Generally, if a subsidiary of a multinational corporation based in one country breaks a law in another country, who is responsible for holding the company accountable?Group of answer choices
Question
Generally, if a subsidiary of a multinational corporation based in one country breaks a law in another country, who is responsible for holding the company accountable?Group of answer choices
Solution
The responsibility for holding a multinational corporation accountable for its subsidiary's actions generally falls on the jurisdiction where the law was broken. This means that the country where the illegal activity took place is typically responsible for enforcing its laws and regulations, which includes holding the company accountable.
However, it's important to note that this can get complicated in cases where the parent company has significant control over the subsidiary's actions, or where the illegal activity is part of a broader pattern of behavior by the corporation. In such cases, the home country of the multinational corporation may also have a role to play in holding the company accountable.
In addition, international law and treaties can also come into play, particularly for very serious offenses. These can provide mechanisms for holding multinational corporations accountable, even when the illegal activity occurs outside the home country.
So, in summary, the primary responsibility typically lies with the country where the law was
Similar Questions
For multinational corporations, the parent company is always responsible for any laws broken by a subsidiary in another country.Group of answer choicesTrueFalse
Who is charged with holding multinational corporations legally accountable for things like human rights violations (working conditions)?Group of answer choicesThe country in which the violations occurThe United NationsThe US governmentThe consumer
Evaluate whether a government should control the operations of multinational companies within its own country [12]
What are the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct and how do they relate to the other international instruments? What is the specific National Contact Point mechanism under the OECD Guidelines? Would you advise a company to participate in this mechanism should a complaint be initiated?
A multinational company produces its goods domestically and then sells them overseas.Group of answer choicesTrueFalse
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.