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research found on eclass.upatras web, any company doing business abroad faces
numerous legal and ethical issues. The multinational corporation faces legal
issues raised by “home country” laws, “host country” laws, regional regulations
or directives, bilateral and multilateral treaties, and international standards
and certifications. There are multiple factors where we could end up in a messy


issues then become twisted in legal issues, as well as local customs and norms
add complexity to the concern of how to act legally and ethically in an
unfamiliar environment. We struggle with Multinational corporations and their
focus on the following ethical challenges: bribery, competition, cronyism and
public governance as they relate to supporting competitive market capitalism;
human rights issues; environmental issues; and social equity issues. Any
failure to focus on any of these issues can result in major legal and
reputational consequences. Paying proper attention to them can improve
corporate performance and improve the economies functions that involve

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When U.S. companies do business
internationally most times the host country laws and regulations are far more
lenient in specific areas such as environmental protection, human rights, and
health and safety labor standards than in the United States. When Multinational
Corporations perform business in developing countries with that of weak
regulatory rules which fail to follow widely recognized standards of labor
standards, environmental care, and human rights, they can generate local resentment
regardless of legalities as well as adverse reactions from non-governmental
organizations (NGOs) and others, resulting in reputational loss, or even their
ability to operate within a specific host country. Also, failing to give
serious debate to ethical challenges can result in criminal prosecution, either
in the Multinational Corporation’s home or host country. In other cases, civil
lawsuits may create significant liability or, end up as unprofitable


With finding this research I do
not think that U.S. companies should be required to only do business with
foreign companies/governments that follow American norms however I do think
that U.S. companies need to take their time and do their research before
engaging in other business relations. Allow time to observe and learn the other
government’s laws and regulations to be smart about all actions and business

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