Multinational Company&Computer Ethics
Multinational Company&Computer Ethics
UNIT V
Multinational Corporations
&
Computer Ethics
Multinational Corporations
OVERVIEW
What is MNC?
MNC Structure.
Manages And/or
Delivers
production services
In more than
one
country
WHAT IS A MULTINATIONAL
CORPORATION? (CONTINUED)
According to Franklin Root (1994), an MNC is a
parent company that:
engages in foreign production through its affiliates
located in several countries,
exercises direct control over the policies of its
affiliates,
implements business strategies in production,
marketing, finance and staffing that transcend
national boundaries.
EXAMPLES OF MNC
Ford o Wal-Mart Stores
IBM oAMAZONE
British Petroleum oPepsiCo
Mc Donald’s oCoca-Cola
Phillips oKFC
Hyundai
Ownership MNC?
All three of these terms - refer to the degree of
ownership that a parent company holds in another
company.
1. In affiliate or associate are used to describe a
company whose parent only possesses a minority
stake in the ownership of the company.
2. A subsidiary company has 50% or more of its
voting stock controlled by its parent: the parent is a
majority shareholder.
3. A subsidiary company is considered wholly owned
when all of the common stock is owned by another
company. In a wholly owned subsidiary, the parent
company owns 100% of the subsidiary.
MNC Company
Ownership MNC?
•The Walt Disney Corporation owns about a
40% stake in the History Channel, an 80% stake
in ESPN and a 100% interest in the Disney
Channel.
4. The multinationals must respect the laws and political set up,
besides cultures and promote the cultures of the host
countries.
5. The multinational organizations should provide a fair
remuneration to the employees of the host countries. If the
remuneration is high as that of home country, this may create
tensions and if it is too low it will lead to exploitation.
6. Multinational institutions should provide necessary safety for
the workers when they are engaged in hazardous activities and
‘informed consent’ should be obtained from them. Adequate
compensation should be paid to them for the additional risks
undertaken.
Assignment
Computer Ethics
Computer ethics