...Business Ethics Essay Assignment: Multinational Corporations Submitted to: Prof. H. Aronovitch University of Ottawa Submitted by: David Hamilton Student # 5322750 PHI 2397 C Thursday November 29, 2011 Personal Ethics Agreement Concerning University Assignments Individual Assignment I submit this assignment and attest that I have applied all the appropriate rules of quotation and referencing in use at the University of Ottawa. I also confirm that I have taken knowledge of and respected the Beware of Plagiarism! brochure found on doc-depot. I attest that this work conforms to the rules on academic integrity of the University of Ottawa. __________HAMILTON, DAVID______ _________5322750___ Name, Capital letters Student number _______________________________ ________11/29/2011_____ Signature Date Ethics in business must start at the top of a company and work its way down to every employee involved in an organization. In today’s world, corporations feel a moral obligation to practice business fairly while treating their employees with respect, so shouldn’t a company keep the same ethical approach if they expand their operations abroad? Over the last century or so, the global economy has changed drastically, with less barriers and a greater flow of goods and services between countries. A multinational corporation is any business that has productive activities in two or more countries. Although there are many...
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...Multinational Corporations and Foreign Direct Investment This page intentionally left blank Multinational Corporations and Foreign Direct Investment Avoiding Simplicity, Embracing Complexity Stephen D. Cohen 1 2007 1 Oxford University Press, Inc., publishes works that further Oxford University’s objective of excellence in research, scholarship, and education. Oxford New York Auckland Cape Town Dar es Salaam Hong Kong Karachi Kuala Lumpur Madrid Melbourne Mexico City Nairobi New Delhi Shanghai Taipei Toronto With offices in Argentina Austria Brazil Chile Czech Republic France Greece Guatemala Hungary Italy Japan Poland Portugal Singapore South Korea Switzerland Thailand Turkey Ukraine Vietnam Copyright # 2007 by Oxford University Press Published by Oxford University Press, Inc. 198 Madison Avenue, New York, New York 10016 www.oup.com Oxford is a registered trademark of Oxford University Press All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of Oxford University Press. Library of Congress Cataloging-in-Publication Data Cohen, Stephen D. Multinational corporations and foreign direct investment: avoiding simplicity, embracing complexity / Stephen D. Cohen. p. cm. Includes index. ISBN-13 978-0-19-517935-4; 978-0-19-517936-1 (pbk.) ISBN 0-19-517935-8; 0-19-517936-6 (pbk.) 1. International...
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...Multinational Companies have contribution: Adidas In 2011, the Adidas employess volunteered a total of 16,000 hours, supported more than 900 different projects globally and cooperated with more than 20 long-term partners. All of their partners and activities connect children with coaches who teach life values in combination with sport. These organizations and their programs use sports to teach children values, which can break down barriers and allow people to live healthier, happier lives. This is the goal that Adidas strongly believes in. Nestle Nutrition must be a first key driver of Nestlé's work because company aims to be the best nutrition, health and wellness company. Good health is coming from proper nutrition and food. Water is a life necessity no matter who you are and where you live. Nestlé claims to: * sells affordable micronutrient-fortified products to help fight malnutrition. * provides school-age children in 60 countries with nutrition education partnering with organizations and governments * provides physical activity through our Nestlé Healthy Kids Global programs * provides training and microfinance to help farmers become more productive while also investing in their communities. * maintains direct relationships with more than 680,000 farmers worldwide. Efforts to cut carbon emissions Coca cola Issues to Social Responsibility In India,However, the company came in for severe criticism from activists and environmental experts who charged it...
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...business ethics that have done much to shape the subsequent discussion in the field. Velasquez’s "International Business, Morality and the Common Good" 1992 paper takes business ethics to be concerned centrally with questions about the corporation's proper role in and relationship to the social order. These questions are said to surround the moral status of the corporation: Is the corporation a moral agent? Do multinational companies have any moral obligations to contribute to the international common good? While dominant management thinking is steered by profit maximization, this paper proposes that sustained organizational growth can best be stimulated by attention to the common good and the capacity of corporate leaders to create commitment to the common good. However, the complex process of re-orientating corporate priorities towards the common good requires alertness and concerted effort if both business and society are to truly benefit. In our contemporary post-modern context, it has become increasingly awkward to talk about a good that is shared by all. This is particularly true in the context of multi-national corporations operating in global markets. The common good dictates that leadership should be judged, first of all, according to moral criteria rather than professional competence. It helps correct the distorted prioritization of the maximization of profit in every business decision, recognizing that businesses have a multitude of rights and responsibilities, and the...
