Cultural and Economic Diversity

Abstract

The wide ranging activity of multinational corporations brings them in touch with great differences in culture and economic standards in various parts of the world. They may encounter patterns of conduct, or standards of the treatment of human beings or preservation of the ecosystem which are markedly different from corporate policies in effect elsewhere. When such conditions prevail, corporations will find themselves faced with the dilemma of wishing to uphold standards which they normally accept elsewhere, yet constrained to conform to the standards of practice in the locale where they operate. This pressure may be intensified by their desire to avoid cultural and moral imperialism or the need to hew to local practice in order to continue doing business.