Nowadays, most large companies operate multinationally. To what extent those companies should have responsibility towards local communities in which they operate?
In recent decades, there has been growing trend of offshore expansion by large companies, thanks to globalization. Although multinational corporations create jobs for local people, their responsibility towards local communities should be at the highest level. It is true that responsible corporate behavior contributes to broad-based benefits for the countries in which the companies are active. First, foreign companies should be responsible towards the environment of the region. For example, if these companies take steps to dispose of waste properly, local people can enjoy new products without any concern for the environment. Second, multinational companies should be more active in charitable activities because that would give them an opportunity to save more lives overseas. In fact, many regions in which these companies operate do not have access to resources to deal with problems like hunger and poverty. Another compelling reason is that foreign companies can substantially benefit from being socially responsible. Companies, especially in the manufacturing and mining industries, actively protecting the environment, can ensure their sustainable long-term growth. In fact, the media has revealed many instances of companies being taken away social license due to the imprudence towards the environment. In addition, multinational corporations should be very conscious of their track records when it comes to local responsibility as these are directly tied to brand names. If brand names are properly maintained and enhanced, sales and profits will be poised to increase as companies will be receiving more support from both local customers and government. In conclusion, the bar for corporate responsibilities towards local communities should always be high. This benefits not only the countries in which companies operate but the companies themselves.