International Operations
When any corporation operates outside of its domestic market, the normal guidance offered employees must be considered as to:
-How their usual operating practices will impact on the local economy and culture;
-Whether different local foreign practices, such as widespread gift-giving or even bribery, should be endorsed or banned;
-The reaction to these changes by domestic stakeholders.
Impacts on Local Economies & Their Culture
Multinational corporations may have a significant impact on local cultures. They must be careful not to have unfavorable impacts on local:
-Conflicts Between Domestic & Foreign Cultures
Differences noted in the media in recent years have included:
- Approval of bribery (Southeast Asia);
- Use of child labor (Dominican Republic, Southeast Asia);
- Use of slave labor;
- Unhealthy labor conditions;
- Treatment of women;
- Respect for environment;
Often corporations locate operations in a country just because they want access to cheap labor, and lower environmental protection costs.
-Bribery & Facilitating Payments
In their foreign operations, multinational corporations are likely to be asked for facilitating payments or bribes.