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1) State FIVE (5) MNC (multinational organisations.

2) Provide ONE (1) example where MNC have created unethical action in their host country.

3) State FIVE (5) advantages and FIVE (5) disadvantages of MNCs in business ethics.

(INDIVIDUAL, 15 mins, Till 12.25pm)

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1) FIVE MNCs (Multinational Organisations)

1. Nestle

2. Walmart

3. Lockheed Martin

4. General Motors

5. Volkswagen

2) ONE example — Nestle Baby Formula Scandal

Nestle marketed infant formula in developing countries using free samples and fake "milk nurses." Mothers mixed formula with dirty water, causing infant malnutrition and death.

3) Advantages & Disadvantages

Advantages:

1. Economic growth

2. Technology transfer

3. Infrastructure development

4. Job creation

5. Skills development

Disadvantages:

1. Exploitation of cheap labour

2. Bribery and corruption

3. Unethical marketing practices

4. Child labour and modern slavery

5. Profits go to foreign corporations, not local communities

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1)-Apple Inc.

-Toyota Motor Corporation

-Samsung Electronics

-Nestlé S.A.

-Royal Dutch Shell

2)The Nestlé Infant Formula Controversy in Developing Nations In the 1970s and 1980s, Nestlé aggressively marketed its breast-milk substitutes (infant formula) to mothers in developing host countries.

3)Advantages:

-Higher Standards

-Economic Growth

-Corporate Responsibility

-Fairer Wages

-Global Accountability

Disadvantages:

-Labor Exploitation

-Environmental Degradation

-Resource Depletion

-Profit Repatriation

-Cultural Imperialism

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1)MNC multinational organisations:

-Apple inc

-Toyota motor corporation

-Coca-cola company

-Unilever

-Samsung electronics

2)An example is Nike in Indonesia, where some supplier factories were accused of paying low wages and providing poor working conditions. This raised concerns about labor rights and corporate responsibility.

3)MNCs provide benefits such as creating jobs, transferring technology, attracting investment, promoting economic growth, and improving business standards.

However, they may also exploit cheap labor, cause environmental damage, avoid taxes, create unfair competition, and contribute to poor working conditions in some countries.

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1) FIVE EXAMPLES OF MNCs

1. Apple Inc.

2. Toyota Motor Corporation

3. Unilever

4. Samsung Group

5. McDonald’s

2) EXAMPLE OF UNETHICAL ACTION

Company: Nike

Issue: In some host countries like Indonesia and Vietnam, Nike was found using factories that paid very low wages, forced long working hours, and had unsafe working conditions for their workers.

3) FIVE ADVANTAGES & FIVE DISADVANTAGES

ADVANTAGES

1. Bring new jobs to the host country

2. Share advanced technology and skills

3. Follow higher international ethical standards

4. Help improve local infrastructure

5. Increase economic growth and income

DISADVANTAGES

1. May exploit local workers with low pay

2. Can damage the environment with pollution

3. Use their power to avoid local laws

4. Take profits back to home country instead of reinvesting

5. Force local small businesses to close down

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1) State FIVE (5) MNC (Multinational Corporations)

1. Apple Inc.

2. Toyota Motor Corporation

3. Samsung Electronics

4. Nestlé S.A.

5. Intel Corporation

2) Provide ONE (1) example where an MNC has created unethical action in its host country.

Example: Nestlé – Infant Formula Marketing

Nestlé was criticised for promoting infant formula aggressively in developing countries. Some mothers stopped breastfeeding and used formula with unsafe water, causing health problems for babies. This was considered unethical because the company’s marketing practices put infant health at risk.

3) State FIVE (5) advantages and FIVE (5) disadvantages of MNCs in business ethics.

