Globalization and the Challenges of Multinational Corporations

I. Introduction: Globalization and The Growth of Multinational Corporation
With the emergence of economic globalization, corporations are boundless, without home territories. The most widely accepted principal of multinational corporations sometimes called as multinational enterprises or translational corporations is to maximize shareholder wealth. MNCs enact corporate strategies to improve cash flows, market share, and eventually enhance shareholder profit. Shareholders today expect double-digit returns, yet the global economy barely accomplishes an annual average rate of growth of only 2-3 percent especially since the unfinished financial crisis in 2009.
Mired in domestic saturated markets, MNCs has gone beyond local investment to invest
This is partially the detrimental threats to the environment of day to day operations from the industrial process of construction, exploration, production, transportation and all the way to refining. Oil producing companies are also more vulnerable to civil society pressures because environmental destruction particularly in regard with oil leakage and international brand reputations. When everyone has camera on smartphone and access to worldwide internet service, it is only a matter of time that business wrongdoing even a minor oil leakage will be on media outlets. Besides growth in social reporting, code of conduct multinational oil corporations such as Royal Dutch Shell and BP have embraced major international CSR initiatives such as Kofi Annan’s Global Compact and the Global Reporting Initiative established by the Coalition for Environmentally Responsible
Multinational corporations advocate themselves to have brought positive transformations while simultaneously engage in harmful, illegal and unethical business practices in local community has challenge the concept of corporate social responsibility.

ii. Royal Dutch Shell in Nigeria
This is clearly evidence particularly in the Africa continent. While foreign direct investment is critical for economic growth in developing countries, governments of developing nations are also unwilling to give up centralized government control on abundant natural resources.
Nigeria ranked as Africa largest producer of oil, the thirteenth largest oil producing country in the world and largest natural gas reserves in Africa continues to attract major international oil companies such as EITI board, Exxon, Chevron, Shell, BP, Statoil, ConocoPhilips, and Eni. Shell, by far, is the biggest investor and pioneer in Nigeria,