S.C. Johnson Essay Example | Topics and Well Written Essays - 1750 words

S.C. Johnson - Essay Example In 1914, just 28 years after its, owner Samuel C. Johnson opened its first subsidiary in Great Britain and became what is now known as a multi-national corporation. Currently, SC Johnson operates subsidiaries in over 70 countries internationally. Although the SC Johnson has been a multi-national corporation since 1914, over the past 10 years the global economy has been expanding at an unprecedented rate. Large economies such as those of the United States and Great Britain are transitioning from a predominately manufacturing or production based economy to a technology and service-based economy. Historically, the number of people employed in the manufacturing industry has been steadily dropping in developed nations and rising in less developed nations such as Mexico in favor of lower labor costs. Although this mass exodus of manufacturing in the U.S. to Mexico has been a relatively recent phenomenon, SC Johnson opened its facilities in Bosque de Chapultepec, Mexico in 1954. Lower labor costs, as well as, relatively lower operating costs are the main comparative advantages for operating in Mexico. Mexico also has a comparative advantage over other host countries due to its proximity to the United States and the adoption North American Free Trade Agreement. The North American Free Trade Agreement has effectively eliminated tariffs and barriers on trade between the countries of Mexico, Canada and the United States. Tariffs that were not immediately eliminated are scheduled to phase out over the course of the next 5 to 15 years (NAFTA 2006). Faced with the possibility of increased pollution due to often less stringent environmental regulations in many developing nations, environmental concerns regarding NAFTA were addressed in 1993. As a result, the North American Agreement on Environmental SC Johnson 3 Cooperation was developed. Even with the NAAEC pact, free trade is still not without fault. In the ever-increasing global economy further environmental protection issues must continue to be addressed. While free trade does not necessarily promote pollution, it does place environmental strains on local communities. As manufacturing communities grow at an explosive rate, waste water and water treatment plants are over burdened not only from the dramatic increase in residential growth, but by the negative environmental by-products of the manufacturing plants. Additional agreements must continue to be drafted and implemented to help curb pollution attributed to expanding multi-national corporations. Especially so in less developed nations where environmental policies may be lacking. Environmental issues have been of great concern to SC Johnson since 1935 when H.F. Johnson traveled to Brazil to explore less devastating ways to harvest wax from the Carnauba Palm. In 1955, the corporation introduced water based aerosol sprays and in 1975 eliminated the use of chlorofluorocarbons ("Protecting the Environment," 2005). Dedicated to corporate social responsibility, SC Johnson currently has tools and guidelines for the reduction of green house gas emissions. Beginning with its largest production plants, the corporation has reduced its green house gas emissions by 30 percent worldwide ("Sustaining Values," 2005). SC Johnson is not only dedicated to environmental issues