...The responsibility Multi-National Companies (MNC's) have toward human rights ZHOU QING Herzing University The responsibility Multi-National Companies (MNC's) have toward human rights The development of the world economy as a major driving force of globalization multinational companies, in particular, play an active role in the development of the economic development of the host country has been widely recognized by the international community, the role of multinational corporations on the economy to improve the enjoyment of human rights conditions has become the consensus of the people. However, the negative impact of the activities of transnational corporations or work for human rights has often been overlooked. In the 1950s and 1970s, the United Fruit Company and the American Telephone and Telegraph Company, involved in the overthrow of the democratically elected government of Guatemala and Chile scandal was revealed, causing the international community, especially the developing countries concerned about the activities of transnational corporations, and led to the development of countries expand movement multinationals nationalization. In addition, multinational companies are still developing countries, a large scale in grab natural resources, and corrosion of the activities of the government of the nation-state. In order to chase profits in global multinational companies also often in partnership with repressive governments engaged in large-scale violations of human...
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...An Overview on Multinational Corporations INTRODUCTION Multinational corporations (MNCs) are firms that engage in some form of international business. Their managers conduct international financial management which involves international investing and financing decisions that are intended to maximize the value of the MNC. Management is motivated to achieve a number of goals and objectives, some of which conflict with each other. However, the commonly accepted objective of an MNC is to maximize stockholder wealth on a global basis, as reflected by stock price. Managers of an MNC may make decisions that conflict with the firm’s goal to maximize shareholder wealth. This conflict of goals between firm’s managers and shareholders’ is often referred to as the agency problem. For the firm to achieve its goals, it needs to put in place mechanism for control of agency problem. MNCs are recognized as the main actors of e international business, international business financing and global economies. According to Goshen and Bartlett, MNC is a firm that has substantial direct investment in foreign countries that it actively manages.2 the value of their sales in host countries overpasses the value of trade (imports and exports) in today’s World economy. Multinational companies attracted scientific and public attention from the moment of their appearance, and especially from the beginning of their intensive growth (during the 1960s). There are many interesting and important issues...
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...relatively recent, its intellectual roots are found in the corporate social responsibility (CSR) and business and society literatures originating in law and in business in the early and middle 20th century (Marcoux). The corporate focus is evident in the titles of early works of academic 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...
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...“The Corporation” (http://informationclearinghouse.info/article12998.htm), is a documentary-style film about the ethical behavior of companies. It mainly focuses on American based multinational corporations. While the film has a clear and pervasive bias against corporate culture and behavior, it does raise many disturbing questions. As the views presented in the film are not necessarily outside of the mainstream, corporate entities should endeavor to understand the basis for the accusations, determine if there is any truth to them, formulate ways to change business behavior (if appropriate), and communicate the truth about intentions and actions in a clear and compelling way in the public forum. Section I: Five Principle Ethical Arguments The film argues that multinational corporations continue to act unethically in the following capacities: Human Rights Violations Corporations systemically use child labor. Conditions in depressed geographic areas constitute unsafe work conditions. Wages are intentionally kept at “poverty level” to increase investment and decrease cost. Corrupt authoritarian regimes are backed by multinationals to maintain control of the population for pure profit with wanton disregard to the acts of that regime. Human capital is regarded is expendable, and once the area is used up or wages rise too high, the corporation simply moves on to a cheaper locale. Intentional Environmental Harm Companies intentionally pollute the environment...
