Multinational Corporation Case Study

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A Multinational Corporation, also known as MNC, is a corporation that has its facilities and other assets in more than one country, in addition to its home country. These corporations operate comprehensively in more than one country by having a main office in a centralized location where they systematize global management and have offices and/or factories in different countries. Multinational Corporations may participate in numerous activities such as manufacturing, importing and exporting in different countries. In addition, it may also lend its licenses, patents and managerial services to the firms in its host countries. There are four types of Multinational Corporations, which are listed below: 1) a multinational, decentralized corporation…show more content…
Nestlé has been accused of many unethical business methods such as utilizing suppliers that violate human rights, controlling and/or abusing water sources, promoting unhealthy foods and misleading harmful strategies that violate the International Code of Marketing breastmilk substitutes. On the contrary, “Nestle also has a cocoa program that is training farmers in sustainable farming practices and introducing high yielding trees in order to improve its supply chain.” (Rai,…show more content…
This realization lead to the decision and Nestle announced that the corporation will no longer utilize any products that causes destruction to the rainforest. “In 2010, Nestlé committed that its products will not be associated with deforestation. This is detailed in our Commitment on Deforestation and Forest Stewardship, which covers all the raw materials we use to make our products and our packaging. We have also developed accompanying Guidelines on the Responsible Sourcing Guidelines.” (Nestle , 2012) With this new policy, Nestle has committed to identify and eliminate all companies associated with deforestation. The corporation followed unambiguous guidelines to attain sustainability regarding respect to all other RSPO principles and criteria; protect high carbon stock forests. Every supplier will be audited for evidence of illegal activity. “Our goal is to be a leader in environmental sustainability, efficiently managing our use of natural resources in our facilities and products.” (Nestle USA, n.d.)
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