Ethics in Multinational Organizations

Ethics

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Evaluation of ethical leadership issues raised in multinational organization.........................3
Ethical considerations in deciding about what to do in response to the issues (800) (200)...6
Potential challenges and solutions associated with cross cultural management (1000).........9
Recommendation..................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Ethics refers to moral principles which govern person behaviour and make them able to
identify the difference between rights and wrong and it is also can be defined as a branch of
knowledge which helps people in dealing with moral principles and protecting them against
unethical behaviours (Winch, 2020). This present study is based on Tetley which is a beverage
manufacturer, with headquarter in London. It is the largest team company in the UK. It wants to
manage as well as own team plantation in China for business development and for making it
successful its advertisement focuses on partnership with developing world. It wants to develop
promotional opportunities. This study is going to show some unethical behaviours or ethical
leadership issues which occur on multinational company and create several problems in
accomplishing pre-determined goals. It will also show reasons of unethical leadership or ethical
leadership issues which occur in companies such as: unfair behaviour of leaders and employers
with employees, wrong approaches of recruitment and selection, ineffective working
environment, lack of effective polices etc. Further, it will also discuss some effective ways and
ethical consideration which needs to be followed by ethical leader and how by following all
ethics they can support their company in meeting goals. BY implementing effective policies,
rewarding employees and following all other ethics, leader can protect their company against
lawsuits and poor image. It will also discuss importance of cross cultural management and how it
can help company in managing or improving relation with employees who are main responsible
for performance of the company.
MAIN BODY
Evaluation of ethical leadership issues raised in multinational organization
Ethics refers to moral principles which help people in understanding the difference between the
right conduct and the wrong conduct. Following all moral principles of ethics play an important
role for protecting against lawsuits and also for improving image in the eyes of customers and
stakeholders (Meskell and Pels, 2020). Before discussing several ethical leadership issues it is
important to understand the meaning and importance of ethical leadership. Ethical leadership
refers a leadership which is directed by respect for values as well as rights for others. There are 5

main principles which are required for ethical leadership and performing all functions in an
effective and ethical manner and improving image. All these principles are: trust, honesty,
fairness, consideration and charisma. So, having an ethical leadership in an organization plays an
important role as it helps company in accomplishing their goals in an effective manner by
leading or guiding all followers in a very efficient manner and help them out in performing their
function without committing mistakes. There are several types of ethical issues which occur in
multinational companies and in the context of Tetley it can be said that it has been the subject of
series of critical articles in which data about pay and condition have been discussed as
exploitative. It means this company conduct some unethical behaviour in terms of pay and
conditions to its workers in order to benefit from their work. It also refers toxic relationship
between one party to another in which one party take undue advantage of power of another party.
It is also stated that this company wants to manage a team plantation in China for business
expansion and for earning money and for that its advertising mainly focuses on its partnership
with the developing world (Ko and et.al., 2018).
Repatriation of profits has also been found done by this company and It is somehow good
for business but some people believe that it is unethical. It is also found that one of staff member
has disclosed some information’s of the company with unauthorized organization. It is unethical
behaviour and having such staff as like whistleblower in an organization can create several
problems. Some other ethical leadership issues which may occur due to this behaviour of staff
members and other are:
Confidentiality or privacy of information: In this regard it can be said that companies have
some private information which they collect for taking better decision and competing with other
organizations. For motivating and making employees feel valued, companies share their vision
and all information with them. They expect from them to keep all information safe and secure
but there are some members or whistleblower who discloses some official and confidential
information to others. It is one of the unethical behaviour and issue which may create several
other problems for the company. It is one of the main ethical leadership issue occur in this Tetley
company. It may create problems like barrier in development of company, poor relation with
partner organization, barriers in attracting customers and decreased sales. One of the main aims
of this company is to manage tea plantation in China and also having partnership with
developing world (Mohiuddin and Hossain, 2016). So, for this it is important to focus on all