Advantages

1. Create more job opportunities.

2. Transfer technology and knowledge to local workers.

3. Improve the country’s economy through investment.

4. Increase product quality and business standards.

5. Support community development through corporate social responsibility (CSR).

Disadvantages

1. May exploit workers with low wages or poor working conditions.

2. Can cause environmental pollution.

3. May avoid paying taxes through tax loopholes.

4. Can reduce the competitiveness of local businesses.

5. May ignore local culture or ethical standards to maximise profits.

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1)

1. Apple Inc.

2. Nestlé

3. Toyota

4. Samsung

5. McDonald's

2)

Nestlé's unethical marketing of infant formula in developing countries.

3) FIVE (5) advantages of MNCs:

1. Creates employment.

2. Transfers technology.

3. Increases foreign investment.

4. Improves product quality.

5. Promotes economic growth.

FIVE (5) disadvantages of MNCs:

1. Exploits cheap labour.

2. Causes environmental pollution.

3. Avoids taxes.

4. Reduces local business competitiveness.

5. Engages in unethical business practices.

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1) FIVE (5) MNCs (Multinational Corporations):

1. Apple

2. Toyota Motor Corporation

3. Nestle

4. Samsung Electronics

5. Unilever

2) ONE (1) example of unethical action by an MNC: manipulated diesel vehicle emission tests ("Dieselgate") to make cars appear more environmentally friendly than they actually were, misleading regulators and customers.

3) Advantages and disadvantages of MNCs in business ethics

Advantages:

1. Create job opportunities.

2. Transfer technology and skills.

3. Increase investment in the host country.

4. Improve product quality and business standards.

5. Support economic growth and tax revenue.

Disadvantages:

1. May exploit low-wage workers.

2. Can cause environmental pollution.

3. May avoid taxes through tax planning.

4. Can reduce opportunities for local businesses.

5. May ignore local laws or ethical standards to maximize profits.

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1) Five MNCs:

Starbucks

McDonald’s

Toyota

Apple

Nestlé

2) One unethical action:

Nike faced criticism for poor working conditions and low wages in some overseas factories.

3) Advantages of MNCs:

1. Create employment opportunities.

2. Transfer technology and knowledge.

3. Increase economic growth.

4. Improve product and service quality.

5. Provide international business opportunities.

Disadvantages of MNCs:

1. Exploitation of workers.

2. Environmental pollution.

3. Unfair competition with local businesses.

4. Tax avoidance.

5. Exploitation of local resources.

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1. Xerox, Oracle, P&G, Patheon, Nissan

2. Nestlé Baby Formula Scandal (1970s-1980s)

The Nestlé baby formula scandal, also known as the "Baby Killer" case, occurred in the 1970s and 1980s. Nestlé and other formula companies were accused of aggressively marketing infant formula in developing countries, leading to serious health issues and increased infant mortality. The allegations included unethical marketing practices that

undermined breastfeeding, such as giving free samples to hospitals and mothers, employing "milk nurses" dressed as

healthcare professionals, and advertising that promoted formula as superior to breastfeeding.

3.

Advantages: Economic growth, technology transfer, infrastructure development, export promotion, job creation.

Disadvantages: Labour exploitation, environmental damage, tax avoidance, unfair competition, cultural and ethical conflicts.

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1) Apple Inc., Nestlé, Toyota Motor Corporation, Unilever and Samsung Electronics

2) Nestlé aggressive marketing for infant formula was criticized because it encouraged mothers to use formula instead of breastfeeding. Areas with poor access to clean water, improper formula preparation led to health problems and malnutrition among infants. This caused the company to be accused of prioritizing profits over public health, making it a major business ethics controversy

3) Advantages :

1. Creates employment opportunities

2. Transfers technology and skills to the host country.

3. Contributes to economic growth through investment.

4. Improves product quality and business standards.

5. Encourages competition and innovation.

Disadvantages :

1. May exploit cheap labour and poor working conditions.

2. Can cause environmental pollution or resource depletion.

3. May avoid taxes through profit shifting or tax loopholes.

.4. Can exploit weak laws and regulations in host countries.

