Tnc Destructive Behaviors Essay

1212 words - 5 pages

Trans-national corporations are companies that expand businesses or operations in various countries. Shaping the current global economy and structure, TNCs have the ability to completely change a nation. McDonalds, Ford, and Shell are used as common examples for such companies, but today “smaller companies” are seen using the ever changing economy to expand into global endeavors (Meyar,1996). The appeal of larger markets, greater returns on investment, and overall cheaper production, gives companies the incentive to enter the globalized world. What is not shown in the price these seemingly cheaper enterprises have on environment, political economies, and natural rights. These large ...view middle of the document...

Predictably, Wal-Mart has issued “environmental mitigation strategies, but there impact is heard more than seen. Moving from Wal-Mart, many TNC’s, specifically, large oil companies as Exxon, are notorious for deeply damaging the environment and spending money to cover the issues. (Walsh, 2013). Again, their self-seeking behavior helps their image while knowing damaging the environment. Other instances of environmental damage of large companies the Exxon Valdez oil spill causing 750,000 barrels of crude oil dumped into the sounds of Alaska,. This was minuscule compared to the BP oil spill that wasted 4.9 million barrels of oil in the Gulf of Mexico (Dimdam, 2013). Oil spills are just the visual impacts of these companies. Often overlooked is the amount of oil and water used to make, ship, display, and then consume is astronomical in relation to the price of an item. Both the apparent and hidden environmental impacts of TNC’s outweigh any positives of these companies.
The environmental impact of TNCs is also tied with the political economic association. TNCs dramatically influence countries political and economical situations. The large sum of money TCN accumulate is used for purchasing power, political manipulation, and governmental compromise. These companies are known to exert political influence on both local and national governments. This type of power can result in governments working for the needs on the companies, rather the needs of the people (Multinational Corporations, 2013). One horrific example of how a company inflicts both environmental harm and community destructions is Shell Oil, alternatively known as Dutch Royal Oil, and the Niger delta. In 1958, Shell started drilling for oil in the Niger Delta. Since, the Niger Delta, home to nearly 27 million people, has suffered from oil spills, gas burns, and environmental degradation that affect the livelihood of these individuals (Earth Rights International, 2011). Not only is the physical environment harmed, Shell preformed direct violent acts against the Ogoni villagers. Shell has spent extensive money to unsure that both the Nigerian government and people work in their favor. Specifically in 1994 during a period of Shell resistance, four leaders of the Ogoni community were killed and countless raids taken against communities. These acts were completed by the military, which was funded by Shell. Again, the self-interests of the company out weigh overall human rights. The investment and government protection of TNCs leaves the local people and business at a disadvantage, and the inability to compete with these foreign investments (Khor, 1998). Again, in a study completed on Wal-Mart, it was shown that 84% of sales shifted money away from existing local markets. This is money that could stay...

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