Moral responsibility of multinational corporations may still be based on agents of justice and from this; the multinational corporations are viewed to be morally responsible and consequently contributing to justice in the involved countries (O’Neill 183). The border restrictions in many counties that restrict movement of products, people and raw materials has been viewed as a contribution to injustice and the solution to this attributed to enhancement of borderless markets whose participants are the multinational corporations. On such a view, the remedy for state injustice is not dismantling of states and of the exclusions their borders create, but a degree of reform and democratization coupled with international agreements (O’Neill 189). This can be evidenced since 1948, by the creation and success of the universal declaration of human rights. Universal declaration of human rights therefore set for justice whereby the agents of justice in this case were considered as the states, nations and people, and for the establishment of human rights to all individuals. This further enhances moral responsibilities to the participants of the global market and multinational corporations being participants in the market do not lag behind in this. They are expected to observe the set human rights as they continue with their business operations internationally, as they interact with different people and states. However the extents of the observance of these rights vary from different states, social, economic, and cultural backgrounds of the people in the different states (Donaldson 148). It is however agued out that states are not agents of justice since they are seen to be so much driven by the need for power and in consequence end up leading to vices such as corruption, violation of laws of the land and f human rights. The states are viewed as more of contribution to injustice than achievement of justice. Perhaps, states are not the only agents of significance in building justice ( O’Neill 184). Further, weak states may be faced with challenges when trying to set and follow the observance of human rights. The challenges may range from financial, political, social and cultural. The consideration of non state actors as agents of justice therefore brings a picture that the multinational corporations are actually morally responsible. This is because the non state actors are viewed as successful contributors of justice. The non states actors consider in these aspects are such as nongovernmental organizations (NGOs) and the multinational corporations. The multinational corporations in particular are observed to have a notable contribution (Arnold 170). The multinational corporations are observed to form international forums and movements that address issues in the global marketplace. They form forums to address the current and emerging issues in the global marketplace. The issues may range from economical, social or even political. The forums formed are meant to benefit all the participants in the global market irrespective of their states. They ensure that the environment is conducive for operations of all the participants and ensure that all participants follow the set rules and regulation. The movements thus set ensure the observance of human rights. This in return, brings the benefits of justice back to the individual states (Donaldson 161) The multinational corporations further as agents of justice, get to the roots of the problems and challenges in the weak states in the global markets, they get to the roots of this problems, solve them and ensure that the issues facing these states are solved, for instance come up with programs to aid towards a disease outbreak and ensure that they fund the provision of the appropriate remedy and restore the state to stability. These efforts made by the multinational corporations qualify them as agents of justice. Their participation in the welfare of the weak states further is a qualification of them as being highly moral responsible. The moral responsibility is still brought out by the movements they form when operating in the global market for the welfare of the participants (O’Neill 190) Conclusion The moral responsibility of the multinational corporations in the global context is so wide and notable. The factors to oppose this conclusion have been brought out to be insignificant. These are from the libertarian theories of the corporation and global capitalism, where it is argued that the multinational corporations focus so much on the shareholders wealth maximization and view the moral responsibility as a side constraint to this objective. They thus focus on maximizing profits and disregard the moral responsibility. However, this is overcome by the supporting factors from the rights in the global marketplace, whereby Multinational Corporation are seen to observe the rights brought out in the global market where they operate. The multinational companies regard it their responsibility to observe these rights and duties to these rights. This shows that they are socially responsible to the people at their stake and the environment at large. Also contributing to the conclusion is agents of justice, whereby the multinational corporations have been regarded as non state agents to justice. They contribute to justice through observance of human rights, forming forums to support the participants of global market and also to ensure that the environment is conducive for the operations of all participants. The multinational corporations are also seen to promote justice through the support they offer to the weak states in the global market in the course of their operations. The conclusion may then be reached that the multinational corporations are to a great extent morally responsible and should hold to this extent. Works Cited: Arnold, Denis. Libertarian theories of the corporate and global capitalism. Journal of business ethics, 48, (2003) 155-173. Print. Donaldson, Thomas. Rights in the global marketplace. The Ruffin Series in Business Ethics, (1990): 139-162. Print. O’Neill, O’Neill. Agents of Justice. Metaphilosophy, 32.1-2. (2001): 180-195. Print. Read More