MAP - Language Policies - pdf

Running head: LANGUAGE POLICIES OF MULTINATIONAL CORPORATIONS 1
How the language policies of multinational corporations
may affect language learning decisions in other institutions
At a TED (Technology, Education, and Design) presentation in 2009, it was noted that
over two billion people were then studying English around the globe (Walker, 2009). It was also
stated that this was not 'pushed' on people, but that it was 'pulled' from those studying English,
because learning the language offered them more economic opportunity and participation in a
global community. Therefore, it was argued, the spread of the English language was enabling a
better tool for helping people to solve the world's problems. The presentation claimed that the
desire to learn English around the globe was a 'mania,' but that it was a skill that could only be
beneficial for those learning it and beneficial for the world in general.
In the field of sociolinguistics, there has been significant opposition to the idea that the
spread of English is only beneficial to those learning the language (e.g., Blommaert, 2010;
Canagarajah, 1999; Edge, 2006; Fairclough, 2006; Gray, 2002; Holborow, 1999; Pennycook,
2001; Phillipson, 2009). There have been some who believe that the language is pushed along
Kachru's (1985) concentric circles of global English, from 'inner-circle' countries to 'outer-circle'
countries as part of a 'center-periphery,' imperialistic, 'neoliberalist' project by governments such
as those of the United States and the United Kingdom (e.g., Edge, 2006; Fairclough, 2006;
Holborow, 2012b; Phillipson, 2009). This argument seems to complement a greater debate
within the social sciences of a neoliberalist project to dominate the world politico-economically
(e.g., Harvey, 2005; Peck, Theodore, & Brenner, 2010).
That the English language has actually been pushed in such an imperialistic way has been
the source of much debate within the sociolinguistic community. There are those who have at
least qualified the linguistic imperialism argument, stating that in acquiring English as a skill

people being oppressed are better able to confront those oppressing them (e.g., Crystal, 2003;
Pennycook, 2001). Other scholars have rejected the 'center-periphery' argument in favor of a
'polycentric' account of influence, stating that there is no imperialistic project to spread English
globally because there are no dominate institutions that would have the means and/or will to do
so (e.g., Blommaert, 2010; Gray, 2002). As such, the role the language policies of multinational
corporations (MNCs) play in determining language learning decisions does not seem to have
been given a great amount of attention relative to other influences. Though, within the greater
social sciences debate regarding dominant institutions, multinational corporations have been
subjected to much more scrutiny and many now consider the MNC to be 'the' dominant player on
the international scene (e.g., Bakan, 2004; Curtis, 2002; Nace, 2003).
This paper examines to what extent the language policies of multinational corporations
influence those formulating language policies within other institutions at various levels. The
language policies created within multinational corporations may create misconceptions as to the
value of languages such as English in the formulation of language learning decisions and
initiatives in other institutions. Language learning decisions, in this paper, are defined as
decisions that governments, corporations, transnational organizations, and educational
institutions make with regards to what language or languages will be encouraged or discouraged
within those domains.
Tsui and Tollefson (2007) stated that individual reactions to globalization have been
“shaped, and even determined, by the linguistic practices and preferences of multinational
corporations, transnational organizations, and international aid agencies” (p. 18). Therefore,
language learners and regional/national language policy administrators may perceive that by
acquiring English as a skill, learners will have gained a worthwhile form of Bourdieu's (1991)
theorized 'linguistic capital' to help ensure their economic security. But when, for example,

Chinese and Korean 'study mothers' suffer heavy psychological burdens by migrating with their
children to other countries in the hopes of providing these children with better English education,
there needs to be a more critical look at what is influencing their perceptions and motivations
(Chew, 2010).
As to who can actually use English to enhance their lives economically or otherwise is in
question. Some scholars have contended that the practical usefulness of the language is
decreasing relative to population and that this parallels the increasingly polarized economic
realities between the 'haves' and the 'have-nots' (e.g. Holborow, 1999). If, then, English is
actually decreasing in economic value for the majority, why is it that more learners go to
extremes in order to acquire it and regional/national educational institutions make increasingly
larger investments to provide it?
The first section of this paper deals with the concept of neoliberalism, the usage of which
seems a distraction from the influences MNCs exert on language learning decisions in other
institutions. The second section then goes on to describe how the MNC has become the
dominant global institution today, and has the means to directly or indirectly 'push' English. The
third section then looks at how language policies made by these powerful MNCs are proliferated
and filtered throughout society as a perceived international standard. The fourth section then
shows how this perception of English as an international standard can lead to misconceptions as
to the social welfare value of the language and counterproductive language policies within
regional/local institutions. Finally, the paper ends with a discussion of possible responses to the
influence of multinational corporations on language learning decisions and education in general.
Reassessing 'Neoliberalism' as a Concept
In social science fields outside of sociolinguistics, the concept of neoliberalism is being
reassessed as to its usefulness (e.g., Barnett, Clarke, Cloke, & Malpass, 2008; Boas & Gans-

