...Iveth Reyes Chapter 2: Discussion Questions 1. Discuss the concept of international social responsibility. What role does it play in the relationship between a company and its host country? a. The concept of international social responsibility includes the expectation that MNCs concern themselves with the social and economic effects of their decisions. b. 2. Discuss the criticisms that have been leveled against MNCs in the past regarding their activities in less developed countries. What counterarguments are there to those criticisms? c. Many argue that, since MNCs operate in a global context, they should use their capital, skills, and power to play proactive roles in handling worldwide social and economic problems and that, at the least, they should be concerned with host-country welfare. 3. What does moral universalism mean? Discuss your perspective on this concept. Do you think the goal of moral universalism is possible? Is it advisable? d. Moral Universalism means a moral standard toward social responsibility accepted by all cultures. e. I definitely don’t think so because all cultures are very different. Some cultures don’t accept things that other do. Beliefs, religion, etc. It’s all way too different to be accepted in all cultures. 4. What do you think should be the role of MNCs toward human rights issues in other countries? What are the major human rights concerns at this time? What ideas do you have for dealing with...
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...1. Discuss the concept of corporate social responsibility. What role does it play in the relationship between a company and its host country? (Course objective 1) International social responsibility is the expectation that MNCs concern themselves with the social and the economic effects of their decisions regarding activities in other countries. An MNC’s stance on international social responsibility determines how harmonious and productive its long-term relationships with host countries will be. By taking an open-systems perspective on CSR it is more likely that the MNC will be taking the right action relevant to all stakeholders. 2. Discuss the criticisms which have been levied against MNCs in the past regarding their activities in less-developed countries. What counter-arguments are there to those criticisms? (Course objectives 1, 2) MNCs have been criticized for disrupting the social, technological, and political climates in host nations. Governments often have a “love-hate” relationship with MNCs because they want the economic advantages produced by the presence of MNCs, but they regret the negative impacts MNCs often have on the political and social environments. MNCs can defend themselves by pointing out that, without their presence, host nations would not have as many jobs or trade opportunities, as well as opportunities to appropriate technology. MNCs have also been accused of destroying local culture through globalization. Although MNCs have increased the degree...
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...Summary This report focuses on the effects on corporate social responsibility (CSR) on MNC from a theoretical point of view by explaining the principles of the CSR in the MNC in a business strategy, identifying the challenges faced by the company in introducing the CSR practice and recommendation by ensuring its effective growth introduction to the company. Corporate social responsibility (CSR) helps MNCs to work in a way which accept ethical way and also contribute to the economic growth and improvethe employees living environments, the smaller society and the bigger society. Multi-national companies can help for CSR in developing countries.The principle of CSR is as a result of globalisation. For centuries, globalisation has been a trend that has knitted people together; this can be traced back to the ‘trade by barter’ system. As civilisation evolved, globalisation began to have more effect and thus implementing CSR. Globalisation has its impacts, both positive and negative on businesses, families, individuals, communities and nations. It is believed that CSR is a means of highlighting the positive impacts of globalisation. Introduction Corporate social responsibility is defined as operating a business in a way that helps for the social and social and environmental effect created by the business organisation. Corporate social responsibility (CSR) helps MNCs to work in a way which accept ethical way and also contribute to the economic growth and...
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...the world, especially within the business community, has become more and more homogeneous (see e.g. Vernon, 1979, Porter, 1980, 1986; Levin, 1983, Ohmae, 1985). A recent trend, however, is to stress heterogeneity rather than homogene@. Not least the animated discussions during the last few years about the future of the European Union shows that cultural differentes still exist. Such differentes are of special interest in MNCs, whose most characteristic feature is that they tonsist of units located in many countries. A number of researchers (see e.g. Bartlett, 1986, Ghoshal and Bartlett, 1990, Hedlund, 1986, Ghoshal and Nohria, 1989, Gupta and Govindarajan, 199 1, Nohria and Ghoshal, 1994, Prahalad and Doz, 1987, Rosenzweig and Nohria, 1994) have pointed to the fatt that units within multinational firms are not identical. According to Ghoshal and Nohria (1989, p. 323) the MNC is the quintessential case of the dispersed firm with different national subsidiaries often embedded in very heterogeneous environmental conditions (Robock, Simmons and Zwick, 1977). Thus, MNC urrits are located in different cultural milieus (Hofstede, 1980) and people with different nationalities, belonging to the same tirm. have to cape with each other. When people from different cultures work together, misunderstandings are likely to occur (Adler, 1986). Problems due to Gultural differentes are thus of special interest in such firms in which complexity, differentiation and variation in relations between the...
