Multinational enterprises, employment relations and ethics

The contribution of multinational enterprises to wealth creation is evident, but there is much discussion on whether the consequent power is, or ought to be, used responsibly for social and economic ends. In employment relations, although international standards have long been established, current issues include the use of child labour, safety, differential pay, hiring policies and conditions, especially towards locals. This paper attempts to identify the ethical, as opposed to prudential or legal, dimensions of the issues, especially as illustrated in case studies, and to estimate the prospects for agreed improvement. The paper suggests that technical management skills, ethical awareness and the propagation of international standards together are not enough to reduce the contentiousness of the various practices. Inclusion of consumers (the ultimate paymasters) tends to be rudimentary. Discussions of other relevant persons in the “stakeholder” debate have yielded little practical application. Economic and business pluralism could be helpful.