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'Transnational corporations (TNCs) care far more about their own profits than the environmental impacts of their activities.' With reference to energy production and distribution, how far do you agree with this statement? [20 marks] - AQA - A-Level Geography - Question 5 - 2022 - Paper 2
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'Transnational corporations (TNCs) care far more about their own profits than the environmental impacts of their activities.' With reference to energy production a... show full transcript
Worked Solution & Example Answer:'Transnational corporations (TNCs) care far more about their own profits than the environmental impacts of their activities.' With reference to energy production and distribution, how far do you agree with this statement? [20 marks] - AQA - A-Level Geography - Question 5 - 2022 - Paper 2
Step 1
Evaluate the role of TNCs in energy production
Answer
Transnational corporations (TNCs), such as BP, ExxonMobil, and Shell, play a significant role in energy production and distribution across the globe. Their primary aim is to maximize profits, often at the expense of environmental considerations. For instance, the Deepwater Horizon oil spill in 2010, operated by BP, resulted in catastrophic environmental damage, impacting marine ecosystems and local economies. This incident exemplifies how TNCs may prioritize profit over environmental responsibility.
Step 2
Assess the impact of TNCs on environmental damage
Answer
TNCs are frequently involved in practices that cause environmental harm. For example, the extraction of natural resources can lead to deforestation, habitat destruction, and pollution. Companies like Chevron and Shell have faced criticism for their operations in sensitive ecological areas, which disregard local environmental regulations. Environmental impact assessments are often seen as inadequate when TNCs influence policies to favor their profit margins over environmental sustainability.
Step 3
Examine the motivations behind corporate actions
Answer
The motivations of TNCs are heavily influenced by the global market's demand for energy. This drive for profit can lead to decisions that compromise environmental protections. TNCs may argue that they are generating jobs and contributing to national economies, yet this often detracts from their responsibility to minimize environmental harm. The prioritization of shareholders' interests frequently overshadows ethical considerations regarding environmental stewardship.
Step 4
Consider counterarguments regarding TNCs and environmental practices
Answer
While it is clear that many TNCs prioritize profits, some have started to integrate sustainable practices into their operations due to increasing public scrutiny and regulatory pressures. Some companies are investing in renewable energy sources and improving their environmental standards. However, these actions often appear as a reactive measure rather than a proactive commitment to environmental sustainability.
Step 5
Conclusion
Answer
In conclusion, while some TNCs are making strides towards environmental responsibility, the overarching trend suggests that the pursuit of profit still significantly outweighs their commitment to mitigating environmental harm. The relationship between energy production and corporate responsibility remains complex, often favoring financial gain at the expense of ecological well-being.