"When in Rome, Do as the Romans Do

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The Answer is It would be quite easy for MNCs to adopt and follow the business practices of host countries with respect to ethical standards and social responsibility.However, MNC stakeholders expect that when MNCs operate in the global context, they should use their capital, skills and power to play a proactive role in handling worldwide social and economic problems and be concerned with host country welfare.It is in this context that MNC's should follow the highest ethical standards with respect to questionable payments as practical business considerations allow.Many MNCs have clear-cut policies regarding payment of bribes, kickbacks to suppliers etc.U.S MNCs are subject to the provisions of the Foreign Corrupt Practices Act 1977 that prohibits U.S companies from making illegal payments or other gifts or political contributions to foreign government officials for the purposes of influencing them in business transactions.As far as social responsibility is concerned, MNCs should concern themselves with issues of use of hazardous technology, poverty and lack of equal opportunity, environment, consumer concerns and employee safety and welfare.Several international agencies have developed codes of conduct for MNCs operating in less developed countries just so MNCs do not exploit host countries under the guise of "When in Rome, do as the Romans do.

"When in Rome, Do as the Romans Do

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"When in Rome, Do as the Romans Do

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Correct Answer:
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