Final answer:
MNCs should act in accordance with the ethical standards of the host country, embracing responsible practices as outlined by frameworks like the United Nations Global Compact, and contribute positively to the local communities.
Step-by-step explanation:
It is often debated whether multinational corporations (MNCs) should adhere to the ethical standards of the country in which they are doing business, rather than those of the country where they are headquartered. Business ethics suggest that even though MNCs are powerful entities capable of influencing local economies and laws, they should act responsibly in their host countries.
This view aligns with the United Nations Global Compact, which encourages MNCs to commit to universal principles regarding human rights, labor standards, environmental protection, and anti-corruption efforts. While MNCs tend to pursue profit, sometimes at the expense of social benefits, there is a growing expectation and responsibility for these corporations to uphold ethical standards and contribute positively to the communities and countries where they operate.