Wage Standards Multinational Corporation

Wage Standards Multinational Corporation

Introduction

Business ethics and therefore business morality generally result from an individual's own moral standards in the context of the political and cultural environment in which the organization is operating. Ethics are founded on moral principles that are themselves grounded in effects. This holds true whether you subscribe to the idea that a moral judgment must fulfill only formal conditions that are universal and prescriptive or whether you think it must also meet a material condition for the welfare of society as a whole. The paper therefore will try to critically exhibit some theories regarding the multinational corporatization and their effects on the wage standards and working condition.

Discussion

It is acceptable that multinational corporatization pays its workers lower wages than the company pays in developed company, as long as it is not lower than the host country's standards. People in developing countries have a choice whether to get the low paid job or to starve. These low paid jobs are better than the alternatives. The effects of multinational corporatization can be both negative and positive on the procedures and standardization of low wage and working conditions. This multinational corporatization enters the less developed countries to exploit the workers because they could find inexpensive labor. Before giving an insight about the argument that has been posed, first it should be clearly understood about what are Multinational Corporations. Multinational Corporations are the enterprises that have their headquarters in one country and having associations, sister concerns, subsidiaries or merged operations in more than one country. They are the firms which enter into new countries for new global expansions to expand their market share and tap into new markets and localize themselves for cheap operations, and resources like manufacturing and resources and cheap labors. For instance the Multinational Corporations like Nike, Toyota, Coca-Cola etc they are the Multinational Corporations which have their operations in more than one country and still tries to expand and tap into new country and markets in a search for new targets and cheap operations.

However, the Multinational Corporations played a very important role in any country specially in less developed country, As the role of Multinational Corporations in the entire worlds economy is to enhance the opportunities, any Multinational Corporations provides the unemployed people with employment, regardless of this fact the worlds government they do their best to attract the foreign direct investment to their country, in order to rise the economy.

Regardless of these benefits by the role of the Multinational Corporations, the argument remains their about whether these Multinational Corporations really bring employment, better pay, and better facilities with better working conditions, and better corporate governance and sustainable practice to the host country or these Multinational Corporations just give the hope to grip up the host countries and exploit the cheap operations and labor for their own benefits. This argument has two points and two views hidden in it. The optimists are the ones who emphasizes on Multinational Corporations having state of the art ...