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The increased global presence of many firms has lessened the burden to behave ethically.

a) True
b) False

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Final answer:

The statement is false; increased global presence of firms does not lessen but rather increases the burden to behave ethically due to heightened scrutiny and consumer expectations for ethical behavior in a more interconnected world.

Step-by-step explanation:

The assertion that the increased global presence of many firms has lessened the burden to behave ethically is false. In fact, globalization and new communications and information technology have heightened the ethical standards and responsibilities of businesses, as they are subjected to scrutiny in a more interconnected and transparent world. The forces of globalization mean that unethical behavior can have broader and more significant consequences, and companies face increased competition from regions where ethical behavior might be viewed as more important or essential by consumers.

Modern multinational corporations operate in multiple countries and thus must navigate a complex global landscape of differing cultural expectations and regulatory environments. This broad exposure imposes a greater burden to maintain consistency in ethical standards. Ethical behavior is a critical component of a company's reputation and can influence consumer trust and loyalty, impacting market share and profitability.

Consequently, firms are under more pressure than ever to behave ethically, being held accountable not only by local standards but by global expectations as well. The notion that increased global competition reduces the incentive to behave ethically overlooks the countering trend of consumer awareness and demand for corporate social responsibility and ethical practices.

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