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Katelyn Makihara, (she/her), Low Entropy Volunteer Writer 

Businesses such as Amazon, Costco, and McDonald’s are known by millions across the world, recognized for their convenience, vast selection and cheap prices. These large multinational corporations (MNC) operate offices in numerous countries, dominating market share and customer demands with their global branding and recognition. At large, small businesses embedded in local culture struggle to compete, often closing their doors that have lined the familiar streets of communities for countless decades to centuries. Yet, countries continue to welcome MNCs, believing that their presence and associated “free market capitalism” will “improve everyone’s standard of living” (Calvano, p. 794). In such a day and age, do MNCs have the corporate social responsibility to ensure the protection of local culture? 

McDonald’s is a multinational fast food chain loved by many for its addictive, albeit unhealthy, burgers and fries. By 2022, the corporation was operating over 40,000 locations worldwide in 118 countries, racking $23.18 billion in revenues (McCain). Throughout the years, McDonald’s has been criticized for their actions, namely in homogenizing global food systems and local cultures (Bolton). Sociologist George Ritzer has dubbed this effect “McDonaldization,” as global chains such as McDonald’s popularize a fast food experience over cultural diversity. One such example occurred in Bangladesh, where foreign direct investment and urbanization have been seen to cause an increase in students being more likely to eat food at restaurants that serve non-traditional food (Rahman Raisa). In hopes of increasing convenience to compete with McDonald’s, businesses ranging from restaurants to other industries strive for a “fast-food” business model, leading to a shift in values, preferences and societal structure of localities. 

Founder and CEO of PQE Group, Gilda D’Incerti, pushes businesses to integrate “glocalization” into their process of expanding to new localities. She states that:  

“When expanding to new localities, it’s crucial to understand and respect the culture. […] Understanding the nuances of a new place can help locals feel more comfortable engaging with your foreign enterprise while allowing your company to grow deep roots and foster valuable, long-lasting connections.” 

 

Companies such as Starbucks show attempts of glocalization with their launches of regional drinks and foods. In Japan, the MNC has endeavored to include local culture through their 47 JIMOTO Frappuccino line to celebrate their 25th anniversary in Japan. Drinks were released in each respective prefecture to showcase regional specialties, including the Hokkaido Tokibi Creamy Frappuccino or the Kyoto Hannari Matcha Kinako Frappuccino. Additionally, the company has invested in projects such as the Tatami Starbucks in Kyoto, which allows guests to enjoy Starbucks drinks in a traditional Japanese vicinity. Through such attempts, Starbucks operates while fostering awareness and interest towards local and traditional cultures. 

As the world continues to become increasingly globalized, the dominance of multinational corporations will progressively grow. Without the corporate social responsibility of MNCs, the unique cultural aspects of small localities will diminish into obscurity. To prevent this, an awareness towards local culture within global expansion becomes essential. Today, pressure groups from local communities fight for their interests against billion dollar MNCs. Through actions such as lobbying, petitioning and boycotting, many fight to ensure that the actions of large corporations do not diminish or harm local cultures. This reciprocal effort between communities and companies will ensure that cultural beauty does not become a victim of capitalist economies. 

 

Sources and Further Readings 

Bolton, Peter. “McDonald’s Latest Move Sums up Its Wretched Cultural Imperialism.” Canary, 13 June 2019, 

www.thecanary.co/opinion/2019/06/13/mcdonalds-latest-move-sums-up-its-wretched-cultural -imperialism/. 

Calvano, Lisa. “Multinational Corporations and Local Communities: A Critical Analysis of Conflict.” Journal of Business Ethics, vol. 82, no. 4, 2008, pp. 793–805. JSTOR, http://www.jstor.org/stable/25482329. Accessed 23 June 2023. 

D’Incerti, Gilda. “Council Post: The Value of Global Companies with a Local Mindset.” Forbes, 13 Feb. 2023, 

www.forbes.com/sites/forbesbusinesscouncil/2023/02/10/the-value-of-global-companies-with -a-local-mindset/?sh=6cdb077c9d12.

 

McCain, Abby. “22 McDonald’s Statistics [2023]: Restaurant Counts, Facts, and Trends.” Zippia, 12 May 2023, 

www.zippia.com/advice/mcdonalds-statistics/#:~:text=There%20are%20about%2040%2C275 %20McDonald’s,in%20118%20countries%20and%20territories. 

Rahman Raisa, Nuzhat Tasnim. “McDonaldization of Asia: Impacts of Globalization on the Asian Culture.” SSRN Electronic Journal, 9 Oct. 2020, https://doi.org/10.2139/ssrn.3702432. 

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Katelyn Makihara is a Japanese-Canadian eleventh grade student who deeply values creativity, education and equality. She is very passionate about writing and Japanese culture, which have greatly supported her throughout her life. She dreams of becoming an editor in Japan to spread the joy of literature and stories to generations to come.