The effect of the globalization processes on the Multi-national companies has created a diverse set of challenges.

These challenges are complex and are transnational as companies operating across borders (The Aspen Institute,2008).Ethical issues and morality often intersect these challenges which add to the dilemma of the MNCs. In addition, the social and environmental issues underscore the high standards that these companies have to deal with. Thus, ethical globalization incurs several ethical costs that largely determine the market potential and economic access of an organization. It underlines the importance of conditions such as cultural sensitivities, social entrepreneurship, corporate social responsibility and economies of market entry.( The Aspen Institute,2008)Therefore, companies are focused on creating and implementing their own personal code of ethics to absorb these challenges. Furthermore, companies have highlighted the importance of strategies to regain the consumers confidence in the diverse business operations(Garber,2005). According to Garber(2005), business ethics is central to the advancement of companies. Compamnies are divided into two categories- those which are notorious for their unethical practices and those which are less known for their valued ethical principles. What are the benefits for following a code of ethics in an organization? Applying ethical standards helps businesses attain a better grasp on their practices and deal with the different experiences that result from it. However, measuring ethical standards is a grayish are as some issues are not clear cut. Ethical problems can reflect a law violation on a societal level or a organization level. The SERP model- what an organization Says, Expects, Reinforces and Practices- are most important to supporting the ethics of an organization (Grber,2005,p.13). These values are contradictory in the process of an organizational setting as these steps are not found in a vaccuum. That is these four critical factors are sometimes not congruent in practice and are often contradictory while in other circumstances they are complementary.(Garber,2005) The idea of ethics is not a new one, it has on the other hand accompanied mankind throughout the ages. The term ethics is coined from the Latin Ethics and the Greek Ethikos . The term has presence in law, morality, religion, and values. The main objects of ethics are mainly defining the greatest good for man, fabricate a cohesive foundation of moral standards that humanity can objectively refer to, is a product of an overall study of human behavior, has the ability to apply judgment upon human behavior, and suggests a standard code for moral behavior (Introduction to ethics,p.5). Ethics in business is an integral component of an organization. It encompasses business activities as a whole as well the various sectors of an organization having presence in the upper and lower managerial levels. Ethics in business does not only exist for high economic performance, but also to ensure an ethical conduct of business. Business ethics is not an isolated idea of its own, it is, simply, applied ethics in a business atmosphere.