Write the report for the article follow the example format as attachement. Essay

Report on an Article

5th September 2011

Author: Gupta, S., Pirsch, J. and Girard, T. (2010), “An Empirical Examination of a Multinational Ethical Dilemma: The Issue of Child Labor”, in Journal of Global Marketing, Vol. 23, No. 4, pp. 288-305.

Research Context

Research focus:

The main problem identified by the researchers is the ethical dilemma that Multinational Companies experience. Multinational companies operate globally and in most cases, find themselves operating in developed countries and developing countries. These countries have different moral or ethical standards which are not similar to the moral or ethical standards developed by the company. Because of this difference, Multinational companies are confused about what moral standards are appropriate when operating in a low moral standard society compared to its ethical standards (there is ethical conflict). Main focus is on ethical issues surrounding child labor. Countries selected for research are India, representing the developing countries and United States representing developed countries.

Unit of Analysis:

The analysis is of multi-national level (comparing developed and developing countries’ markets). People’s attitudes towards two different ethical approaches are investigated to determine which approach is most accepted by the host and home countries, considering the moral standards on the minimum age policy on child labor. Host country in this case is the developing country (India) in which the multinational company wishes to invest in, and the home country is multinational company’s home (United States). People’s attitudes towards the universalist or the relativist approach, is determined by their attitude towards the company and their purchase intent.

Data: The data is quantitative and resolves around comparing the responses from the people of USA and India.

Theoretical Concepts

There are two theoretical concepts used in the study. These are; universalist and relativist ethical frameworks. According to the universalist approach, cultures around the world work towards the same value set, but the ethical standards are developed based on cultural context. The relativist approach however, argues that for multinational companies to survive, they have to adapt the host country’s ethical business practices.

Main Critique of Extant Literature

The literature review is mainly about the ethical dilemmas faced by multinational companies. The focus of the research is on issues on minimum age of child labor and so literature on corporate codes of conduct in relation to policies on minimum age of child labor has been discussed.

Major Insights/Conclusions

The research found out that universalist approach is most preferred by both host and home countries. Multinational companies have the responsibility to decide on which framework is appropriate. Adopting the relativist framework without clear explanations as to the reasons for its adoption, can lead to negative attitudes.

Suggestions for Further Research

Multinational companies should therefore, adopt the universalist approach, but explain reasons for adopting the relativist approach incase taken on. This research has produced opportunities for further research. Investigations could focus on the response of consumers in developed countries to ethical standards of multinational companies from developing countries. Another gap identified is the existence of dilemmas in other ethical issues.