Question

Adam Smith, who was also a moral philosopher, long observed that an individual “by directing . . . industry in such a manner as its produce may be of the greatest value, . . . intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it.”

Image result for multinational corporations

In a world where it is harder than ever before to balance conflicting stakeholder demands, for this week's discussion board consider and discuss the role of multinational companies, those entities that, by default, deal across a spectrum of different environments, in making a vital contribution in building fair societies. As it is true that specific beliefs and preferences regarding what is fair vary widely, please try to present reasons why the multinational company has to become more socially relevant and responsible.

For a primer please consider the following:

Benefits of Multinational Corporations
Create wealth and jobs around the world. Inward investment by multinationals offer much needed foreign currency for developing economies. They also create jobs and help raise expectations of what is possible.
Their size and scale of operation enables them to benefit from economies of scale (Links to an external site.)Links to an external site. enabling lower average costs and prices for consumers. This is particularly important in industries with very high fixed costs, such as car manufacture and airlines.
Large profits can be used for research & development. For example, oil exploration is costly and risky; this could only be undertaken by a large firm with significant profit and resources. It is similar for drug manufacturers.
Ensure minimum standards. The success of multinationals is often because consumers like to buy goods and services where they can rely on minimum standards. i.e. if you visit any country you know that the Starbucks coffee shop will give something you are fairly familiar with. It may not be the best coffee in the district, but it won’t be the worst. People like the security of knowing what to expect.
Criticisms of Multinational Corporations
Companies are often interested in profit at the expense of the consumer. Multinational companies often have monopoly power which enables them to make excess profit. For example, Shell made profits of £14bn last year (Links to an external site.)Links to an external site.
Their market dominance makes it difficult for local small firms to thrive. For example, it is argued that big supermarkets are squeezing the margins of local corner shops leading to less diversity.
In developing economies, big multinationals can use their economies of scale to push local firms out of business.
In the pursuit of profit, multinational companies often contribute to pollution and use of non renewable resources which is putting the environment under threat.
MNCs have been criticised for using ‘slave labour’ – workers who are paid a pittance by Western standards
Evaluation

Some criticisms of MNCs may be due to other issues. For example, the fact MNCs pollute is perhaps a failure of government regulation. Also, small firms can pollute just as much.
MNCs may pay low wages by western standards but, this is arguably better than the alternatives of not having a job at all. Also, some multinationals have responded to concerns over standards of working conditions and have sought to improve them.

i need one page discussion for this post