The Responsibilities Of Multinational Corporations ( Mncs )

1971 Words Aug 29th, 2014 8 Pages
One of the main objectives of any business organization includes making profits and enhancing the economic growth (Davis, 2012). Most businesses aim at discharging their economic and legal responsibilities. It is because for a business to continue as going concern, the business have to obey the law and be profitable. However, being ethically and philanthropically responsible can also affect the businesses apart from economic and legal factors.
The responsibilities of multinational corporations (MNCs), instead of small or medium size corporations, will be the main focus of this paper. It is assumed that the MNCs currently have no difficulties in discharging their economic and legal responsibilities. Thus, the MNCs are in a better position to take a step further to discharge other responsibilities like ethical and philanthropic, while those small size businesses may still struggling in meeting the economic and legal responsibilities. As Heal (2004) suggests that MNCs are in a good position to minimize the difference between private and social cost. He argues that MNCs can distribute wealth from well-developed countries to poor-developed countries by paying reasonable wages to workers in poor countries. Also, MNCs have more resources than small businesses. So, MNCs can reduce or compensate for their environmental impacts without affecting their abilities to discharge their economic responsibilities. Therefore, this paper seeks to provide a critical evaluation on whether modern…
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