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Ethical Dilemmas in Multinational Corporations

Notes from the “Stealing Africa” Documentary

The documentary exposes the ruthless practices of multinationals, especially in Africa’s exploration industry, and their sole intention of maximizing profit by profiting from the continent’s immense natural endowments. This pillaging frequently devolves to local communities, which suffer the damages from the enormous mining revenues. While these companies may indeed be profitable, the more significant part of the money is usually taken home by their governments from Africa, thereby denying the local community the business opportunities that would have otherwise been available to them.

In addition, multinational corporations employ sophisticated tax avoidance measures, resulting in substantial revenue losses to African governments, which are essential for delivering public services and developing infrastructure (THE WHY, 2013). The covering up of the participation of corporate government in the dealings without any input from the ones affected by it or civil society organizations makes the situation even more critical. The negative impact of mining operations on the environment is enormous because severe deforestation, extreme water pollution, and ecosystem loss result from them. Finally, the local people are affected by them.

Multinational corporations exploit extraction industry employees by offering low wages and subjecting them to unbearable working conditions. Multinational corporations exploit extraction industry employees by offering low wages and subjecting them to unbearable working conditions. It is challenging for workers who do such jobs in unsafe conditions without protection or compensation. Through these actions, we came up with a big problem concerning human rights; a good example is the right to an environment, fair working conditions, and equal opportunities for Africans working in the mining areas.

Linking Lapses of Morality to Readings

The infractions of morality depicted in the text parallel the “Duty and Virtue” theories we discussed in the reading. In line with a Duty perspective, multinational corporations must ensure communities’ rights are upheld and take an ethical stand in their business dealings, including fair revenue distribution, straightforward dealings, and protection of the environment. However, they often utilize them because chasing profit comes first, so human rights violations and injustice follow. Parallel to the Thomistic perspective, the behaviors of multinational corporations and Africa personify absent virtuous values like integrity, justice, and compassion. Rather than focusing on the needs of all the interest groups and paying attention to the long-term interests, their greed drives them to pursue short-term profits at the expense of environmental and social integrity.

Appropriateness of Actions Given Benefits of Income

However, some firms with a multinational outlook will likely assert that their actions are rightful or justifiable as they purport to create economic benefits like job creation and infrastructure development. At the same time, the documentary points out that these benefits are usually exaggerated and favor only their employment and shareholders (Jimenez & Pulos, 2016). The stark difference between the immense wealth generated by mining operations and the poverty experienced by local communities due to this system indicates the unfairness of the situation. Perceived Violations of Rights: In multinational corporations’ actions in Africa, communities’ rights, such as equitable access to resources, a clean environment, and fair working conditions, are against the law. These abuses decrease the affected persons’ dignity and build the societal equity system.

Rights of Companies

The rights and duties of companies exercise by the companies, such as operating within legal bounds and pursuing profit. In contrast, these rights and duties must balance with societal and environmental responsibilities. They have no right to expropriate natural resources and people solely for their benefit, depriving them of their rights to a just society and the local ecosystem. It is, therefore, an example of how ethical conduct and accountability are crucial in the daily processes of corporate governance and the necessity for businesses to ensure societal welfare and environmental stewardship are central elements of their profit trail.

Recommended Policies

A company leader promoting transparency, responsibility, and sustainability should all play essential roles in corporate operations, which must be provided. Early on, ensuring transparency in the revenue-sharing agreements through which resources are extracted and host countries are compensated should be deemed necessary. It, in turn, guarantees that the profits end up in the local community’s budget, which means local economic development and the well-being of people living in this area (Ahmad et al., 2023). Also,t implementing responsible environmental practices can be the only way to avoid mining operations’ more significant environmental impression. By avoiding adverse effects concerning local environments and tribes, we can maintain sustainability for future ecosystem generations.

Moreover, these ethical considerations should be respected in the workplace for earning fair wages, working in safe conditions, and helping to develop competencies among local workers for career advancement. An effective process of meaningful consultation and collaboration with local communities and civil society organizations must ensure that their rights to participate in the decision-making process are respected and their voices are given fair consideration. Lastly, adopting a long-term outlook primarily focused on inclusive development and conforming to sustainability principles is essential. To do this, it is necessary to reorient business from short-term profit motivation and toward the service of communities, the environment, and the firm’s interests.

In conclusion, “Stealing Africa” portrays ethical and moral problems associated with multinational corporations dealing with African natural resources. Usingmaking ethical frameworks, reflecting on these issues, and understanding that all stakeholders have rights and responsibilities, business leaders can lay down policies and practices to create fairness, justice, and sustainability in corporate endeavors. This approach considers the communities’ short- and long-term needs impacted by resource extraction and seeks to promote long-term sustainability and community harmony.

References

Ahmad, H., Yaqub, M., & Lee, S. H. (2023). Environmental-, social-, and governance-related factors for business investment and sustainability: a scientometric review of global trends. Environment, Development and Sustainability26. springer. https://doi.org/10.1007/s10668-023-02921-x

Jimenez, G. C., & Pulos, E. (2016). Good Corporation, Bad Corporation.

THE WHY. (2013). Stealing Africa | WHY POVERTY? (OFFICIAL FULL FILM) [YouTube Video]. In YouTube. https://www.youtube.com/watch?v=WNYemuiAOfU

 

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