Environmental Pollution by Multinational Companies - Coursework Example

1. Environmental pollution is the buzz word which is dominating business arena. It is a serious matter of concern and in coming days it is going to multiply manifold. Suspicion and concern has ever increased since the world has witnessed global temperature changes and companies be it local, regional or multinationals are all engulfed into it. Society on a large is giving stress to combat it and “multinational companies are viewed with increased suspicion as they lack the economic concern for different regions which has forced climatic changes to take its toll”. (Multinational Corporations, 2009) This has raised alarms in the quarters of multinational companies and they are “all poised to influence their power and expand and remove these barriers to international trade by devising mechanism which will help them curb those”. (Multinational Corporations, 2009) Multinational companies are looking at different alternatives which will help them accomplish their tasks. For example, it is seen that “paper industry is making a considerable effort to ensure that paper is recycled as it constitute 25% of the land fills and recycling this by multinationals has ensured that resources are not wasted at the same time pollution is curbed”. (Keeble, 2010) This is a huge step which will help multinationals win back consumer confidence and ensure that pollution is reduced and global temperatures are controlled. It is also seen that multinational companies have to adhere to the different “trading cap norms and ensure that the emission is within the limits prescribed by the rule”. (Winston, 2010) “The framing of rules by the government and different facilities norms to ensure that multinational and all companies look into it have helped”. (Winston, 2010) This is forcing multinational companies to plan and ensure that their objective is directed towards mechanism which will help to curb pollution level. Another mechanism which is seen to be followed by multinational companies which will bring a check and help to find companies which emit more pollution is that “multinational companies provide a detail outline of the pollutants they released in the environment within 30 days if found guilty”. (Pasternack, 2009) This will make it compulsory for multinational to keep a track in which work is carried out and this will ensure that pollution levels are controlled. Companies are also looking towards an environment which is pollution free to improve their brand image. Multinationals are using this as a mechanism “to ensure that transparency improves which will help to reduce accountability towards the public” (Pasternack, 2009) and will ensure that work is carried out free from biasness. Multinational Companies to reduce pollution and to ensure environment friendly atmosphere has made it “a part of their corporate social responsibility and are using it to advertise their code of conducts”. (Levis, 2006) This is thus being used as a tool to promote their company and to ensure that it reflects on the goodwill and prospect future of the company. Multinational companies by there sheer size and presence have takes steps at a global level to bring down environment pollution. Corporations and multinationals have entered into “trade agreements with many of its suppliers and associates to ensure that environmental pollution is brought down below the limits”. (Roach, 2008) This agreement is helping multinationals to ensure that pollution in the environment is controlled. Companies performing in the global arena also look into the fact that different steps and measures are taken to bring pollution under control. One such is the trading in carbons. This is making companies look at alternatives to purchase it from the companies who have excess credit. They need to pay for it. It helps the companies to trade their pollution limits thereby enabling them to continue to earn profit at the same time ensuring that pollution is within limits. Multinational companies to reduce pollution have “included pollution in their ethical norms which ensures that the companies clearly denote it to the society the amount of pollution they are creating in the environment”. (Rehman, 2009) This will make multinationals ensure that they continue business in the same manner at the same time ensure that pollution is within control. Multinationals have taken steps in all direction to see that pollution emitted by them gets reduced. This has changed the image of multinationals and has also made them steps to reduce the pollution level. This has brought the necessary changes and is making companies follow a path that will reduce pollution level. Thus, we see that multinational companies have taken steps to reduce the pollution level. It has ensured that pollution level is within limits and working on this manner will ensure that pollution level falls and will help the society and soaring temperatures. This will thus ensure that the change in temperature gets reflected in the image of the company and will help multinational companies to bring a change in the framework and the manner in which the work will be carried it. This steps and polices thus will ensure that pollution level is reduced and curbed down to an extent. References Keeble S, 2010, “How to raise awareness of the environment pollution”, Helium Inc Corporation Levis J, 2006, “Adoption of corporate social responsibility norms by multinational companies”, Journal of Asian Economics, Volume 17, Issue 1, page 50-55 Multinational Corporations, 2009, “Multinational Corporations”, Encyclopaedia of management, retrieved on May 25, 2010 from http://www.encyclopedia.com Pasternack G, 2009, “Multinational companies are breaking most basic pollution laws”, American Standard, New York Roach B, 2008, “Social and environmental responsibility of corporations”, Business & Environment, retrieved on May 25, 2010 from