An MNC is an organisation that engages in production or service activities, through its own affiliates, in several countries, maintains control over polices of those affiliates and manages from global perspective. A business enterprise operating in several countries but managed from only one (home) country is considered a multinational corporation.
Multinational Corporation creates jobs and wealth and improves technology in countries that are in need of such development. Major multinationals are American, Japanese or Western European, such as Nike, Coca-Cola, Wal-Mart, AOL, Toshiba, Honda and BMW etc. While the developed countries specifically the European Union – still host the largest number of MNCs, the developing countries are home to a little less than one quarter of MNCs and they host more than half of all foreign affiliates worldwide. Significantly, most of these affiliates are in Asia, followed by Latin America and Caribbean. Many developing countries like India from these regions seem to have achieved significant economic progress over the past four decades.
Author James C. Baker defines Multinational Corporation as a company:
1. Which has a direct investment based in several countries;
2. Which generally drives 20 to 50 % or more of its net profits from foreign operations; and
3. Whose management makes policy decisions based on the alternatives available anywhere in the world. Shaikh Saleem (2009).
More specifically, a multinational corporation passes through the following stages: George A. Steiner and John F. Steiner (2003).
1. Exports products to foreign countries.
2. Establishes sales organisations abroad.
3. Licenses use of patents and technology to foreign firms that make and sell the MNC’s products.
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...CSR strategies. Transparency and dialogue can help to make a business appear more trustworthy, and push up the standards of other organizations at the same time.
• Steiner A George, Steiner F John. (2003). Business, Government and society: A Managerial Perspective. Mc Graw Hill. p.390
• Saleem, Shaikh. (2009). Business Environment. Fifth Edition. New Delhi: Pearson publication.
• Mittal, Vivek. (2007). Business Environment. First Edition. New Delhi: Excel Publication.
• Epstien, E. M. (1987). The corporate social policy process: Beyond business ethics, corporate social responsibility, and corporate social responsiveness. California Management Review, 24, 99-111.
• Berad, R. Nilesh. (2011). Corporate Social Responsibility – Issues and Challenges in India. International Conference on Technology and Business Management, March 28-30, 2011, p.101.
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