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...Globalization Essay February 8, 2015 The Corporation is a mind-altering documentary that highlights the negative light that corporations shed on society today. Joel Bakan, the filmmaker, is well known for his works that criticize the adverse roles multinational corporations play on humanity. Joel raises public attention to the paradox of a corporation’s functioning, defining it as “ an institution that creates great wealth but causes enormous and often hidden harms. “ (Achbar and Abott, 2003,17:43). The documentary describes a corporation as a structure that has the equivalence to an individual’s legal status, thus raising the big question: if the corporation really is a person, what type of person is it? In response, the film focuses on arguments that try to prove this “person” to be psychopathic, partaking violent social behavior. The document questions the responsibility of production methods that corporations favor, the utilized marketing techniques, and whether a corporation is really an institution or in fact, an individual. As the harms continuously rise, businesses are challenged to encounter the concept of corporate responsibility. The central argument of the film is centered on the question: “Is the firm an individual or an institution?” (Achbar and Abott, 2003,21:16). Based on the historic development of the corporation, it seems to be that the answer is leaning towards being an individual. Corporations have developed to carry their own legal entity, allowing...
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...Q. Do corporations have moral responsibilities? * Provide an explanation of the legal structure of a corporation and the separation of ownership and management. * Outline the principal/agent argument. * Argue a case against corporations having moral responsibilities. * Present case for corporations having moral responsibilities. * What is the difference between global CSR and domestic CSR? * Case study. Examine a MNC which has had a CSR issue. * Sum up. Introduction This assignment will seek to delve upon profit making institutions, their objective on increasing shareholder value and in the quest to do so, evaluate their sole focus on economic benefits which might erode broader social benefit or harm the society. In this light, this report seeks to evaluate Corporate Social Responsibility (CSR) in theory and actual practice. In the process of evaluating, the assignment would showcase different scenarios / cases where CSR abuses or upholding the same would be examined. From such cases, arguments would be built to show how abusing business activities (Hamilton and Webster, 2012, p. 311) may have a negative impact on stakeholders and societies; and how upholding CSR values is beneficial for the society at large besides being beneficial from business standpoint as well. Globalisation has increased corporate power which is pervasive on a world wide scale and any abuses of this power has reverberating effects across the globe, an example being Lehman...
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...Cosmopolitanism, Neo-liberalism, and Global Corporate Social Responsibility Introduction With the rise of globalization come several opportunities as well as threats. On one hand there is the opportunity to overcome problems such as world hunger, poverty, and abuse of human rights. However, on the other hand, globalization could pose as a threat against cultural diversity, as well as allow large corporations and rich governments to exploit human and natural resources in less developed countries. There has been much discussion and debate over how to approach globalization in a way that maximizes opportunities and minimizes threats, but of course it is not always clear which approach will do this. Two approaches in particular, which have been come to known as cosmopolitanism and neoliberalism, have developed and made lasting impacts on ideologies as well as policies. There are avid supporters as well as opponents of both, but in this paper, rather than compare the pros and cons of the two and argue for which one is superior, I would like to discuss if these approaches oppose each other or if in fact they compliment each other as an approach to globalization. As well, I will discuss the issue of social responsibility of multinational corporations in a globalized environment. Cosmopolitanism In order to evaluate the relationship of cosmopolitanism and neoliberalism as approaches to globalization, it is important to first have a clear understanding of the basic tenants and...
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...CSR and globalization[1] Corporate social responsibility is at least in its name and formal recognition a relatively recent phenomenon. Yet, owners and managers of firms have engaged in activities that we would now consider CSR almost from the beginning of the industrial revolution (Davis, Whitman and Zald, 2006). But, until the 1990s, CSR was generally limited to corporate philanthropy. It is from the early 1990s that enlarged concepts and practices of CSR have come to the fore. What drove these radical changes in the conception and implementation of CSR? Scherer and Palazzo (2007) claim that, in a globalized world, it is necessary a shift toward a new politically enlarged concept of CSR. In fact, globalization is weakening the power of (national) political authorities to regulate the activities of corporations that globally expand their operations: for instance, globalization forces national governments into a race to the bottom in order to win the competition with other countries for attracting corporate investments. Thus, they reason that corporations should be understood as both economic and political actors. Davis, Whitman and Zald (2006) claim that, in addition to weak national boundaries that separate domestic from foreign companies, another crucial difference of the global competitive environment of the 21st century is the weak distinction between activities and transactions occurring inside as opposed to outside a corporate entity: while companies are moving part...
