Ethics in the transnational corporation; the “moral buck” stops where?

Journal of Business Ethics 11 (1):21 - 27 (1992)
Abstract
This paper addresses two issues. The first issue relates directly to transnational corporations, while the second issue is broader and relates to all diversely held companies. To address the first issue I cite three representative instances where wanton environmental damage has signalled a lack of moral judgment on the part of a transnational corporation. I conclude from these instances that ethical considerations are not given adequate weight in corporate investment decisions.This leads to the second issue. Who should be making ethical decisions within the corporate milieu? I conclude that neither management nor the typical shareholder should be expected to exercise moral judgment because they are not free agents. They have fiduciary responsibilities that must override personal moral suasion.
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