Page no.

INDEX
Page no. 1 Cover page
Page no. 2 Index Page
Page no. 3 Introduction
Page no. 3 What is MNC.?
Page no. 3 why company go abroad.?
Page no. 4 Top 10 MNC’s
Page no. 5 Criticism of MNC’s
Page no. 6 Graphs
Page no. 7 Criticism Points & garph
Page no. 8 Support Evidence
Page no. 9 H.C.R. in Nike
Page no. 10 Disagreement with Corporations
Page no. 11,12 &13 Defends of MNC’s
Page no.14 & 15 Bibliography and Links.
END.
 Page no. 3

INTRODUCTION:

Criticism and Defends of MNC’s

What is MNC !: MNC(Multinational Corporation/Companies or MNE(Multinational

enterprise) or TNC(Transnational Companies). Such companies have offices and/or factories
in different countries. They usually have a centralised head office where they coordinate
global management.
“A corporation that has its facilities and other assets in at least one other foreign country.”
or
“MNC Company is the company where the company produces the goods in
any where of the world and sells the goods in any where of the world.”

e.g. Nike, Coka-Cola, Wal-Mart Honda etc.

Why Compaines go Abroad:

• Companies go abroad for two main reasons:

• For Market Seeking

• For Resource Seeking

• Lately, companies are also venturing into other markets for

Knowledge Seeking
Page no.4

Top Ten MNCs by Market Values:

Rank Companies Market values

(in billion $)
1 Microsoft 264

2 GE 259

3 Exxon Mobil 241

4 Wal-Mart 234

5 Pfizer 195

6 Citigroup 184

7 Johnson & Johnson 170

8 Royal Dutch/Shell 149

9 BP 144

10 IBM 139
Page no.5

MN
Criticism of MNC’s:
• MNC’s are not provided much salary to their employees as they deserve.

• MNC’s are affecting the economy of the countries. They taking our money to their
country.

• MNC’s just wanted to increase the sale of their products, they are not considering
about the effect of that product.

(E.g. china made toys which are not healthy or the children’s, China use harmful chemicals
to produce them. E.g. Production of cigarettes by Wills, they are not considered about the
hoi-polloi they mention on the packet of cigarettes that “ Cigarettes are injurious to health”
but on the other hand they spend huge money on the selling/promotion of the cigarettes )
Page no.6

CRITICISM SHOWS ON THE BASES OF GRAPH:

E.g.

Workers Pay vs. Productivity:

Workers Pay: Ratio of Top 10% vs. Lower 10% :

RatioofWorkers' Pay
5
4.5
4
3.5
Ratio

3
2.5
2
1.5
1
0.5
0
y
a

n
a

d
n
li

e
d

.
ly
n

S
a

.K
a

d
a

la

la

a
rm

U
tr

e
n

U
It
in

e
s

w
a

e
u

Ir
F
C

S
G
A

mid-80s mid-90s
Page no. 7

GD
Few more points of Criticisms Towards MNCs

• A threat to national sovereignty and democratic accountability

• Accused of neutralizing anything that stands in the way of profits

• MNCs accentuate social inequalities

• MNCs destroy jobs

3000
2500
Page no. 8
*Support evidence
Evidence supporting this belief includes invasive advertising (such as billboards,
television ads, adware, spam, telemarketing, child-targeted advertising, guerilla
marketing), massive corporate campaign contributions in democratic elections,
interference in the policies of sovereign nation states (see, for example, Ken
Saro-Wiwa), and endless global news stories about corporate corruption (Martha
Stewart and Enron, for example). Anti-corporate protesters suggest that
corporations answer only to shareholders, giving human rights and other issues
almost no consideration.
In practice, the management of a limited company do have primary responsibility
to their shareholders, since any philanthropic activities that do not directly serve
the business could be seen as a breach of trust. This sort of financial
responsibility means multi-national corporations tend to pursue strategies which
intensify labour, and attempt to reduce costs. For example, corporations will
(either directly, or through subcontractors) attempt to find low wage economies
with laws which are conveniently lenient on human rights, the environment, trade
union organization and so on (see, for example, Nike, Inc.).

Additionally, corporations, in the ongoing pursuit of material production and

devotion to material ends, neglect the soul of humankind, intentionally forcing not
only Americans, but the rest of the world to abandon their religious convictions
and their religious practices, so that they live not as "one nation under God" but
as "one nation under corporations."

Page no 9
Source: http://en.wikipedia.org/wiki/Nike,_Inc.

