Essay Sample about Bank of America and Its Global Significance

Published: 2022-10-20 13:52:06
Essay Sample about Bank of America and Its Global Significance
Type of paper:  Research paper
Categories: Company Banking
Pages: 6
Wordcount: 1496 words
13 min read
143 views

Bank of America is a bank holding company and financial holding corporation. It is a financial institution that serves various parties. They include specific clients, institutional investors, small and middle market businesses, companies and governments. They have a wide variety of investing, banking, asset management, and other hazard and financial administration goods and services. As a company, Bank of America offers a collection of banking and non-banking financial products and services in the USA and global markets through its business divisions such as global and consumer banking. The paper will explore the global significance of Bank of America which is a multinational corporation.

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One crucial role of Bank of America is its commitment to environmental sustainability. The corporation is devoted towards enhancing the environment concerning the way they approach their global business strategy, support personnel, work with their relevant partners and make their activities more sustainable. They are also committed to improving the environment in the way they handle issues and oversee their undertakings ("Corporate Environmental Sustainability at Bank of America").

Specific actions have been taken by Bank of America to guarantee that they achieve environmental sustainability. For instance, since 2007, the corporation has been channeling more than eighty-seven billion dollars targeted at financing low-carbon and sustainable business activities. The capital was set to be increased in 2012 and 2015 and would be accompanied with necessary intellectual capital. Also, it would be aimed at developing solutions to cater for climate change and other environmental issues. It is critical to note that Bank of America has an ecological business strategy. They comprehend the essential role that they have to partake worldwide which entails assisting their customers to direct the alteration to a low-carbon and viable economy ("Corporate Environmental Sustainability at Bank of America").

Concerning environmental matters, Bank of America has been partaking a relevant role in the prompt growth of the green bond market. The company publicized the allotting of the fourth and largest corporate green bond of $2.25 billion in total prime sum this year. As such, it depicted their obligation towards developing renewable energy generation. Proceeds from the bond are aimed at supporting the increase of generating renewable energy. It is vital to note that Bank of America has been the foremost sponsor of green bonds internationally since 2007 ("Corporate Environmental Sustainability At Bank Of America").

Bank of America being a multinational corporation also partakes in economic mobility. They have been committed to ensuring there is social and economic progress through staff improvement and the development of community and basic needs. Concerning the development of employees, Bank of America provides training through partnerships and programs. They do this by linking communities and individuals across the world. They also offer education and internships and the development of diverse talent in their numerous divisions globally ("Economic Mobility with Community Development").

Community development is another crucial aspect of Bank of America. They link their customers across the world with the right mix of products, services, job chances, capital, partnerships, and humanity. In this way, they boost their capability of attaining their goals and nurturing economic mobility. In communities that are ranked as low and moderate concerning income, they ensure that they have an approach concentrated on them and that their resources are in line with their needs and that of small businesses as well ("Economic Mobility with Community Development").

On the other hand, Bank of America has enabled capital access in the various places it is situated. They do this by participating in community development work linked to small business lending, affordable housing and the regeneration of the region. The US economy identified small and medium-sized businesses as the backbone. As such, access to capital is quite essential for their progress. Therefore, the Bank of America has taken this mandate and is at the lead of assisting small and medium-sized businesses in locating themselves for appropriate growth and development. Their lending to small and medium-sized businesses has been increased over the years. Moreover, the company is also prolonging credit through other innovative methods like investments and loans to the community development monetary bodies ("Access to Capital for Entrepreneurs & Small Businesses"). In this case, the role of Bank of America as a multinational corporation is well displayed which is to create more employment opportunities by ensuring businesses are formed and continue operating or even expand.

The financial health of communities and clients they serve is essential to Bank of America as a multinational corporation. They undertake impact investing which entails making a financial return and creating a beneficial and measurable environmental or social effect. It is unique as a multinational corporation to satisfy the demands of clients and work towards developing a market that is commercially viable for positively affecting investing while at the same time enabling financial health. It is vital to note that Bank of America does this in all their branches worldwide ("Impact Investing from Bank of America").

An exploration of Bank of American depicts certain features of multinational corporations especially concerning their merits and demerits. Concerning the limitations, Bank of America has been observed to be a risk to local businesses. Despite serving minimal and wealthy clients in some areas of the world, it has been noted to force the local banks to enhance their activities and ensure that they remain competitive. However, it has also assisted the domestic banks in host nations to increase their credit amount and improve their stability. It has been observed that Bank of America offers credit to clients in the host nations and this makes it quite attractive. As such, banks in host nations that may have minimized their credit limit have been forced to increase it and stay in the market or maintain the level of competition already established by Bank of America. The domestic banks in some of the host countries have even been left with fewer clients since the good and low-cost ones have shifted to Bank of America (Schnall et al.).

It has been previously observed that Bank of America has created jobs in the host countries primarily through the provision of capital to small and medium-sized business. In this way, they have managed to either expand operations or stay in business. In this way, they have created employment opportunities and even managed to maintain the available ones as well. However, it is also necessary to note that as a multinational corporation, Bank of America has resulted to loss of jobs by concentrating on activities in other nations. By establishing offices or their manufacturing and technical activities in developing countries, the company denies jobs to individuals in the home country (Schnall et al.).

Furthermore, it is critical to note that Bank of American is associated with prospective exploitation of workers. It is evident that the salaries or wages paid to employees in the foreign country is not similar to that in the USA. The trend is apparent in the developing countries where they have been observed to take advantage of cheap and readily available labor. Also, they enjoy the absence of strict policies and high unemployment rates which they further enjoy through offering low salaries and healthcare aids as well (Schnall et al.).

The paper has explored the global significance of a multinational corporation and in this case, Bank of America. It has been observed that the corporation is committed to environmental sustainability. They are devoted to refining the environment regarding the way they approach their global business tactic and work with relevant associates. Also, their activities are targeted at being more sustainable. Bank of America as a multinational corporation also participates in economic mobility. They have been working towards economic and social progress by enhancing their personnel operations and advancing basic and community needs. Their success is tied to the connection of communities and individuals across the world. Moreover, community development is another critical undertaking of Bank of America. They connect their clients all around the world with the right mix of services, products, capital, humanity, and partnerships. Also, in low and moderate-income communities, the bank ensures that the resources provided are in line with their need and that of small businesses as well. On the other hand, some of the negative relevance of Bank of America as a multinational corporation is that they have led to the loss of jobs in their home country by focusing on other nations. They also exploit workers especially in host countries and mostly the developing ones by taking advantage of cheap and readily available labor.

Works cited

"Access To Capital For Entrepreneurs & Small Businesses". About Bank Of America, 2018, https://about.bankofamerica.com/en-us/what-guides-us/access-to-capital.html#fbid=gUUB8Dd1gSR. Accessed 12 Dec 2018.

"Corporate Environmental Sustainability At Bank Of America". About Bank Of America, 2018, https://about.bankofamerica.com/en-us/what-guides-us/environmental-sustainability.html#fbid=gUUB8Dd1gSR. Accessed 12 Dec 2018.

"Economic Mobility With Community Development". About Bank Of America, 2018, https://about.bankofamerica.com/en-us/what-guides-us/economic-mobility.html#fbid=gUUB8Dd1gSR. Accessed 12 Dec 2018.

"Impact Investing From Bank Of America". About Bank Of America, 2018, https://about.bankofamerica.com/en-us/what-guides-us/impact-investing.html#fbid=gUUB8Dd1gSR. Accessed 12 Dec 2018.

Schnall, Peter L., et al. Unhealthy work: Causes, consequences, cures. Routledge, 2018.

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