Abstract

This paper analyzes the ethical challenges that multinational corporations (MNEs) face in the socio-cultural-legal context while operating in a cross-cultural business environment. Using detailed case study analyses of three large US-based MNEs with operations in Malaysia, we found that MNEs are likely to encounter a greater degree of difficulty in creating and implementing effective codes of conduct in a culturally diverse market. As far as corporate codes of conduct are concerned, one size does not appear to fit all for all markets. Codes need to address the social and cultural values and traditions of the region for to be effective.