Pollution And MNC 2

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Pollution and the Responsibility of Multinational Companies
Managing in the Global Environment
BOKHABRINE Ayoub
Monroe College

Abstract

The worlds changing perception of the environment and the further development of globalization throughout our planet is having a profound effect on our ability to maintain a balance between development and the environment. Globalization is taking over and it is the opinion of many that multi-national corporations are gaining more power in areas of politics and economy while damaging the environment in the process.

The importance of foreign investment for developing countries striving to industrialize their economies is undeniable. The flow of foreign investment into the manufacturing sector is often accompanied by a much needed transfer of technology. It also creates business opportunities for local business-people and offers additional employment to the local communities. However, there are also negative consequences from the economic development spurred by foreign investment. The increase in industrial pollution is one of these. Many developing countries have a strong orientation towards economic development and industrialization. In order to achieve high economic growth the governments normally welcome foreign investments. Also, multinational corporations (MNCs) are seen by the governments of developing countries as an important source of employment opportunities and provider of advanced technologies. The facts that rapid economic development is often accompanied by the deterioration of the environment and that some MNCs make use of the often relatively lenient standards of environmental control in the host countries are often overlooked. Developing countries' strong developmental orientation and the ruthless pursuit of industrialization act as 'pull factors' that cause environmental deterioration in those countries and unwittingly open the doors for the 'export of pollution'. A significant ethical issue for multinational corporations in host countries is environmental pollution. This issue arises when environmental regulations in host countries are inferior to those of the multinational corporation’s home country. Many developed nations have substantial regulations governing the emissions of pollutants, the dumping of toxic chemicals, the use of toxic materials in the workplace, and so on. Those regulations are often lacking in developing nations, and the result can be higher levels of pollution from the operations of multinationals than would be allowed at home. Many multinational corporations move operations to a developing host nation specifically to avoid costly pollution controls, where they in turn add increased pollution to the surrounding environment simply for the reason of lowering costs of production in order to gain an advantage. Pollution can endanger plant life, wildlife, human life, and water in host countries. Multinationals can also help contribute to the phenomenon known as the tragedy of the commons, which occurs when a resource held in common by all, but owned by no one, is overused by individuals, resulting in its degradation. They can contribute to the tragedy of the commons by moving productions to locations where they are free to pump pollutants into the atmosphere or dump them in oceans or rivers, thereby harming these valuable global resources. Although environmental pollution is an ethical issue alone, another ethical issue branching off from this is the fact that the health of the people in the host country is being put into jeopardy as well. Although businesses do not have an obligation to protect the environment above what the law requires, they must realize that the severity of the pollution, and the problems that arise from it, in order to fully understand that their actions are ethically wrong. For example, if businesses showed more concern for the environment above what the law requires, they would be able to significantly cut pollution and the harm that it brings to the environment of host nations. Consumers are also at fault here as they tend to shy away from the environmentally friendly companies products since their price tags may be slightly higher than that of the company that is able to cut production costs by polluting the environments of host nations. Consumers can do their part in attempting to solve this ethical issue by purchasing more environmentally friendly products. Environment requirements, like those in developed countries, must be implemented in countries that are popular with multinational corporations. This will restrict these companies from polluting and dumping toxic chemicals into these environments that could result in consequences both locally and worldwide. The Kyoto Protocol is an international agreement between thirty-seven countries to reduce greenhouse gas emissions. Greenhouse gases are caused by carbon emissions going into the atmosphere from things such as car gas pipes and other fuels such as natural and diesel gasoline. The protocol commits countries to cut back on the percentage of emission per capita they release into the atmosphere every year. However, there are not many countries in the world that are part of the agreement. It would be very advantageous if more countries that host a lot of multinational corporations joined. For example, consider again the case of foreign oil companies in Nigeria. According to a 1992 report prepared by environmental activists in Nigeria, in the Niger Delta region,
Apart from air pollution from the oil industry’s emissions and flares day and night, producing poisonous gases that are silently and systematically wiping out vulnerable airborne biota and endangering the life of plants, game, and man himself, we have widespread water pollution and soil/land pollution that results in the death of most aquatic eggs and juvenile stages of the life of fin fish and shell fish on the one hand, whilst, on the other hand, agricultural land contaminated with oil spills becomes dangerous for farming, even where they continue to produce significant yields. The political and economic powers wielded by the Corporations within the Nigerian territory far outweigh their commitment to abide by international environmental standards with regard to exploration activities. According to Audrey Gaughran , "The Oil Companies have been exploiting Nigeria’s weak regulatory system for too long. They do not adequately prevent environmental damage and they frequently fail to properly address the devastating impact that their bad practice has on people’s lives". The over fifty years of oil exploration activity in the Oil Rich Niger-Delta region have been characterized with unprecedented devastation and social instability as a result of militancy within the region
. The discovery of these-called “black gold” has become the source of an endless nightmare to the over 31 million people living in the Niger-Delta region. The “Polluter pays” a fundamental principle of international environmental law which states that the polluting party is to pay for the damage done to the natural environment.
Nevertheless all efforts made in the form of petitions, allegations and dialogue tonsure that Oil companies in Nigeria recognize their corporate liability for the devastating effect of oil spillages and to act in accordance with this fundamental principle have not been so fruitful. The present case shows the determination of international Non-Governmental bodies concerned with the environmental pollution to fight to obtain Justice beyond the Nigerian territory. This present move will open doors for numerous litigants who could not find succor in the Nigerian Courts against the powerful oil companies to try to do so by resorting to litigation outside the shore of the Country. This presses home the question whether the seeming powerlessness of the Nigerian Judiciary is as a result of weak or inadequate environmental protection legislation or policies. Pollution like any other problem can be solved, but it will be a long process. Individuals can do their part to save the environment as well as themselves. Instead of driving, carpool, take the bus or any other method of mass transit. This will cut down on pollution made by cars each year, not to mention your gas bill. When it comes to the trash problem, take the time to sort your trash and place it in the appropriate recycling bins. By recycling we reduce the amount of waste piled onto the landfills. As for consumption, pay attention to how the products you buy are manufactured and how they are packaged. Avoid those products made in 'unfriendly' ways towards our mother earth. If a product encourages the destruction of land, or is of completely no use don't buy it. And finally voice your opinion in the polls. If each individual did their part, we will be creating a better world for ourselves as well as our children.

Reference

1. "The Own Worst Enemy Theory: A Case of Oil Pollution in Nigeria"(2011) Openmind Foundation. http://www.openmindfoundation.com/wpcontent/uploads/2011/08/Black_race_and_love_for_self.pdf
2. Tashman, Peter, and Jorge Rivera. 2010. “Are Members of Business for Social Responsibility More Socially Responsible?” Policy Studies Journal 38 (3): 487–514.
3. Nigeria National Biosafety frameworks”(2005) Federal Ministry of Environment http://www.unep.org/biosafety/files/NGNBFrep.pdf
4. Environmental Protection Agency US (EPA) Report of Shell Nigeria http://www.epa.gov/region10/pdf/permits/ocs/shell/kulluk/final_air_permit_response_to_comments_10-21-2011.pdf