Advanced International Journal for Research

E-ISSN: 3048-7641   •   Impact Factor: 9.11

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Volume 7 Issue 3
May-June 2026

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A Study on Ethical Challenges in MNCs

Author(s) V Harshavardhini, Dr. Karthik J P
Country India
Abstract Ethical governance in multinational corporations has become increasingly important in today’s global business environment, where companies operate across multiple countries with diverse legal systems, cultures, and stakeholder expectations. As multinational corporations expand their global presence, they face complex ethical challenges relating to corruption, labour standards, environmental responsibility, transparency, and human rights. This study examines how ethical governance structures can guide corporate behaviour and decision making in such complex environments.
The research explores key governance mechanisms such as board accountability, leadership integrity, internal controls, codes of conduct, and stakeholder engagement, and considers how these elements contribute to building an ethical organisational culture. It also analyses the influence of international regulatory frameworks and global best practice standards in shaping ethical policies and corporate reporting. Rather than viewing ethical governance solely as a compliance requirement, this study approaches it as a strategic function that supports long term sustainability and corporate credibility.
By reviewing existing literature and analysing contemporary corporate practices, the study identifies both strengths and gaps in current governance approaches within multinational corporations. The findings suggest that organisations that actively embed ethical values into their governance systems are better positioned to manage risk, protect their reputation, and maintain stakeholder trust. Ultimately, ethical governance is presented not simply as a regulatory obligation, but as a foundational element of responsible and sustainable global business practice
Field Business Administration
Published In Volume 7, Issue 3, May-June 2026
Published On 2026-05-07
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E-ISSN 3048-7641
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AIJFR DOI prefix is
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