Corporations Flashcards
Corporations
form of business organization the purpose of which is to produce profit or the owners/shareholders
TNC
corporation that controls
Corporations during colonialism
Large chartered companies
Shareholders accountable for harms cause by company
Corporations during slavery and industrial revolution + development banking
-> growth of corporations wanting more rights and less constraints.
Corporations during the 19th century
Used law that was originally used to create rights for newly freed AAs
Corporations during the 1960’s
Free trade and investment treaties
Moving production around the world
Easier to move money around the world.
Corporations during the 80s
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Benefits of TNCS
More selection of goods
Providing jobs
Efficiency
New skills
Harms TNCs cause
Wiping out local businesses
Poor Labour opportunities
Not held accountable for their actions
Standardizing culture
Most corporate leaders are white men, and are probably out of touch with realities on the ground.
When corporations do do harm, they might already know they might be charged and so they just factor in that cost before production.
TNC’s are becoming more powerful
<10% of companies earn 80% of all profits globally
The top 10 corporations combined revenue > the 180 ‘poorest’ countries combined
69 of the world’s 100 largest economic entities are corporations and??
Corporations and Tax
Corporations are paying less tax than people (Canadians are paying more than 3 times more taxes than Canadian TNC’s). This didn’t use to be the case.
Global Production Network
Production system coordinated and controlled by a globally significant TNC.
- involves vast network of overseas affiliates, strategic partners, key customers and non-firm institutions
“Configuring the production network”
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Organizing transnational production
Concentrated
Host-market production
Specialized production
Vertical intergration
Corporate Culture `
Ways of Thinking
Material practices
Social relationships
Power Relations
Corporate Culture `
Ways of Thinking
Material practices
Social relationships
Power Relations
Historical Trajectory
“TNC’s remain embedded economically politically, and culturally in countries of origin”
Nationality of directors
Legal frameworks that bind company action
Financial system governing decision making
National cultures of doing business
Attitudes to organized labour
Internal transaction (intra-firm)
Activities that occur within the organizational boundaries of a particular TNC.
Internal transaction (intra-firm)
Activities that occur within the organizational boundaries of a particular TNC.
- pricing decisions made by corporate HQ
- Can be important means of tax avoidance
External transactions (inter-firm)
Business relationships between independent firms
- market pricing and competition
Positive view on impacts on TNCs in host regions
Transform regional economies
Create jobs
Negative view
Loss of control over local economy Little/no taxes or royalties aid Only low skilled, insecure jobs Displacement of local firms. Lack of commitment by foreign investors Take resources, damage environment Infrastructure for resource extraction, not national development.
Limits to global reach
Consumer preferences
Cultural norms and values
different ways of doing business
Anti globalization activism
ISO SR26000 standard on social responsibility 7 principles ADD MORE
Accountability
Transparency?
Corporate social responsibility
is kind of hollow because they will probably do it to add to their profits. More and more consumers are demanding corporate social responsibility
Switzerland’s role in ?
one of the wealthiest countries in the world, because of banking. Corporations get their money from swiss banks accounts.
Switzerland’s role in ?
one of the wealthiest countries in the world, because of banking. Corporations get their money from Swiss banks accounts.
Poverty in Africa - Zambia
beginning with colonialism, and now global commodity circuits.
Glencore ??? - 29 billion dollar extracted from Zambia in copper.
