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The Positive and Negative Impacts of Multinational Corporations

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Pramiti Singh

on 30 November 2012

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Transcript of The Positive and Negative Impacts of Multinational Corporations

photo credit Nasa / Goddard Space Flight Center / Reto Stöckli By: Sarah Bella, Zujeil Flores, Carolyn Kelly, and Pramiti Singh The Positive and Negative Impacts of Multinational Corporations An Overview Part I
A Focus on the Environmental Impact of
Shell Oil Company in Nigeria
Carolyn Kelly

Part II
A Focus on the Environmental Impact of
Zujeil Flores

Part III
A Focus on the Environmental Impact of
The Coca-Cola Company
Sarah Bella Introduction Multinational Corporation (MNC)

Corporate Social Responsibility

Regulation of MNCs Part I.
The Negative Environmental Impact of Shell Oil Company in Nigeria Part II
A Focus on the Environmental Impact of Walmart, Inc Part III
A Focus on the Environmental Impact of The Coca-Cola Company Conclusion The problem of corporate social responsibility, environmental protocol and lack of enforcement

Are corporations doing everything they can?

Environmental Health and MNCs today Walmart’s intensity of their negative environmental impact will be diminished but, can their overall business model be sustainable?

It’s estimated that 15 of these vessels can produce as much pollution as all the cars in the world. Improvement? Walmart’s size can influence the retail industry in many ways. Some examples:

Reduction of packaging – concentrated detergent has same ingredients except less water.

Efficiency of their trucks – fuel conservation

Asking companies to switch toxic substances in their products to more benevolent ones and promoting environmental-friendly products in their stores.

Advocating for green gas emission legislation

Purchasing organic cotton and using third party organizations to certify suppliers adhere to USDA organic-cotton standards. On the Positive Side: Ensuring supply chain adapts to these requirements.

Walmart has mandated its 100,000 suppliers to reduce their carbon footprint by 20 million tons by 2015 or risk being cut as suppliers.

Who absorbs the cost of certifications, improved technology, sustainable practices? The Implications A declining reputation as well as a global demand for corporate social responsibility, sustainability and transparency led Walmart to set these main sustainable goals for the corporation in 2005:

To be supplied by 100% renewable energy

To create zero waste

To sell products that sustain people and the
environment. On the Hopeful Side: http://charleston.thedigitel.com/top-stories/port-report-overlooks-seriousness-cargo-ship-emiss-1638-0922 http://www.marineinsight.com/marine/environment/what-is-marine-debris/
Their 2012 Annual Report shows revenues of over $400 billion – only comparable to Shell Oil and ExxonMobil 2012 Annual Revenue Report Cotton is one of the most polluting crops when grown conventionally – employs more fertilizers than other crops and it is sprayed heavily with pesticides and herbicides. These have been associated by many health problems including cancer, disruption of the endocrine and immune system, and Parkinson’s disease. http://www.fashioninganethicalindustry.org/teachingmaterials/pre16/cottonteachingresource/ http://ejfoundation.org/cotton/cotton-and-pesticides

History of violations of air and water pollution regulations in the U.S.

Allegations of poor working conditions in sweatshops in foreign countries (no breaks, child labor, harassment, etc.)

Misleading product information (labeling of “green” products when they were only partially made of recycled materials)

Outsourcing and supply chain (i.e. cotton:

Turkey China Belize U.S. On the Negative Side: Niger Delta Development Commission(NDDC) was created as a Nigerian solution to oil production environmental health concerns.

The NDDC was considered ineffective since the project is non-transparent.

Shell oil has are currently investing $40/ton as a response to the 2011 warning from the International Energy Agency of a irreversible climate change by 2017(shell.com) Long-term Response
300,000 Ogoni people protested the poor quality of life.

Ken Saro Wiwa, an nationally recognized activist/author & eight Ogoni leaders were arrested.

Ten days after the nine convictions they were executed.

Nigeria's membership to Commonwealth revoked Ogoni Protest of 1994 Mid-After Noon Life expectancy of the Ogoni people is 43 years of age vs the Nigerian national average is 57 years of age.

Between 1970-2000 there has been more than 7000 oil spills(1 million gallons).

The result has caused lasting water pollution, aquatic life destruction and agricultural losses to the delta region. Ogoni People of the
Delta River Region Gas Flaring 50 years of gas flaring is the ignition of residue from poorly maintained pipes.

Smoke combines with the rain to pollute the soil with with acidic non-life supporting pH.

Niger-Delta region has revealed an increased association in bronchial, respiratory, and carcinogenic diseases Environmental Impact of Oil Satellite Thermoimage Nigeria has had a history of political instability

Royal Dutch Shell Company(Shell Oil) began oil and gas production in S.W. Nigeria during the 1950’s.

Shell is the 2nd largest Multinational company within 90 countries.

Shell Oil accounts for more than 75% of the domestic and 95% of the total export earnings.

The earnings, however come with an extreme environmental cost Negative Environment Health in the Delta river region of Nigeria Water scarcity is a huge issue
Partnership with UNDP Water Stewardship Program and WWF
Manage water resource efficiency
Create safe drinking water standards
Improve the livelihood of millions of rural farmers and community members Water Stewardship and China 2. Create more sustainable packaging
Material Optimization
Product recovery and reuse

3. Provide a safe and healthy working environment for employees
The Coca-Cola Safety Management System Internal Improvements
Cont’d 1. Decrease energy output and increase climate protection
Improve Facilities
Fuel-efficient transportation
Sustainable refrigeration devices Internal Improvements 283 billion liters of water used annually for production

Positive change needed within the company

Partnerships with other organizations to help communities of need

Mission Statement:
“To refresh the world…to inspire moments of optimism and happiness… and to create value and make a difference” Coca-Cola Facts Restored 547 yards of the Yangtze River

Drinking water safety has improved for more than 4 million citizens

Increased: Water education programs, stricter pollution controls, flood prevention programs, new wastewater and rainwater water treatment programs, and waterborne illness prevention plans Water Improvements in China A nonprofit organization created to help partner with global organizations to support community improvement
Water stewardship
Healthy and active lifestyles
Community recycling

Recent focus on water stewardship in China The Coca-Cola Foundation Corporate Social Responsibility ensures that corporations take responsibility for the damage they inflict, specifically on people and the environment. Corporate Social Responsibility MNC is a company that has operations in more than one country Multinational Corporation Stricter EPA Standards Kyoto Protocol Regulations on MNCs
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