Submitted by: Submitted by medievalhistory
Views: 10
Words: 726
Pages: 3
Category: Business and Industry
Date Submitted: 03/23/2016 06:23 AM
TNC’s have large impact on the surrounding society and can heavily influence the well being in these areas, in both a positive and a negative way. Coca cola is large Transnational Corporation, with approximately 140,000 associates around the world and at least 50% of them are outside the USA where the headquarters are in Atlanta, Georgia. Coco cola prides itself on helping local societies and runs community schemes in Africa and South East Asia. This is evidence that TNC’s can have a beneficial social impact, with one of these schemes providing 4,000 Vietnamese women with the merchandise, training and basic equipment to begin selling Coca Cola. This is of benefit to the society as people are educated in a practical way allowing them to perform more strenuous tasks such as replenishing stocks of Coca Cola products and then selling them. This increasing of local skills helps to correct the large-scale unemployment caused by the mechanization of agriculture and this is certainly the case in Africa. TNC’s can also have other social benefits as they improve local infrastructure through building new roads or investing in vehicles and public transport for their employees in these areas.
However there are also negative social impacts to TNC’s. Environmental regulations are often less strict in LEDC’s and some TNC’s take advantage of this. For example in India in March 2004 Coca Cola were blamed for depleting the local ground water table for the utilization of natural water sources, which posed a serious threat to many local communities. The officials in Kerala shut down the $16 million Coke bottling plant, which had been draining the water, which in turn had crippled the local farms that could not water their crops. Moreover this left over 500 people without jobs as the bottling plant had been employing from the surrounding area. Another negative social impact of TNC’s could be that the working conditions, especially in factories are very harsh, with the employees...