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Multinational Companies and Social Responsibilities

MNCsWorld wide operationCreate maximum operationAdvanced technologyHigh efficiency

Impacts of MNCs on Host Countries

ADVANTAGES:Improving the balance of paymentsProviding employmentSource of tax revenueTechnology transfer Increasing choice National reputation

Impacts of MNCs on Host CountriesDISADVANTAGES

Environmental impact

Access to natural resources

Uncertainty

Increased competition

Crowding out

Influence and political pressure

Transfer pricing

Low-skilled employment

Health and safety

Export of Profits

Cultural and social impact

Social Effects of MNCsConflict preventionCrisis managementPost-conflict reconstruction and reconciliation

Modern MNCSEnsure Their Own Survival. Concentrated On Profits.Self Development.Product Oriented.Emphasize More on business than people.

Responsibilities of MNCs.Good citizens in their host countries as well. Establishing better engineering and science relationships in

local communities. Strategic alliances in business and technological

development

Example:R&D cooperation between Japan and the United States and

further with all nations throughout the world should aim to solve global environmental problems such as acid rain, global warming, and preserving the rain forests, as well as developing a cure for AIDS, an epidemic that continues to grow rapidly on a global scale.

Social Responsibility of MNcs

Pro-active and re-active Social Responsibility

Pro-active organization accepts responsibilities positive association with its interaction

Re-activeorganization has breached the legal requirements

responsibility for its behavior

Socially Responsible MNCsAdidas GroupBallard Power Systems Inc.BCE Inc.BMO Bank of MontrealBMWDell Inc.Honda

Adidas Group

Promotes a fair wage-setting mechanism Best practices in transparencyA comprehensive work-life balance program

Dell Inc.

Smarter packaging plan, Banned the export of any e-wasteEmphasizes on recycling products.

Honda

Climate energy, “Intelligent paint booth”.Natural-gas powered Lowest retail price of any hybrid

Need for Social ResponsibilityInterdependence Of The World’s Socioeconomic

Systems,Moral And Ethical BehaviorAn Integration Of The BusinessGeneralized Code Of Morality And Ethics In

Individual Countries,

References:Adidas Canada Official Website. (n.d.).

Retrieved January 20, 2015, from http://www.adidas.ca/

BCE Bell Canada Enterprises: Canada's Top Communication Company. (n.d.). Retrieved January 20, 2015, from http://www.bce.ca/