In an era of increased globalization, transnational corporations (“TNCs”) and MNCs have grown in number and in power. A significant portion of modern economic development occurs through TNCs that, in an effort to maximize profit, move to developing countries. Among the attractions to TNCs of such regions are lax environmental regulations and what amounts to tolerance of human rights violations. TNCs have increased the rate of man-made environmental destruction and concomitant harm to humans. Indigenous groups are often affected the most severely; their sustainable lifestyle becomes impossible as natural resources are decimated by TNCs. Host countries often do not have the means or the will to implement and enforce strict standards on TNCs.
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First, through their over-consumption of non-renewable natural resources such as minerals (which are therefore subject to depletion) as well as of renewable resources such as water (which through pollution and over-mining of ground water are rendered scarce and non-renewable). TNCs also negatively impact social development through their degradation of environmental resources. TNCs have been responsible for many tragic environmental disasters over the past 20 years- Union Carbide in Bhopal, India; Exxon's Valdez oil-spills off Alaska; Texaco in Ecuador; Omei Gold Mining in Guiana; Shell in Ogoniland, Nigeria; Rio Tinto Zinc in Bougainville, Papua New Guinea; and more recently British Petroleum in the Gulf of Mexico and the numerous coal mining disasters, worldwide, over the past year and a half. The TNCs in the oil industry in Nigeria provide a clear and well documented example of severe environmental destruction by oil TNCs and the affects of that environmental destruction on the local population. Even respected and established business conglomerates like the Tatas have been embroiled in polluting and threatening the environment in course of their industrial pursuits. The ongoing debate about the threat to the endangered 'olive ridley turtle' due to the construction of the Dhamra Port has dragged Tata Steel into an ugly battle with conservationists and environment
First, through their over-consumption of non-renewable natural resources such as minerals (which are therefore subject to depletion) as well as of renewable resources such as water (which through pollution and over-mining of ground water are rendered scarce and non-renewable). TNCs also negatively impact social development through their degradation of environmental resources. TNCs have been responsible for many tragic environmental disasters over the past 20 years- Union Carbide in Bhopal, India; Exxon's Valdez oil-spills off Alaska; Texaco in Ecuador; Omei Gold Mining in Guiana; Shell in Ogoniland, Nigeria; Rio Tinto Zinc in Bougainville, Papua New Guinea; and more recently British Petroleum in the Gulf of Mexico and the numerous coal mining disasters, worldwide, over the past year and a half. The TNCs in the oil industry in Nigeria provide a clear and well documented example of severe environmental destruction by oil TNCs and the affects of that environmental destruction on the local population. Even respected and established business conglomerates like the Tatas have been embroiled in polluting and threatening the environment in course of their industrial pursuits. The ongoing debate about the threat to the endangered 'olive ridley turtle' due to the construction of the Dhamra Port has dragged Tata Steel into an ugly battle with conservationists and environment