Multinational Corporations and Non Governmental Organizations
Introduction
Over the last few decades, economic liberalization, democratization processes and technological transformation in the global scene have led to the dramatic rise of National Non Governmental Organization or Civil Society Net works movement. They range from international non-governmental organizations, transnational coalitions, global trade organizations or unions and other community based initiatives that have been largely propelled to the international global scene by the rise of the internet and the social media. They include environmental groups, human rights organizations, professional organizations and many other organizations.
As a result of these changes, most multinationals are facing a lot of pressure to conform to international standards in terms of corporate governance, environmental issues, human rights protection and the rights of the workers and other ethical and social corporate standards. The principles of corporate social responsibility, and national corporate and citizenship are transforming their activities from just legal compliance to improved public relations activities, risk management, strategic corporate management and accountability. (Brown and Moore, 2001)
Multinational Corporations are frequently held to account not only in the courts of law but also answer to the court of public opinion. These social courts have been mostly aided by the media and the NGO networks. There activities range from global campaigns to organized grass root activism. (Kovach, Hetty, Neligan and Burall, 2003)
These events have led to multinational companies to restrategize their management to tackle the rise of the new fronts that hold them accountable to all their actions in their pursuit of huge profits and expansion targets.
Several Multinational Corporations have opted to liaise with major NGO and focus on local social and economic development, capacity building among the local population, education and training and also creating awareness on environmental matters. (Hodgetts, Lufthans, and Doh, 2006)
Other multinational Corporations have included in their management legal experts who challenge the activities of NGO networks in courts and also by other social media processes. (Deresky, 2007) The activities of the NGOs have tarnished the image of some multinational corporations due to their operations mostly in developing countries. The accusations have ranged from environmental pollution, exploitation of cheap labour and exploiting local resources without developing the regions. These accusations have led the management of Multinational Corporations to hire other external organizations to specifically monitor the activities and actions of the NGO to ensure that their actions and reactions do not affect their operations. The MNCs in the extractive mining activities have been accused mostly of exploiting local communities and stealing natural resources from developing countries and exporting them to developed countries for processing and in the process the local communities are impoverished further. The other MNCs in the manufacturing sector face less challenges as the processes involved require skilled staffs who are better paid than their counter parts in the mining sector. (Hill, 2007)
To conclude, the management of the MNCs have evolved to include highly trained professionals who engage the principles of Corporate Social responsibilities and engage the NGOs on several issues together with the national governments of their host countries. The MNC have developed sound economic corporate policies that conform to the requirements of their CSR and also the national governments. Exploiting the huge profits at their disposals, they also engage the services of the best legal experts on matters concerning the environment and human rights issues.
References
Kovach, Hetty, Neligan and Burall, S. (2003) Power without Accountability? The Global Accountability Report. One World Trust, 2003.
Brown, L.D., and Moore, M.H. (2001) Accountability, Strategy and International Non-governmental Organizations. Nonprofit and Voluntary Sector Quarterly, Vol. 30, No. 3. September 2001. 21.
Deresky, H. (2007) International management: managing across borders and cultures
Harlow, Prentice Hall
Hill, C.W.L. (2007) International Business. Competing in the global marketplace
New York, McGraw-Hill
Hodgetts, R., Lufthans, F. and Doh, J.P. (2006) International Management
New York, McGraw-Hill.
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