Morse, 2009; Garland & Harper, 2012; Ferguson, 2010). In fact, the term seems to have no
register at all in the field of economics, which is surprising since it has been proclaimed as at
least part economic theory (Boas & Gans-Morse, 2009). Many of the issues surrounding the
formulation and effects of English language policies outside of Anglophone countries are of an
international and apparently economic nature. It therefore seems reasonable to incorporate
political and economic theory into the study and approach the topic from a more interdisciplinary
standpoint as much as possible. Indeed, sociolinguists have called for a more interdisciplinary
approach that looks to encompass a 'grand economic narrative' in their research (e.g., Holobrow,
2012).
Many sociolinguists have decided, as have many populists and political theorists on the
left, to use the term 'neoliberalism' in describing a right-wing politico-economic movement (e.g.,
Fairclough, 2006; Klein, 2007; Phillipson, 2009). However, neoliberalism is a term that is “often
undefined … employed unevenly across ideological divides … and is used to characterize an
excessively broad variety of phenomena” among a variety of social science fields (Boas & Gans-
Morse, 2009, p. 137). Its use is therefore problematic, as the sources that try and define the term
replace and try to combine already defined and distinct ideas such as economic liberalism,
neoconservatism, and state capitalism (e.g., Harvey, 2005; Peck, et al., 2010). Using the term
neoliberalism as a way to try and encompass all these ideas embeds an ambiguous and confusing
range of politico-economic understanding in the reader. As well, neoliberalism is almost always
used in the pejorative (Boas & Gans-Morse, 2009). Rather than being intended for an audience
that needs to be convinced of a point of view, it is most often used to condemn others. Few
would consider themselves 'neoliberalists,' per se.
Economic liberalism and neoconservative political theory are distinct and contradictory in
significant ways. Their most significant difference seems to be how 'morality' and

accompanying modes of governing are viewed (e.g., Brown, 2012; Curtis, 2007). Economic
liberalism is 'amoral' and 'apolitical' in the sense that an individual can do whatever they please
so long as they observe property rights regulated by a very limited government.
Neoconservatism, on the other hand, is 'moral' and 'political' in the sense that the individual must
conform to a social order determined by a very interventionist government. State capitalism
requires the dominance of state-owned corporations within the economy, which doesn't exist in
the United States and the United Kingdom, and so could not co-exist with economic liberalism
because of the inherent theoretical differences (e.g., Bremmer, 2012).
Fairclough (2001) claimed that the government of George W. Bush used 'interdiscursively
hybrid' discourse that melded military/security discourse with political economic discourse in
identifying an overall neoliberalist 'free market interventionist' global strategy. In making such a
claim, the survival instincts of politicians may be overlooked. The major political parties in the
United States and the United Kingdom spend significant amounts of money on public relation
firms to manage their image with their constituents (e.g., Miller, 2008).
Economic liberalists and neoconservatives comprise parts of two theoretically differing
factions within right-wing politics, 'fiscal conservatives' and 'national security conservatives,' that
an administration would have to cater to (e.g., Babington, 2012; Obenhaus, 2009). While each
has an agenda that may not conflict with the other and may even provide mutual support in
limited circumstances and within limited timeframes, long-term cooperation, if possible, is the
result of much difficult political management. These two ideological forces are opposites like
those of Berlin's (1969) 'negative liberty' and 'positive liberty' straining against one another.
Economic liberalism rests in the realm of 'negative liberty,' meaning freedom from
interference. Economic liberalist history begins with the rise of neoclassical economics, which
emphasized rational, utility-maximizing individuals/economic actors that had complete or near

