Introduction
Donaldson’s algorithm is a critical analysis and confirmatory avenue that provides a guideline for cases where multinational companies and corporations are faced with corporate responsibility dilemma. The problem stems out as a result of the differences between the home country norms and ethics and those of the host country (Schlegelmilch, 1998). Donaldson designed the algorithm to aid the multinational corporations in deciding whether or not it if sound and ethical to conform to the prevailing norms in the host country. The assignment seeks to analyze two business practices and the conditions that the multinational firms are subject to and the provisions for clarification offered by Donaldson’s algorithm.
1. Conflict with the case of a practice that is unethical, but that would likely be allowed under Donaldson’s algorithm.
According to Donaldson’s algorithm, the case is classified as category 1. Here, the practice is not permissible nor ethical back in the home country regardless of the prevailing economic, environmental standards, working conditions, etc. Conversely, it is allowed and condoned in the host country under the same circumstances. So what does a multinational company do in such a case? Will the management brush off the idea that the practice is illegal or will it just follow suit? Case country is Bolivia. The country, following the poor economic and poverty rates, passed a law that allows the children to seek employment as from age ten. The law is as opposed to the previous one where the legal working age was fourteen. Therefore, a company from the USA will fall into a moral and ethical predicament regarding the situation.
Following the reasons for children under age to work, Donaldson’s algorithm agrees that it is not ethical to employ such personnel. But the situation again points to Donaldson’s algorithm to clarify that it is okay to hire them considering their poor financial alignment and the fact that the government in Bolivia has legally constituted them to be in a position to work. The utilitarian ethical theory applies in the case since it is crucial for the children to work if they have to help their families in the overall household income for them to survive. In my view, the algorithm is right in allowing the company to hire the children as long as it controlled, regulated and confined to the ‘fundamental international rights.'
2. Conflict with the case of a practice that is ethical, but that would likely be forbidden under Donaldson’s algorithm.
Donaldson’s algorithm presents a second case termed as category 2. Here, a foreign firm rooted in a host country must engage in certain practices if they are to conduct business successfully in the host country. In the modern world, most countries like USA men and women have equal rights, and it is fundamentally ethical and in line with the norms for women to interact freely and conduct business with not limits posed. However, in a country like Saudi Arabia, there are limits on when, where and how women can do business with men. Therefore, a multinational corporation from the USA will have to conform to the norms of the host country. The argument is in light of Donaldson’s algorithm which clarifies that if the USA firm fails to conform to Saudi Arabia’s ethical notations, it cannot be able to conduct business there.
Therefore, the algorithm forbids the USA multinational from doing business freely with women as it does back at home. The theory on ethical relativism applies in the case since according to the Muslim cultures, values, and system, women should are not allowed to interact freely with men, in some cases even being escorted by a chaperone to the mall is necessary. In my view, business is all about profits, expansion, diversification and most importantly, corporate responsibility. Therefore, Donaldson’s algorithm is right is every way to forbid the USA firm from freely interacting with women while operating in Saudi Arabia if the overall business objectives of the company are to be met.
Conclusion
Donaldson's Algorithm proves to be a clear confirmatory guideline to issues that pertain to ethics and norms when conducting business on multinational platforms. The multinational firms are able to gauge their values, ethics and systems back at home against those of the host country and determine the decisions that will best ensure that business goes on without a glitch in the foreign land.
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References
Schlegelmilch, B. B. (1998). Marketing ethics: An international perspective. London: International Thomson Business Press.
