Question

In: Operations Management

Why are human rights and sustainable development issues relevant to the behaviour of MNC’s?

Why are human rights and sustainable development issues relevant to the behaviour of MNC’s?

Solutions

Expert Solution

Multinational comapnies are large industrial organizations having a wide network of branches and subsidiaries spread over a number of countries. The most important part of an organization being a MNC is their size of organization and one parent organization controlling all the activities of all the branches from a central location.

Sustainable development can be defined as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”. The impact of human right and sustainable development issues relevant to the behaviour of MNCs mostly happen to the people living in under-developed countries. The need for jobs in developing countries have become a weakness for people living there and led the MNCs to take advantage of the same. The conditions of work, freedom of speech, the right to your own things are mostly those rights which are not compromised by the MNCs. Ex-  In 2005 nine mining concession were given for exploration and exploitation of copper, gold, molybdenum and other exploitable minerals to Muriel Mining Corporation;  Explorations began in 2009, against the wishes of local people and lack of proper consultation, creating a number of negative impacts on their lives and the environment.This was one case study where human rights and sustainable development were not given priority ahead of MNCs projects.


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