5. May reduce the market share of local businesses, leading to unfair competition

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1) FIVE (5) MNCs

1. Apple Inc.

2. Toyota Motor Corporation

3. Nestlé S.A.

4. Samsung Electronics

5. Unilever PLC

2) Example of Unethical Action

Nestlé (Pakistan): Criticized for promoting infant formula over breastfeeding, causing health concerns for infants.

3) Advantages

1. Create jobs.

2. Transfer technology.

3. Boost the economy.

4. Improve product quality.

5. Support CSR activities.

Disadvantages

1. Worker exploitation.

2. Environmental pollution.

3. Tax avoidance.

4. Resource exploitation.

5. Harm local businesses.

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1) Five MNCs:

Coca-Cola

Samsung

Microsoft

Unilever

Google

2) Example of unethical action:

Coca-Cola has been criticised for environmental issues, including plastic pollution and excessive use of plastic packaging in different countries.

3) Five advantages of MNCs:

- Create more job opportunities.

- Bring foreign investment into the host country.

- Introduce new technology.

- Improve employees' skills through training.

- Increase economic development.

Five disadvantages of MNCs:

- May exploit cheap labour.

- Can cause environmental damage.

- May take profits back to the home country.

- Can dominate and weaken local businesses.

- May avoid paying fair taxes.

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1) Five (5) Multinational Corporations (MNCs):

Apple Inc. (United States) — Operates globally in consumer electronics.

Amazon (United States) — E-commerce, cloud computing, and logistics.

Shell (United Kingdom/Netherlands) — Oil and gas exploration and production.

Toyota Motor Corporation (Japan) — Automotive manufacturing and sales.

Alphabet Inc. (Google) (United States) — Technology, search, advertising, and AI.

2) One (1) example of unethical action by an MNC in a host country:

A well-documented case is Nike in countries like Indonesia and Vietnam (in the 1990s–2000s). Nike was heavily criticized for exploiting low-wage labor in its supply chain, with suppliers operating sweatshops involving poor working conditions, excessively long hours, low pay, child labor in some cases, and abuse of workers. This led to major public backlash, boycotts, and campaigns for better labor standards. Nike has since made improvements, but the scandal highlighted how MNCs can prioritize cost-cutting over ethical labor practices in developing host countries.

3) Five (5) advantages and Five (5) disadvantages of MNCs in business ethics:

Advantages (positive impacts on ethics and society):

Economic development and job creation — MNCs bring investment, technology transfer, and employment opportunities to host countries, often improving living standards.

Higher standards and best practices — They can introduce advanced corporate governance, environmental management systems, and ethical codes that raise local business standards.

Global supply chain improvements — Pressure from stakeholders often leads MNCs to enforce supplier codes of conduct, reducing issues like child labor over time.

Innovation and efficiency — Their scale allows investment in sustainable technologies and R&D that benefit both home and host countries.

Philanthropy and CSR — Many MNCs engage in corporate social responsibility (CSR) initiatives, such as education, health programs, and community development in host nations.

Disadvantages (negative ethical impacts):

Labor exploitation — Pursuit of cheap labor can lead to poor working conditions, low wages, and human rights violations in host countries (e.g., sweatshops).

Environmental damage — Operations like mining or oil extraction can cause pollution, deforestation, and health hazards with insufficient accountability (e.g., cases involving Chevron or Formosa Plastics).

Tax avoidance and profit shifting — Using loopholes to minimize taxes in host countries deprives governments of revenue needed for public services.

Political interference and corruption — Some MNCs engage in bribery or undue influence over local governments, undermining sovereignty and fair competition.

Cultural homogenization and inequality — They can displace local businesses, exploit resources without fair benefit-sharing, and widen income gaps between elites and ordinary citizens.

MNCs have significant power and can drive both progress and ethical challenges depending on oversight, regulations, and their own policies. Strong international standards and transparency help maximize benefits while minimizing harms.

