Final answer:
True, most MNCs follow ethical codes but adjust for local norms, despite facing critiques for exploitative practices and prioritizing profit over ethical concerns.
Step-by-step explanation:
The statement is generally true: most multinational corporations (MNCs) seek to adhere to a code of ethical conduct while doing business around the world but may need to make adjustments in response to local norms and values. The United Nations Global Compact is an initiative that asks companies to self-regulate with principles around human rights, the environment, and anti-corruption efforts. While MNCs can provide higher wages and reinvest in local economies, they are often critiqued for their profit-driven approach that may exploit labor and resources, sometimes neglecting the well-being of workers and local customs.
Furthermore, the practices of some MNCs have been associated with neocolonialism due to their influence on local cultures and economies. MNCs prioritize private goods (profit) over public goods, operating in locations with regulatory conditions that maximize profit margins, which can clash with ethical considerations. Although MNCs can positively impact host countries by upholding human rights and environmental protections, they are also notorious for seeking to avoid taxation and regulations, negatively affecting their host communities.