When considering the possibility of doing business in Asia, the owners of XYZ Construction Inc. must consider both social and ethical issues that might arise along the way. The moral challenge for business in the United States is difficult enough when it comes to balancing profit interests with the needs of workers, customers, governments, and special interest groups. The moral challenge is even more serious for multinational companies that must live up to their moral potential, both in the United States and in host countries. In developed countries, the moral outlook of the host country is as strict as in the United States. However, in third world host countries, moral expectations are often more lax and multinationals have incentives to lower their standards when circumstances permit (SKS 7000-Executive Concepts in Business Strategy, 2011). Australia, Singapore and India all have corporate governance regulations. systems based on corporate law that set out mandatory minimum standards dealing with issues such as directors' duties, members' appeals and shareholder rights at meetings, as well as default rules for corporate foundations . These mandatory rules can be imposed through civil actions brought by aggrieved parties and through criminal proceedings brought by the respective regulators. These mandatory minimum requirements cannot successfully resolve issues related to issues such as the role, structure and composition of the board of directors. These pertinent issues are addressed by globally documented codes of good corporate governance practices, sanctioned by various stock exchanges and aimed at listed companies. This presents an appearance of self-regulation because it is not obligatory for companies to follow the principles of good practice. The universal approach is to require listed companies to disclose in their annual reports the corporate governance practices they have accepted throughout the relevant year. The listing rules set out comprehensive approved practices, and companies are required to disclose the extent to which they have adopted these practices. Companies that deviate from suggested practices must clearly explain why they have done so (Kimber & Lipton, 2005). The principle behind this approach is to ensure that the market is aware of a company's corporate governance practices. At the same time, it is also recognized that appropriate practices may differ from company to company. In particular, smaller listed companies often struggle to meet requirements such as establishing multiple board committees when they have relatively small boards (Kimber & Lipton, 2005).