complete access to all relevant information in making choices – a human being called 'homo
economicus' (e.g, Bishop, 2004; Weintraub, 2007). Hayek (1944) then emphasized that the
market itself was the most rational actor within an economy. Friedman (1962) took this further,
declaring that the only thing necessary was to control the money supply and that there need not
be a 'level playing field' between actors in a market.
Many Nobel-winning economists rejected or put into serious doubt neoclassical notions
of homo economicus as any depiction of a real human being (e.g., Krugman, 2004; Sen, 1999;
Stiglitz, 2007). Despite this, mainstream economics moved towards 'new classical' economic
theory positing the individual/economic actor as 'thoroughly rational' through the adoption of
'rational expectations' theory and 'rational choice' theory (e.g. Becker, 1976; Muth, 1961; Hoover,
2008). By the late 1970s, and in the wake of economic recession, VAL (Values, Attitudes, and
Lifestyles) psychographic data showed that a majority of middle class swing voters in both the
United States and the United Kingdom had consciously decided that they were more self-
interested and amenable to economic liberalist ideas, though were not disposed to admit it
(Curtis, 2002). The Thatcher and Reagan election campaigns used the VAL data to effectively
garner the swing votes, appealing to an 'amoral' and 'apolitical' economically liberal voter.
Neoconservatism, as opposed to economic liberalism, rests in the realm of 'positive
liberty,' meaning freedom to 'destiny' or 'self-mastery.' It's based on what one thinks is 'noble' or
how society 'should be.' For the neoconservatives, this means constructing a myth or 'noble lie'
based on a nostalgic past. The goal being to create a community which unites under a fairly
strict moral code based on 'classic values,' which seem to be a mixture of classical philosophy,
Christian religion, and what could be called traditional values from the pre-war period (e.g.,
Smith, 2008).
Many of the founders of American neoconservatism were previously social liberals, but

had become disillusioned with the US stance on the Soviet Union. Their main objective was to
fight Communism or anything that did not fit with the 'American way of life.' In recent history,
it has been to fight terrorism in the Middle East or elsewhere. Whatever foreign policy is
supported, though, serves to unite a 'political' populace in addressing what it saw as an 'amoral'
and 'nihilistic' free market consumerist society on the domestic front (e.g., Curtis, 2004; Smith,
2008). From the neoconservatives point of view, economic liberalism, with its idea of 'homo
economicus,' poses a threat to the moral well-being of the nation.
The current financial crisis and most of the economic problems that have developed over
the past 30 years or so in relation to economic liberalism are clearly problems with capitalism
itself. The resulting environment has been one that has positioned at least three economic tool
kits to work from: neoclassical, Keynesian, and Marxist (e.g., Flanders, 2012). Some Marxists,
though, point out that neoliberalism may be used as a kind of substitute for the problems of
capitalism, creating a picture that seems to exclude capitalism itself from scrutiny (Garland, &
Harper, 2012). As such, it seems the term has made it harder to point out that capitalism is one
economic reality, not 'the' economic reality.
Emphasizing the term neoliberalism as an apparent substitute for so many ideas limits
one's ability to effectively address the problems it is supposedly responsible for. Neoliberalism
as a term is contested, as is its range of speech acts, and this therefore “short circuits debate over
the term's meaning and proper application” (Boas & Gans-Morse, 2009, p. 155). For
sociolinguists and others to use the term to clump together the different ideas of economic
liberalism and neoconservatism, a vague image of an unrealized agent of power is created.
Neoconservatives have held power, and have a discourse that enables popular support for
that power, but neoconservative history shows that such power is fragile (e.g., Curtis, 2004;
Jackson, 2006). Hayek (1978) also believed that conservative social traditions and superstitions

could keep the masses content, but not in the political way that neoconservatives wish to push
their myth. While the neoconservatives strive for a politicized population, economic liberalists
do not trust such 'political' notions. For the multinational corporation, the provider of right-wing
material support, economic liberalism is the logical of the two ideologies to work from. This is
then the discourse that will dominate multinational corporations. The MNC, which becomes the
agent of a self-promoting economic liberalist discourse, has both real material and ideological
power, and in terms of pushing a language, has been the dominant influence.
The Multinational Corporation as the Dominant Global Institution
To understand how the language policies of the MNCs can cause language learning
decisions at the regional/national level to be misconstrued in terms of social welfare, it is
necessary to understand the material power of the multinational corporation as 'the' dominant
global institution and how this power can affect society. The MNC has been the greatest
beneficiary of neoclassical/new classical economic theory and the economic liberalist movement
(e.g., Nace, 2003; Curtis 2002). From this free market discursive defence, two factors have
significantly strengthened MNCs: their recognition under the law; and their subsequent influence
on governments and other transnational organization. This strength has grown to the point where
the policies of multinational corporations, such as language of operation, are duplicated
throughout society's other institutions as standards to adhere to.
The birth of the modern corporation started in the mid-1800s in Great Britain and the
United States through the introduction of 'limited liability' and the argument that a corporation
was a legal 'person' (e.g., Bakan, 2004; Nace, 2003). The corporation has since been defined as a
‘person’ under the law, with “its existence being constantly maintained by the succession of new
individuals in the place of those who die, or are removed” (Penner, 2001). It has become, in
effect, immortal with all the rights of a person, but devoid of such human qualities such as

