Study Controlling MNCs in the Pearson Edexcel A Level Business specification, including the knowledge, application and evaluation needed for exam questions and mark-scheme responses.
Sources for use with Extract E A handful of multinational corporations is responsible for the world’s plastic waste A global environmental pressure group, Break Free from Plastics, made up of individuals and environmental organisations including Greenpeace, says much of the plastic littering the planet comes from just a few multinational corporations. In a recent “World Clean Up Day” held in 51 countries, the group’s volunteers collected nearly half a million pieces of plastic waste. 43% of this waste was marked with a clear consumer brand. Coca-Cola, PepsiCo, and Nestle were responsible for the most pieces of plastic collected. Others in the top 10 polluters include Mondelez International, Unilever, Mars, P&G, Colgate-Palmolive, Philip Morris and Perfetti Van Melle.
Extract F Corporate polluters must watch out In a recent ruling, a Dutch court ordered the Royal Dutch Corporation and the Shell group, to cut the emission of carbon dioxide into the atmosphere by a net 45% at the end of 2030, compared to the 2019 levels. This court ruling resulted from a public-interest lawsuit brought by a group of environmental pressure groups, led by the Netherlands-based Friends of the Earth, claiming violations of domestic and international law governing climate change and human rights.
the extent to which the actions of multinational corporations can be controlled. (20)
Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the general marking guidance. The indicative content below exemplifies some of the points that candidates may make but this does not imply that any of these
must be included. Other relevant points must also be credited.
Knowledge, Application, Analysis, Evaluation - indicative content
- A MNC is a business that operates in more than one country, their actions can be controlled in a number of ways
- Countries in which they operate have a legal framework and MNCs need to comply with tax rules, planning controls and safety directives
- Direct governmental control such as legal action if necessary, can
control MNCs, Extract F gives an example of Shell facing a Dutch court
- By mobilising public opinion pressure groups can create negative publicity for a business that can cause it to modify its behaviour for fear of losing sales
- Social media can be used by pressure groups or individuals to rapidly spread news of campaigns and transgressions by MNCs, which increases the pressure on them to modify behaviour
- Consumers can boycott a business' products when they have concerns,
Canada Goose stopped using fur following a successful boycott of their
products
- MNCs respond by altering/modifying their actions for fear of loss of
image/reputation/sales
- Some MNCs are self-regulating and pride themselves on their ethical stance and behaviour such as IKEA
- In practice it is often a combination of these factors that lead to success
in controlling the actions of MNCs
- However, the effectiveness of government control/legal regulation is
dependent on the size and influence of the country and on the size and resources of the MNC
- Some governments are reluctant to confront MNCs too directly for fear of losing important investment and employment created by the MNCs, this can outweigh the actions of pressure groups and the influence of public opinion
- Not all MNCs are likely to be influenced by pressure groups or public opinion, particularly those not reliant on consumer sales such as mining
companies like Glencore
- MNCs can mount their own campaigns via the media and social media
to counteract public opinion, such as so-called 'greenwashing'
- In some countries consumer pressure is unlikely to be strong, it tends to be more effective in affluent well-informed societies
- The extent to which they can be controlled depends on the
circumstances and the relative power each agent holds
| Level | Mark | Descriptor |
|---|---|---|
| 0 | No rewardable material. | |
| Level 1 | 1-4 | Isolated elements of knowledge and understanding. Weak or no relevant application of business examples. An argument may be attempted, but will be generic and fail to connect causes and/or consequences. |
| Level 2 | 5-8 | Elements of knowledge and understanding, which are applied to the business example. Arguments and chains of reasoning are presented but connections between causes and/or consequences are incomplete. Attempts to address the question. A comparison or judgement may be attempted but it will not successfully show an awareness of the key features of business behaviour or business situation. |
| Level 3 | 9-14 | Accurate and thorough knowledge and understanding, supported throughout by relevant and effective use of the business behaviour/context. Uses developed chains of reasoning, so that causes and/or consequences are complete, showing an understanding of the question. Arguments are well developed. Quantitative and/or qualitative information is introduced in an attempt to support judgements, a partial awareness of the validity and/or significance of competing arguments and may lead to a conclusion. |
| Level 4 | 15-20 | Accurate and thorough knowledge and understanding, supported throughout by relevant and effective use of the business behaviour/context. Uses well-developed and logical, coherent chains of reasoning, showing a range of causes and/or effect(s). Arguments are fully developed. Quantitative and/or qualitative information is/are used well to support judgements. A full awareness of the validity and significance of competing arguments/factors, leading to balanced comparisons, judgements and an effective conclusion that proposes a solution and/or recommendations. |