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The impacts of globalisation on poor countries
impact on poverty of globalization
impact on poverty of globalization
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My Study Circle Leader Session on exploitation of the environment by Multinational Corporations (MNCs) was very successful. During my Study Circle Leader Session, I provided my group with an overview of the topic, which evoked a lot of emotion as many of my peers considered the topic a scary thought to consider. Some thought it was a very interesting topic, especially in regards to there being nothing holding companies accountable for their environmental abuses. Next, the group discussed the outside resource on Shell, a multinational oil company, which unfairly took advantage of the Nigerian environment. Some of the students were in utter shock that Shell was just able to decommission from Nigeria. Company. Some students were confused on how Nigeria could be just fine with Shell just withdrawing. Another student retorted that Nigeria might not care because they have another oil corporation taking over their spot, thus causing a vicious environmental damage circle. There was a consensus among the students that they are not really surprised as history as shown the Africa and many other developing countries have been exploited for ages. One student believed that the environmental damage by MNCs always target smaller …show more content…
These questions were many of the students’ favourite components. The first discussion question was whether or not there was a race to bottom for developing countries to lower their environmental standards in order to attract MNCs. Students consensually believe there is no doubt that there is a race to the bottom, as they believe that the developing countries do not care about their people and are instead focused on money. By having MNCs like Shell come in to Nigeria, the country benefits by gaining money. Some blame the structure of society, as they believe people are very capitalistic since there is such a drive to create
Typically in the business cycle, companies have a tendency to become the most concerned with the sales sector of their industry. These companies look passed the environmental detriment of society for the chance at obtaining an additional dollar. “When money becomes a measure—as well as the means—of all things, the potential for economic and political mischief grows” (Chouin...
In the Macondo blowout case, (Deepwater Horizon Oil Spill), leaders within Transocean and British Petroleum (BP) processed a “by any means necessary” mentality as well. The company cultures promoted doing whatever was possible to enhance profits. This oil leak and explosion, resulted in the loss of 11 lives, destroyed beaches and wetlands, and killed multiple wildlife species. The most telling piece of information throughout this case is that the oil spill and explosion could ...
This relates back to Congo, where violence spurred by ethnic rivalries is due to local groups’ desire to make money by getting into the extractive industries. In another example, Newmont, an American company, mines Ghanaian gold and pays the government part of the profits. Here, Burgis shined the spotlight on an environmental issue: the sodium cyanide spill in Kwamebourkrom that killed aquatic life and posed hazardous living conditions for locals (Burgis, 134). Finally, in the last few chapters, Burgis touched on Cecil John Rhodes’ legacy as the founder of De Beers, blood diamonds, imperialism, and violence carried out by local governments and mining companies in order to protect their interests.
Shell’s decision to pump for oil, although legal and in development for decades, had major negative repercussions on the local environment. Some, such as Norma Bowie, argue that because they were operating legally, Shell’s obligation to protect the environment isn’t very strong. Others, such as Arnold and Bustos, assert consumers/ stakeholders cannot be held responsible for policing the operating companies if the government doesn’t give them that sort of power, and therefore Shell had an obligation to protect the stakeholders (Arnold et al, 2012). The arguments must be weighed by any company that has the potential to augment the environment in which they will be operating. In another industry, chemical companies are regulated well in the U.S. to keep them from contaminating the local water supply, but in countries without these regulations is it ethically responsible of the company not to damage the ecosystems surrounding them, although they are not legally bound to do so. Another major learning point is what the involvement of major companies in politics can do to an economy and its people. Had Shell utilized their power in the region to perhaps mediate between the activists and Nigerian government perhaps the outcome of the trial could have been different. Given the unstable situation, politically and socially in Nigeria, Shell’s decision to work quietly with international leaders “behind the scenes” and offer on their local manager, Brian Anderson, to issue a public statement on the necessity for a “fair trial, medical treatment, and lawyers of their own choosing” (Paine and Moldoveanu, 2009), may have been the best option available at that time and can serve as a point of learning for other companies operating in such volatile, unstable, and complex international situations. This is also a tough concept to argue
Since its discovery back in the year 1858 crude oil has been become one of the most sought after resources on the face of the planet. It is due to this fact that the oil industry has fallen into a rather odd category in the case of globalization and seeking out new markets, new labor and new customers. The reason being that the need for crude oil and fuel is always present therefore the product of oil in its basic sense sells itself and the companies do not have to go out and publicly advertise it in the sense that clothing lines and other commodities do. Oil companies must focus more on the matter of why an individual should buy their oil and along with other alternative fuels over their competitors even though in the end the companies products are the same thing. The company ExxonMobil has been the superior company in the oil industry for quite sometime now, and had plenty of success as individual companies before their merger in 1999. The reason for there success is partially due to the power they wield as the most successful company, leading to many new refineries around the world, making deals with smaller companies to gain access to new markets and are leading the world in alternative fuel research. However these things all come naturally to the biggest oil company in the industry, the real question is how they became the powerhouse they are now. That question can be answered by the way in which the company has not focused in globalizing their product of fuel and oil, but globalizing the image of the company company. This is achieved by focusing on charity in which they donate hundreds of millions of dollars, Foreign Direct Investment in areas in which they wish to expand by attempting to provide these impoverished areas wit...
