Currently, globalization is a trend. Therefore, a lot of companies open their subsidiaries in many countries. Although generating profits from new markets is the top priority for each company, they also need to have responsibilities to the host countries.
There are two main reason why multinational companies should conduct their business in a socially responsible manner. Firstly, they have to pay taxes promptly and adequately. As a result, authorities may have more revenue to spend in key fields, especially education, health and infrastructure, which leads to an improvement not only in the quality of life of the whole community but also creating some advantages for enterprises. For example, if the government have money to develop infrastructure such as upgrading public transport system or building new airports, new harbors, etc. …, companies will save time, cost to delivery and receive goods as well as materials. Accordingly, their performance are better and certainly they can earn huge profits.
Secondly, multinational corporations have to protect environment since their activities have effects on it. Without control, production processes may result in serious environment degradation, such as global warming stemming from factory emissions or the irresponsible disposal of industrial waste. If factories installed waste treatment system instead of discharging chemical waste into river, water pollution could be controlled. This will create the fresh environment for the local people as well as the companies’ workers, who contribute to the performance of company. Besides that, the firms can be fined if their activities have negative impacts on the environment. In fact, recently Formosa – a Taiwan firm was fined US 500 million dollars for discharging chemical waste into the ocean by the Vietnamese government.
In conclusion, enterprises can run their business on many countries, they have to have responsibility towards the host countries yet.
Currently
, globalization is a trend.
Therefore
,
a lot of
companies
open their subsidiaries in
many
countries. Although generating profits from new markets is the top priority for each
company
, they
also
need to have responsibilities to the host countries.
There are two main reason why multinational
companies
should conduct their business in a
socially
responsible manner.
Firstly
, they
have to
pay taxes
promptly
and
adequately
.
As a result
, authorities may have more revenue to spend in key fields,
especially
education, health and infrastructure, which leads to an improvement not
only
in the quality of life of the whole community
but
also
creating
some
advantages for enterprises.
For example
, if the
government
have money to develop infrastructure such as upgrading public transport system or building new airports, new harbors, etc. …,
companies
will save time, cost to delivery and receive
goods
as well
as materials.
Accordingly
, their performance are better and
certainly
they can earn huge profits.
Secondly
, multinational corporations
have to
protect
environment
since their activities have effects on it. Without control, production processes may result in serious
environment
degradation, such as global warming stemming from factory emissions or the irresponsible disposal of industrial
waste
. If factories installed
waste
treatment system
instead
of discharging chemical
waste
into river, water pollution could
be controlled
. This will create the fresh
environment
for the local
people
as well
as the
companies’
workers, who contribute to the performance of
company
.
Besides
that, the firms can
be fined
if their activities have
negative
impacts on the
environment
. In fact, recently Formosa
–
a Taiwan firm
was fined
US 500 million dollars for discharging chemical
waste
into the ocean by the Vietnamese
government
.
In conclusion
, enterprises can run their business on
many
countries, they
have to
have responsibility towards the host countries
yet
.