Environmental Myths and reality behind MNCs

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Since the time of biological evolution of human being has completed thousands of years ago it is only the social or cultural revolution that is transforming human attitude and the society. The relationship between environment and society is crucial in determining the fundamentals, (values, and attitudes etc) of a society. If we look at the different eras of human civilization until the advent of modern era that is only few hundred years ago, evolution process seems to be very natural and as a result ground values remains stable. Transformation process in modern era has been very swift. As time went by our population grew at a relatively very fast rate in a world of limited resources. These emergent qualities gave us more conscious choice and power over our environment and ourselves. However, this helped us to grow more food and harness more energy but the social or environmental cost towards these achievements is very high, making the both unsustainable; the society and environment.

The aim to discuss the evolution process in first few paragraphs is to put emphasis on what I will be focusing next as impact of global industrialization at present in which we are in more control of the nature than ever before. Multinational business organizations operating globally with an objective to maximize their profits but also to exploit cheap labour and raw materials using the new breed of international managers. Despite all the technological achievements and large scale industrial productions, better and comfortable way of life, state of the art health facilities and having developed highly sophisticated social structure we have been badly failed to provide environmental justice. Today our power to injure nature is awesome; devastations from climate change will be exacerbated by other global biospheric effects: loss of ozone layer, acid rain, toxic pollution of soil, water and air, species extinction. Nature may have many other unpleasant surprises in store for us.

This is the time for action in the right direction. We need to devise a strategy in which every individual; institution and society as whole make integrated efforts to protect this system or planet for the generations to come.

MNCs (Multinational Corporations) are considered equally responsible rather some people blame them for what we are facing today in terms of climate change. Reduction in Co2 emission, help in improve sustainable farming, better waste management and recycling etc. will be issues discussed in detail in this research.

Research Question:

Does multinational companies (MNCs) took same measures for environmental protection in third world or they intend to exploit poor legislative frame work to use them as a dumping ground?

Aims & Objectives

To determine the social cost, caused by large scale multinational production units in terms of global biosphere effects, e.g. Co2 emission, toxic pollution of soil, water and air etc.

To determine the possible remedies to minimize the social cost through genuine commitment. By devising& implementing effective short and long term policies, e.g. reduction in Co2 emission, better waste management, helps in improve sustainable farming and recycling.

To analyze the impact of innovation on sustainable growth, better quality, taste and nutrition (in case of food manufactures) mainly through innovation in process.

Literature Review

What is Development?

Development means growth, enhancement and furtherance. It is not only about biological and physical growth, but also cognitive and social aspect also.

In World Bank Report (2000), development includes any betterment to the existing set of facilities, infrastructure and environment. Broadly speaking, development includes poverty elimination, morality, education, health, gender and environment.

Sustainable Development:

There is no universally accepted definition of sustainable development, nor do all definitions of sustainable development yield practical guidelines of policy makers.

Sustainable development is commonly defined as "development that meets the needs of the present, without compromising the ability of future generation to meet their own needs". Asefa (2005)

Why MNCs Responsible?

According to Subramanyan (2001), it is interesting to have a look at the statistic that of the world's 100 largest economies, 51 are corporations, only 49 are countries, the economy of Mitsubishi is larger than that of Indonesia, the world's fourth most popular country. The combined sales of the world's top 200 corporations are equal to 28% of world's GDP (Gross Domestic Product), these 200 corporations' employee only 18.8 million people, less than a third of 1% of world's population. Further, "corporations are the only orgnisations with the resources, technology, global reach and ultimately the motivation the achieve sustainability."

Multinational Corporations (MNCs) and their business operations, particularly in developing countries have embarked one of the most controversial debates and the centre of the controversy remains environmental sustainability in those countries. In other words MNCs are perceived both as the source, and the solution to the problem of the environmental degradation.

What MNCs need to do?

Spicer (2002) suggests that the best way to enhance MNCs contribution to sustainable development is through voluntary approaches rather than regulation. However a contrary viewpoint is that the economic interest of the corporation and the important of shareholder value become more important over the concern for the community as a whole

The statistics reveals that MNCs has a greater role in promoting sustainable development for two reasons: as contributor of a lion share to the problem and a huge beneficiary of the system.

MNCs and their R&D programs can significantly contribute to the efforts of sustainable development initiative in developing countries. If environmental concerns are taken seriously in MNCs decision making than these corporations may be the best sustainers of the natural environment. However, the empirical evidence suggest that despite the capabilities of MNCs in implementing sustainable development practices and environmental standards, their real contribution towards sustainability in developing countries remains minimal.

Are they (MNCs) doing enough?

The character UNRISD (1996) of the MNCs to highly criticised in the context of transferring benefits in terms of e.g. generation of employment, working conditions, cultural relativism vs. Ethical imperialism, natural resources etc. Only 2 to 3 percent of total jobs created worldwide, located in developing countries and most of these jobs are about part processing and employment generated through MNCs is restricted to exploit cheap raw material and labour, if for example MNCs import the raw material and then export the finish product utilizing the labour of the host country it is not going to give a significant benefit to that country.

Conceptualizing Sustainability, Innovation and Entrepreneurship:

Increasing awareness of the magnitude of current sustainability, challenges and a more global prospective has led to the emergence of the research on the creation and dissemination of clean technology innovation. Despite intense attention of the theme, it has remained somewhat unexplored by academic. (Hall and Vredenburg 2003)

Research methodologies

The research methodologies for this study derived from general methodologies available for social sciences. This study will be descriptive and will extensively use secondary sources of data for comparative analysis of the reasons stated regarding CRM design and implementation issues mainly in conceptual context.

In this research a combination of descriptive and analytical approach has been used as it involves exploring huge number of theories, strategies and tools related to main research theme i.e. MNCs business in the third world in the context of sustainability & innovation

. It involves qualitative data to analyze.

The Research Process

Set research question

Through study to build the Literature review

Develop approach and plan

Collect research data

Analysis and interpretation of data

Draft research

The purpose of literature review:

The objective of the literature review is to develop an understanding and knowledge base on the subject. It also aimed to develop an insight of the previous research done on the subject. It will also help the researcher to identify what has been done and what is yet to be explored. There are two approaches to conduct a research.

Deductive Approach, in which a theory and hypotheses is to develop and design a research strategy to test the hypotheses, or

Inductive Approach, to collect data and develop theory as a result of the data analysis.

Research approach

The research approach depending on what is appropriate in accordance with the research type it can be either deductive and quantitative or inductive and qualitative. This research is qualitative as it would fuscous on characteristics and issues of subject matter explain behaviors, outcomes etc as a result of different approaches applied to same thing.


This research aimed to develop an interview questionnaire for the management of the case study organization to have their views and approach and to compare it with other data obtained from secondary sources of data. An attempt will be made to monitor case study organization's design and implementation phase and approach of its CRM. It will help to determine the likelihood of a success or failure of their CRM initiative

Interviews are considered a source of primary data. According to the nature how an interview is designed and conducted they can be classified in to three categories Interviews may be conducted face to face on the phone or by using the internet.


The end results would be presented in a conclusion of the study and any recommendations related to CRM design and implementation and future direction for further research.