MNCs And ETHICAL ISSUES

By Nikheel Sutraawe Noel Abhishek Pankaj kumar tomar Section A

Definition Multinational corporation (MNC) is a enterprise that manages production or delivers services in more than one country can also be referred to as an international corporation.

Reasons for Companies being Global Reduced sourcing and distribution costs. Lower wage rates

Opportunity to be closer to the suppliers. Saturation of Local markets. To maintain growth rate.

MNC In India MNC in towards: India are attracted

Indias large market potential India presents a remarkable business opportunity by virtue of its sheer size and growth Labor competiveness FDI attractiveness

MNC In India(Contd) Indias vast population is increasing its purchasing power

India is also emerging as the manufacturing and sourcing location of choice for various industries

Trends Of MNCs In INDIA(Contd..) A host of automobile companies like Fiat, Ford Motors, Piaggio etc from Italy have opened shop in India. South Korean electronics giants Samsung and LG Electronics and small and mid-segment car major Hyundai Motors are doing excellent business and using India as a hub for global delivery.

MNCs In India MNC in India represent a diversified portfolio of companies representing different nations.

The Indian MNCs Paints Asian Paints Auto & Components Tata Motors, Bharat Forge Chemicals Tata Chemicals, United Phosphorus Metals Sterlite Industries, TISCO Packaging Essel Pharmaceuticals Ranbaxy, Wockhardt, Sun, DRL Oil & Gas ONGC

Ethical issues in MNCs Technology Sales Marketing and advertisements Environmental issues Political Activities

Technology issues Most MNCs do not develop technologies that are relevant to the needs of host nations. Not engaging in Research and Development in Host countries. Not giving local employees access to information about key technologies. Dumping old or outdated technologies to earn revenues.

Sales & Marketing issues Their advertising and marketing methods sometimes undermine ancient cultures and traditions. MNCs do not always accept responsibility for unsafe products. Environmental degradation. Some of the marketing practices promote goods that waste valuable resources in poorer nations.

Some MNCs engage in misleading and deceitful advertising in Tird World Countries.

Environmental issues Depleting natural issues. Polluting the environment (Bhopal gas tragedy and Shell Oil spill) Causing harmful changes in local living conditions. Not paying compensation for environmental damage.

Political Issues Paying bribes to secure political influence. Paying protection money to terrorist groups Not respecting Human rights. Destabilizing national governments of which they do not approve.

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