TNC
Content
INTERNATIONAL CORPORATIONS
Transnational companies (TNC) Multinational companies (MNC)
MNC
Multinational companies (MNC) have investment in other countries, but do not have coordinated product offerings in each country. They are more focused on adapting their products and service to each individual local market. LIKE Unilever, Proctor & Gamble, Mc Donald
Transnational companies (TNC) are much more complex firms. They have invested in foreign operations, have a central corporate facility but give decision-making, R&D and marketing powers to each individual foreign market. Most of them come from petroleum, I.T. consulting, pharmaceutical industries among others. Examples are Shell, Accenture, Deloitte, Glaxo-Smith Klein, and Roche.
TNC
Multinational (MNC) and Transnational (TNC) companies are types of international corporations. Both maintain management headquarters in one country, known as the home country, and operate in several other countries, known as host countries.
SIMILARITIES
17-5
INTERNATIONAL CODE
Accord
The United Nations Universal Declaration of Human Rights UDHR
Year
1948
The European Convention on Human Rights
ECHR
1950
The Helsinki Final Act
Helsinki
1975
The OECD Guidelines for Multinational Enterprises
OECD
1976
The International Labor Office Tripartite Declaration of Principles of Multinational Enterprises and Social Policy
ILO
1977
The United Nations Code of Conduct on Transnational Corporations
TNC Code
1973
17-6
Employment Practices and Policies
Policy should not contravene the manpower policies of host nations should respect the right of employees to join trade unions and to bargain collectively should develop nondiscriminatory employment policies and promote equal job opportunities should provide equal pay for equal work Organizatio n ILO ILO; OECD; UDHR ILO; OECD; UDHR ILO; UDHR
should give advance notice of changes in operations, especially plant closings, and mitigate the adverse effects of these changes
should, minimally, pay basic living wages to employees operations should benefit lower-income groups of the host nation
ILO; OECD
ILO; UDHR ILO
17-7
Consumer Protection
Policy should respect host-country laws and policies regarding the protection of consumers should safeguard the health and safety of consumers by various disclosures, safe packaging, proper labeling, and accurate advertising Organizati on OECD; TNC Code TNC Code
17-8
Environmental Protection
Policy Organization
TNCs should respect host-country laws, goals, and priorities concerning protection of the environment
TNCs should preserve ecological balance, protect the environment, adopt preventive measures to avoid environmental harm, and rehabilitate environments damaged by operations TNCs should disclose likely environmental harms and minimize risks of accidents that could cause environmental damage TNCs should promote the development of international environmental standards TNCs should control specific operations that contribute to pollution of air, water, and soils
OECD; TNC Code; Helsinki
OECD; TNC Code; Helsinki OECD; TNC Code TNC Code; Helsinki Helsinki
TNCs should develop and use technology that can monitor, protect, and OECD; enhance the environment Helsinki
17-9
Human Rights and Fundamental Freedoms
Policy Organizati on
UDHR; ECHR; Helsinki; ILO; TNC Code UDHR; Helsinki; ILO; TNC Code UDHR; ECHR; Helsinki; ILO; TNC Code UDHR; Helsinki; ILO; TNC Code UDHR; Helsinki; ILO; TNC
TNCs should respect the rights of all persons to life, liberty, security of person, and privacy
TNCs should respect the rights of all persons to equal protection of the law, work, choice of job, just and favorable working conditions, and protection against unemployment and discrimination TNCs should respect all persons’ freedom of thought, conscience, religion, opinion and expression, communication, peaceful assembly and association, and movement and residence within each state TNCs should promote a standard of living to support the health and wellbeing of workers and their families TNCs should promote special care and assistance to motherhood and childhood
17-10
Political Payments and Involvement
Policy TNCs should not pay bribes or make improper payments to public officials TNCs should avoid improper or illegal involvement or interference in the internal politics of host countries TNCs should not interfere in intergovernmental relations Organiza tion OECD; TNC Code OECD; TNC Code TNC Code
Transnational companies (TNC) Multinational companies (MNC)
MNC
Multinational companies (MNC) have investment in other countries, but do not have coordinated product offerings in each country. They are more focused on adapting their products and service to each individual local market. LIKE Unilever, Proctor & Gamble, Mc Donald
Transnational companies (TNC) are much more complex firms. They have invested in foreign operations, have a central corporate facility but give decision-making, R&D and marketing powers to each individual foreign market. Most of them come from petroleum, I.T. consulting, pharmaceutical industries among others. Examples are Shell, Accenture, Deloitte, Glaxo-Smith Klein, and Roche.
