Ethical Dilemmas for Large Corporations in Under-developed Countries

Abstract

The purpose of this chapter is to identify moral and ethical dilemmas that large corporations might encounter when operating in underdeveloped countries — particularly when those countries have a poor institutional environment. The chapter is not designed to condemn what some might regard as unethical behaviour; and it is also not designed to excuse unethical behaviour by large corporations on utilitarian grounds. The first objective is to provide an economic context for actions that businesses may take, which some might dismiss as being unethical because of their first-round economic consequences. Second, the chapter highlights genuine ethical dilemmas that are not necessarily easily resolved, and which do not arise as a result of the actions of the firms themselves but rather as a result of the environment in which they are operating. The chapter is written largely from a Roman Catholic perspective. However, the Catholic aspects of the chapter generally relate to principles and ideas that are shared by all Christians.

The author takes full responsibility for the views expressed in this chapter, which do not necessarily reflect those of the European Commission. A substantial part of this chapter was first published as ‘Modern Business and Moral and Ethical Dilemmas in a Globalized World’, in Ian R. Harper and Samuel Gregg (eds), Christian Theology and Market Economics. Reprinted with the kind permission of Edward Elgar Publishing.