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...Challenges to multinational corporations in China China has emerged as the world’s second largest economy. Meanwhile, foreign companies salivate at the chance to tap into China’s growing market. Therefore, the rise of globalization in China may posit several critical challenges to multinational corporations. Although miscommunication should be taken into account for foreign companies, human resources are required to change patterns and global business strategy is also possibly tackled in the international market. Cultural misunderstandings arising from miscommunication will frequently lead to the failure of commercial negotiations. Although there are an accelerative number of Chinese people highly proficient in English, it is uncommon to find someone who understands the subtleties of the language to navigate delicate business negotiations. For example, Heads of ETIG used to make a trip to China, but had several productive meetings and returned home with strong business prospects. According to Murphy, a former technical analyst for CNBC in an article titled “Intermarket Analysis”, communication between the foreign and Chinese companies goes smoothly at first, yet things start to break down as business issues get more complex (Murphy, 2004). It appears that what started as a promising prospect for both sides often breaks down due to miscommunication. In addition, western companies in China rate human resources as the massive challenge of doing business here. Chinese workers...
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...ASSIGNMENT 1 MULTINATIONAL CORPORATION To purchase this visit here: http://www.activitymode.com/product/itb-400-wk-4-assignment-1-multinational-corporation/ Contact us at: SUPPORT@ACTIVITYMODE.COM ITB 400 WK 4 ASSIGNMENT 1 MULTINATIONAL CORPORATION ITB 400 WK 4 Assignment 1 - Multinational Corporation Expansion Write a 6-8 page paper in which you: 1. Analyze how each of the three major dimensions of international finance can affect your possible venture of your MNC in your chosen new international market, including potential opportunities and risks for each dimension. 2. Examine the economic trends and impact of globalization in the chosen market and determine which of those emerging factors have potential for disruption that could affect operations. 3. Assess whether the country you have chosen maintains a fixed or a flexible exchange system and discuss how this monetary system will affect your MNC. Provide a strong rational for possible implications and drawbacks of the existing system. 4. Determine how the balance of payments will support the management of your MNC and explain how deficits and surpluses found within the country you have chosen can positively or negatively affect operations of your company. More Details hidden... Activity mode aims to provide quality study notes and tutorials to the students of ITB 400 WK 4 Assignment 1 Multinational Corporation in order to ace their studies. ITB 400 WK 4 ASSIGNMENT 1 MULTINATIONAL CORPORATION To purchase...
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...in the form of a wholly owned subsidiary in a foreign country, it is sometimes referred to as “greenfield” or de novo (new) investment. The primary reason for the use of wholly owned subsidiaries is a desire by the MNC for total control and the belief that managerial efficiency will be better without outside partners. Due to the sole ownership, it has been found that profits can be higher with this venture and that there are clearer communications and shared visions. However, there are some drawbacks. Typically, wholly owned subsidiaries face a high risk with such a large investment in one area and are not very efficient with entering multiple countries or markets. This can also lead to low international integration or multinational involvement. Furthermore, host countries often feel that the MNC is trying to gain economic control by setting up local operations but refusing to include local partners. Some countries are concerned that the MNC will drive out local enterprises as opposed to helping develop them. In dealing with these concerns, many newly developing countries prohibit wholly owned subsidiaries. Another drawback is that home-country unions sometimes oppose the creation of foreign subsidiaries, which they see as an attempt to “export jobs,” particularly when the MNC exports goods to another country and then decides to set up manufacturing...
