Question:
Nowadays, most large companies operate multinationally. To what extent do those companies have responsibility towards local communities in which they operate?
Sample Answer (Band 7.5–8)
In recent years, the number of multinational corporations has grown significantly, expanding their operations across borders. While their primary goal is often to generate profit, I strongly believe that these companies also have substantial responsibilities towards the local communities where they operate.
On the one hand, multinational companies play a vital role in driving economic growth by creating job opportunities and contributing to tax revenues. However, their responsibilities should not end there. Since they benefit from local resources such as labour, land, and infrastructure, they have an ethical duty to give back to the communities that support them. For instance, they can invest in local education, healthcare, and environmental conservation projects. Such actions not only improve the standard of living for local residents but also help the companies build a positive public image and long-term sustainability.
On the other hand, neglecting local welfare can lead to serious social and environmental consequences. Many multinational corporations have been criticised for exploiting cheap labour or damaging the environment in developing countries. For example, industries such as mining or textile manufacturing often cause pollution or poor working conditions. Therefore, these companies must ensure fair wages, safe working environments, and sustainable business practices. Governments should also enforce strict regulations to make sure corporations act responsibly towards local people.
In conclusion, while multinational companies exist to make profits, they undeniably share a moral and social responsibility towards the local communities that host their operations. By actively supporting social welfare and environmental protection, they can create a win-win situation where both the business and society thrive.
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