What is a multinational? BBC Learning English

Summary

The video script explores the immense influence and power of multinational corporations, which often surpass the wealth of countries. It delves into how the internet and China's economic opening have fueled their growth, raising concerns about surveillance and corporate responsibility. The script discusses the challenges of enforcing laws on these entities, the evolving legal landscape to hold parent companies accountable, and the role of international law in setting minimum standards. It also highlights the importance of Corporate Social Responsibility (CSR) and the reliance on individual states to enforce norms, despite UN guidelines on business and human rights.

Takeaways

• 🌐 Multinational corporations are private companies that operate across multiple nations and can be wealthier than some countries, highlighting their significant influence and power globally.
• 📈 The growth of the internet and China's opening up to global investment have contributed to the rapid expansion and accumulation of wealth by these corporations.
• 🔍 These corporations have extensive knowledge about consumers, raising concerns about privacy and the potential abuse of this power.
• 🛡️ International law is evolving to establish minimum standards for multinational corporations, adapting from a national to a global perspective to regulate their operations.
• 🏛️ The complexity of multinational corporations makes law enforcement challenging due to their widespread operations across numerous jurisdictions.
• 👨‍⚖️ It is increasingly possible to hold parent companies accountable for the actions of their subsidiaries, provided there is evidence of control or responsibility from the headquarters.
• 📊 The law is adapting to make multinational corporations more accountable for their actions, which can influence their behavior towards better corporate social responsibility.
• 🏭 The Rana Plaza disaster in Bangladesh led to a swift legal agreement among international clothing manufacturers to improve safety standards, demonstrating the impact of CSR.
• 👮‍♂️ The responsibility for enforcing laws on multinational corporations lies with individual states, as there is no overarching international body to regulate these entities.
• 📜 Multinational corporations are primarily bound by the domestic laws of their states, and not necessarily by international human rights laws, which are designed for countries.
• 🌍 Jurisdictional laws vary by country, with each state deciding where and how it will take legal action against companies, sometimes in collaboration with other states.

Q & A

What is the influence of multinational corporations on our daily lives?

Multinational corporations influence and control our lives significantly, from the clothes we wear to the technology we use, often in ways we may not fully understand. They are shaped by laws designed to keep us safe.

How are multinational corporations defined in the script?

Multinational corporations are private companies that operate in many nations, often being wealthier than some countries, and they are getting richer.

What is the economic comparison of Nestlé to a country's GDP mentioned in the script?

Nestlé, a food and drinks maker known for brands like Kit Kats and Cheerios, was worth around 350 billion dollars in 2020, which is more than the economic output of Portugal.

How does the script describe the growth of multinational corporations in recent years?

The growth of the internet and the opening up of China have allowed companies to be based in one place but sell globally, leading to their growth and increased power.

What concerns are raised about multinational corporations knowing too much about us?

There are concerns about how these powerful international organizations use the data they collect about us, including what we buy and who our friends are, and the potential for abuse of this power.

How is the law adapting to the growth of multinational corporations?

The law has had to adapt from a nationally based system to a global one, with international law setting basic minimum standards that these companies must comply with.

What challenges does the complexity of multinational corporations pose to the enforcement of law?

The complexity and international spread of these companies make it difficult to enforce laws, as seen with one client having 748 companies in 47 different countries.

Can a parent company be held accountable for the actions of its subsidiaries?

It is becoming easier to hold a parent company accountable for the actions of its subsidiaries if there is evidence of a controlling influence from the headquarters or if they should be accountable in some way.

What is the significance of the Rana Plaza building collapse in Bangladesh for corporate social responsibility?

The Rana Plaza disaster led to the quick establishment of a legal agreement by international clothing manufacturers to improve safety in factories in Bangladesh, highlighting the role of Corporate Social Responsibility (CSR).

Who is responsible for enforcing the law on multinational companies according to the script?

The responsibility to police corporations lies with individual states, as there is no international body that regulates multinationals directly.

Do multinational corporations have to follow international human rights laws?

For the most part, multinational corporations are required to follow the domestic laws of their states, which may align with international human rights laws, but they are not necessarily governed by international human rights laws designed for countries.

How does the script suggest international law is evolving in relation to multinational corporations?

International law is moving towards holding companies accountable, as seen with the UN's guiding principles on business and human rights, but enforcement still relies on individual countries.