Multinational corporations (MNCs) face significant ethical challenges when operating across diverse cultural environments, where differing norms and values can create conflicts in decision-making processes. This study examines how cultural dimensions, such as power distance and collectivism, influence ethical decision-making within MNCs, with a specific focus on operations in Indonesia. Using a qualitative approach, the research integrates thematic analysis of case studies and interviews with corporate managers. Data were also triangulated with organizational documents and industry reports. The findings reveal that high power-distance cultures, such as Indonesia, favor centralized decision-making, with ethical dilemmas typically resolved by senior leadership. While this hierarchical approach ensures efficiency, it often compromises transparency and accountability. Conversely, the collectivist orientation emphasizes group consensus and community engagement, fostering inclusivity but occasionally delaying resolution. For instance, case studies on bribery, environmental violations, and gender equality initiatives demonstrate the critical role of cultural adaptation in achieving ethical outcomes. Notably, participatory approaches involving local stakeholders improved trust and alignment with community expectations, enhancing reputational outcomes by 20% compared to centralized strategies. The study concludes that effective ethical frameworks for MNCs must balance global standards with cultural sensitivities. Recommendations include the adoption of culturally adaptive ethical policies, inclusive leadership training, and robust stakeholder engagement strategies. These findings offer valuable insights for MNCs aiming to navigate ethical complexities in culturally heterogeneous environments, contributing to both theoretical and practical advancements in global business ethics
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