Buscar este blog

lunes, 14 de febrero de 2011

The Rise of Multinational Corporations (The Corporation)



How can we ensure corporations are held accountable for their actions "legally" and "ethically"?
It is really difficult to ensure because corporations are entities that nowadays have enormous power. They have a big influence in the economies and since they have many legal benefits that often leave them free to act in the way they wish. Sometimes governments receive some profits to stay silence if there are legal or ethical violations. Also it is very difficult to ensure corporations act in an appropriate way. 


Should individuals (directors, employees, shareholders) bear any responsibility for the actions of a corporation? If so, on what degree?
I think it is very difficult to judge, because sometimes people have some believes but are forced to act in another way.
The ones that are guiltier are the directors because they are the persons in charge to take company’s decision, also if they impose their interest over the ones of the society and didn’t act ethically they should assume this responsibility.
The employees have less responsibility since they only receive orders and is necessary for them act in this way in order to survive, maybe it could be necessary to go over and don’t care about others,
Finally the shareholders are the ones with less responsibility because they only receive dividends and are parts of the community receiving the bad effects the corporation is leaving.


What are the benefits of the corporate form? Could an alternative model offer them as well?
  • Diversification of financial responsibility.
  • They can achieve their own economical interests regardless of the consequences.
  • The personal properties of the owners are not at risk for satisfying corporation’s debts.
  • They have presence in different countries but take the decisions from the home country.

A similar form is the “Limited Liability Companies” that as well as the corporation protects the owners, but this model didn’t have the same benefits and have more restrictions.


Search for a foreign multinational corporation that has operations in Colombia. Research if they are run under Colombian rules or regulations or if they have special regulations?
For example a multinational corporation of publicity is (TBWA \ WORLDWIDE) with its office in Colombia TBWA \ COLOMBIA is in force by internal processes of work and exact methodologies in all the countries, but it must adapt its end product to the norms that regulate the communication and publicity in each country where it operates, in Colombia (ministry of communications), the same with their taxes, contracts and financial operation according to the regulations of the Colombian government.


Should economic efficiency (main argument for privatization) be primary concern for common and public services? Are there other criteria to determine who should own or operate them?
Taking into the moment we are living and how the world is developing in terms of globalization economy efficiency is a primary concern of common and public services because there is a lot of competition in the market and consumers are always looking for the lowest prices and best quality products. But there are other ways for the companies to obtain economic affiance.
It’s important to take into account that the things saying before are not reasons for the corporations to operate in a bad way; they should base their operations in good values and efficiency taking into account health, environmental issues, common welfare and share profits.









Austin Kleon. (2008). Mindmao of THE CORPORATION documentary (part one), Retrieved:
February 14, 2011, from: http://www.flickr.com/photos/deathtogutenberg/2339726414/sizes/o/
The Corporation - Film (Documentary) (Achbar, M - Abbott, J. 2003).

1 comentario:

  1. multinational corporations are growing every day and said to have more power than the government this is why is important to make sure before they enter your country that they care about the enviroment and that they are willing to follow the governments rules and to help develop the country in this way the multinational would bring lots of advantages.

    ResponderEliminar