- Human Resource
Role of MNCs in India
Get back to basics - do not give up morals and ethics in the land of humble people.
100's of MNCs coming into Indian Market in the name of liberalization every year. What are the primary responsibilities, accountability and moral resp to be set and imposed on Multi-national companies spreading their wings in India?
Globalization is the driver to multi-nationalism. Large MNCs (Fortune 500 companies) have looked at India as potential growth market, as Indian Economy would be the 4th Largest Economy in terms of Purchasing Power parity and by 2025 it is projected to be about 60% of US Economy.
Large corporations whose entry into Indian Economy has resulted in mergers and acquisitions in a big way through FDI, etc., Yes, those who have/having potential to do multi-million $ business are being acquired and/or merged with the world's large organizations. This has created and/or increased the wealth of the stake holders of Indian companies including employees. However, with this, the balancing act between the RICH and the POOR is not maintained.
On the other hand, there has been huge loss to small and medium enterprises when a foreign company enters Indian market to offer their products and services. Not all such companies see growth & profits unless the local needs are met in terms of requirements, logevity, emotional fitment and the cost. In this process, such companies end up selling with desparation and close down their business in a short span. SMEs in specific, who have invested in products and solutions stand nowhere, but to lose the money where they have paid it through nose.
Another instance where entrepreneursare running anciliary and distribution business for large retail and industrial manufacturers like 3M India, GE, etc., for example under huge trust and confidence. These MNCs load these small and medium enterpreneurs with such terms and conditions that protect the principal companies than the entrepreneurs. Recent experience in the Indian market, where one of the large MNCs established the business through distribution network (where direct selling was self-prohibited) has started direct selling, pouching of resources from those distributors, creating havoc in the latter's organizations, etc., Such brutal act on MNC's part is killing the enterpreneurship in India.
For such MNCs, global strategies matters more, than the economic condition of our country and its people. It is just a minute's job for them to close down the business leaving all its employees and distributors in lurch.
The question is, how do we protect the interest of our own people's interest and how our Governments act in favor of our own countrymen in the days to come. In this corrupt economy, the imbalance between rich and poor is well maintained and no such efforts are being put in to bring the living of millions of our country.
High time for us to tell MNCs, to GET BACK TO BASICS OF BUSINESS, DO NOT GIVE UP MORALS AND ETHICS WHICH HAUNTS GROWTH OF INDIAN ENTERPRENEUR AND NOT TO KILL THE SPIRIT, BUT TO BRING IN INNOVATION, MAKE PROFITS BUT IMPROVING THE LIFE OF INDIANS BUT NOT TAKING AWAY THE LIVELIHOOD FOR SMALL AND MEDIUM ENTERPRENEURS, THAT PROVIDE EMPLOYEMENT OPPORTUNITIES TO CRORES.