Abstract
Environment protection is a country’s fundamental policy. Globalization has encouraged TNCs to move from their mother countries to hosr countries in pursuit of more profit. This has caused serious pollution problems. To maintain their benefits, TNCs are take strategies and using tactics to influence the developing countries’ environmental policy making. They always succeed just because of their own political power behind their financial strength. This paper explores how and why transnational corporations seek to influence host countries’ environmental policy, and explains what is the source of their strong political power, and discuss how TNCs can play a positive role in environmental protection.
TNCs’ environmental responsibilities are becoming particularly a matter of urgent concerns, heavy emphasis and worthy research. All corporates should be theoretically obligated to fullfil their social accountabilities including the environmental ones because their manufacturing and managing activities impact on the environment, but TNCs are playing a more crucial role in their host countries’ sustainable development because of their massive sizes and powerful strength. They can cast the governments aside and have the power to move all or part of their business overseas.They should not treat the host countries as their pollution pouring zones and profit from overseas weak environment.
A transnational corporation differs from a traditional multinational corporation in that
After analyzing the forestry problem described earlier, the problems are clearly linked domestic government policy and not only the giant multinational corporations as Ellwood has posited. The incentive for corporations to conduct cross-border trade is not the unperturbed environmental laws, it is the comparative advantage they would gain from cheap labor and resources. LeGrain advances the argument that approximately 80% of polluting industries are in industrial nations, such as America where Greenpeace affirms that oil corporations receive billions of dollars in subsidies for their production purposes which does the most environmental damage that affects the rest of the world with it. Initiatives should be started to reduce the Global South’s dependency on the Global North because it is their high debt-GDP ratios which keep the prices of natural resources (often tied to their currency) low enabling large consumption. There is a clear incentive for the international community to reduce the Global South’s dependency because it is widely agreed that as the GDP per capita of a nation increases the residents are able to afford environmental remediation products and
Firms have responsibilities to society at large by not harming the environment (polluting the air or water); producing safe products and providing a safe work environment for it’s employees and the surrounding residents.
Aside from the political and legal measures taken in this matter, I feel companies need to undertake voluntary measures to address the climate change. As residents of earth, it is essential to be aware of the impacts ones’ company is generating. A company should measure their greenhouse gas emission and assess the impacts of these gases from their products. Companies should also try to
Moreover, Canada should know their environmental responsibilities as companies need space for land and lots of water for dumping waste. This increases risks for injuries to occur as employees enter harsh environments. Workers end up exposed to coal dust and silica for long periods which causes serious health problems. In areas of mining companies exists pollution at an increased rate that makes the soil and water enriched with heavy metals and livestock. Globally, businesses corporate social responsibilities that are essential as they consist of four strategies: the shareholder strategy, the alustric strategy, the reciprocal strategy, and the citizen strategy. The shareholder strategy is where the corporate social responsibility is looking for an overall profit and the same to reach threshold. Secondly, the alustric strategy is where the company declares themselves unaccountable for society and allows for responsibility to fall towards the person leading the firm - the manager. Next, the reciprocal strategy has an individual who looks for the flaws in both economic and social perspectives. Lastly, the citizen strategy is where there is a business analysis that includes individuals who have different expectations and interests for continuing the company’s goals. NGOs also pressure companies to fix remedies to help the victims of the violations.
Corporations care more about profits than the negative effects their production has on the surrounding environment and society. These corporations continue to operate in third world countries where there is less government oversite and environmental protection regulations. The pollution that these corporations as well as consumers cause contributes to global warming and climate change. From coal burning power plants, burning
There are so many ways to evaluate the role of TNCs, and how they shape and contribute to the economy. Before all this one must understand what globalization is and why it is very important to TNCs. Globalization is simply the integration of culture, trade, natural resources and factors of production between nations. But, economic globalization refers to increasing economic interdependence of national economies across the world through a rapid increase in cross-border movement of goods, services, technology and capital (Shangquan, 2000). The main key players are transnational corporations (TNC) sometimes known as multinational corporations (MNC).TNC’s are firms that have attained the power needed to co-ordinate and operate across the boundaries of many nations. Usually the main purpose of TNCs is to maximize profit and increase their selling market. This is why many TNCs are interested in globalization because without an effective and free trade global economy, many (if not all) will not be able to function and be successful. Some economist feel differently about how TNC’s
According to Article 14 of UN Norms, transnational corporations and other business enterprises are responsible for the environmental and
