Ethical Standards on Global Market - Essay Example

As a result, the products distributed by the organization to developing and industrialized countries do not have any difference concerning safety, quality, information, or directions of using (for example its side effects) (Punnett, 147).

Conversely, CSR enables multinational organizations to adopt responsible objectives, goals, and principles to ensure safety standards are adhered to during the production process. This also helps the organization to protect and ensure the sustainability of the delicate global environment. Moreover, CSR enables multinational organizations to implement social and wage policies that are in line with the standards of the local market. Therefore, even if multinational organizations operate in social and legal frameworks that are completely different from each other the ethical standards usually remain uniform. However, critics of CSR argue that it is costly to implement it for organizations because of the varied use of government tariffs, regulations, standards, and environmental restrictions that limit their capabilities, potential growth, and profit margins (Punnett, 39).

When the corporate governance and financial management of global multinational corporations and US-based corporations are compared they differ in the following ways: Global multinationals have to factor in the use of different kinds and levels of government regulations, different employee benefit structures, variety of languages and multiple currencies as opposed to the US-based corporations which only have to deal with one type of domestic currency, government regulations and language (Punnett, 105).