> Should multinational corporations instruct local executives to be loyal to their parent company or the rulers of the country they live in?

Legally, to the rules of the country. That is not even a question.

But if we talk about morality, the answer is to the Universal Declaration of Human Rights and what it implies.

There is no moral nor legal reason to follow the parent company when it in conflict with the rule of law. People are starting to attribute to corporations a power that they do not have, and that is very dangerous.

(The article is good, thou, and opens a lot of interesting questions)