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ETHICAL BACKGROUND OF THE SUSTAINABLE ECONOMIC DEVELOPMENT AND THE ROLE OF THE MULTINATIONAL CORPORATIONS

Journal Name:

  • Khazar Journal of Humanities and Social Sciences

Publication Year:

  • 2009

Key Words:

Author NameUniversity of Author
Abstract (2. Language): 
In this theoretical paper, we have underlined the ethical roots of the sustainable economic development. In addition, we examined both the negative and the positive effects of the multinational corporations (MNCs) on the sustainable economic development process in terms of business ethics and corporate social responsibility. The relationship among business ethics, corporate social responsibility and sustainable development (SD) has recently become the focus of scholars concerned with the relationship between business and society. SD is an eclectic concept, as a wide array of views fall under its umbrella. It can be conceptually broken into four constituent parts: environmental sustainability, economic sustainability, cultural sustainability and sociopolitical sustainability. ―Sustainable economic development‖ is used to describe an economic development that concerns ethical and social effects of the development process. In other words, the term implies that without ethical background, it is not possible to gain sustainable economic development. One of the engines of the emerging countries‘ economic development is MNCs. Through globalization process MNCs have had access to many developing countries. Some MNCs have budgets that exceed some national GDPs. These MNCs can have a powerful influence in local economies as well as the world economy and play an important role in international relations and globalization.The MNCs have made great contributions to the developing countries. Nevertheless, they have created ethical, social, cultural, and political problems as well. Therefore, MNCs should assume ethical and social responsibilities more than their national counterparts. They should help to improve society by taking a proactive stance in their societal roles. The relationship between the MNCs and the governments of the developing countries are also important to foster the ethical values and cultures in these countries. In summary, all the parties (MNCs, local governments, NGOs etc.) should understand the importance of ethics and social responsibility in terms of sustainable economic development and act accordingly.
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FULL TEXT (PDF): 
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  • 4
33-48
  • English