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katefox

Finance in Practice

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katefox

 

The main purpose of exclusive papers is to study and analyze whether the multinational corporations have ethical considerations in their quest to make a profit. Ethical issues are one of the key components of corporate environment that play special role in the corporations’ desire to succeed and make real revenue. Ethics is tightly connected with the general character of any type of organizations; also, it matters when talking about people. The business ethics is extremely close to the term of business morality. Both notions depend on the personality of the individual and his/her moral standards in the dimension of the current social, economic, political, and cultural environment within which the organization is operating. Therefore, ethical considerations is an urgent topic for the discussion as they depend on the wide range of notions, and there is a series of specifications in different cases. That is why it is extremely important to study and analyze the issue in order to be able to elaborate the innovative ideas that can be effective within the area of business ethics.

For the current research, it will be suitable to make the analysis based on the case with the Goldman Sachs. Additionally, it is cricial to analyze how the Greek Republic implemented the innovative ideas into the national and international economics when it became the member of the European Union. The country was known to have the series of complex problems with the GDP debt limit and the budget deficit that has made Greece the serious challenge for the European economy. When the country entered the European Union and the necessity to change the existing situation has become inevitable, the government of the country got involved into the unique economic scheme that aimed to remove about 2% of the country’s debt. The plan has been implemented into practice in 2001 with the series of financial transactions that Greece arranged with the investment bank Goldman Sachs. The main idea was that Greece paid over $ 10 billion to the Goldman Sachs; in return, the bank has given the country euros. The sum of money that Greece receives from the bank is going to cover the dollar dept that the state has. In return, the country was making the series of payments to the Goldman Sachs in euros in order to compensate their financial assistance. This type of arrangement is the standard situation for the government financing that consists of this type of components. The same took place in other European states that have been obtaining funds from the foreign investors from all the parts of the world borrowing dollars as a way to pay the daily bills and get the euros they needed. That is the key difference of this specific situation as Greece made an arrangement where it receives more than $10 billion up front, but also has to pay back correspondingly the bigger amount of euros in the future.

This is a perfect example for the current analysis as, although the deal was not illegal or unusual, the serious number of observers of the situation as well as the researchers and scientists within the sphere regarded the behavior of Greece to be unethical. Talking about the multinational corporations, it can be seen that the plan initiated by the Goldman Sachs was the reason of these feelings as there was a real unethical context of the deal, and so was the outcome.

There are such situations where such contracts are not suitable or even inappropriate as their character and ideas go against the principles or unwritten norms of the world finance and economy. Each situation is unique, especially when talking about multinational corporations. Although they can benefit from the series of initiatives, they lose their image and reputation in the eyes of the international society. In case they are not sure about the final outcome of the arrangement, but risk their position on the international arena, multinational corporations have to make the serious observation and deep research of every single case to take such steps. In the situations where they are about to lose more than they can prospectively obtain, it is better to follow the ethical norms. Generally, the multinational corporate environment can develop steadily and successfully in case all corporations will follow the criteria of ethical behavior. However, in reality, all of them are trying to win the race for the leading position in the world market and succeed in the quest for profit. That is why their behavior is far from the ideal one, and such cases are still present in the international practice.

This paper analyzed the issue of the multinational corporations having ethical considerations in their quest to make a profit. To make a deep research, there was made the analysis of the situation with the Goldman Sachs bank and the Greek government that made the financial agreement in order to help Greece reduce the debt rates after it has entered the European Union. The arrangement was absolutely legal and ordinary for the countries of the EU. However, the role of the ethical consideration is extremely important for the international environment; that is why the number of observers considered the behavior of both sides unethical. Therefore, it is necessary to underline the unique and extremely important role of the ethical considerations in the operations of the multinational corporations that want to succeed and make profit.

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lucydevid5

Nice post,

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