Human rights concerns (H.R.C.) in NIKE:

Nike has been criticized for contracting with factories in countries such as China, Vietnam,
Indonesia and Mexico. Vietnam Labour Watch, an activist group, has documented that
factories contracted by Nike have violated minimum wage and overtime laws in Vietnam as
late as 1996, although Nike claims that this practice has been halted. The company has
been subject to much critical coverage of the often poor working conditions and exploitation
of cheap overseas labor employed in the free trade zones where their goods are typically
manufactured. Sources of this criticism include Naomi Klein's book No Logo and Michael
Moore's documentaries.
Nike has been criticized about ads which referred to empowering women in the U.S. while
engaging in practices in East Asian factories which some felt disempowered women.[24]
During the 1990s, Nike faced criticism for use of child labor in Cambodia and Pakistan in
factories it contracted to manufacture soccer balls. Although Nike took action to curb or at

least reduce the practice of child labor, they continue to contract their production to
companies that operate in areas where inadequate regulation and monitoring make it hard to
ensure that child labor is not being used.[25]

In 2001 a BBC documentary uncovered occurrences of child labor and poor working
conditions in a Cambodian factory used by Nike.[26] In the documentary, six girls were
focused on, all of whom worked seven days a week, often 16 hours a day.

A July 2008 investigation by Australian Channel 7 News found a large number of cases
involving forced labour in one of the biggest Nike apparel factories. The factory located in
Malaysia was filmed by an undercover crew who found instances of squalid living conditions
and forced labour. Nike have since stated that they will take corrective action to ensure the
continued abuse does not occur.[28]

Page no 10
People who object to corporate culture are forced into the corporate "system", given a
number, an address, tracked by computers, so that they can be used as perfect corporate
consumers, thus making corporations and their CEO's wealthy, in complete control over the
means of survival of everyone, and so powerful they can never be challenged.

The message from corporate America is clear: Hold a corporate job, buy our corporate
products, be an obedient corporate American, or be destroyed. In this corporate imperialism,
no other way of life or culture is allowed to exist, or it is allowed to exist only "under" the
corporations. It can never be the dominant power structure, even in its own country.

Disagreements with corporations

• Activists argue that corporate globalization corresponds to a
displacement in the transition from a highly industrial-based
economy to one where trade development is connected with the
financial deregulation on the basis of circulation of capital.
Globalization has changed the world’s awareness of time and
space, but also increased the pressure of the market system
throughout all reaches of the globe.
• An increasing number of diverse societies have been pushed into a
market structure, leading to displacement. As this expansion has
occurred, market-governed regulation has outrun the grasps of the
state. The government cannot control the markets, widening
inequalities have developed, new forms of sophisticated
violence have been created, and the corporations have gained
strength. People have begun to reject capitalism and the
corporate globalization, pushing more for a different
globalization that does not practice the same inequality views.

Page 11
 DEFENDES OF MNC’s

The defenders of corporations would argue that governments do legislate

in ways that restrict the actions of corporations and that lawbreaking
companies and executives are routinely caught and punished. In
addition from the perspective of business ethics it might be argued
that chief executives are not inherently more evil than anyone else and
so are no more likely to attempt unethical or illegal activity than the
general population. Nonetheless, the structures of bureaucracy and the
financial imperatives of capitalism seem to result in forms of
behaviour which are often damaging for local communities, employees
and the environment.

Despite the criticisms against the MNCs, we need to

remember that:
• MNCs are engines of growth.
• MNCs are social institutions.
• In addition to being profit agents, MNCs can also be good
corporate citizens.
Therefore, MNC should not be destroyed, but rather channeled and
harnessed for the benefit of the global human society.

Page no 12
Consider some of the facts: “As Jagdish Bhagwati, the eminent
Columbia University economist and author of In Defence of
Globalisation,
• Argues, a raft of empirical studies has been conducted in Bangladesh,
Mexico, Shanghai, Indonesia, Vietnam and elsewhere, and the findings are
straightforward. Multinationals tend to pay well above the going rate in the
areas in which they are located.
• In the case of US multinationals, pay is 40 per cent to 100 per cent above
local wages. No wonder locals queue up to get a job whenever a
multinational opens its doors in a poor country: wages that may look
miserable to us allow their recipients in Burma or Bangladesh to live in
relative comfort.”

He cites Vietnam as a case in point.

“Workers fortunate enough to work for multinationals there enjoy a standard of

living that is twice as high as that of the rest of the population.

• The average wage-earner in Vietnam earned US23c an hour, but workers in

foreign-owned businesses fared far better, making an average of US42c an
hour. When Glewwe conducted his work, 15 per cent of Vietnamese were
classified as very poor and 37 per cent as poor.
• But nobody working for multinationals was classified as very poor and only
about 8 per cent were poor, proving that working for a foreign company is
the best way to escape poverty and deprivation. Foreign employers drive
wealth creation, pushing up everybody’s wages.”

