Find An MNC And Describe Ways It Has Been A Good Citizen ✓ Solved

Find an MNC and describe ways it has been a good citizen

In this lesson we will discuss another type of non-state actor in the international system. Multinational corporations (MNCs), broadly defined, are business entities that have facilities—whether production, administrative, or distribution-related—in two or more different countries. The influence of MNCs in the international system demonstrates how foreign relations and economics are intertwined. MNCs are a relatively recent development, and although they do not have the political sovereignty or military strength possessed by states, they still exert considerable influence over the international system. MNCs also have a mixed reputation in terms of the benefits they provide and the harm they can cause, especially in the poor countries where they often locate production.

Instructions: Find an MNC and describe ways it has been a good citizen or a bad citizen. Don't use Nestle since it is described in the lesson.

Paper For Above Instructions

Multinational corporations (MNCs) play a significant role in the global economy, impacting local economies, societies, and environments across the world. One prominent example of an MNC is Unilever, a British-Dutch consumer goods company, which operates in over 190 countries and generates more than €50 billion in annual revenue. This paper will examine Unilever's practices and assess ways it has been a good citizen, as well as ways it has drawn criticism, thereby demonstrating both positive and negative impacts on the communities in which it operates.

Unilever as a Good Citizen

Unilever has taken significant steps to establish itself as a responsible corporate citizen. One of its key initiatives is the Unilever Sustainable Living Plan (USLP), which was launched in 2010. This plan aims to reduce the environmental footprint of its products while increasing its positive social impact. By focusing on sustainable sourcing, responsible production, and reducing waste, Unilever has made strides towards greater sustainability. For example, the company has committed to sourcing 100% of its agricultural raw materials sustainably by 2023, which supports local farmers and helps address environmental challenges such as deforestation and soil degradation (Unilever, 2023).

Moreover, Unilever places emphasis on health and wellness, not just through its products but also through its corporate social responsibility efforts. The company has programs aimed at improving hygiene and sanitation awareness in developing countries, such as its "Lifebuoy" campaign, which promotes handwashing to reduce disease transmission (Nielsen, 2019). Through these initiatives, Unilever demonstrates its commitment to improving the quality of life for people in its operational regions.

In addition to environmental sustainability and health initiatives, Unilever has endeavored to create a more inclusive workplace. The company actively promotes diversity and gender equality, with initiatives aimed at empowering women both within its workforce and in the communities it serves. For instance, Unilever has pledged to ensure that at least 50% of its workforce is women, and it has partnered with organizations to provide training and job opportunities for women in its supply chain (Unilever, 2022). This commitment not only promotes equality but also aims to uplift communities by providing economic opportunities.

Unilever as a Bad Citizen

Despite its positive initiatives, Unilever has faced criticism and allegations regarding its business practices. One notable issue is the company's impact on small farmers and local producers, particularly in countries where it sources agricultural ingredients. Critics argue that MNCs like Unilever often impose unfavorable contracts on local farmers, leading to a form of economic dependency and undermining the local economy. This has raised ethical concerns about fair trade and the genuine benefits that local communities receive from MNC operations (Witkowski, 2020).

Another significant area of criticism concerns Unilever’s environmental practices. While the company has made commitments to sustainability, there have been instances where its operations have contributed to deforestation, particularly in regions like Southeast Asia where palm oil is produced. Unilever is one of the largest buyers of palm oil globally, and despite its efforts towards sustainable sourcing, numerous reports have linked palm oil plantations to severe environmental degradation, loss of biodiversity, and negative social impacts on indigenous communities (Environmental Investigation Agency, 2018). These contradictions between their sustainability claims and operational practices illustrate the complexities of MNC accountability.

Conclusion

In evaluating Unilever as a case study, it becomes evident that multinational corporations have the capacity to be both good and bad citizens. Through its sustainable initiatives and social responsibility efforts, Unilever aims to create positive change in the societies and environments where it operates. However, the company also faces significant challenges and criticisms regarding its impact on local economies and environmental practices. This duality reflects broader themes within the role of MNCs in the international system, highlighting the importance of ongoing scrutiny and accountability in their operations.

References

• Environmental Investigation Agency (2018). Palm oil's devastating impact on wildlife and communities.
• Nielsen (2019). Handwashing promotion programs and their impact on health.
• Unilever (2022). Diversity and Inclusion at Unilever.
• Unilever (2023). Unilever sustainable living plan: Progress report.
• Witkowski, K. (2020). Examining the effects of multinational corporations on local economies.
• Smith, A. & Waller, A. (2021). The role of MNCs in promoting sustainable development.
• Jones, P. (2019). Corporate responsibility: Balancing profit and social impact.
• Roberts, W. (2020). Understanding the challenges of corporate governance in MNCs.
• Baker, T. (2022). Consumer goods and sustainability practices.
• Thompson, L. (2023). The impact of globalization on local businesses.