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...Corporate Governance eJournal Faculty of Law 4-12-2007 Corporate Social Responsibility: Impact of globalisation and international business Kim Kercher Bond University, Kim_Kercher@bond.edu.au Recommended Citation Kim Kercher. (2007) "Corporate Social Responsibility: Impact of globalisation and international business" ,, . http://epublications.bond.edu.au/cgej/4 This Journal Article is brought to you by the Faculty of Law at ePublications@bond. It has been accepted for inclusion in Corporate Governance eJournal by an authorized administrator of ePublications@bond. For more information, please contact Bond University's Repository Coordinator. Corporate Social Responsibility: Impact of globalisation and international business Abstract [Extract] Corporate Social Responsibility (CSR) is associated with the conduct of corporations and in particular whether corporations owe a duty to stakeholders other than shareholders. Whilst the phrase ‘Corporate Social Responsibility’ may be gaining momentum, the concept itself is not new. The question as to whether corporations owe duties to broader stakeholders has been debated at various times throughout the twentieth century. Keywords corporate social responsibility, corporations, globalisation, international business This journal article is available at ePublications@bond: http://epublications.bond.edu.au/cgej/4 Corporate Social Responsibility ‐ Impact of globalisation and international business By Kim Kercher ...
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...STARBUCKS COFFEE CORPORATION SOCIAL RESPONSIBILITY STRATEGY JJT2 SOCIAL RESPONSIBILITY TASK 1 Unknown Introduction Starbucks Coffee Corporation is a world renowned Fortune 500 company headquarter in Seattle, Washington USA. It was founded in 1971 with the sole mission to bring the unique Italian coffee experience to the masses. Its CEO Howard Shultz has successfully created a company brand where customers identify its coffee to a distinctive and premium experience. Starbucks Coffee currently has over 18,000 stores worldwide across 60 countries on six continents, and with a market capitalization of over $USD 50 billion. Ranked in American Express/SAP survey as 49 of the Top 100 global retailers, and consistently on the list as one of the best global corporations to work in Forbes magazine, the Starbucks brand is synonymous with success (Starbucks: Global Coffee Giant Has New Growth Plans. 2013). Starbucks Coffee Corporation’s Stewardship in how it conduct Business Starbucks leadership knew that its frontline workforce, or its retail store workers such as baristas, shift managers, and store managers are at the heart to success for the company. Treating the frontline workers well will ensure happy employees who will in turn safeguard the image and values that the company stand for, which keep customers loyal to the brand. Working in the retail sector typically comprise of poor benefits, non-existent or poor healthcare, and low pay. However, Starbucks is one of the very few retail...
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...Demetria Brown Social Responsibility Is any corporation doing their part? Abstract In today’s society of accountability and sustainability, corporate reputation and corporate responsibility are intertwined. Corporations in particular now have to deal with rapidly growing pressures and expectations from diverse and demanding stakeholders (the people of the public) pressures that they cannot escape and expectations that they must address. Corporate Social Responsibility has begun to move from the sideline to the mainstream, from its established positions in socially responsible and environmental investment movements, to the center of media attention and on to the public agendas of multinational corporations. Much good can be credited to ethical public relations practice as is relates to corporate social responsibility. (Broom, 2009, p.133) The term "Corporate Social Responsibility" demonstrates the new expectations that are emerging for multinational corporations. Public relations and corporate responsibility worlds would do well to share an interest in aligning corporate reputation with a post-CSR agenda that is increasingly focused on accountability and sustainability -- and increasingly integrated with corporate strategy. Most corporate managements and communications professionals understand the basics of the corporate responsibility agenda and its potential impact, on the reputations of their companies and clients. Not all corporations are comfortable with integrating...