http://www.eoearth.org/article/Social_and_environmental_responsibility_of_corporations Rehman A, 2009, “Ethical behaviour of multinational companies in host countries”, Article base Winston A, 2010, “Failure at Copenhagen doesn’t mean businesses are off the hook”, Harvard Business Review 2. Government has a huge role and potential and by using its influential powers can bring about changes in the environmental conditions. The policies and laws framed by them can be such which can both assist and harm the corporations. This makes it important that government officials understand their responsibility that looks at the goodwill of mankind irrespective whether it helps or harms the multinational companies. The government can be a help to multinational companies in the following manner. Firstly, the government can “incentivise those multinational companies which consider the environment and look for the goodwill of the society”. (Feng, 2008) The government can reduce taxes or give special subsidies or special privilege which will make more multinationals follow suit. This framing of policies will help the multinational to continue with the growth pattern and also contribute towards the society. Secondly, the government can frame laws which “makes multinational to look at renewable sources of energy so that environmental pollution is curbed”. (Feng, 2008) This will help developing countries to cope with the international demands on pollution and will help the nation. This will benefit the multinationals as the long term benefit will be huge. This will bring changes in growth and affect the overall health of multinationals. Thirdly, the laws framed can be such that “it lays more stress on corporate social responsibility and considers environment as a very important factor affecting mankind”. (Ali, 2004) The government can make corporations and multinationals allot money and time towards the society by looking into the environmental aspect. This will make multinationals consider this factor high on the agenda and the government rules can come beneficial to them as it will improve there brand name. Fourthly, the rules should be extensive and make it compulsory for multinationals “to provide a complete list of pollutants released in the environment and corporations which adhere to it should be provided with incentives”. (Ali, 2004) This will make multinationals take this issue seriously and will get reflected on the overall pollution level in the society. It will also make the society aware of companies who look for the society thereby affecting the goodwill. The government can be harmful to multinational companies in the following manner. Firstly, the government can frame laws “which restrict the investment from abroad in sectors which are polluting”. (Hao, 2009) This will ensure that developing countries “don’t have to bear the brunt of pollution as developed countries have stricter norms which are making them shift their production centre elsewhere”. (Hao, 2009) This will bring a check on pollution but would be harmful to multinationals as it will affect their production hence profits. Secondly, the government and international bodies working in tandem “can draft rules and policies which restrict production of certain goods which results in pollution”. (Pulitzer, 2010) For example the government can ban production on certain petroleum products which affects the eco system. This will put pressure on the multinationals and might affect their line of business but at the same time will help the society. Thirdly, the laws should be such that “it looks towards a more healthy and safe society and if it seems that any multinationals will emit more pollution based on forecast and suspicion straight away actions should be taken instead of waiting for the pollution to happen”. (Rachel, 2010) This will be based on predictions and might go wrong and will be harmful to multinationals as even the slightest mistake whether taken place or not might harm the multinationals in a heavy way. Fourthly, the government laws can be stringent and “propose a limit on the usage of cars and make people use public transport instead of personal cars which will help to curb pollution at the same have an affect on the sales of cars”. (Crabtree, 2002) This will hamper the sales for multinational companies. This will also force them to look more into the environment and make cars which emit lesser pollution. This will harm the multinational as designing those will take time and in the mean time corporations will have to lose on vital money that could be earned from sales. Fifthly, the laws can be such that “it restricts sales of tobacco products as the smoke from the consumption of cigarettes pollutes the environment”. (Crabtree, 2002) This will affect the multinational companies and ban on tobacco as they pollute the environment will make the multinational companies pay heavily. Thus, we see that government polices can be drafted in such a manner that it has an influence on multinational companies. This can be designed to help them and also will have to pay in case they violate the norms. Government with there power can influence the decision and this will have a bearing on the end results for multination companies. References Ali S, 2004, “Corporate social Responsibility”, Daily Times retrieved on May 28, 2010 from http://www.dailytimes.com.pk/default.asp?page=story_5-10-2004_pg3_7 Crabtree V, 2002, “The USA versus the environment”, retrieved on May 28, 2010 from http://www.vexen.co.uk/USA/pollution.html Feng j, 2008, “China: on road to greener growth”, retrieved on May 28, 2010 from http://www.shell.com/home/content/environment_society/shell_world_stories/2008/china_qa/ Hao T, 2009, “Corporate Values, Green Governance”, retrieved on May 28, 2010 from http://www.chinadialogue.net/article/show/single/en/3306-Corporate-values-green-governance Pulitzer C, 2010, “Should US environmental standards apply to multinational companies”, Helium Inc Corporation Rachel, 