Abstract

This study critically examines the ethical decision-making processes within multinational corporations (MNCs), focusing on how these entities navigate complex moral landscapes shaped by diverse cultural, legal, and regulatory environments. The main objective is to analyze the theoretical foundations, key challenges, and mechanisms through which MNCs integrate ethics into their global operations. Employing a systematic literature review methodology, relevant academic sources from 2020 to 2025 were analyzed using qualitative content analysis to identify prevailing themes and patterns. Key findings reveal that ethical decision-making in MNCs is influenced by a dynamic interplay of normative ethical theories, leadership behaviors, corporate culture, governance models, and international regulatory frameworks. Challenges such as ethical dilemmas, compliance pressures, and conflicts of interest are intensified by cross-border complexities. The strategic embedding of ethics into corporate decision-making frameworks emerges as critical for aligning global standards with local practices, fostering organizational accountability, and enhancing stakeholder trust. The study underscores the pivotal role of ethical leadership and culturally adaptive governance in sustaining ethical integrity across multinational operations. Policy recommendations emphasize the need for robust ethical codes, inclusive stakeholder engagement, and technological tools to support transparency and compliance. Limitations related to the scope of reviewed literature suggest avenues for future empirical research. Overall, the study highlights that advancing ethical decision-making is vital for MNCs to achieve sustainable, responsible business practices and contribute positively to global social and environmental objectives.