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...application of a merger structure versus considering a horizontal or diversified integration approach. Hence, the topic surfaced during Satterlee’s (2018) comments relating to multinational corporations (MNC) and the three extensive types of MNCs concerning production, operations management, and functionality as the operational focus. Therefore, further research may reveal if one type of integration is more applicable when one considers a production merger or an operations style merger among the corporations considering these financial endeavors and...
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...r The ‘real’ reasons behind Corporate Social Responsibility Management Summary With this thesis I would like to contribute on the on-going CSR discussion. I attempt to investigate the real motives why multinational corporations engage in corporate social responsibility activities. The debate in CSR is nowadays still focused on the link between CSR and financial performance. Research lacks real proof of this link and corporations are failing in formulating a business case. So why is it that MNCs are willing to engage in CSR activities. In the following thesis I would like to give an answer on this question. Inhoudsopgave 1. Introduction 5 1.1 Research Purpose 6 1.2 Problem Statement 6 1.3 Sub questions 7 1.4 Structure 7 2. Theory 8 2.1 Definition CSR 8 2.2 Definition Multinational Corporation (MNC) 9 2.3 Theoretical Framework (Garigga & Mele (2004)) 10 2.3.1 Instrumental theories 10 2.3.2 Political theories 12 2.3.3 Integrative theories 13 2.3.4 Ethical theories 14 2.3.5 Propositions 16 3. Methods 18 3.1 Research approach 18 4. Results 19 4.1 Instrumental motive 20 4.2 Political motive 20 4.3 Integrative motive 21 4.4 Ethical motive 22 5. Conclusion & Recommendation 24 5.1 Conclusion 24 5.2 Limitations & Recommendation 27 6. References 28 1. Introduction Corporate social responsibility is becoming more and more important for companies. The last few years there is an increase of interest from companies...
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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 government...
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... 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 concerning MNC that have been elaborated in the literature...
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...Chupical Shollah Manuel Globalization as a theory, concept and ideology has roots from modernization theories. It has been advanced by industrialized nations and thereupon imposed on the developing nations. This concept is paradoxical where in one hand it is liberating and on the other it is constraining. In this paper, globalization is defined as a set of institutional and ideological relations which brings nations into a global village, fusion of cultures, and advancement of geopolitics, internationalization, increased borderless society and global market economy (Robertson, 1992; Ritzer, 2004; Wallerstein, 1974/2000; Zetlin, 2001). This essay chronicles a heated debate between supporters of globalization and those who are skeptical about it as suggested by the question that globalization benefits small nations while in sharp contrast these small developing nations find it as beneficial to developed nations. A plethora of case studies will be drawn across the globe in assessing these two contrasting views and in the conclusion a judgement will be passed based on the evidence substantiated throughout the entire essay. The assertion that “while promoters of globalization proclaim that this model is the tide that will lift all boats, while citizens movements find that it is instead lifting only yachts” means that globalization is viewed, conceived and interpreted differently by the rich and the poor countries are very sceptical. Globalization is not different from other theories...
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...What are the sources and limits of MNC 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...
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...Abstract The purpose of this paper is to identify and examine social and ethical issues within the global market. This document will also review how international management and cultural diversity are pertinent to the success of an organization that is operating in a foreign country. Based upon the above mention, this paper will focus on examining and providing frameworks and strategies that implement the concept of corporate social responsibility and cultural diversity. A number of factors are identified in the study, using literature reviews and numerous online research engines. Introduction Business firms that operate in foreign countries face an assortment of ethical and social challenges. These challenges run from fair treatment of employees, stakeholders, and customers, product safety, plant safety, advertising practices, human resources management, environmental problems, business practices, corruption, bribery, kidnapping, torture, and even murder. Therefore, organizations are increasingly concerned about how their actions affect the environment and social welfare. This in turn creates a demand by employees, consumers, investors, lenders, governmental agencies, and other stakeholder groups for demanding firms to operate in an ethical and socially responsible manner. Nevertheless, organizations cannot wantonly abandon their profit maximization aims while internalizing societal goals. As with other organizational decisions, ethical and social...
