Burger King, Tim Hortons, Kraft.co, Anheuser-Busch InBev. Giant multinational enterprises, largely responsible for supplying consumption goods for millions of citizens worldwide. Enterprises located in all continents of the world, offshoring production and services to billions of people in a daily basis. Whether you are eating a Burger King in America, or drinking a coffee in Canada, or drinking Foster’s beer in Australia, you are consuming goods produced by the same owner…

That may be intriguing, but It shows the reality of multinational corporations and foreign direct investment in the world. With the internationalization of finance and trade, investment firms and multinational corporations continue to predate in the global economy, harnessing a large portion of the population in their webs of complex global supply chains.

All the companies mentioned above are under control (partial, of course) of 3G Capital, a Brazilian multibillion-dollar investment firm. This firm’s name might be an incognito for most citizens, but it produces large amounts of consumer goods in different parts of the world, generating immense amounts of profits for the firm. 3G Capital motto is simple. The surgical approach towards operational costs, the firm intends to slash unnecessary costs that might hamper future profits. They publicize their motto, they are not ashamed of behaving this way, as this behavior has been transformed into years of corporate success, fulfilling investors and stake holders expectations. However, this comes at expense of workers, assets, factories, you name it. The motto is clear, a rational theory for MNC, lower transaction costs, more profits. Whatever increases their costs and might be unnecessary must be eliminated. This monopolistic advantage, with high profits and merit rewards, is praised by many in the financial world, but largely criticized in the political field of study.

Thus, the question arises: Is 3G Capital aggressive, slash costing behavior is ethical? Is the displacement of many workers for the preservation of large dividends in the end of the year right? This question, in my opinion, does not have a final answer. The rationale from the company is always to increase the productivity and efficiency of its factors of production, in order to gain profits. An appraisal must be given to the 3G Capital, in producing quality services, under different brands, to millions and millions of people. Their efforts must be rewarded somehow. However, to what extent? Should government condemn this sort of MNC’s activity or should they work together to make these corporations more socially responsible to the ramifications it causes in the lives of workers at their companies?

Link:

http://fortune.com/2015/03/25/3g-capital-heinz-kraft-buffett/