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...The Challenge for Multinational Corporations in China: Think Local, Act Global – A Summary When multinational companies (MNCs) started to get entrance into the Chinese market, they were received with open arms. This includes them enjoying government privileges other local companies were not entitled to. The Chinese consumers also preferred goods from the MNCs, and not their local companies. This however, took a twist when in the year 2000, when the per capita GDP rose in the country to $1,000. The perception of the Chinese toward the MNCs changed further when China became a member of the World Trade Organization in 2001. Their earlier privileges were withdrawn, as even the Chinese started to embrace their local companies. Conditions ever since have become tight for the MNCs, as they are now expected to strictly adhere to the Chinese standards in their businesses. Although the MNC have positively contributed to the Chinese economy, much of their challenges lie within the framework of adapting to the local Chinese expectations in their business practice. For instance, it is important to be aware of the kind of advertisements to use, which cannot be considered offensive by the local Chinese people. Most MNCs have difficulty understanding the expectations the Chinese have of them, since the Chinese are sensitive people, with respect to moral integrity and social prestige. For the MNCs to survive in China, they must “think local and act global,” meaning they should conduct their...
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...A multinational corporation (MNC) is a corporation that has its facilities and other assets in at least one country other than its home country. There are three key organizational functions of expatriation: position filling, management development, and organization development. Expatriate are the person who goes to the foreign country on the international assignment. When a MNC open its new subsidiary in the new country, then it might not find the local person who has the specific skills that are required by the company, so, it send an employee from the host country to that new subsidiary. As this employee is aware of the working, business culture and all other process of the company and help the employees of new subsidiary to follow and understand them. (Lee and Croker, 2006). For selecting an Expatriate, MNEs has two type of selection approach. The company can do it by: 1. Ethnocentric approach which means parent company makes the important decisions, employees from the parent company hold key position & the subsidiaries follow all the culture and practices of the parent company (Brewster, 2007). 2. Geocentric approach. The organisation that applies the worldwide incorporated business strategy, manages and recurit employees on a global basis (Brewster, 2007). Since the expatriate is more familiar with the business and the working culture of the parent company, hence he or she can assure the better job performance and follow the organisation’s policy that...
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...The definition of Multinational Corporation is hard to explain but in easy words is when a company sells its goods and services in more than one country is recognized as a Multinational Corporation (MNC). The impacts of Multinational Corporations can be negative and positive. But in today’s assignment I am going to talk about Chinese cultures impact on Multinational Corporations. Since 1970s, the multinational corporations in China has changed dramatically when the nation opened its economy and welcomed the direct investment. During the 1980s, MNCs like Motorola, Philips and NEC was welcomed in China with open arms. They used to pay half of the imposed tax rate from the local companies, and also they pay no duties on their goods imports. However, in the beginning of 2000, when per capita GDP went above UD$1,000 and when China joined the World Trade Organization, the consumers and the Chinese government changed their perceptions of MNCs drastically. Multinational Corporations main goal was to fit national interests. Then because of the National cultures impact, MNCs started to follow this rule “Think local and act global”. Chinese consumers have also become more demanding and as a result they don’t really see the difference between products which are made by the MNCs or Chinese companies. For example in 1977 there were 1 million cars in China, by 2008 there were 51 million and now there are 85 million cars in China. Every day that number increase by 38 thousand. Which means somebody...
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... complexities of its own business pressures which triggered the need for new software of its own needs. Then, after realtering the same issues could be in other organizations, prepared the newly designed solution to other companies by making some adoptive notifications to the software by preparing new technologies, new fill, of expertise were created in IT industry ranging from database administrators to EIP consultants as well as new titles the Orcl, 201 Equal. The groups of new motion of global Oracle IT world began attracting the minds of people in IT industry. The corporation also sponsored the team named Oracle to socialize with the people audited by the IT industry. It is also deep within legal and political issues. In 2000-s, Oracle hired the Aslanft Group Culture owner is former US Altering Counsel John Asnolf. 946 May Tokyo Tsushin Kogyo K.K. (Tokyo Telecommunications Engineering Corporation), also known as Totsuko, established in Nihonbashi, Tokyo with start-up capital of 190,000 yen for the research and manufacture of telecommunications and measuring equipment. 1947 Jan Company head office and factory relocated to Shinagawa, Tokyo. Oct Successful commercialization and sales launch of Sony's “power megaphone.” 1949 Sep Completion of first magnetic tape recorder prototype....
