4.4.3 controlling MNCs

• key factors to consider when controlling MNCs

  • policitcal influence
  • legal control
  • pressure groups
  • social media
• political influence

  • governments make and enforce laws that businesses must follow
  • in MEDCs, MNCs can lobby politicians to create business-friendly rules
  • in LEDCs, MNCs may influence governments with special deals or bribes to win contracts
• legal control

  • governments want MNCs fro job and growth, so clear rules and tax and employment help create stability
• pressure groups

  • some organisations try to influence companies and public policy for a cause
  • pressure groups can act locally or globally
  • example: 'save the arctic' with lego and shell
• social media

  • MNCs use social media to promote themselves worldwide
  • BUT stakeholders can also share information about unethical behvaiours
  • bad news can spreak quickly and go viral

  FURTHERMORE

  • MNCs' influence on social media can be limited in some countries
  • some governments, like china and russia, closely monitor and control what is shared online