This article analyses MNCs, worker identity and the ethical vulnerability caused by over-reliance on expatriate managers and under-reliance on local managers, who are often undervalued. It is argued that MNCs not only need but also have an obligation to assess local managers’ knowledge and contributions as having not only operational and market values, but also institutional value. Local managers both give access to and form part of local social capital and the treatment they receive is an element in the CSR performance of the MNCs. Recognition of the value of equal treatment creates an ethical imperative that the barriers of cultural difference be overcome. We see such an approach towards local managers as more fully taking into account the human rights of these local managers. Such a holistic approach is increasingly relevant for MNCs in the 21st century, as MNCs increasing globalize into new large emerging markets such as Brazil, Russia, India and China.

The response of consumers to a firm’s ethical behavior and the underlying factors influencing/forming each consumer’s response outcome is analyzed in this article based on information obtained through interviews. The results indicate that, in the Chinese context, the responding outcome can be boiled down to five types, namely, resistance, questioning, indifference, praise, and support. Additionally, consumers’ responses were mainly influenced by the specific consumer’s ethical consciousness, ethical cognitive effort, perception of ethical justice, motivation judgment, institutional rationality, and corporate social responsibility–corporate ability (CSR–CA) belief. Based on these results, a generalized framework of consumer’s ethical responses is developed which provides a number of insightful suggestions upon how to motivate a consumer’s support of a firm’s ethical behavior and to transfer this kind of support into truly positive purchasing behavior.