How can MNEs promote sustainable growth in the economies where they operate? By

Question

How can MNEs promote sustainable growth in the economies where they operate?

By adhering to principles of maximizing shareholder returns

By paying taxes in the countries where they operate

By adopting a CSR approach to social well-being in each location

By negotiating the most advantageous deal possible with governments of host countries

By adhering to principles of maximizing shareholder returns

By paying taxes in the countries where they operate

By adopting a CSR approach to social well-being in each location

By negotiating the most advantageous deal possible with governments of host countries

Explanation / Answer

Adoption of CSR approach is the best response among other choices. Paying tax is a legal activity without which any MNE cannot and should not operate. Government of the host nation may not be willing to provide open support to MNEs in most of the countries due to fear of chrony capitalism. Hence the best choice is to have a corporate social responsibility of its own actions.

By adopting a CSR approach to social well-being in each location

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