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1) State FIVE (5) MNCs (Multinational Corporations)

Microsoft

Coca-Cola

McDonald's

Procter & Gamble (P&G)

Honda

2) Provide ONE (1) example where MNC have created unethical action in their host country.

Example: Shell in Nigeria

Shell was accused of causing oil spills and environmental pollution in Nigeria. The pollution damaged farmland and rivers, affecting the health and livelihood of local communities.

Why it is unethical:

Harmed the environment.

Affected local people's health and income.

Failed to protect the surrounding communities.

3) State FIVE (5) advantages and FIVE (5) disadvantages of MNCs in business ethics.

Advantages

Creates more job opportunities.

Introduces new technology and innovation.

Provides employee training and development.

Increases government tax revenue.

Improves the country's international business reputation.

Disadvantages

May exploit natural resources.

Workers may receive unfair wages.

May influence government policies for their own benefit.

Profits may be sent back to the home country instead of benefiting the host country.

May ignore local customs and ethical values

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1) State FIVE (5) MNCs (Multinational Corporations)

Apple Inc.

Toyota Motor Corporation

Nestlé S.A.

Unilever PLC

Samsung Electronics

2) Provide ONE (1) example where an MNC created unethical action in their host country.

Example: Nike in Indonesia

Nike was criticized because some of its suppliers in Indonesia were accused of using poor working conditions, including low wages, excessive working hours, and unsafe workplaces. Although Nike did not directly own these factories, it faced criticism for not properly monitoring its supply chain.

Why it is unethical:

Workers were treated unfairly.

Poor working conditions affected employees' health and safety.

The company failed to ensure ethical labour standards.

3) State FIVE (5) advantages and FIVE (5) disadvantages of MNCs in business ethics.

Advantages

Create employment opportunities.

Transfer technology and skills to local workers.

Improve product and service quality.

Increase foreign investment and economic growth.

Promote higher ethical and corporate governance standards.

Disadvantages

May exploit workers with low wages or long working hours.

Can cause environmental pollution.

May avoid paying taxes through tax planning.

Can drive local businesses out of the market.

Cultural differences may lead to unethical business practices.

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1) FIVE EXAMPLES OF MNCs

1. Apple Inc.

2. Toyota Motor Corporation

3. Unilever

4. Samsung Group

5. McDonald’s

2) EXAMPLE OF UNETHICAL ACTION

Company: Nike

Issue: In some host countries like Indonesia and Vietnam, Nike was found using factories that paid very low wages, forced long working hours, and had unsafe working conditions for their workers.

3) FIVE ADVANTAGES & FIVE DISADVANTAGES

ADVANTAGES

1. Bring new jobs to the host country

2. Share advanced technology and skills

3. Follow higher international ethical standards

4. Help improve local infrastructure

5. Increase economic growth and income

DISADVANTAGES

1. May exploit local workers with low pay

2. Can damage the environment with pollution

3. Use their power to avoid local laws

4. Take profits back to home country instead of reinvesting

5. Force local small businesses to close down

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1) State FIVE (5) MNCs (Multinational Corporations)

IBM

PepsiCo

Dell Technologies

IKEA

BMW

2) Provide ONE (1) example where MNC have created unethical action in their host country.

Example: H&M in Bangladesh

H&M was criticized because some of its clothing suppliers in Bangladesh had unsafe working conditions and low wages. This became a major issue after the Rana Plaza factory collapse.

Why it is unethical:

Poor workplace safety.

Workers were underpaid.

The company did not adequately monitor supplier practices.

3) State FIVE (5) advantages and FIVE (5) disadvantages of MNCs in business ethics.

Advantages

Improves the standard of living through job creation.

Introduces modern business practices.

Increases exports and international trade.

Provides training and career development.

Encourages corporate social responsibility (CSR).

Disadvantages

May exploit cheap labour.

Can damage the environment.

May avoid paying fair taxes.

Can reduce the market share of local businesses.

May prioritize profits over ethical responsibilities.