13.3 Transnational corporations and local cultures

Transnational corporations (TNCs) shape local cultures through glocalization, adapting products and marketing to fit cultural contexts. This strategy increases market share but raises concerns about cultural imperialism and the erosion of traditional values.

TNCs also impact labor practices and consumer culture globally. While they create jobs, issues like sweatshops persist. Corporate ethnography helps companies understand cultural nuances, but cultural appropriation remains a challenge. Local communities often resist corporate influence to protect their heritage.

Corporate Strategies and Local Cultures

Glocalization: Adapting to Local Markets

• Glocalization involves adapting global products, services, and marketing strategies to fit local cultural contexts and consumer preferences
• Transnational corporations (TNCs) employ glocalization to increase market share and profitability in diverse cultural settings
• Includes tailoring product features, packaging, and advertising to resonate with local values, tastes, and traditions
• TNCs may also incorporate local cultural elements into their branding and corporate identity to build trust and loyalty among local consumers
• Examples of glocalization:
  • McDonald's offering region-specific menu items like the Maharaja Mac in India and the Teriyaki McBurger in Japan
  • Coca-Cola using local languages, celebrities, and cultural references in its advertising campaigns across different countries

Cultural Imperialism and Its Critiques

• Cultural imperialism refers to the dominance of one culture over others, often through the global spread of Western corporate culture and consumerism
• Critics argue that TNCs exert undue influence on local cultures, eroding traditional values, practices, and ways of life
• TNCs are seen as agents of cultural homogenization, promoting a standardized, Western-centric worldview at the expense of cultural diversity
• However, proponents of globalization contend that local cultures are resilient and adaptable, capable of selectively adopting and reinterpreting foreign cultural elements
• Examples of cultural imperialism concerns:
  • The global dominance of Hollywood films and American popular culture
  • The spread of Western fast food chains and consumer brands in developing countries

Corporate Social Responsibility and Brand Anthropology

• Corporate social responsibility (CSR) involves companies addressing social and environmental concerns alongside their economic objectives
• TNCs may engage in CSR initiatives to improve their reputation, build goodwill with local communities, and mitigate the negative impacts of their operations
• Brand anthropology is the study of how brands interact with and shape cultural meanings, identities, and practices
• Anthropologists working in brand anthropology help companies understand the cultural significance of their brands and develop culturally sensitive marketing strategies
• Examples of CSR and brand anthropology:
  • Nike's "Girl Effect" campaign promoting girls' education and empowerment in developing countries
  • Intel's "She Will Connect" program providing digital literacy training to women in sub-Saharan Africa

Labor and Consumption in the Global Economy

Labor Practices and Working Conditions

• TNCs often outsource production to low-wage countries to reduce costs and maximize profits
• This can lead to exploitative labor practices, such as low pay, long hours, poor working conditions, and limited worker protections
• Sweatshops and child labor are common concerns in global supply chains, particularly in the garment, electronics, and agricultural sectors
• Some TNCs have implemented labor codes of conduct and monitoring systems to ensure compliance with international labor standards
• Examples of labor issues in the global economy:
  • The 2013 Rana Plaza factory collapse in Bangladesh, which killed over 1,100 garment workers
  • Foxconn's labor abuses in its Chinese factories producing electronics for Apple and other brands

Consumer Culture and Corporate Ethnography

• Globalization has fueled the rise of a global consumer culture, characterized by the widespread adoption of Western-style consumption patterns and aspirations
• TNCs play a key role in shaping consumer desires and identities through advertising, branding, and product design
• Corporate ethnography involves anthropologists studying consumer behavior, preferences, and cultural meanings to inform product development and marketing strategies
• Ethnographic insights help companies tailor their offerings to specific cultural contexts and create more compelling brand narratives
• Examples of consumer culture and corporate ethnography:
  • The global popularity of American brands like Apple, Nike, and Starbucks
  • PepsiCo's "Doritos Mariachi" campaign in Mexico, based on ethnographic research into local snacking habits and cultural values

Cultural Appropriation and Its Discontents

• Cultural appropriation occurs when elements of one culture are adopted by members of another culture without proper understanding, acknowledgment, or respect
• TNCs have been criticized for appropriating indigenous designs, symbols, and cultural practices for commercial gain, often without compensating or crediting the original communities
• This can lead to the commodification and devaluation of sacred cultural heritage, as well as the reinforcement of power imbalances between dominant and marginalized cultures
• Examples of cultural appropriation in the global economy:
  • Urban Outfitters' use of Navajo tribal patterns on clothing and accessories without permission from the Navajo Nation
  • Victoria's Secret's "Sexy Little Geisha" lingerie line, which fetishized and exoticized Asian women

Resistance and Indigenous Knowledge

Resistance to Corporate Influence

• Local communities, activists, and NGOs have organized resistance movements against the negative impacts of TNCs and globalization
• These movements seek to protect local cultures, livelihoods, and environments from corporate exploitation and cultural homogenization
• Resistance strategies include boycotts, protests, media campaigns, and legal challenges to corporate practices
• Examples of resistance to corporate influence:
  • The global movement against Monsanto and genetically modified crops
  • Indigenous communities in the Amazon rainforest resisting oil drilling and deforestation by multinational corporations

Indigenous Knowledge and Corporate Engagement

• Indigenous knowledge refers to the traditional knowledge, practices, and innovations developed by indigenous peoples over generations
• This knowledge often revolves around sustainable resource management, medicinal plants, and cultural heritage
• Some TNCs have sought to engage with indigenous communities to access and commercialize their knowledge, such as in the pharmaceutical and biotechnology industries
• However, this engagement raises concerns about biopiracy, intellectual property rights, and the equitable sharing of benefits derived from indigenous knowledge
• Examples of indigenous knowledge and corporate engagement:
  • The patenting of the neem tree's medicinal properties by Western companies, despite its long history of use in Indian traditional medicine
  • The San people of Southern Africa's successful legal battle against the patenting of the Hoodia cactus's appetite-suppressing properties by pharmaceutical companies