Unit II non specific topic (Intercultural Management) - Essay Example

In most cases, the parent company owns majority of stocks in the subsidiary companies (Deresky, 2011). Consequently, the host countries have minimal control over the MNC. Moreover, the host countries have minimal benefits from the corporation’s income. The MNC also reserve key managerial and technical positions to expatriate from their countries. Thus, the MNC are accused of failing to contribute to the development of human recourses in the host countries. In addition, MNCs do not contribute to the development of technologies and production capacity of the host country.

The MNCs are mostly concerned with profits and in so doing they neglect their development obligations. MNCs also dominate the manufacturing industry thereby giving unnecessary competition to the local companies. In most case, the companies take advantage of corruption and mismanagements in the host countries to establish their interests. Thus, failure to meet corporate social responsibilities is the main source of complaints against the MNC. Question 2: What processes do MNCs need to establish in order to reduce prosecution risk?

Many MNCs have decided to confront concerns about ethical behavior by developing worldwide practices that represent the companys policy. What are four policies used to address this issue? How would you implement these four policies in your business strategy? Multinational companies are faced with prosecution risks arising mismanagement and poor international relations. In order to reduce prosecution risks, MNCs needs to establish various processes. Firstly, MNCs need to ensure high level of integrity and accountability (Thomas, 2008).

This will enable the corporations to avoid being drawn into unnecessary corruptions and scandals. However, some prosecutions are driven by business interests and, therefore the MNCs have minimal control over such occurrences. International business ethics are business