Bachelor of General Studies (BGS) Degree Practice Exam

What might be an ethical dilemma faced by multinational companies?

1. Standardizing products across all markets

2. Hiring locally in every country

3. Adhering to varying ethical standards in different countries

4. Offering the same pay in all regions

The correct answer is: Adhering to varying ethical standards in different countries

An ethical dilemma faced by multinational companies arises from the necessity to adhere to varying ethical standards in different countries. Each country has its own cultural norms, laws, and ethical expectations that may differ significantly from those in the company's home country. This can create a challenging situation where a company must navigate the complexities of local business practices while also striving to maintain its own ethical standards and corporate values. For example, practices that are acceptable in one country may be considered unethical or illegal in another, such as differing labor laws, environmental regulations, or standards of corporate governance. This requires companies to make difficult decisions about how to operate in diverse environments while remaining true to their principles and ensuring that they do not exploit local populations or engage in unethical practices. In contrast, standardizing products across all markets, hiring locally in every country, and offering the same pay in all regions can be approached with strategic frameworks and may not necessarily present ethical dilemmas. While these choices can bring about challenges, they do not inherently involve the same moral considerations that arise when navigating a landscape of varying ethical standards.