Page no 13

Women seem to also benefit from MNCs:

 • “The presence of multinationals in Vietnam also disproportionately benefits
women and the young, two groups that are usually marginalised in poor
countries. Two-thirds of workers in foreign-owned businesses in Vietnam
are women, and nearly two-thirds are in their 20s, confirming that
globalisation is driving social change and female emancipation.”

• The United Nations will continue to encourage "development" based on

responsible multinational companies, as will most rich countries'
development agencies, whose strategic planning includes the importance of
multinationals for the "development of the countries in the Global.

CultureWatch
By Bill Muehlenberg’s commentary on issues of the day…

Also In Defence of Multinationals:

• Multinational Corporations (MNC’s) often get a bad rap, and they are usually
seen as a source of exploitation and oppression. This mindset goes back at
least to Lenin. Following Marx, Lenin argued that capitalism is inherently
imperialistic, and one country becomes enriched only by the
impoverishment of another. The West is wealthy, he argued, because it
bleeds dry the Third World.
Reference: http://www.billmuehlenberg.com/2006/12/19/in-defence-of-multinationals/

Page no. 14

BIBLIOGRAPHY & LINKS

Major web-site and topics taken as references are the following;
• Anti-consumerism
• Anti-globalization
• CounterCorp Film Festival
• McLibel case
• Multinational Monitor
• Sweatshops
• Ralph Nader
• Union Organizer
• When Corporations Rule the World
• Corporation
• Criticisms of corporations

Other References
This article includes a list of references
The Corporation Bakan, J (2004) The Corporation.
• Political Actions by Billy Knows
• Hertz, N (2002) Silent Takeover: Global Capitalism and the Death of Democracy, Arrow.
• Klein, Naomi (2000). No Logo. Vintage Canada. ISBN 0-676-97282-9.
• Monbiot, G (2001) Captive State: The Corporate Takeover of Britain, Pan.

1. ^ Abeles, Marc (2006). "Globalization, Power, and Survival: an Athropological Perspective".

Anthropological Quarterly (Institute for Ethnographic Research) 79 (3): 484–486.
2. ^ Delacampagne, Christian (2006). "The Politics of Derrida: Revisiting the Past". MLN (Johns
Hopkins University Press) 121 (4): 869.
3. ^ The Corporation
4. ^ Political Actions by Billy Knows
5. ^ Zetter, Kim (2008-06-13), "The Secret Seven", Condé Nast Publications,
http://www.portfolio.com/news-markets/national-news/portfolio/2008/06/13/Anti-Corporate-Websites,
retrieved 2008-09-03

Page no.15
 6. ^ Zetter, Kim (2008-06-13), "Dotcom Confidential", Condé Nast Publications,
http://www.portfolio.com/news-markets/national-news/portfolio/2008/06/13/Dotcom-Confidential,
retrieved 2008-09-03
7. ^ a b c d e f g h Juris, Jeffrey S.. "The New Digital Media and Activist Networking". The Annals of the
American Academy of Political and Social Science (Sage Publications, Inc.) 599: 191–199.

External links
1. Farewell to the End of History: Organization and Vision in Anti-Corporate Movements by Naomi
Klein, Socialist Register, 2002
2. Retrieved from "http://en.wikipedia.org/wiki/Anti-corporate_activism"
Categories: Anti-corporate activism | Corporations law | Corporate crime

This is the theme of a new article by Allister Heath penned in the Spectator.
http://www.theaustralian.news.com.au/story/0,20867,20948144-7583,00.html

Thursday, February 5, 2009

Global Compact 2.0: multinationals to the rescue!
By Albert Sales i Campos*, translation by Tamara Slowik.

(1) http://www.asiafloorwage.org/
(2) http://www.cleanclothes.org/appeals.htm
(3) For a thorough analysis of the deficiencies of social audits in the textile sector, we recommend the report Looking
for a quick fix, available at www.cleanclothes.org/publications/quick_fix.htm
(4) Many workers in the apparel industry in recently industrialized countries have been driven out from rural areas by
agro export policies driven by rich countries' large corporations and international financial institutions.
(5) Those interested in the impact of Spanish multinationals' activities may find contrasted information and documents
in the following websites: http://collectiurets.wordpress.com/, http://www.noetmengiselmon.org/,
http://repsolmata.ourproject.org/, http://supermercatsnogracies.wordpress.com/, http://www.unionpenosa.org/,
http://www.turismo-responsable.org/,

* Albert Sales i Campos is an associate professor at the Department of Political and Social Sciences of Universitat
Pompeu Fabra in Barcelona. He is also an activist of the Clean Clothes Campaign.

© Illustration by Miguel Brieva.

Posted by Bart at 9:28 PM
Labels: UN Secretary-General

THANK YOU

By: VIKRANT KUMAR