empathy or sympathy. The individuals that work for the corporation have one primary objective
mandated: to earn as much money as possible for the shareholders. All other concerns could, per
the corporation’s legal obligations, be externalized (e.g., Bakan, 2004; Nace, 2003).
Toffler (1980) claimed that since the 19th
century, industry has had at its core a mentality
of standardization, specialization, synchronization, maximization, concentration, and
centralization in an effort to achieve the greatest efficiencies. While these were discovered to be
both disruptive to human psychology and an over-simplification of 'efficiency', significant
changes to the basic system have yet to fully materialize. There is, then, a dislocation between
producer and stakeholders at large, leading to greater externalization within multinational
corporations. MNCs, as externalizing machines, weaken the ability of government to regulate
them, as governments must ultimately deal with the negative externalities.
Friedman (1970) states that corporations are not and should not be concerned with social
responsibility, as they are simply legal structures with clear mandates to serve their shareholders.
Social responsibility, he concludes, is up for the individuals within corporations to be concerned
with on an individual level. But, many CEOs themselves have complained that they are
restrained from acting as they feel they should due to the structure of the corporation (e.g.,
Bakan, 2004). As well, humans frequently create an illusion that what they feel forced to be part
of is actually best for society in order to keep their sense of dignity and self-worth (e.g., Fromm,
1969).
British Petroleum (BP), a large MNC, has consistently been under investigation because
of environmental disaster, worker safety violations, and corruption charges (e.g., Gaviria &
Smith, 2010). BP's reaction to governments' investigations and punishment is one of mostly
indifference. BP is also one of the British Council's Partners (British Council, 2012). If the
relationship between BP and the British Council is part of a project that is not one of social

responsibility, it is probably one narrowly defined according to BP's specific interest in making
money. But BP does not act anomalously in its activities according to how corporations are
structured (e.g., Bakan, 2004; Nace, 2003).
A 19-year study concluded that “large firms operating in dynamic, munificent
environments were the most likely of the firms studied to behave illegally, and firms with poor
performance were not prone to commit wrongdoing” (Baucus & Near, 1991, p. 1). To give an
example of what this means in dollars for one year, U.S. corporate fines were over $4.5 billion
for 2004 (Weinberg, 2004). As unsettling as these figures may be, the fact that corporations are
made to pay fines might suggest that states are in a position of power over corporations, and not
corrupted by any undue influence. But the evidence shows that corporations are, from a strategic
standpoint, dictating how their governments will treat them (e.g., Bonneau, 2011).
Today, there are close to 150 corporations controlling around 25 percent of global
revenue (Coghlan & MacKenzie, 2011). As the MNC's existence is technically allowed by the
state through charter, it is in its interest to seek to maintain control over governments (e.g., Nace,
2003). A 2011 article in the Guardian stated that there were nearly 13,000 registered lobbyists in
Washington spending $3.5 billion in 2010 (Harris, 2011). According to the Center for
Responsive Politics (2012), the biggest spenders are MNCs, or organizations representing
MNCs. Further, a working paper found that “the market value of an extra dollar spent on prior
period lobbying is roughly $200” (Hill, M. D., Kelly, G. W., & Van Ness, R. A., 2009, p. 3).
Lobbying has made it immensely difficult for corporate charters to be revoked or for
corporations to be effectively regulated (e.g., Bakan, 2004; Nace, 2003).
The MNC's lobbying efforts, either directly or through governments, then extend to other
international/transnational organizations/institutions in ways that increase their power and
profitability. The World Trade Organization (WTO), the International Monetary Fund (IMF), the

