The Positive Implication Of Multinational Corporations

This recent reality, combined with globalization, is forcing companies to forge new kinds of relationships with buyers and countries. The financial valuation of companies are taking ever greater account of intangible elements, such as brands, patents and the company’s general image, with companies being bound to take account of these things in an effort to satisfy their shareholders. Environmental protection has become a highly motivating factor, and companies are being pressed to identify stakeholders with whom to team up. With brand value and reputation increasingly being seen as one of a company’s most valuable assets, CSR is now seen as building loyalty and trust amongst shareholders, employees and customers ( Tssa, (n.d.)).

Foreign subsidiaries need to start with a well-planned and defined strategic plan if they are to succeed with their Corporate Social Responsibility (CSR) programs, taking into account value creation, risk management and corporate philanthropy as part of their strategic vision for the programs. These three elements are essential for creating a solid foundation to define CSR-based initiative, strategies and programs on. The most effective CSR programs implemented by foreign subsidiaries in the United States often include International Standards Organization (ISO) 26000 compliance, in addition to the creation and continual development of ethics self-monitoring systems (Turker, 2009). In addition to these factors, foreign subsidiaries whose CSR programs are designed to provide continual updates on the progress being made on key social programs and initiatives often are more effective than those that withhold information or only share it sporadically (Turker, 2009). Being authentic and transparent is critically important in creating an effective CSR program within a foreign nation as the differences in culture, perception, attitudes and beliefs must be taken into account (Deresky, 2011). Being attuned to cultural variations from their native nation to the

Furthermore, Walmart isn’t alone in its international influence and there are several other companies that have resources greater than many countries and there is little evidence that might suggest that this is a fleeting position in global affairs. Thus, given the influence of the corporate form in the modern international economic system, one of the most interesting ethical developments is the establishment of the discipline of corporate social responsibility (CSR). This analysis will consider how the CSR model fits with a broader global effort to

One of MAB’s greatest competitive advantages is its CSR strategy. This can be explained and has been shownthrough existing literature. First, research shows that a CSR strategy is linked to improved image and reputation. It has also been shown that consumers are more likely to switch to products that are associated with a good cause. Furthermore, being a good corporate citizen encourages consumers to become brand ambassadors and engage in supportof the bsuiness, such as word-of-mouth marketing. Other advantages that MAB may gain from its CSR strategy include becoming an attractive workplace and investment as a result of strong stakeholder relationships. By implementing a CSR strategy, the company is protecting its reputation and building brand

How Multinational Corporations Can Better Impact Social Causes, Mitigate Community Emergencies and How the Right Response to Each Adds Multi-Bottom Line Value in Finance, Culture and Brand

Multinational companies (MNC) is an international or transnational company headquartered in one country but branches in many developed and developing countries. Examples include General Motors, Coca-Cola, Firestone, Philips, Volkswagen, British Petroleum, Exxon, and ITT. A company will be based on the advantages of multinational companies to establish production and other activities in foreign locations. Companies globalize their activities both to supply the domestic market in their states, and to serve foreign markets directly. Keeping foreign activities within the corporate structure allows the companies to avoid the costs inherent by intermediaries, with a separate entity while utilizing the knowledge of their own

Multinational Corporations (MNCs) have been giving attention on not only their return on investment (Kraus & Brtitzelmaier, 2012) but also social issues, which have been threatening the environment as a result of their operational activities (Choi, Lee & Park, 2013). Therefore, MNCs do transform into socially responsible enterprises (Choi, Lee & Park, 2013) or behave in an ethical manner (Kraus & Brtitzelmaier, 2012) as the term called Corporate Social Responsibility (CSR) has appeared. The duties and responsibilities of Board of Directors (BOD) (corporate governance framework) (Stiglbauer & Velte, 2014) in MNCs plays a particularly important role in its transformational process since this process needs to be transparent (Choi, Lee, & Park, 2013). This paper evaluates and examines corporate governance codes, regulatory environment and CSR practices as well as review those codes presenting in the annual report and CSR practices by means of choosing McDonald’s as significant evidence which headquarters and runs its activities in United Kingdom as significant evidence. Some recommendations are provided regarding with its long-term CSR and corporate governance relationships in the final part of this paper.