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...quality, performance, safety, innovation and design. As a matter of fact, applying rubber under his mountaineering boots, Bramani had the first sole made of vulcanized rubber, thus inventing the shoe sole which revolutionised the world of mountaineering. In 1937, the “first Vibram evolution” took place: Vitale Bramani (Vi-Bram, name born by the acronym of its inventor) invented the “Carrarmato” , that is the first rubber sole realized specifically for mountaineering, which changed this sport dramatically. In 2001, industrial designer Robert Fliri proposed the idea of Vibram FiveFingers to Marco Bramani, grandson of Vibram founder Vitale Bramani, who immediately embraced the concept. In 2004 the patent was filed and in 2005 Vibram FiveFingers® started being widely commercialized. From the original concept a collection of shoes especially created for barefoot were born and simply known as Vibram FiveFingers. This is how the new minimalism footwear was born, directly inspired by the barefoot phenomenon, the practice of walking with uncovered feet. The main characteristic of this extraordinary shoe is the sole made of Vibram rubber which is as a flexible glove, helps the natural articulation of the foot stimulating muscles of the lower limbs and therefore gives a higher sense of well-being to the whole body. The product Vibram FiveFingers footwear is different than any other footwear on the planet. Not only does it bring you closer to your environment, it also delivers a number...
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...Progression In MNCs Project Report By: Achint Marwah (BBA-B) Table of Contents 1. Introduction 4 1.1 Background 4 1.2 Motivation 6 1.3 Objective 6 2. Literature Review 7 2.1 RESULTS AND DISCUSSIONS 9 2.2 Deloitte: 11 2.3 Ernst & Young: 13 2.4 Larsen & Toubro: 16 3. METHODOLOGY 20 4. CONCLUSION 22 5. FUTURE SCOPE OF STUDY 23 6. REFERENCES 24 1. Introduction We believe that to truly understand the whole point of this question, one must first take a step back to try and understand exactly what is a MNC and how do MNC’s impact us. Furthermore, once we understand the whole point regarding the term “MNC” can we understand the full extent and scope of our topic. Now, to understand exactly what is a MNC, A MNC or ’ Multinational Corporation’ in simple terms refers to a large corporation which both produces & sell goods or services to various countries. Though this is a very brief and simple description of this term, it is an accurate one never the less, because as the name suggests it is a corporation which conducts business in different countries at the same time. 1.1 Background According to historical reports and literature the first traits of an MNC like organization can be traced back as early as the trading...
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...a firm can achieve sustainable competitive advantage through strategy. LEARNIING OUTCOMES By the end of the course students should be able to (1) understand the concepts of strategic management, (2) evaluate the factors that need to be considered in analysing a firm’s external environment, (3) evaluate the internal core competences of a firm, (4) formulate strategy for the firm, (5) understand the nature of corporate strategy, and (6) understand the nature of international strategy. Additional learning outcomes are specified for each session. COURSE CONTENT The course consists of nine sessions: (1) What is strategy? (2) The Market Positioning Approach (3) The Resource Based View of Strategy (4) The Institution Based View of Strategy (5) Diversifications and Acquisitions (6) Strategic Alliances and Networks (7) International Strategy (8) Globalisation and MNC organisation structures (9) Conclusion The course will be taught over nine sessions of 3hrs, namely a lecture of 2hrs and a seminar of 1hr. The lectures are used to illustrate the key points under each topic as well as real business examples. Seminars will be used for case studies and applications of the material covered in the lectures. In the final session an integrative case study will be used to bring together many of the concepts introduced in the course and is intended to be highly interactive. RECOMMENDED TEXT Peng, M.W. (2009). Global Strategic Management. 2nd Edition, South-Western...
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...Introduction2 2) The theoretical and changing HRM landscape2 Insight of HRM history for modern practitioners 3 3) Significance of HR best practices and organisational behaviour (OB) tools within a MNC 3 4) Assumptions underpinning the way in which HR best practices are being propagated within a MNC, particularly in different cross-cultural environments. 5 5) The influence of culture on HR best practices………………………………………………………. 5 6) Conclusion…………………………………………………………………………………………………………… 6 7) References…………………………………………………………………………………………………………… 6 Introduction Human Resource Management (HRM) has brought profound change and debate to how employees are seen within an organisation. A review of HRM history with a look at relevant theories being propagated today for a better understanding of the HRM context with insights to the HR Practitioner moving forward. This is followed by a breakdown of the HR best practice, recruitment and selection and its challenges for MNCs. The accompanying OB tools are reviewed to see how MNCs would be able to best address talent acquisition. Assumptions are then looked at underpinning the way in which HR best practices are being propagated within a MNC, particularly in different cross-cultural environments with focus on MNC originating from emerging economies. Finally the influence of culture on HR Best Practice with OB solutions is reviewed. The theoretical and changing HRM landscape The best way to understand the complexities...
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