The problem with pollution prevention is that it requires people to understand more than the intimate details of the production process; they must also understand the technical possibilities. Many corporations have environmental managers, which are generally responsible for helping corporations comply with the law. According to the case study, the work of environmental managers often expose them to many pollution prevention solutions, but they often have trouble getting access to production areas. Production often sees Environmental Managers as "the compliance police".
oil in Nigeria. Nigeria’s large supply of high quality crude oil helped Shell climb to the top,
The oil companies are using a structured power approach while addressing the land use issues with the locals. The oil companies use formal authority, legal prerogative, and association to strengthen their side of the conflict. The Nigerian government has a history of being influenced by foreign money and influence, which gives big business a huge advantage over monetary decisions. The Nigerian government has gone as far as creating laws and legislation to benefit the oil companies because of the significant economic contributions the companies bring to the country. Omeje (2005) states “Oil is the mainstay of Nigeria’s economy and the state is largely dependent on oil rents, taxes and royalties paid by transnational oil companies (TNOCs) and on profits from its equity stakes in the TNOCs’ investments.”
Gambrel, Jon. “Nigerian Rebels Seize Seven Oil Workers”. Sydney Morning Herald. Retrieved on 21 Nov, 2011 from
Winston A, 2010, Five Lessons from the BP Oil Spill, Harvard Business Review, accessed 1 April 2014,
2. How should BP have handled an external environmental analysis ties and what environmental changes and trends (opportunity and threats) might they have discovered?
For instance, a case that my team discussed was based on the water problems at India, due to this external issue which has caused Coca Cola to drain the water to feed their wells, poisoning lands with “waste sludge”, which is supposing to be fertiliser and putting thousands of farmers out of work. However Coca Cola did respond to this particular issue by implanting that their plants filter water to eliminate any possible contaminants, also that all their products would be tested for pesticides to meet their minimum health standards. Due to this issue occurring, it had been reported on the Business Standards that there has been an 11% fall on sales because of this controversy.
How does this case illustrate the threats and opportunities facing global companies in developing their strategies?
Modern society is dominated by multinational corporations. In the past 30 years there has been unprecedented development of transnational corporations (TNC), which is “any corporation that is registered and operates in more than one country at a time” (Transnational). Now, there are more than 63,000 TNCs, while there only 7,000 in 1970. That is more than a 900% growth in TNCs in only a few decades. Even more startling, 70% of all trade, includes at least one of these TNCs (Basic). So, if these multinational corporations have such strong influence, it is their responsibility to activate change in terms of sustainability. Sustainability is the number one problem our society faces today. Sustainability refers to social, environmental, and economic
The largest petroleum-producing nation in Africa is Nigeria. The petroleum company is the main contributing factor of the GDP in the West African nation, which is also the continents, most noticeable and populous reserves. Since Nigeria was under British control it has suffered socio-economic and political adversities for decades. Corrupt domestic militias and complicity of multinational corporations have rid the nation of its natural resources. The same corporations that are ridding the land and exploring the resources have hypocritically identified Nigeria as a major concern with regard to human rights and environmental degradation. The petroleum business in Nigeria dynamically impacts its economy so much that “oil and gas exports accounted for more than 98% of export earnings and about 83% of federal government revenue, as well as generating more than 40% of its GDP.” Just to be reminiscent on this fact, the petroleum business accounts for almost the entire exporting business of a country so it raises the question of, where is the income going and how is it bring redistributed?