The areas of corporate social responsibility are such as management of the environment, maintaining labour standards and good working conditions, engagement of stakeholders, observance of human rights and practicing good governance. A multinational corporation will show corporate irresponsibility on failure to take the social responsibility measures (Adeyeye, 2012).
According to McIntyre et al (2009) one of the corporate irresponsibility incidents of multinational corporations is the violation of human rights by these corporations, and another one is environmental mismanagement. For instance the MCNs in oil extracting countries have been observed over the years to have violated the rights of the oil bearing communities. The violation usually arises from the conflicts between the two groups concerning land rights and compensation for the ecological damages that are caused by these corporations during oil extraction. The extraction mainly causes negative effects on the environment and the MNCs show corporate irresponsibility by not finding the appropriate measures of managing the effects caused. The multinational corporations further fail to meet the expectations of these communities concerning compensation as well as environmental management. The result of this corporate irresponsibility is frustration of the communities arising from unfulfilled expectations as well as violence as form of response. The operations of these multinational corporations have been attributed to the cases of underdevelopment in the countries (Sornarajah, 2010).
The efforts of free trade markets to better the global economy and making sure that multinationals are accountable for their effects on the environments and stakeholders, have failed since the multinational corporations are making more efforts to cover their abuses on the environment as well as the human rights instead of preventing them.