Assess the Global Role and Local Impact of Multinational Companies.

1959 Words Jan 16th, 2012 8 Pages
Assess the global role and local impact of multinational companies.
A multinational company is often defined as a corporation whose operations and investments are broaden across a number of countries. They are also referred to as transnational companies. Therefore given this definition it would be expected that if a company operates over such a large territory that it would indeed have many effects and impacts, locally and globally, and its role would also be quite significant as it can have a direct influence on an economy, the environment and general effects on society. However, changing the way they run things in order to accomidate society could break there business down and they could eventually have no impact on society so looking
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Contradictions of corporate responsibility have been seen many times over the years within companies such as;
‘Barclays Bank
CLAIM: We have the skills, resources and determination to make a positive and lasting contribution to the communities in which we operate.’ (Barclays social review, 1999)
ACTION: Barclays bank closed 172 branches in April 2000’
‘Proctor & Gamble
CLAIM: An employee should be able to answer “yes” to the questions: is this the right thing to do? With this action uphold p&g’s reputation as an ethical company? (Proctor & Gamble code of conduct)
ACTION: Proctor & Gamble continues to trade in Burma, while other companies have pulled out because of the appalling record of the Burmese government on human rights.’
‘BAT (British American Tobacco)
CLAIM: its corporate social responsibility report defines targets for reducing energy use, water consumption and waste products, and describes its commitment to enlightened employment practices.
ACTION: it markets its tobacco products ruthlessly to young people – it was caught on television handing out packets of Benson & Hedges cigarettes to teenage volley ball players in the Gambia.’
(All three examples used is from AQA AS Business studies, John Wolinski
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