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social responsibilities of multinational corporations - Essay Example
Pages 7 (1757 words)
[Instructor Name] Social Responsibilities of Multinational Corporations A multinational corporation or MNC is an enterprise which exists in more than one country with registration and it also operates in many countries. It is usually large in size and does production and selling of goods and services in many countries…
Over the years, MNCs have been criticized for various reasons despite their many advantages. It is believed that they pay less regard to human rights and the environment. Criticisms also include the fact that MNCs have resulted in huge conglomerates in different countries, which overall reduces competition and violates the concept of free market economy. They are believed to raise money in the host countries of the MNC and then ship the profits back to that country, but at the same time using the other country’s labor, resources, cultures etc. In short, MNCs are believed to exploit human beings from all over the world apart from the host country. However MNCs also have certain advantages both for the host and the home country. The standard of living of the countries will increase regardless because investment and employment increase and people have greater purchasing power parity. The host country usually gets free flow of information and technology through this institution as well as expertise which may not be available in their own country. Domestic business also gets greater competition and business due to functioning of MNCs. Those who support MNCs believe it doesn’t reduce competitiveness but actually increases it, due to the breaking of local monopolies. ...
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