Trans-National Corporation Case Study

Abstractly, Global corporations have a key role to play in issues ranging from human rights to environmental policies. Specifically, corporations can be most effective in helping the poor by investing in local and global communities on a long-term basis rather than by acting as charities or aid agencies. However, to do so, corporations must restore the public 's trust. They must demonstrate that their presence, particularly in poorer countries and the emerging market economies, is a source of human progress. They must demonstrate that globalisation is not a zero-sum game in which the rich get richer and the poor get poorer. In this regard, those who argue against globalisation are denying 1.5 billion people, who live in absolute poverty, the means of escape. To do nothing is morally unacceptable. The world is watching the corporate sector. This is a moment of great challenge, but also of great opportunity because if corporations can demonstrate that they are agents of progress, they can remove the doubts and renew the trust that is essential for both prosperity and security.

The transnational model was developed to support the needs of large, multinational companies. This model consists of multinational corporations-experienced in international markets with facilities in several foreign countries that simultaneously utilize technological advances, innovation, global learning and efficiency to be successful. These multinational organizations adopt organic structures, similar to the learning organization, that are flexible, unified and coordinated through corporate culture and shared visions and values of its employees (Daft,

Supporters of Transnational Corporations (TNC) say that their operation in “third world” country, also known as a “developing country”, benefits both the home country (where the TNC is based) and the host country (where they operate). TNCs construct facilities, make infrastructure improvements, and employ local people, all activities that should improve the economy of a host nation. Many host nations hope that there will be a multiplier effect from the direct investment by a transnational corporation, known as foreign direct investment, or FDI. That multiplier is expected to ripple across all other sectors of their economy – benefitting everyone.

Transnational Corporations (TNC’s) play a large role in the development of the global economy, through the sharing of research, trade and technological advances between the different countries. They also play a big part in increasing the interconnection in the world’s economic, cultural and political systems, otherwise known as globalisation. Nevertheless there are both positive and negative impacts that TNC’s bring to the global economy, socially, economically, politically and culturally.

I feel that transnational cooperation’s have had a large impact on globalisation. A transnational corporation (Multinational Corporation) TNC is a corporation or enterprise that manages production establishments or delivers services in at least two countries such as Coca Cola and Nike. Very large multinationals have budgets that exceed those of many countries. Multinational corporations can have a powerful influence in international relations and local economies and play an important role in globalisation. I feel that the economy is the most significant motivating force

‘Third World’ nations need the investments of transnational corporations and the jobs they provide, otherwise hundreds will die and millions will be worse off. Sweatshops exploit human beings and that fact must be rectified. The poisoning and abusing (verbally, physically, and sexually) must be stopped. Perhaps it would be unreasonable to expect wages to increase and compensations paid, but the fact still stands that corporations must be held accountable for the abuse of the their workers. It is becoming more and more expected of corporations to turn their tide towards a more morally sound future, with the rise of liberal and educated young adult consumers. It is never denied that sweatshop owners must be reigned in and conditions improved, but there is never a shortage of controversy over how this reformation should be done and to what

Yet as Velasquez (2002) points out, these corporations are faced with many more ethical conundrums than are single-nation corporations. In particular, he notes that multinationals, because of their ability to shift operations, can avoid taxes and other fiscal obligations. Thus they are faced with choices between maximizing the economic basis of their company and helping to meet the local needs of their home and host countries (Zalewski, 2003).

this case does not consider that more harm than good might justifiably be done to the

For several decades, literature has suggested that multinational corporations (MCNs), transnational corporations (TNCs), and or international business companies (IBCs), are among the most powerful and wealthiest organizations in the history of the world (Tirimba & Macharia, 2014; Bouquet & Birkinshaw, 2008; Fuchs, 2007; Cohen, 2007; Stopford, 1998; Meleka, 1985; Hawkins, 1979).

These companies have been responsible for creating job opportunites, boosting the economy and creating a better soucer of living for the citizens of these countries. “The vast numbers of MNCs are located all around the world; they vary widely in size and interest. Their intention is to take a package of capital, technology, managerial know-how, or marketing skills to carry out production or business services abroad. Their effects are far reaching, affecting the daily lifestyle of the average consumer. Partly because of their size, MNCs tend to dominate the sectors in which they specialize. As a result, their transnational business ventures offer much debate about their impact on developing countries; many arguments have been proposed on this subject alone” ( ).

Do multi-national corporations (MNE 's) have a social and ethical responsibility beyond the legal requirements of trying to maximize stockholder value (making profits), adhering to contracts, and obeying the laws of the different countries where they operate?

Many business people and ethicists believe that it is time for businesses to start following human rights. There is however the lack of agreement of human rights laws from transnational corporations. Transnational corporations support human rights by providing jobs with livable wages and show respect for rule of law. However, transnational corporations are also known for violating human rights laws by providing very unsafe working conditions, lower than average pay, have harmful environmental pollution, commit bribery and seem to ignore the laws of the host nation. Non-governmental and transnational organizations have not been very effective in abiding by human rights laws and must begin to follow set human rights laws if they want to receive more support.

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

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.

This report explores the challenges and trepidations faced by firms such as Multi-national companies (MNC), global institutions which involves in product or service transactions among different nations at high level of competition. Specifically the environmental factors that affect the trade and cannot be controlled by the companies in home or host countries are elaborated in detail with supporting real life trade examples. Can’t organisations grow without international business? The answer would be “no”, the business in their home market at the thrones of prolonged stagnation or at crisis seek for new customers and new talents to build their trade. Every business reaches its maturity stage of life cycle and looks for expansion. The best