4.4

Question 1

Owners

Answer 1

Want high profits so they can pay dividends to shareholders
They want return on investors.
Conflict

Question 2

Customers

Answer 2

Low prices 
Wants needs met- costs high- profits low.
High quality 
Ethical products
Conflict with manager and owner

Question 3

Managers

Answer 3

Want promotion prospects

Bonuses on high profits

Question 4

Employees

Answer 4

Want job security and good working conditions- obides by the law - pushes up costs - done by a Financially stable business.
Developed country- higher expectations.

Question 5

Government

Answer 5

Want tax payments - income and corporate tax.

Lawful and ethical businesses- using less resources e.g healthcare.

Question 6

Suppliers

Answer 6

Want to charge high prices for goods
Want payment on time
Keep production costs low
- cashflow
- profit 
Wages.

Question 7

Pay

Answer 7

Pay varies around the world, as does the cost of living.
Some MNCs are exploiting workers and don’t pay them enough to live on.
MNCs have the best legal teams so they know when they are ethically wrong.
Mainly exploiting people further down the hierarchy line.

Question 8

Working conditions

Answer 8

Developing economy- worse conditions
Developing economy- better conditions
Owners want high profit so cut health and safety costs.

Question 9

MNCs and emissions

Answer 9

Retailers will not emit as much as other firms.
Around 90 MNCs are responsible for the impact on the environment.
More legislation in developed countries to reduce the impact on the environment- more skills and scientific knowledge.
More legislation- stop MNCs setting up there

Question 10

Waste disposal

Answer 10

MNCs regularly flout or ignore “weak” environmental laws in India and other developing countries.
Owners want to keep costs down, good waste management is expensive, they just dump their waste.

Question 11

Supply chain considerations

Answer 11

Is a system of business, people, activities, information and resources involved in moving a product or service from supplier to customer.
Becomes more of a problem for MNCs when they operate in developing countries
Many factories outsource to slums, refugee camps and unlicensed back street businesses with poor working conditions.

Question 12

Marketing considerations

Answer 12

This is when a business says they have something or are something that they do not or are not.
This is like saying low in sugar while still has glucose or few rose.
Isn’t breaking the law but leaves false impression on customers.

Question 13

Political influence

Answer 13

Use the government to apply pressure to get them to change their behaviour.
+ MNCs may want to keep a positive relationship with the government
+may make trade easier
- politicians can be bribed, especially in developing countries
- They are more likely to ignore illegal behaviour to keep the MNC in the country.

Question 14

Legal control

Answer 14

A country can introduce a law which will help to stop the illegal practises happening.
Often MNCs may ignore this and take a fine.
+ Laws can be passed at any point
+ means that customers have some rights
- MNCs may pull out of the country
- MNCs can afford top lawyers.

Question 15

Pressure groups

Answer 15

Organisations who try to change how the businesses behave
Pressure groups can have sting influence on public opinion and behaviour, could result in a PR disaster
+ raise awareness to the public
+ Change the MNCs behaviour to maintain good PR
- Have to be large and organised
- MNCs size and wealth can takedown pressure groups.

Question 16

Social media

Answer 16

Tools such as Twitter can be used to get things trending quickly, and can turn things into a national crisis.
+ powerful because it has so many people behind it
+Forces MNCs to be more open and apologise
- It is only short term and things can stop trending very quickly.