Question

As an MNC (multinational corporation) seeks to balance and honor the ethical standards of both the home and host countries, conflicts inevitably will arise. What criteria do you think managers should consider as they try to decide whether to use home or host country ethical standards? Does the use of hypernorms help? Explain.

Answer 1

The manager should analyze the legal and ethical differences of home country compared to the host country and develop a strategy that is beneficial to the company and does not clash with the ethical and legal parameters of the host country. It is important to analyze each area that may affect the company, such as government, employee, supplier, investor and customer protectionism, and to analyze common ethical, legal and cultural standards for stakeholders and then develop policies and standards that do not negatively influence the country.

Hypernormas are very effective in solving these possible conflicts, as they guide the lowest-level norms to the highest-level ones, which are those related to fundamental principles for humanity. Which is effective to guide management in an international market.