On And Their Citizens And For Essay Example

Zones, where 80 percent of the workers are women, as cited in Fulcher and Scott (1999:480) by Mitter (1986). Cohen and Kennedy (2000:127) define an Export Processing Zone as a free trade enclave where foreign firms producing goods for export are encouraged to locate. However, the promise of providing cheap labour within these zones is at the expense of the workers.

Gap has recently been targeted for exploitation by various groups including The Union of Needletrades, Industrial and Textiles Employees, the Africa Forum, and a College group. These groups documented "abusive working conditions" in Gap factories. Gap responded by claiming that it "totally shares these concerns" and will work with its factories to maintain its standards, according to Global Policy Online in 2002. Despite this, TNCs have been criticized for their lack of social responsibility, such as pollution to the local environment. UNRISD has stated that TNCs should be held accountable for their social responsibilities.

'The environment often suffers damage, which affects both the local community and workforce,' according to a source (opcit: 130). Cohen and Kennedy (2000) give an illustration of this with the deadly gas leak in Bhopal in December 1984. It killed nearly 3,000 workers, their family members, and others in the community. Union Carbide (US) owned the company and repeatedly hindered legal claims for compensation. Additionally, exploitation of workers and lack of social responsibility 'intensifies global inequality' (Macionis; Plummer, 2000:369).

According to dependency theorists, transnational corporations prioritize creating jobs in poor countries, while hindering the development of local industries which provide better employment opportunities. The theorists argue that instead of promoting the economy of the country by encouraging the production of essential goods, TNCs

prefer to have workers produce export goods. Additionally, illegal product smuggling occurs. (ibid: 369)

According to Mark Schapiro's (2001) study, electronic cigarettes can harm the economy. The study revealed that certain cigarette manufacturers faced increased lawsuits, resulting in a need to boost foreign sales. In addition, the World Health Organisation reported that 25% of exported cigarettes are smuggled.

According to a source, transnational corporations are able to increase their sales volume and avoid local tariffs, but this can harm the economies of the countries involved. These corporations have significant power and are considered central to the global economy. As noted by Cohen and Kennedy (2000), they are responsible for a significant portion of employment, production, and trade worldwide. Japan's TNCs are a major player in the global economy, but their focus on global and corporate interests has had negative effects on Japan's domestic industrial economy, including damage to the development of small firms and business profits.

(Cowling; Tomlinson, 2002) assert that Japan remains among the top ten countries in terms of foreign assets as of 1999. Transnational corporations (TNCs) can positively impact the local economy through investments made within the company as well as sales and export. Intra-firm branches also exist within TNCs.

The production of a car brand involves not only the industrialized country but also several others. The Ford Escort produced in 1986 had its parts manufactured in Japan, Italy, and Spain, among several other places. This production process influences the local economy positively, boosting both the global and regional markets and providing employment in areas such as Indonesia. Although exploitation may occur at times, it is an opportunity for unemployed individuals to find work with

TNCs. Additionally, TNCs can assist local enterprises in improving their standards (Macionis; Plummer, 2000: 353, adapted from Dickens, 1986: 304).

When a TNC moves to a specific area, it could pose a threat to local companies, potentially resulting in the loss of workers who may view the TNC as providing better employment opportunities. Despite this, the TNC can also contribute positively to the area by improving local amenities like roads, hospitals, and airports. This is made possible because TNCs typically demand high infrastructure standards and are sometimes even willing to build the necessary infrastructure themselves. Therefore, this can be beneficial for all involved. The codes of conduct are another area that can have its strengths and weaknesses.

According to Christian Aid (Online), a set of principles or rules that establish standards for company behavior is commonly known as a code of conduct. For instance, BP's code of conduct highlights the importance of generating economic benefits and opportunities, being truthful and transparent in relationships, and being responsible for actions. However, a documentary by John Pilger in 2001 (Online) revealed that such codes are ineffective for overworked individuals in factories like Gap, where they are often not displayed. Despite Gap's code of conduct prohibiting workers from working more than 60 hours per week, this regulation is frequently overlooked. In addition, the factories provide off-site dormitories for workers who work various shift patterns, including one shift that lasts for 36 hours.

According to Pilger, the workers, mostly women, are required to work long shifts without any choice and are often unable to rest in the dormitories. Despite the codes of conduct regarding the dormitories being useless for the workers,

Gap defends themselves by claiming that the facilities comply with all applicable health and safety regulations, such as fire safety, sanitation, risk protection, and electrical, mechanical, and structural safety. Pilger discovered that since the dormitories are not located within the factory site, companies like Gap who contract the work out are not obligated to adhere to regulation codes. However, this provides no comfort for families living in what Pilger describes as "Hobbesian Communities".

Pilger (2001) states that residents may experience temperatures up to 40 degrees centigrade due to the absence of windows and air conditioning. Christian Aid (2002) proposes codes of conduct as a means of deflecting attention from previous offenses and dodging corporate responsibility. However, Christian Aid concedes in their article "Transnational Corporations and the need for regulation" (2002) that despite deficiencies, codes of conduct can improve company conduct.

According to an online source, employing codes in a transparent and open manner can create binding "best practice" rules.

Christian Aid highlights that the code of conduct offers added advantages, serving as a practical method for civil society groups to team up with corporations and improve their operations. At present, multinational companies have considerable influence in both local and global economies, impacting the welfare of their employees. Such influence may lead to positive or negative outcomes: while it could help people support their families, it could also make them dependent on the corporation. Hence, evaluating the overall effect of multinational corporations is a complex issue.

Although transnational corporations have been criticized for their practices, they are vital in offering job opportunities worldwide. Many individuals from developing countries work for TNCs out of necessity to earn a living,

resulting in an interdependent relationship between the corporations and the people. The global economy benefits significantly from TNCs as they produce vast quantities of goods and provide services across the globe, ultimately boosting local and global economies. Overall, it can be concluded that TNCs positively impact both nations and citizens; nonetheless, it is crucial to consider hidden aspects of TNC operations beyond their public image.