World Bank, and the Organization for Economic Cooperation and Development (OECD) are
examples of organizations that MNCs generally lobby with significant effect through their home
governments (e.g., CorpWatch, 1999; CorpWatch, 2000; Stiglitz, 2002). The corporate influence
on many governments and transnational institutions is material. It is this material power which
enables MNCs' language practices processes to influence target markets' language policies and
educational policies to fit that of the multinational corporation.
Corporate Language Practices and Processes
According to Phillipson (2008; 2009), there are two dimensions with regards to corporate
structuring of, and influence on, language policies. One that is political, where language policy
is general in formation. The other economic, where the actual language planning changes
depending on the context. Phillipson explains that both in a synergetic fashion lead to 'linguistic
capital dispossession' within the target markets, and that this is done via corporate agendas to
serve overall nationalistic goals. This is an idea that Phillipson has modified based on Harvey's
(2005) 'accumulation by dispossession.' But the idea that corporations are actually minions to
some greater project intent on linguistic capital dispossession seems questionable.
Looking at the operations of Siemens AG may provide an example of how MNCs deal
with in-house language policies. At over 350,000 employees, over $100 billion in assets, over
$70 billion in annual revenues, and operating in 190 countries, Siemens is an industrial giant
(Siemens, 2009; 2010). Siemens also shows little inherent difference from BP in terms of social
responsibility, and calculates breaking the law into their business decisions as standard practice
(New York Times, 2007). While not opposed to 'doing ill' as a large MNC, its language practices
and processes seem to follow a logical, profit-driven framework neither mandated from any
government nor with any particular intent towards those affected except efficiency in deriving
profits.

In its Czech Republic facilities, Siemens' in-house language policies reflect the socio-
cultural situations that exist while satisfying the flow of information along the greater hierarchy.
Manufacturing activities are conducted in Czech, while management communicates in either
German or English. The situation is monitored and language lessons in Czech, German, and
English are given where found necessary. At the global level, Siemens uses English as an in-
house language according to its perceived efficiency (Nekvapil & Nekula, 2006).
Blommaert (2010) supported the view that there is a 'polycentric' situation with regards to
how and why language policies are developed the way the are. Blommaert compared Siemens
use of language in an advertisement with that of a mainland Chinese company. From the
analysis, Blommaert deduced that “In the Siemens advertisement, the corporate world is a sphere
of its own, very much free and unconstrained in its movements in the global marketplace.”
Though, with the Chinese advertisement he concludes that “the voice of the state appears
alongside that of the new globalized elites” and that “the state is an active partner in corporate
culture in China”. There are, as Blommaert noted, “different forces at work in both” (p. 144).
China, though, is not an example of the 'normative' situation for corporate markets as in
North America or Europe, nor necessarily a desirable substitute with regards to the public good.
China's economy is based on state capitalism (e.g., Bremmer, 2012). State capitalism is 'a
project' directed from one dominant institution, the state. If the state is in partnership with
business in China, under the state capitalist model it is clear that the state is the undisputed
decision-maker in that partnership.
Referring to the Siemens example, we could say Phillipson's (2008; 2009) argument that
English use by corporations is determined by national agendas is actually the other way around.
The agenda of the MNC with regards to the areas they operate within differs from the varied
agendas of past imperialism. Marcuse (2000) noted that while states are certainly not powerless,

there may be an “abdication of state power” due to the fact that governments must “be
responsive to multiple interests and that particular interests regularly dominate the actions of
most” (p. 2). As mentioned perviously regarding the use of the term 'neoliberalism,' there are
actually two contradictory forces at work, economic liberalism and neoconservatism.
Importantly, though, it is the multinational corporation that has the overwhelming material
power. It is, then, the MNC that subordinates disjointed 'democratic' governments via their
lobbying power, and de-facto governs narrower more specific 'projects' as to how these
governments may or may not act according to each MNC's interest.
Phillipson (2008) speaks of 'Global English' being a project in that of “the normative goal
of English becoming the default language of international communication and the dominant
language of international communication” (p. 3). Though, within its zone of control, the MNC
will ultimately choose whatever language or languages increase its profitability and power to
sustain that profitability. As MNCs' shareholder make-up is increasingly becoming more varied
in nationality, there is a greater interest in developing language policies that are more efficient
than nationalistic (e.g., Reich, 2002). With 33 of the top 50 MNCs (in terms of revenue)
headquartered in English-speaking countries, it seems that the incentive therefore would be to
make internal standards and support international standardization of the international business
language to English (Coghlan & MacKenzie, 2011).
Standardizing English within international business begins a ripple felt through other
connected domains. Gray (2002) noted that “the rise of transnational corporations does much to
promote the spread of English” (p. 153). Gray gave an outline as to how “English is usually
adopted as a lingua franca” with regards to MNCs, and how this policy can then filter into the
hotel industry and higher education. It was also explained that English has not only become the
working language for international organizations such as the World Bank and IMF, etc., but also

