Principles of Integrity

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Principles of Integrity

• In his book, Competing with Integrity in
  International Business, DeGeorge(1993) highlights
  seven standards for MNCs that provide a basis for
  evaluating and responding to the charges of
  unethical behavior.

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• Multinationals should do no intentional harm.
• Multinationals should produce more good than harm
  for the host country.

3

• Multinationals should contribute by their
  activity to the host countrys development.
• Sustainable development policies should be aimed
  at the interdependent three prongs
  environmental sustainability, economic
  development and growth, and poverty alleviation
  (Vosti and Reardon, 1997).

4

• Multinational should respect the human rights of
  their employees
• To the extent that local culture does not violate
  ethical norms, multinationals should respect the
  local culture and work with and not against it.
  The partners need to assess the complete ethical
  and cultural environment and determine which
  universal ethical principles should trump
  national cultural values and economic incentives,
  e.g. caste hierarchy and bribery.

5

• Multinationals should pay their fair share of
  taxes. Because they heavily utilizing publicly
  financed and controlled resources such as water
  and roads.
• Multinationals should cooperate with the local
  government in developing and enforcing just
  background institutions.

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