Indian Multinational Corporations and Corporate Social Responsibilities

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An MNC is an organisation that engages in production or service activities, through its own affiliates, in several countries, maintains control over polices of those affiliates and manages from global perspective. A business enterprise operating in several countries but managed from only one (home) country is considered a multinational corporation.
Multinational Corporation creates jobs and wealth and improves technology in countries that are in need of such development. Major multinationals are American, Japanese or Western European, such as Nike, Coca-Cola, Wal-Mart, AOL, Toshiba, Honda and BMW etc. While the developed countries specifically the European Union – still host the largest number of MNCs, the developing countries are home
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5. Gives foreign production facilities substantial autonomy but still reserves some important decisions for home office.
6. Decentralizes authority throughout the company so that functions at home and aboard are done by executives from different countries. MNCs are alternatively called TNCs (Transnational Corporations), MNEs (Multinational Enterprises) and global corporations. The Term multinational corporation is most commonly used in business and academic circles. We too follow the same trend.
Corporate social responsibility is about seriously considering the impact of the company’s decision and actions upon the environment and the society. The dependence of any business on its social and ecological environment is so comprehensive that the very existences, survival and growth of any enterprises depend upon its acceptance by the society and the environment. If any business enterprises outlive its utility to the society and the environment, it has no place and reason to exist. The socio- economic obligation of business refers to its responsibility in preventing to prevent economic consequences of business from adversely affecting public welfare. Social- human obligation denotes to the obligation of business to nurture and develop its human resources so that employees get every opportunity to grow, develop and advance through life and their careers and to promote human values within the organization.

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