the working language of international organizations opposed to the World Bank and the IMF, etc.
As for the ELT industry, Cameron (2002) stated that language teaching, “when carried out on a
relatively large scale, both requires and contributes to the process of language standardization”
(p. 79). There is, then, a significant push, as a 'product' rather than strictly a 'project' of the
MNC, in affecting how language learning decisions are formulated at the regional/national
levels.
How MNCs Affect Language Learning Decisions at the Regional/National Level
Language learning decisions are changing within different regions to suit English as a
lingua franca pushed by MNCs. Phillipson (2008) provided an example with the Bologna
Process currently under way to reform higher education in the European Union and beyond.
Phillipson pointed out that “degrees must be 'certified' in terms of the 'employability' of
graduates” according to the “acceptability of corporate imperatives” and that therefore higher
education instruction will be conducted “through the medium of English” (p. 19).
In Pakistan, Rahman (2007) stated that “The international corporate sector, bureaucracies
(such as the United Nations and the World Bank), foreign-funded NGOs, the service sector, and
the Internet predominantly use English” (p. 231). Rahman then went on to explain that the
pressure to learn English is enormous while efforts to preserve regional languages like Urdu are
minimal. But according to a poll of employees in 26 countries, people of higher income or
education were most likely to use English as a language of business (Michaud, 2012).
Therefore, an uncritical approach to learning English for 'social mobility' could create
unreasonable pressure on those outside the elite in societies to acquire something that may have
a relative value as social capital (e.g. Bourdieu, 1986; Bourdieu, 1991; Bourdieu & Wacquant,
1992). In other words, how well one knows English is only one factor in employment connected
to many other forms of social capital such as one's social connections.

Language policy planners and language learners in English periphery countries seem,
then, to go to extremes to acquire English as linguistic capital. Chew (2010) spoke of 'linguistic
migration', where Chinese and Korean 'study mothers' invest heavily in taking their children to
other countries in order to learn English. It was also shown that governments like Singapore
have dramatically pushed their populations to replace their L1 with English, all in an effort to
'compete' on a global level. Despite the stress this most likely imposes on a people who are so
pressured to learn a language, polls show that such learners overwhelmingly see English as a
necessary skill to be developed (Chew, 2007).
While Chew (2007) stated that a “global market economy requires that each country
carefully evaluates the language or variety that it thinks can serve its agenda best”, she also
noted that countries are pushed to use English as an L1 to gain a 'competitive advantage' and that
this “competition for work tends to generate a struggle against all, increasingly destroying the
value of solidarity and humanity” (p. 88). Japan of the previous era, and China of current, did
not build their trade surpluses on language ability. So why is it that regional and local domains
view English as 'global competitiveness' to the point of, what could seen as, a tendency to reduce
social welfare?
In considering English as a form of Bourdieu's (1986; 1991) linguistic, social capital,
English as a skill has become a 'positional good.' A positional good is an investment in which
judgements as to its value are based on a strong link between context and evaluation (e.g., Frank,
2005; Solnick & Hemenway, 1998). Positional goods therefore cause a negative externality, an
untended negative outcome, in terms of social welfare, as the costs do not relate to society as a
whole but upon a need to keep relative closeness between individual actors. Individual actors
are therefore driven to 'keep up' so as to protect their relative position. The negative externality
in terms of social welfare is created because that which is desired has a limited intrinsic value

