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Transnational companies (TNC) Multinational companies (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.


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.



The United Nations Universal Declaration of Human Rights UDHR


The European Convention on Human Rights



The Helsinki Final Act



The OECD Guidelines for Multinational Enterprises



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



The United Nations Code of Conduct on Transnational Corporations

TNC Code



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



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


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


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


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