14. Ethical and Social Responsibility in Multinational Management

Managers in a company are responsible to its shareholders and other stakeholders. Typically, shareholders who tend to have profit-related goals, are the stakeholder group to whom managers often feel the greatest responsibility. Yet a firm has a variety of other stakeholders – its employees, its customers, the people in the communities in which it is situated, to name a few – to whom it also has responsibilities.

The decisions a firm’s managers make will have an impact on each of these groups of stakeholders. In many cases, a firm’s decisions have an influence beyond the immediate corporation itself. For example, a decision by an electronics company to close a VCR assembly plant ...

Get International Business: An Asia Pacific Perspective, Second Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.