Multinationals

What we’ll cover today 1.Their characteristics 2.Controversial firms: the heroes or the villains of the globalized economy 3.The OECD guidelines 4.CSR (corporate social responsibility) 5.Vocabulary 6.Language at work

Their Characteristics They are headquartered in one country but have production or marketing facilities in others by establishing a subsidiary there. The largest MNCs are American, Japanese or West European, like Nike, Coca-Cola, Wal- Mart, Honda or BMW but an increasing number are from emerging countries such as India and China.

Nike World headquarters in Beaverton, Oregon

Sephora Sephora is one of LVMH’s most well known subsidiaries.

Facts and Figures 170 out of the top 500 companies are based in the US, and six US companies rank among the top 20 Exxon-Mobil Wal-Mart General Electric Chevron Fannie Mae ConocoPhillips (Energy)

Facts and Figures Japan ranks second in the list with 70 companies among the top 500 and one among the top 10 (Toyota). France and Britain are tied, with 38 companies in the top 500 Germany is not far behind with 35 companies in the “Fortune 500” index, and Daimler Chrysler in the top 10.

And the world’s biggest companies are…

1.Wal-Mart Stores 2.Royal Dutch Shell 3.Exxon Mobil 4.BP 5.Sinopec Group (China’s largest oil producer) 6.China National Petroleum 7.State Grid (Chinese power company) 8.Toyota Motor 9.Japan Post Holdings 10.Chevron

Nestlé A research group has recently accused Nestlé of being one of the ten most “unethical” firms in the world. The company dismissed such charges arguing that it ranked first in seven independent surveys on reputation. Many activists say that the brand violated the World Health Organization’s (WHO) marketing requirements for baby foods and powdered milk for poorer countries. unethical=malhonnête brand=marque powdered milk=lait en poudre

Organizations WHO (World Health Organization): OMS (Organisation Mondiale de la Santé) WTO (World Trade Organization): OMC Organisation Mondiale du Commerce) OECD (Organization for Economic Co- Operation and Development): OCDE Organisation de Coopération et de Développement Économiques

The OECD Guidelines In 1976, the OECD issued guidelines to MNCs operating in or from its member countries. They provide principals and standards for responsible business conduct in areas such as : employment and industrial relations, human rights, environment, consumer interests, competition, taxation.

OECD Member Countries

CSR Corporate Social Responsibility Today, multinationals have to be socially and environmentally friendly. CSR is a sense of responsibility that a firm feels towards the community and the environment where it operates. Today companies are concerned with their carbon footprint, aiming to be carbon neutral, and sustainability in general. carbon footprint=empreinte carbone sustainability=durabilité

Ethical business The body beautiful Mixing money and morals Mar 23rd 2006 | from the print edition A REPUTATION for morality and high ethical standards is normally built up over the course of a lifetime. But some big companies have found a quicker route—just buy it. On March 17th L'Oréal, a French cosmetics group, offered to pay a 34% premium for Body Shop International, a high-profile British retailer of environmentally responsible toiletries that is closely identified with Anita Roddick, its do-gooding founder.

L’Oreal pays a 34% premium for Body Shop

General Comprehension Two models of companies are referred to in the article. What are they? Find an expression in the article defining them both. What growing phenomenon does the article deal with? Is it always a success? Explain and give examples.