Role of Multinational Companies in Corporate Social Responsibility

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Table of Contents
MAIN BODY..................................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................4
REFERENCES................................................................................................................................1

MAIN BODY
TASK 1
MNE’s is combination of two word Multi and national which when combined together
means various countries. This type of organization has their assets or facilities in other country
which is also known as parent state. Thus, in simple word it can be state as firm that
manufacture and sell product as well their services in various country. Some of the MNE’s has
large amount of budget which is higher than GDP of small countries. For example: Nokia, MC
Donald’s, Exon and BP. This type of organization usually brings foreign direct investment in the
country for expanding their business base (Barnett, Henriques and Husted, 2020). The
multinational company helps in developing the countries by providing them employment
opportunity to the people that contributes in increasing the GDP rate of their parent company.
However, when Coco Cola started their operation in EI Salvador its supply chain has hired local
farmer as the poverty rate of the country was poor. But the job it provides is of low quality and
due to that many workers received less than minimum wage rate also harvester has faced
physical risk as their work include cutting cane. In addition to this, MNE’s are good for
developing couturier’s economies as it provides jobs and bring capital flow by establishing
building.
The concept of CSR need to be used when the company face issues related to problems that
include economic, technical and legal consideration. Moreover, MNE’s are expected to deal with
the problem which influence the future plant. It need to pay attention to various aspects such as
shortage of water, disease, corruption and education. Company like Coco Cola participate in
environmental and recycling projects as well to utilize alternative resources. Although MNE’s
act in ethical and transparent way in business framework so that it can build positive relation
with the society. Moreover, it necessary for the company to have proper workplace environment
in order to maintain positive relation with other (Gillan, Koch and Starks, 2021). However,
employee satisfaction and moral can be used to improve their work and focus on external and
internal CSR factors. Along with this, CSR scheme represent company attitudes towards society
but some MNE’s fails to implement their activities as they are not involved in community and
their communication is also not proper. However, COCO Cola has initiated Water pollution and
over extraction of groundwater in southern part of India. As the organization was accused of