Multinational Business Finance 15th Global Edition by David K. Eiteman test bank

Diff: 3
L.O.:  1.4 The Globalization Process
Skill:  Conceptual
AACSB:  Application of knowledge
 

13) The objectives and responsibilities of the modern multinational have grown significantly more complex in the twenty-first century. Develop and argument as to why this is the case.
Answer:  It is accepted that the purpose of the corporation is to certainly create profits and value for its stakeholders, but the responsibility of the corporation is to do so in a way that inflicts no costs on society, including the environment. This developing controversy has been somewhat hampered to date by conflicting terms and labels—corporate goodness, corporate responsibility, corporate social responsibility (CSR), corporate philanthropy, and corporate sustainability, to list but a few. Confusion can be reduced by using a guiding principle—that sustainability is a goal, while responsibility is an obligation. It follows that the obligation of leadership in the modern multinational is to pursue profit, social development, and the environment, all along sustainable principles.
Diff: 2
L.O.:  1.4 The Globalization Process
Skill:  Conceptual
AACSB:  Application of knowledge