Activity 3: The local consequences of MNC operations

Aims

To understand that the operations of MNCs can both benefit and be detrimental to host communities.

National Curriculum links

Pupils should be taught:

1(e) about how the economy functions; (j) about the wider issues and challenges of global interdependence and responsibility

2(a) to research a topical political, spiritual, moral, social or cultural issue, problem or event by analysing information from different sources, including ICT-based sources, showing an awareness of the use and abuse of statistics; (b) to express, justify and defend orally and in writing a personal opinion about such issues, problems or events

Resources

• Activity Sheet 3.1
• Activity Sheet 3.2
• Activity Sheet 3.3
• Access to the Internet

Activity

• Before receiving Activity Sheet 3.1, the class should brainstorm the positive and negative consequences of the operations of an MNC for local communities.
• Pupils to be presented with the checklist (Activity Sheet 3.1) and to add their own ideas if they are not already represented.
• Pupils to read through the extracts on Activity Sheet 3.2 and assess each one against the checklist (Activity Sheet 3.1).
• Pupils to share their findings and conclusions drawn from the exercise.

• Discuss:
  • How are companies likely to present themselves to the public?
  • What information might they leave out?
  • How might pressure groups portray a company?
  • What information will they focus on?
• Lead a whole-class discussion on the idea of balanced reporting, working on the premise that no company is all bad or all good.

• Working individually, in pairs or in small groups, pupils choose an MNC for study. It should have known critics so that two views can be obtained. Possible examples are:
  • BP at www.bp.com and Greenpeace at www.greenpeace.org.uk
  • Nike at www.nikebiz.com and Corporation Watch at www.corpwatch.org
  • GAP at www.gapinc.com and Global Exchange at www.globalexchange.org
  • Nestlé at www.nestle.co.uk and Baby Milk Action at www.babymilkaction.org
  • Lockheed Martin at www.lockheedmartin.com and Human Rights Watch at www.hrw.org
• Pupils research their chosen company and its critics and write a summary of their findings and conclusions using the guidance on Activity Sheet 3.

Differentiation

• Activity A: For each extract, instead of using the checklist, pupils to make their own good/bad list, putting ticks/crosses every time they read something that they think is good/bad for the community. Results to be added up at the end.

• Activity B: Pupils to look at only one aspect of a company’s performance, for example working conditions. It would be easier to start with a pressure group’s concerns, then look at the company.

Extension

• To place the companies on Activity Sheet 3.2 in order of merit and give reasons.
• Write a mission statement for an MNC that will demonstrate its commitment to helping the community.
• Compose and send an e-mail or letter to an MNC, asking for more information about their contribution to communities.

Discussion points

• Who is responsible for the beneficial and detrimental practices that go on?
• What role has the government of the country in the operation of MNCs?
• Do the good things outweigh the bad?