Multinational corporations (MNCs) operate across multiple countries and hold enormous economic and political power. While legal frameworks exist to regulate corporate behaviour, the reality often shows a complex balance between compliance, influence, and oversight. This article explores how the law is intended to ensure fairness and accountability, while examining real-world examples that reveal the challenges of enforcing those standards consistently.

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On paper, MNCs are subject to a range of international and national laws designed to protect workers, communities, and the environment. International frameworks, such as the UN Guiding Principles on Business and Human Rights, outline obligations for corporations to respect human rights in all areas of their operations. National legislation adds further requirements, including labour laws, environmental regulations, and consumer protection measures. For example, Shell is legally required to follow environmental and labour regulations in Nigeria, which are meant to safeguard workers’ rights and minimise damage to local communities. These rules provide a foundation for fairness, showing that there are clear expectations for corporate behaviour and mechanisms that, in principle, should hold companies accountable for their actions. Legal frameworks like these reflect a global commitment to justice and equity, which in many cases guide corporations toward responsible practices.

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However, it must be noted that the majority of MNCs have a profit-driven approach in their operations. They seek countries with the lowest labour costs to locate their production, taking advantage of weaker government protection to optimise cost levels. While these practices are usually legal, they can be highly unethical, as workers may face poor conditions and low wages. For example, Nike has been criticised for sweatshops in Southeast Asia, where labour laws were technically followed but fairness and ethical responsibility were lacking. Furthermore, some corporations cross the line from unethical practices into illegal activity. Enforcement of regulatory laws can be inconsistent, and some MNCs exploit their gaps to benefit their interests. Shell’s oil operations in the Niger Delta, for instance, have caused significant environmental damage with minimal compensation or accountability for affected communities. This demonstrates that even when legal obligations are clear, MNCs can sometimes operate in ways that undermine fairness and ethical responsibility. The challenges often stem from weak enforcement mechanisms, political influence, and the sheer complexity of regulating companies that operate across multiple countries.

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In conclusion, multinational corporations are bound by laws intended to ensure fairness and accountability, but real-world examples show that exploitation still occurs. Legal frameworks provide a foundation for corporate responsibility, yet enforcement gaps, global power dynamics, and economic priorities often allow companies to act in ways that fall short of these standards. Beyond following the law, MNCs should also embrace corporate social responsibility, actively contributing to the well-being of workers, communities, and the environment in the countries where they operate. Ensuring that MNCs consistently uphold both legal obligations and ethical responsibilities requires stronger oversight, transparency, and a realignment of priorities beyond purely economic growth. Only then can fairness and accountability be more than a principle on paper and instead become a reality for workers, communities, and society at large.