TNC
Multinational (MNC) and Transnational (TNC) companies are types of international corporations. Both maintain management headquarters in one country, known as the home country, and operate in several other countries, known as host countries.
SIMILARITIES
17-5
INTERNATIONAL CODE
Accord
The United Nations Universal Declaration of Human Rights UDHR
Year
1948
The European Convention on Human Rights
ECHR
1950
The Helsinki Final Act
Helsinki
1975
The OECD Guidelines for Multinational Enterprises
OECD
1976
The International Labor Office Tripartite Declaration of Principles of Multinational Enterprises and Social Policy
ILO
1977
The United Nations Code of Conduct on Transnational Corporations
TNC Code
1973
17-6
Employment Practices and Policies
Policy should not contravene the manpower policies of host nations should respect the right of employees to join trade unions and to bargain collectively should develop nondiscriminatory employment policies and promote equal job opportunities should provide equal pay for equal work Organizatio n ILO ILO; OECD; UDHR ILO; OECD; UDHR ILO; UDHR
should give advance notice of changes in operations, especially plant closings, and mitigate the adverse effects of these changes
should, minimally, pay basic living wages to employees operations should benefit lower-income groups of the host nation
ILO; OECD
ILO; UDHR ILO
17-7
Consumer Protection
Policy should respect host-country laws and policies regarding the protection of consumers should safeguard the health and safety of consumers by various disclosures, safe packaging, proper labeling, and accurate advertising Organizati on OECD; TNC Code TNC Code
17-8
Environmental Protection
Policy Organization
TNCs should respect host-country laws, goals, and priorities concerning protection of the environment
TNCs should preserve ecological balance, protect the environment, adopt preventive measures to avoid environmental harm, and rehabilitate environments damaged by operations TNCs should disclose likely environmental harms and minimize risks of accidents that could cause environmental damage TNCs should promote the development of international environmental standards TNCs should control specific operations that contribute to pollution of air, water, and soils
OECD; TNC Code; Helsinki
OECD; TNC Code; Helsinki OECD; TNC Code TNC Code; Helsinki Helsinki
TNCs should develop and use technology that can monitor, protect, and OECD; enhance the environment Helsinki
17-9
Human Rights and Fundamental Freedoms
Policy Organizati on
UDHR; ECHR; Helsinki; ILO; TNC Code UDHR; Helsinki; ILO; TNC Code UDHR; ECHR; Helsinki; ILO; TNC Code UDHR; Helsinki; ILO; TNC Code UDHR; Helsinki; ILO; TNC
TNCs should respect the rights of all persons to life, liberty, security of person, and privacy
TNCs should respect the rights of all persons to equal protection of the law, work, choice of job, just and favorable working conditions, and protection against unemployment and discrimination TNCs should respect all persons’ freedom of thought, conscience, religion, opinion and expression, communication, peaceful assembly and association, and movement and residence within each state TNCs should promote a standard of living to support the health and wellbeing of workers and their families TNCs should promote special care and assistance to motherhood and childhood
17-10
Political Payments and Involvement
Policy TNCs should not pay bribes or make improper payments to public officials TNCs should avoid improper or illegal involvement or interference in the internal politics of host countries TNCs should not interfere in intergovernmental relations Organiza tion OECD; TNC Code OECD; TNC Code TNC Code