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...Running Head: MNC’S SOCIAL & CORPORATE RESPONSIBILITIES [MNC’s Corporate & Social Responsibilities] [Hanna Anwer] [COMSATS ISB] [Manshoor Hussain] [Report Writing Skills] Introduction Corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare. The term generally applies to company efforts that go beyond what may be required by regulators or environmental protection groups. (Investopedia, 2014) Unilever A lifesaving habit LONDON/ROTTERDAM, Oct. 14 /CSRwire/ - Unilever and the Earth Institute have announced a new initiative to bring hand washing with soap – a lifesaving habit – to the Millennium Villages, a project that works with nearly 500,000 people in rural villages, across 10 countries in sub-Saharan Africa. A Memorandum of Understanding (MOU) was signed by Prof. Jeffrey Sachs, Director of the Earth Institute at Columbia University and Paul Polman, CEO Unilever, in New York on the fifth anniversary of Global Hand washing Day. The partnership supports Unilever’s attain its goal to deliver on one of its commitments to help more than one billion people take action to improve their health and well-being. Over the past two years, Unilever has successfully changed the hand washing habits of 50 million people in Africa and South-Asia, through its leading soap brand Lifebuoy and partnerships with Population Services International (PSI) and UNICEF established through...
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...Introduction Multinational corporations (MNCs) are known to be very huge industrial institutions that traverse the whole world with high networks and branches in different countries. Their large characteristic extends their operations beyond own countries to other developed and developing countries. MNCs are known to be controlled by their parent countries, that is, the countries of their origin. MNCs have several responsibilities globally, for instance, MNCs plays a vital role in filling the savings gap between domestically mobilized savings and the targeted investment. This is done by boosting the unfilled investment gap in the economy through foreign direct investment. i.e.to achieve a 6% rate of growth of national output if the economy needs 24% rate of saving but it can only raise 17% domestically, it will have to fill the saving gap of 7% with FDI from MNCs thus enabling it to achieve its economic growth. MNCs also fill the trade gap. This is done through inflow of foreign capital that reduces or removes the deficit in BOP. This is regarded as a sole responsibility of Multinational Corporations to try effecting and generating net positive flow of export earnings. Multinational Corporations provide resources in the business sector in terms of training manpower, equipping the business with perfect entrepreneurial skills, technological skills and management experience. This they term as filling the technological gap in the industry. MNCs also provide a platform for the...
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...Emily Newsom ECON627 – Article Review The Future of Globalization Globalization is the process by which nations become increasingly integrated. This is occurring primarily due to advances in technology that have enabled people, goods, money, data and ideas to travel the world much faster than before; and the reduction of trade and economic barriers, which has greatly increased trade between countries. In recent years, globalization has become a hot topic, one that has been associated with trends such as the following: • The rise and expansion of multinational corporations with business interests and employees in several countries, including McDonald’s, Coca-Cola, Toyota, Sony, IBM, Unilever, Nike and Shell. • The emergence of global financial markets in centers such as New York, London, Frankfurt and Hong Kong, providing businesses around the world with easier access to financing. • Greater levels of immigration, changing the ethnic, cultural and religious composition of several countries and leading to the establishment of multicultural societies. • The erosion of trade barriers between groups of nations, leading to the emergence of powerful trading blocs, with names such as NAFTA (the North American Free Trade Agreement), the European Union and the ASEAN (Association of Southeast Asian Nations). Globalization is not new. Historically, people have left their surroundings and traveled to distant lands for four main reasons: conquest (the desire to control other countries);...
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...everything with the Lipton Logo, from surfboards to Chevrolets—was a tremendous success, according to Unilever. It created a much bigger Lipton Logo awareness amongst consumers.) Since the Northern consumer market is saturated (so not much room left for expansion of market shares) Unilever aims at maximising the processing of food, which means adding value to ‘improve’ products and then charge more for these products. Unilever changes the product only slightly (e.g. strawberry toothpaste), or just changes the visual language in order to sell exactly the same product. Naturally this process involves heavy advertising. Many of the ‘improved’ products are basically useless, and there is no demand for them (the demand is being manufactured by the multinationals themselves). In short, Unilever tries to bring as many products as possible to the market without asking itself the question ‘is there a real need for the products we produce?’ Since the majority of people in the South still go hungry every day, there is much more room for growth in these countries. If the income of the poor rises, there is a big change they will spend the...
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