Globalization is the establishment of economic, political, social, military, scientific or environmental interdependence that span worldwide distances (Steiner). This process has evolved for hundreds of years. However, this trend has rapidly increased over the last century, primarily due the forces of an ever changing society, government, and business environment. Corporations are expanding their business operations all over the world and are evolving into multinational corporations. Companies choose to invest capital for starting, acquiring, or expanding their enterprise to another country predominately for a few factors. Investing capital in a foreign nation can lead to growth. By entering a new market, a new segment of consumers can be reached, leading to new potential customers (Steiner). In addition, corporations can seek efficiencies in a foreign nation. With different resources located all around the world, as well as, generally less strict regulations on business in developing countries, multinational corporations can take advantage of cheaper labor, economies of scale, and other resourcing efficiencies to reduce their overall costs (Steiner).

Multinational corporations have operations in multiple countries which in turn brings together many cultures. Saying a multinational corporation has no moral or social responsibility to engage in corporate social responsibility (CSR) programs goes against what a company should strive to be. In recent years, firms have undertaken corporate social responsibility programs due to pressure from their stakeholders as well as their shareholders (McWilliams & Siegel, 2000). If a company does not believe they have to be morally and socially responsible, that company will not be around long.

With the spread of social marketing and CSR in the world, organizations tend to not only consider the consumers’ demands and the companies’ profit, but also take the consumers’ and societies’ long-term benefit into account. Hildebrand,D,et,al (2011) demonstrated that the CSR activities can make up the central, special and core characteristics of the company identity, the identification of the corporate can also be aroused due to CSR activities. Moreover, Porter and Kramer (2006) highlighted that CSR can aid companies create the ability to achieve corporate resource so as to build a sustainable and defensible competitive position. So the companies should consciously undertake corporate social responsibility.

Multinational corporations are companies that that has at least one facility in another country than its home country. A good example of a multinational corporation is Nestle, Bacardi, Proctor & Gamble and Intel. These companies have offices and/or factories in other countries where they coordinate global management. While having facilities in other countries is a great way to cut costs and to create jobs in other countries, there are some disadvantages that should be taken into account regarding this practice as well.

One notable example of an organization that adopts significant CSR initiatives from a developed country is Starbucks which is an American multinational corporation. On the other hand, a considerable example of a company with significant CSR from a developing country is China Mobile which is still in its global expansion stage. The China mobile company is a Chinese multinational corporation. The two different companies offer an effective platform for comparing the CSR understanding and initiatives of different organizations from the developed world and from developing countries. What makes the examples even more effective is the fact that the two companies are different stages of development in the global business environment. This makes it

The increasing significance of MNCs in 1950s transformed them to the dominant phenomenon in the international economic relations since then. It has triggered a strong interest among the scholars, media, and society. The surrounding controversy around MNCs has triggered the need and necessity for the analysis due to the fact, that it is described by some scholars and economists as the principal instrument for maximizing world welfare, and by others as the imperialistic agents (United Nations Publication 1973, p.1).

With the changing of world, sustainable development is one of a core conversation of currency, and fulfilling Corporate Social Responsibility is the best way to establish corporation image. By linking CSR and brand, companies have numerous advantages, including strengthening of the company 's brand image or its products and services, which contributes to achievement of good business results, making loyal customers, increasing their satisfaction, retaining good reputation, increasing of demand for products(Dunia, Milica 2014). For instance, CSR is significant for food enterprises particularly, McDonald´s as an example of corporation which is persistent in keeping the fundamental principles of safe, reassuring, quality namely, cleanliness and valuable products and service. The service that

Problem - In today’s society, there is a growing interest in, and demand for Corporate Social Responsibility (CSR). Reasons for this can be multinational corporations’ increasing