2010, “Environmental Justice & Precaution”, retrieved on May 28, 2010 from http://www.earthtalktoday.tv/earthtalk-voices/environmental-justice-and-precaution.html 3. In today’s business world ethics hold prime importance for all business concern. Ethics plays a very important role for business units as it “helps to identify the culture prevalent in the organization and helps to find the reputation the outsiders view about the company”. (Matthews, 2008) It helps outsiders to judge the way work is carried out and sees that the company is fair towards all. For multinationals this multiply as they come from different culture and background and to cope with the local culture and requirements calls for a directed effort from the multinationals. Multinational companies need to look into the cultural differences and at the same time see that they are ethical. This will ensure that their business in working with the correct framework. Multinational companies therefore “need to understand the culture prevalent in the local country so that the obstacles are overcome”. (Chung, 2009) For example it is seen that Australian companies find difficult to work in China due to the change in culture and completion. China has “an alien culture and Australian companies to cope with those changes will need to put in more efforts”. (Chung, 2009) Thus it is important that they match with these changes. Ethics in the work place thereby ensure that “the employees morale don’t get affected as fairness while dealing with the executives and employees at the same level will help to create harmony”. (Rhoden, 2008) This is important for multinational companies. They come from different countries having different laws and norms and to cope with the local requirements will need special efforts. Even ensuring that there is fairness for multinational companies will ensure that work is carried out without any hiccups. This will help them to gain the confidence of local employees and will thereby help multinational to build a good brand image. “Multinational needs to ensure that they remain ethical as it affects the personal contribution both emotionally and physically”. (Anderson, 2007) This will ensure that the personal contribution doesn’t get altered as it can lead to the corporation to pay heavily due to the changes. Being ethical and coping with the cultural differences will help multinational companies to ensure that “essential behavior helps them to conduct the business function effectively”. (Anderson, 2007) This will help multinational companies to cope with the corruption level and also ensure that their efforts are directed in the correct direction. This will help them to achieve the best results and will guide the multinationals to achieve the desired results. Ethics forms a very important part for multinational companies. This can be seen from the following example. “Enron as a multinational company failed because it was not ethical and painted a grim picture which resulted in scandals”. (Curry, 2010) This example shows the importance of ethics in the work place. Being unethical lead the company to lose its business area which resulted in wide loss for the company. Multinational companies to ensure that they remain ethical and cope with the changes in culture have ensured that “a code of conduct is developed which has all the values and guiding principles which the employees need to follow so that they are able to match the local requirements”. (Baeyer, 1999) Following this will ensure that multinational companies are able to deliver on the promises. Employees who follow this code know what needs to be done. This will ensure that they are able to deliver those. It will thus help multinational companies to ensure that the local requirements of the multinationals are looked into. This will also help them to deal with the culture differences and ensure that multinational company’s see is as their domestic country of operation. Multinational companies to ensure that the cultural changes are integrated in the work environment will ensure that “training programs are provided by conducting self study groups and other programs so that employees learn the differences”. (Baeyer, 1999) This will help the multinational companies to cope with the changes and ensure that they are able to understand the local requirements better. Multinational companies ensure that cultural differences are considered as it will ensure continuous flow of employees and will help them to fill the vacancies. Even the government of different countries has “framed different laws and regulations which look into the different aspect of being ethical in the workplace”. (Baeyer, 1999) This will help to ensure that stricter laws make it compulsory for multinational companies to follow those. Thus, we see that multinational companies look into the aspect of cultural differences and try to integrate it in their planning process. While doing so they ensure that they remain ethical as it has an bearing on the reputation and goodwill among the outsiders and insiders and brings harmony in the business environment. References Anderson K, 2007, “Doing the right thing: the importance of maintaining integrity in the work place”, Gale Group, retrieved on May 29, 2010 from http://findarticles.com/p/articles/mi_m1365/is_8_37/ai_n18646292/ Baeyer C, 1999, “What’s work place ethics”, retrieved on May 29, 2010 from http://www.workplaceethics.ca/work.html Chung M, 2009, “Doing business in China: How do Australian companies make their decision while entering the new market”, retrieved on May 29, 2010 from mchung@deakin.edu Curry M, 2010, “Ethics in the workplace”, retrieved on May 29, 2010 from http://www.articlesbase.com/human-resources-articles/ethics-in-the-workplace-629384.html Matthews, 2008, “Role of ethics in work place”, LinkedIn Corporation Rhoden N, 2008, “Ethics in work place”, retrieved on May 29, 2010 from http://www.managerwise.com/article.phtml?id=655 Read More