The issue of ethics in the reporting of income and the payment of taxes is a considerable one. The authors state that most MNEs operating in foreign countries tend to follow the general principle of:
A) "when in Rome, do as the Romans do."
B) full disclosure to the tax authorities.
C) maintain a competitive playing field by cheating as much as the local competition, no more, no less.
D) none of the above

Question

Quizplus · Accepted Answer

Full disclosure to the tax authorities is generally considered the most ethical approach for multinational enterprises (MNEs) when it comes to income reporting and tax payments. This approach involves providing accurate financial reporting and paying the appropriate amount of taxes in accordance with local laws and regulations. This not only demonstrates a commitment to ethical behavior but also helps to maintain a good reputation in the global business community. The other options (A, C, and D) are not considered ethical or appropriate approaches for MNEs to follow when it comes to income reporting and tax payments.

The Issue of Ethics in the Reporting of Income and the Payment