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INTERNATIONAL CORPORATIONS

Transnational companies (TNC) Multinational companies (MNC)

MNC

Multinational companies (MNC) have investment in other countries, but do not have coordinated product offerings in each country. They are more focused on adapting their products and service to each individual local market. LIKE Unilever, Proctor & Gamble, Mc Donald

Transnational companies (TNC) are much more complex firms. They have invested in foreign operations, have a central corporate facility but give decision-making, R&D and marketing powers to each individual foreign market. Most of them come from petroleum, I.T. consulting, pharmaceutical industries among others. Examples are Shell, Accenture, Deloitte, Glaxo-Smith Klein, and Roche.

TNC

Multinational (MNC) and Transnational (TNC) companies are types of international corporations. Both maintain management headquarters in one country, known as the home country, and operate in several other countries, known as host countries.

SIMILARITIES

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INTERNATIONAL CODE
Accord
The United Nations Universal Declaration of Human Rights UDHR

Year
1948

The European Convention on Human Rights

ECHR

1950

The Helsinki Final Act

Helsinki

1975

The OECD Guidelines for Multinational Enterprises

OECD

1976

The International Labor Office Tripartite Declaration of Principles of Multinational Enterprises and Social Policy

ILO

1977

The United Nations Code of Conduct on Transnational Corporations

TNC Code

1973

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Employment Practices and Policies


Policy should not contravene the manpower policies of host nations should respect the right of employees to join trade unions and to bargain collectively should develop nondiscriminatory employment policies and promote equal job opportunities should provide equal pay for equal work Organizatio n ILO ILO; OECD; UDHR ILO; OECD; UDHR ILO; UDHR

should give advance notice of changes in operations, especially plant closings, and mitigate the adverse effects of these changes
should, minimally, pay basic living wages to employees operations should benefit lower-income groups of the host nation

ILO; OECD
ILO; UDHR ILO

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Consumer Protection
Policy should respect host-country laws and policies regarding the protection of consumers should safeguard the health and safety of consumers by various disclosures, safe packaging, proper labeling, and accurate advertising Organizati on OECD; TNC Code TNC Code

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Environmental Protection
Policy Organization

TNCs should respect host-country laws, goals, and priorities concerning protection of the environment
TNCs should preserve ecological balance, protect the environment, adopt preventive measures to avoid environmental harm, and rehabilitate environments damaged by operations TNCs should disclose likely environmental harms and minimize risks of accidents that could cause environmental damage TNCs should promote the development of international environmental standards TNCs should control specific operations that contribute to pollution of air, water, and soils

OECD; TNC Code; Helsinki


OECD; TNC Code; Helsinki OECD; TNC Code TNC Code; Helsinki Helsinki

TNCs should develop and use technology that can monitor, protect, and OECD; enhance the environment Helsinki

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Human Rights and Fundamental Freedoms


Policy Organizati on
UDHR; ECHR; Helsinki; ILO; TNC Code UDHR; Helsinki; ILO; TNC Code UDHR; ECHR; Helsinki; ILO; TNC Code UDHR; Helsinki; ILO; TNC Code UDHR; Helsinki; ILO; TNC

TNCs should respect the rights of all persons to life, liberty, security of person, and privacy

TNCs should respect the rights of all persons to equal protection of the law, work, choice of job, just and favorable working conditions, and protection against unemployment and discrimination TNCs should respect all persons freedom of thought, conscience, religion, opinion and expression, communication, peaceful assembly and association, and movement and residence within each state TNCs should promote a standard of living to support the health and wellbeing of workers and their families TNCs should promote special care and assistance to motherhood and childhood

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Political Payments and Involvement


Policy TNCs should not pay bribes or make improper payments to public officials TNCs should avoid improper or illegal involvement or interference in the internal politics of host countries TNCs should not interfere in intergovernmental relations Organiza tion OECD; TNC Code OECD; TNC Code TNC Code