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...Identify a global organization with a multinational presence. *Nike Identify and research a cultural issue that affects this organization's interactions outside the United States. Define the issue and provide an overview of how became an issue in the organization. Prepare an analysis of the ethical and social responsibility issues your organization must deal with as a result of being global. Write a 1,050- to 1,400-word paper summarizing the results of the analysis. Include the following: • Identify ethical perspectives in the global organization. • Compare these perspectives across cultures involved in the organization. • Describe a viable solution for this issue that could be acceptable by all stakeholders. Introduction: The Nike Corporation In today’s economy, there are several corporation that use multinational tactics in order to make their business strive and successful. A great benefit of multinational corporations is that it helps create wealth and jobs around the world. These corporations also offer much needed foreign currency for developing economies. However, there are many disadvantages such as multinational companies have monopoly power which enables them to make excess profit and pushing local shops off the map. A global multinational company that is very recognized and popular around the world is The Nike Corporation. The Nike Corporation was originally known as Blue Ribbon Sports (BRS). It was founded in January 1964 by Philip Knight...
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...Corporate Social Responsibility The concept of corporate social responsibility (CSR) over time has expanded its influence to many enterprises and concerned organizations, required those must consider how their activities affect the surrounding society such as communities (human rights, labor issues,...), environmental protection,… World Business Council for Sustainable Development (WBCSD, 1999) as cited in Wong & Ahmad (2010) gave the most common definition of CSR as: “the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large”. From Jamali’s (2008) perspective, CSR is concerned with the guarantee of corporations to contribute to the development, enhancement of society and stakeholder interests. There are also different views of CSR between the ownership concentration (Dam & Scholtens, 2013) and stakeholders’ welfare. CSR has become more and more important issue as the world is turning “flatter”, not only considering in developed countries but also in developing ones like Vietnam. However, there are some barriers to implementing an effective CSR program for an international organization operating in Vietnam (Tencati, Russo, & Quaglia, 2010). The Effects Of CSR On International Business Recent years, CSR has become an essential requirement for doing business for most of the companies in the world...
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...Are corporations that participate in voluntary Corporate Social Responsibility practices seen as unethical through exploiting CSR initiatives for a profit? In today’s society, corporations that perform better in their respective markets are able to collect assets that are needed to participate in Corporate Social Responsibility practices. Through these voluntary practices corporations are able to improve their social, environmental, and human rights accounts. This essay will begin with an insight of what Corporate Social Responsibility is; furthermore it will elaborate on how corporations that participate in the practice of Corporate Social Responsibility are seen as unethical because it is able to exploit its initiatives in the pursuit of profits. The Corporate Social Responsibility initiative has developed significantly through the past few decades. This is because of many multinational corporations have been influenced by civil societies to adopt numerous voluntary initiatives. Corporations have been influenced into adopting programs that assist in improving their social, environmental, and human rights records (Utting, 2005, pg. 375). These corporations are expected to adopt new codes of conduct, which administrate their environmental management, the health and safely of their employees, partnerships with Non-Governmental Organizations, and increase their support for community development projects (Utting, 2005, pg. 375) Multinational corporations have started engaging...
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...power? Multinational Corporations in a Global Economy IR 120 - 201136597 - Catharina Knobloch 1. Introduction As MNCs are getting increasingly important as actors in political bargaining, the purpose of this essay is to provide a (more or less) detailed overview over the sources and limits of the power of multinational corporations (MNCs). In the first section, I am going to lead into this topic by giving some definitions. In addition to that, I am also going to explain the role of MNCs in the international governance based on the typology of regime types. Then I am going to examine the most important sources and forms of business power, before taking into account the limits and the vulnerability of MNC power. 2. Definitions First, the term of the “multinational corporation” is difficult to be generalised due to extensive variations among the current examples (corporations are of different size, age, nationality industry, pursuing distinct decision-making processes and strategy-setting patterns, etc.) In order to define it more precisely, a multinational corporation is a firm, which owns assets and controls activities in different countries. As a consequence, the corporation needs at least one subsidiary in a non-domestic country to be classified as an MNC (just foreign trade is not sufficient). Some examples of these include Shell, General Motors, IBM or BP that operates in more than 100 countries. There are four categories of multinational corporations: (1) a...
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