These big corporations have big plans when they enter a country they are looking to benefit from. They want avoid and worry as less as possible about the local or regional government that protects their people and environment. The WTO allows these companies to enter a foreign country, execute their mission, and leave even if they are contaminating the resources that they are diminishing. If trade were fair many countries would be able to grow their economy with the natural resources their countries have. However, trade policies, which are controlled by WTO, are created crookedly. Ultimately, WTO controls the way trade is conducted through agreements and rules that they have created to protect their own interests. These imposed trade regulations are created with a major bias for rich nations and corporations. Developing poor countries with natural resources are exploited and given an unfair chance to protect their land and people. Under the WTO, subsidies are prohibited, human rights are ignored, environmental protection laws are eliminated, and overall global, regional, and local scales are all affected through these
Environmental regulation entails the change in behavior of relevant actors through the exercise of political power. This process encompasses a balance of power between the regulatory power and the external industry and corporate firms who are being regulated (J. Roberts, p.54, 2011). Government attempts at environmental regulation often directly conflict with corporate interests that are prioritized by conflicted governments despite their activities and practices directly contributing to the problems the environmental regulators are directed to combat (J. Roberts, p.54, 2011). Furthermore, analysis of multinational foreign direct investment (FDI) trends indicates that governments prioritizing policies favorable to the private corporate sector are more likely to receive greater foreign investment and capital from potential investors (N. Jensen, 2006). Subsequently, it is in the interest of political leaders
Even though there have been greatly public concerns about environmental issues since 1960s, practical action as the solution seems to be useless due to the limitation of state and pressure from the corporation. Moreover, the function of international organizations has also faced with difficulties in terms of enforcement and regulation; therefore, there has been wide gap between actors responding to the environmental issues. Environmental NGOs have adequately fulfilled this gap - owned multiple instruments to reach their goals, for example, conducting the environmental-concerned researches, lobbying in both domestic government and global governance and also TNCs, and more importantly raising public awareness and collective action from below (McCormick 2005: 92). Environmental NGOs, ‘agent of change’ works in all both levels; political sphere and civil society (Ford 2011:27). At political level, environmental NGOs act as a pressure group and lobbyist to government and TNCs. Another level is civil society in which environmental NGOs acts in domestic levels - within the nation boundaries, and also in global level, consequently there is part of possibility of global civil society in which people are not limited by nation boundary, but can share common value and perform collective action as a global citizen (McCormick 2005: 93). In doing so, environmental NGOs always politicize the issues by shaping global
According to Merriam-Webster dictionary, sustainability is defined as “of, relating to, or being a method of harvesting or using a resource so that the resource is not depleted or permanently damaged” (Merriam-Webster, 2017). The Federal Government regulates the specific use and protection of natural resources through the Environmental Protection Agency (henceforth, EPA). In 1962 Rachel Carson published a book called “Silent Spring” which popularized the idea of environmental protection (EPA History, 2017). The momentum for protection of the environment grew until, in 1970, President Richard Nixon established the EPA (EPA History, 2017). The EPA bases their sustainability efforts on the idea that, “everything that we need for our survival and well-being depends, either directly or indirectly, on our natural environment. To pursue sustainability is to create and maintain the conditions under which humans and nature can exist in productive harmony to support present and future generations.” (Learn About Sustainability, 2016). The stated mission of the EPA is to ensure Americans are protected from health and environmental risks, national policies are based on available scientific data, environmental laws are enforced fairly, environmental protection is a consideration during the creation of United States foreign and domestic policies, environmental information provided to Americans is accurate, and ensuring that the United States is a world leader in environmental
Environmental conservation is the practice of managing the environment. Naturally the environment is a self-sustaining entity but, due to harmful intervention from man starting largely in the eighteenth and nineteenth centuries this frail entity has suffered. In response many changes have been enacted in attempt to preserve the environment. Many progressive conservation policies, clubs, organizations and parks were formed in attempt to counteract the near permanent destruction to the environment caused by American urbanization, industrialization, and western expansion. Through the work of conservationists throughout two conservation movements the environmental mistakes of the eighteenth and nineteenth century were overcome. The effects their work would shape the country both politically and socially throughout the twentieth century.
Current legal mechanisms of accountability fail to account for the fluid nature and power of influence that transnational corporations possess. Transnational Corporations are not static in nature and have tremendous economic and political influence over government policies. These factors result in a lack of due diligence for transnational corporations to uphold human rights. TNCs are economic and legal entities. In theory, TNCs are subject to the law of a country, to the jurisdiction of its courts, but often this is abandoned by the government of countries. TNCs have tremendous influence
A significant case of corporation vs. country was the case between El Salvador and Pacific Rim mining company. In 2009 Pacific Rim agreed to terms with El Salvador to mine certain parts of the land in an eco-friendly. In the following years over 90% of El Salvador’s water
Good company citizenship goes beyond simply meeting the letter of the law. A socially responsible company should be aware of the effects its decision-making has on the community around it. This is illustrated in part “A” of the unanimously adopted policies of the Economic and Social Commission for Asia and the Pacific (ESCAP) Virtual Conference, the Regional Expert Group Meeting on Integrated Environmental Considerations into Economic Policy Making Processes, Bangkok, 20-24 July 1998.