but the demand for which continues to increase. This would be the case for English as a skill, as
the total demand is ever-increasing while the total marginal benefit for the skill is decreasing
(e.g., Grin, 2001). While there is a negative-sum result in terms of social welfare, individuals are
driven to keep up with ever-increasing standards or face less access to commonly perceived
economic and social status benefits.
The social welfare cost of English as a positional good is then exacerbated by
governments eager to satisfy a constituency steeped in corporate, economic liberalist ideology
and discourse (e.g., Curtis, 2002; Curtis, 2007; Miller, 2008). In periphery countries, language
learning decisions produced by government educational initiatives seem to be based on
increasing GDP per capita (e.g., Chew 2007; 2010). The dilemma these countries face is that
they, as most others, have become trapped in something known as the Easterlin Paradox (e.g., Di
Tella & MacCulloch, 2008). The Easterlin Paradox claims that happiness data does not correlate
with income levels. In spite of the fact that many economists have long argued against using
GDP per capita as a measurement of a country's success, GDP per capita continues to be used a
measure of social well-being by most governments (e.g., England, 1998; Stiglitz, Sen, &
Fitoussi, 2010).
The acceptance of GDP per capita as a measurement, and the failure of mainstream
economics to deal with the Easterlin Paradox, lies in its 'locked in' acceptance of economic
liberalist ideology and discourse (e.g., van den Bergh, 2009). This locked in notion of 'economic
truth' is, in turn, fed back to the populace as the justification for pushing government policies to
increase social welfare. Mainstream economic think tanks, as it so happens, are generally
supported by corporations as long as the ideology and discourse produced fits the corporate
model (e.g., Miller, 2008; Nace, 2003).
As the effects of MNCs language policies filter to the regional and local levels,

contradictions start to become apparent between the perceived value of English as linguistic
capital and the reality. Sociolinguists have found that there is a misconception among English
language learners to what extent the skill will afford them economic security. They put into
doubt the cost-benefit analysis language policy planners and language learners have made with
regards to acquiring English (e.g., Kaplan, Baldauf, & Kamwangamalu, 2011).
The case of Rakuten in Japan might show where distortions are becoming apparent
locally. Founded in 1997, its approach to language policy reflects the extremes of others who
locate themselves on the periphery of the 'English as linguistic capital' dynamic. It has decreed
that “corporate officers who do not become proficient in English in two years' time will be fired”
in addition to conducting most of its internal workings in English (Kuchikomi, 2010, p. 1).
While it is unclear whether Rakuten's measures are experimental or a long-term
commitment, there is much debate over the appropriateness of such an approach within that
regional business community itself. Honda, an MNC with a global presence and language policy
similar to that of Siemens, disagrees with Rakuten's extreme directives in language policy.
According to Honda's CEO, Takanobu Ito, “to be competitive in the global market really means
to be strategically flexible in all areas, including language use” calling Rakuten's language policy
“stupid” (Takahashi, 2012). And so, one might conclude that players on the periphery, even
younger MNCs, are also suffering from misconceptions as to the real value of English as capital.
Holborow (2012), when speaking of 'neoliberalism' as a social system and an ideology,
claimed that it is “said to have invaded discourse; at the same time, discourse is deemed to
reproduce and cement [itself]” (p. 14). As noted with the Easterlin Paradox, a feedback loop of
corporate discourse within MNC target markets that is growing of its own accord. Once this
discourse embeds itself within the varied institutions of the region or locality, it becomes even
further ingrained as 'common sense' throughout society. Though MNCs themselves may have

measured and calculated approaches to language policy, smaller entities and individuals are
susceptible to over-simplified conclusions and uneven access to information (e.g., Fromm, 1969;
Stiglitz, et al., 2010). English, as filtered via MNC language policy, becomes not only a standard
language for communication, but a standard for how to think.
Cameron (2002) stated that, as part of a 'new work order', MNCs “insist that employees
subordinate there own linguistic personae to a centrally-designed corporate linguistic personae”,
and that because of the dominance of anglophone MNCs, “norms of interaction are being
exported to other parts of the world” that are corporate norms (p. 81). Cameron makes clear that
“Finns do not run workshops for British businesses on the virtues of talking less” and “Japanese
are not invited to instruct Americans in speaking indirectly” (p. 70). Block (2002) built on this
and Toffler (1980) in that the MNC's need for standardization and a predictable efficiency has
been proliferated in language through a 'technologized' discourse structure known as 'negotiation
for meaning' (NfM). Block stated that “NfM is inherently enterprise-like in nature” and that it
“reduces human existence to the principles of efficiency, calculability, predictability,
controllability and standardization” (p. 132).
Therefore, this one way flow of constructing communication may not work well for the
localities that are affected. Coulmas (as cited in Holborow, 1999) made the case that language
users or learners also see language as serving the purpose of efficient and effective
communication. But what is efficient for the MNC and what is efficient as part of an individual's
sense of personal identity may be significantly different. Canagarajah (1999) concluded that
students feel divided between “threats of ideological domination experienced at an intuitive level
and the promises of a socio-economic necessity acknowledged at a more conscious level” (p.
174). If more instinctive desires for communication are not satisfied, we could determine that
there may be conflict within an individual leading to ultimately undesirable results. When, at a

