An indirect benefit to the MNC of following a worldwide code of ethics is:
A) it allows them to receive special tax breaks in less developed countries.
B) it puts them at a competitive advantage in foreign markets.
C) the worldwide credibility associated with maintaining such standards can increase global demand for the MNC's products.
D) A and B.

Question

Quizplus · Accepted Answer

Following a worldwide code of ethics enhances the MNC's reputation and credibility, leading to increased global demand for its products. This is because consumers today are increasingly demanding social responsibility from businesses, and MNCs that exhibit ethical behavior are more likely to attract and retain customers. While tax breaks and competitive advantages may also be indirect benefits of following a worldwide code of ethics, they are not as significant as the positive impact on the MNC's reputation and sales.

An Indirect Benefit to the MNC of Following a Worldwide