Most large companies nowadays operate multinationally. To what extent multinational companies have responsibility toward local communities in which they operate?

It is true that, in

this

era of globalisation, many big corporations operate outside the borders of the country. While I agree that enterprises should maximise their profits, they must not be at the expense of the welfare of local communities in areas where firms are based. From a social perspective, there are some reasons why companies should have public responsibilities.

Firstly

, these enterprises should provide job opportunities for local people and ensure that workers and their families have adequate salaries and access to health and education services. The horrors of the industrial revolution must be avoided - child labour, starvation wages, and poor working conditions.

Secondly

, it is the self-interest of businesses to employ a healthy and educated workforce. Skilled workers are more productive and alert to the importance of health and safety at work. An educated and skilled workforce gives the company more flexibility since they can switch from one task to another to meet production requirements, as in the case of car assembly plants like Ford or Nissan. From an environmental perspective, factory production has resulted in some serious environmental problems. The

first

reason is that the irresponsible disposal of chemical waste into rivers and oil extractions has polluted water resources on which local communities are dependent to survive.

In addition

, oil spills devastate the fishing industry in some areas.

Thus

, multinational firms should allocate resources to install waste treatment systems to solve wastes before discharging them into the sea. Another reason is that unstainable logging of timber for construction has resulted in the shortage of woods for buildings in the future and resultant soil erosion.

Therefore

, companies should create new job opportunities for local people and contribute to improving the quality of life in areas where they operate. In conclusion,

Although

earning profits is the most fundamental principle of business, companies have a moral duty and a practical interest in improving the living standards of the local communities in which they conduct their operations.