Impact of MNCs
A company that operates in multiple countries and runs production or offices overseas.
What is a multinational corporation (MNC)?290
Principles guiding a business in deciding what is right and wrong.
What are business ethics?297
When a company’s size and revenue allow it to exert influence greater than some national governments.
What is the power of MNCs?307
You ain’t nothin’ but a hound dog…”
What is: Cryin’ all the time.
When an MNC creates jobs in a host country, it provides employment opportunities but may also reduce these through low-wage competition.
What is the impact on local labour??290
When achieving high profits conflicts with demands for fair wages, safe conditions, and job security, this situation occurs.
What are stakeholder conflicts?298
Governments may restrict or encourage MNC behaviour through tariffs, taxes, regulations, or sanctions.
What is political and legal control?307
“Hey Jude, don’t make it bad…”
Take a sad song and make it better.
what is reverse engineering? 295
Ensuring production avoids forced labour, underpayment, and unsafe conditions is part of ethical responsibility in this business chain.
What is the supply chain?301
When consumers refuse to buy from a company due to unethical behaviour, they are participating in this.
What is a boycott?311
You can dance, you can jive…”
Having the time of your life.
the return of the profit made by an MNC to the country where the MNC is bases
What is repatriated profit?295
When businesses mislead customers by exaggerating product benefits, they are engaging in this unethical marketing action.
What is misleading product labelling?303
Organisations like Greenpeace or Friends of the Earth that campaign to pressure MNCs into behaving ethically.
What are pressure groups?311
“Don’t stop believin’…”
Hold on to that feelin’.
the transfer of knowledge, backwards or forwards, along the chain of production in the same industry
What is vertical transfer?295
Managing emissions, waste disposal and protecting resources for the future are ethical responsibilities relating to this concept.
What is (environmental) sustainability?300
When MNCs create their own internal ethical codes and sustainability policies without being forced by law.
What is self-regulation?312
“If you wanna be my lover…”
You gotta get with my friends.