Multinationals
What we’ll cover today
1. Their characteristics
2. Controversial firms: the heroes or the villains
of the globalized economy
3. The OECD guidelines
4. CSR (corporate social responsibility)
5. Vocabulary
6. Language at work
Their Characteristics

They are headquartered in one country
but have production or marketing facilities in
others by establishing a subsidiary there.

The largest MNCs are American, Japanese
or West European, like Nike, Coca-Cola, WalMart, Honda or BMW but an increasing
number are from emerging countries such as
India and China.
Nike
World headquarters in Beaverton,
Oregon
Sephora
Sephora is one of LVMH’s most well
known subsidiaries.
Facts and Figures
170 out of the top 500 companies are based in
the US, and six US companies rank among the
top 20
Exxon-Mobil
Wal-Mart
General Electric
Chevron
Fannie Mae
ConocoPhillips (Energy)
Facts and Figures
Japan ranks second in the list with 70
companies among the top 500 and one among
the top 10 (Toyota).
France and Britain are tied, with 38 companies
in the top 500
Germany is not far behind with 35 companies
in the “Fortune 500” index, and Daimler
Chrysler in the top 10.
And the world’s biggest companies are…
1. Wal-Mart Stores
2. Royal Dutch Shell
3. Exxon Mobil
4. BP
5. Sinopec Group (China’s largest oil producer)
6. China National Petroleum
7. State Grid (Chinese power company)
8. Toyota Motor
9. Japan Post Holdings
10.Chevron
Nestlé
A research group has recently accused Nestlé of being one
of the ten most “unethical” firms in the world.
The company dismissed such charges arguing that it ranked
first in seven independent surveys on reputation.
Many activists say that the brand violated the World Health
Organization’s (WHO) marketing requirements for baby
foods and powdered milk for poorer countries.
unethical=malhonnête
brand=marque
powdered milk=lait en poudre
Organizations
WHO (World Health Organization): OMS
(Organisation Mondiale de la Santé)
WTO (World Trade Organization): OMC
Organisation Mondiale du Commerce)
OECD (Organization for Economic CoOperation and Development): OCDE
Organisation de Coopération et de
Développement Économiques
The OECD Guidelines
In 1976, the OECD issued guidelines to MNCs
operating in or from its member countries.
They provide principals and standards for
responsible business conduct in areas such as
: employment and industrial relations, human
rights, environment, consumer interests,
competition, taxation.
OECD Member Countries
CSR
Corporate Social Responsibility
Today, multinationals have to be socially and
environmentally friendly.
CSR is a sense of responsibility that a firm feels
towards the community and the environment
where it operates.
Today companies are concerned with their
carbon footprint, aiming to be carbon neutral,
and sustainability in general.
carbon footprint=empreinte carbone
sustainability=durabilité
Ethical business
The body beautiful
Mixing money and morals
Mar 23rd 2006 | from the print edition
A REPUTATION for morality and high ethical
standards is normally built up over the course of a
lifetime. But some big companies have found a
quicker route—just buy it. On March 17th L'Oréal, a
French cosmetics group, offered to pay a 34%
premium for Body Shop International, a high-profile
British retailer of environmentally responsible
toiletries that is closely identified with Anita Roddick,
its do-gooding founder.
L’Oreal pays a 34% premium for Body
Shop
General Comprehension
Two models of companies are referred to in
the article.
What are they?
Find an expression in the article defining them
both.
What growing phenomenon does the article
deal with?
Is it always a success? Explain and give
examples.