Good Essay About “Ethical Challenges”

There is an increasing pressure on the governments of less developed countries to attract foreign direct investment. This investment is necessary for the growth and development of any economy, and at the same time it ensures that the jobs are saved, and unemployment levels in an economy remain low. Malaysian government took an initiative of providing tax break, and union free work environment to multinational companies. The business leaders and political parties should understand that it was the need of the hour to attract multinational companies. It will enable the economy to grow at a fast rate, and enjoy direct investment from multinationals around the world. This will have long term benefits for the economy. It will provide jobs, and will help the foreign exchange rates of US Dollar to remain. It will also allow the Malaysian economy to enjoy higher GDP growth rates, and at the same time it will allow the transfer of technology from developed countries to Malaysia. It will also allow the Malaysian economy to control their import bill. Since, local production is always preferred to expensive imports; it is going to impact the economy positively in all ways. It will also allow the country, and government to spend on other sectors while the private investment in the sector will take care of this industry. Hence, it will be great from economic point of view. However, many business leaders will ask that the workers will be exploited in the union free work environment. It is also unethical that the Harris Company fired twenty one union leaders just because they were raising their voice for the benefit for the workers.
However, one must understand that the benefits of the foreign direct investment outweigh the benefits of the union both politically, economically, and socially. The union is important, but it is not as important as the economic well being of Malaysia. Many other countries have provided the foreign and multinational companies with the union free environment so that they continue to attract the foreign direct investment. One such initiative was taken by Pakistan. They have completely reduced and eliminated the role of labor unions in the workplace in order to ensure that foreign companies invest heavily in the country. This has helped the country to attract foreign direct investment from major automobile companies from around the world. Toyota has opened a assembling plant in Pakistan since the role of union have been reduced in the work environment. This has also helped Pakistan to get investment from major brands of the world like UniLever, Procter & Gamble, and Reckitt & Beckniser.
It is advisable to the Malaysian government to continue with the reforms and allow the companies to operate in union free environment so that they do not lose any investment, and new companies continue to invest in Malaysia providing more jobs to the local population, and contribute to the fiscal tax side of the country. It will help the government to use this money to invest in those sectors which require immediate government attention, and those projects which are necessary for the development of the population, and have been postponed due to shortage of funds. It will also allow the country to become one of the major economies of the world by relying more on local production than on imports.