Navigating Global Complexity: Harmonization Challenges And Recommendations For Multinational Corporations
Larry Ibanga Thomas Lecturer, Department Of Human Resources Management Institute Of Arts Management And Professional Studies (IAMPS) Owerri, Imo State. E-mail: Ibanga.larry@gmail.com
Volume 4, Issue 1, April 2024
The integration of multinational corporations (MNCs) into the global economy brought significant challenges in financial reporting and management standards due to disparities across nations. This paper examined the harmonization challenges faced by MNCs in two core domains: financial reporting and management practices. In the financial domain, issues such as currency exchange rate fluctuations, taxation disparities, depreciation methods, and variations in disclosure and presentation guidelines presented obstacles to transparent reporting and performance evaluation. Similarly, in the management domain, cultural differences, communication barriers, legal and regulatory frameworks, and inconsistencies in HR practices posed challenges to effective coordination and collaboration within MNCs. The paper analyzed the impact of these challenges on operational effectiveness and offered recommendations for global harmonization, emphasizing the importance of coordinated efforts between standard-setting bodies, multinational corporations, and regulatory authorities. By implementing tailored central guidelines, leveraging technology, and fostering inclusive and consensus-driven processes, MNCs could optimize operations, enhance transparency, and promote sustainable global development.