Sage-Tips

What are the barriers in practicing corporate social responsibility in developing countries?

(2015) identified twelve barriers for CSR: lack of stakeholder awareness, lack of training, lack of information, lack of financial resources, lack of customer awareness, lack of their reputation value, lack of knowledge, lack of regulations and standards, diversity, company culture, lack of social audit, and lack of …

What challenges exist in managing a TNC?

Disadvantages of TNCs locating in a country include:

• fewer workers employed, considering the scale of investment.
• poorer working conditions in some cases.
• damage to the environment by ignoring local laws.
• profits going to companies overseas rather than locals.
• little reinvestment in the local area.

What opportunities and challenges do TNCs bring to the countries in which they are located?

Advantages of TNCs locating in a country include:

• creation of jobs.
• stable income and more reliable than farming.
• improved education and skills.
• investment in infrastructure , eg new roads – helps locals as well as the TNC.
• help to exploit natural resources.
• a better developed economic base for the country.

What are the challenges of corporate governance?

Major corporate governance issues include: Fairness – Stakeholders at all levels should be treated equitably and reasonably. Violations should be redressed effectively. Transparency – the organisation should not need to keep secrets. Outsiders should be able to observe the organisation’s transactions and processes.

What are the pros and cons of transnational corporations?

Although most of their profits do return to the company’s country of origin, the local economy does benefit. Disadvantages: The wages paid to local workers are often low and some companies have been accused of exploiting the local workforce rather than benefiting it.

What is the impact of transnational corporation?

Positive impacts include TNC investment in host countries which can contribute to national economic growth and development through innovation, economies of scale, productivity gains, technology transfer, infrastructure provision, access to markets, and workforce capacity building [21].

What advantages and disadvantages do transnational corporations bring to the host country?

Advantages: They create jobs for the local population. Disadvantages: Often the jobs are highly skilled and so the company brings in their own people to do them. Also, the technological nature of many of these companies means that there aren’t as many jobs as there might have been.

What are the disadvantages of TNCs in India?

Disadvantages of TNCs in India

• some corporation leaders have taken advantage of the relaxed environmental laws in the country by creating lots of pollution.
• the conditions for workers in factories can be very harsh.
• many TNCs are owned by foreign countries so economic leakage occurs, where profit is sent abroad.

What are the challenges faced by multinational companies?

Different Challenges Faced by the Multinational Companies (MNC’s) 1 Market Imperfections. It may seem strange that a corporation has decided to do business in a different country, where it doesn’t know the laws, local 2 Tax Competition. 3 Political Instability. 4 Market Withdrawal. 5 Lobbying.

How do multinational corporations become successful in developing countries?

For the multinational corporation to achieve these two, it will need to create effective production and distribution processes that can handle a global audience, which is quite expensive and can take a long time. For instance, in developing markets like India, China and Brazil, there is a new breed of consumers that need various industrial goods.

How do multinationals deal with stiff competition on the international platform?

This has ensured stiff competition on the international platform, such that many multinationals have been forced to implement counter-effective measures like mergers, acquisitions among other strategies in order to remain in business. Multinational Corporations refer to companies that operate in two or more countries.

What are the challenges of doing business in a different country?

It may seem strange that a corporation has decided to do business in a different country, where it doesn’t know the laws, local customs or business practices of such a country is likely to face some challenges that can reduce the manager’s ability to forecast business conditions.