The Effects of Multinational Companies on Deforestation: The Building Block or Stumbling Block

Abstract

Trade liberalization and worldwide economic integration have brought not only an increase in wealth but also in transnational threats. Environmental devastation caused by commercial activities of multinational corporations (MNCs) is one of such threats. While almost all countries have environmental laws designed from pollution, the rules differ per country. Yet, only in the context of legally binding regulatory measures should multinationals be compelled to conduct business in an environmentally friendly manner.

Recognizing the rights of “others”: A framework for corporate human rights violations in international business

“…Our findings show a significant impact of MNCs on the environment, especially from the mining and extractives sector (76.9%; Table 3) and agriculture (17.3%). In particular, deforestation (Pîrvu, 2020), mining, and extraction activities cause damage to the ecosystem (Yeganeh, 2019), resulting in loss of plant and animal species. For instance, the Amazon region plays an important role in preserving biodiversity and stabilizing the climate by storing large amounts of carbon that otherwise would lead to climate change; however, beef and leather industries have had negative impact on the region.…”