French university, a French professor lectures economics to his French students in English, those
involved might very well question the sanity of it (Carvajal, 2007). Thus, for a region or locality
to base its language policies and educational policies on MNC language policies simply in
keeping with corporate discourse, it could be significantly 'inefficient' for increasing the overall
welfare for those in society.
McVeigh (2004) epitomized this when looking at Japanese learners of English, stating,
“Many develop an antipathy toward English, bred through preparing for demanding
examinations that focus on the intricacies of grammar. And yet many Japanese will declare their
devotion to mastering English in order to 'internationalize'” (p. 211). McVeigh also introduced a
model which separated 'Japan-appropriated English' from 'fantasy English', in which the former
detailed learners wanting instruction to help them pass exams and the latter described as a means
to help them 'internationalize' (McVeigh, 2002). Therefore, perceptions of English as linguistic
capital, while apparently beneficial to MNCs, may have heightened out of proportion to the
language's actual benefit to individual language learners, and to any institutional efforts to
further social well-being.
Discussion
Presently, it seems that the uninformed language learner is put potentially at risk of
formulating a failed concept of English as linguistic capital. If English is perceived to be
valuable as a relative, positional good in terms of social capital at an individual level, it is far less
valuable, even detrimental, in terms of improving social welfare. It is therefore necessary for
regional/national language policies to better reflect intrinsic, practical uses for a language such as
English. English study should not be connected to misguided notions of social well-being based
on GDP per capita. There must be a countervailing power that can resist the corporate led
ideology and discourse of economic liberalism. A more objective view based on overall social

welfare is needed as to how language learning decisions/policies should be formulated. This
would both better prepare language learners in thinking critically about English as linguistic
capital and serve to actually maximize social well-being in terms of happiness and life
satisfaction.
Canagarajah (1999) stated that, ultimately, a 'pluralized' English should be supported and
made to prosper in periphery societies in an ultimate reformation of the English language itself.
This would empower those in both the center and periphery of the English speaking domains.
What is needed as a foundation to this is an approach that is neither extreme to the point of
rejecting English as linguistic imperialism nor accepting it uncritically as a gateway to success.
The key in the negotiation of English amongst language learners lies in incentives and
data. Since English may be a positional good, governments should consider incentives that
reduce herd behavior in trying to acquire it as a skill. Secondly, just as the multinational
corporation is allowed access to data so that it can make what it considers 'efficient' choices on
language policy, so too should the language learner be afforded such access. Through incentives
to pursue the study of subjects that reflect the intrinsic values for society in pursuing social well-
being, and by counselling and providing data on the individual social capital value of English,
policy planners can better formulate language learning decisions that will lead to greater
maximization of individual happiness regardless of concern for index such as GDP per capita.
Though the overall 'center-periphery' theory of linguistic imperialism in terms of a
'neoliberalist' ideology does not seem valid per the conclusions of this paper, an indirect center-
periphery argument based on the direct/indirect dictates of corporate power do. Therefore,
pedagogical suggestions from thinkers such as Phillipson (2008) may be valuable. Most
appropriate are the suggestions to educate policy makers and strive to 'decolonize' the minds of
learners. Though, 'decolonization' should be done without the rhetoric that blames all our woes

on a phantom of 'neoliberalism.' This would be a convoluted argument that would more likely
lose than gain ground in the long-run. Rather, it is necessary to clearly identify the source of the
positional externality that English study poses. Those who have questioned the current
'neoliberalism', correct or incorrect in their conclusions, should be given respect for their
challenges. Nevertheless, the issues should be addressed logically, and we should avoid the 'lock
in' so many have done with nonsensical right-wing thought, be it economic liberalism or
neoconservatism.
Learning itself should not be something that is resisted by students. Humans are
naturally curious. If learning, though, becomes a positional good, then it has in many ways lost
its intrinsic value. As a teacher of English, I want my students to be involved in an activity that
they are driven to be a part of from a deeper level, much like that of Csikszentmihayli's (1997)
Flow Theory. This means that schools need to be free from what Toffler (1980) explained as a
standardization of society along corporate lines. Instead, multiple literacies and different entry
points should be allowed if only to give the students the feeling of agency in making learning
decisions rather than real agency itself. Such systems have been put into place in 'democratic
schooling' to some degree better than mainstream schooling (e.g., Neill, 1968). Here, students
were found by government observation to be highly motivated and focused on the activities that
they were engaged in.
An example of dealing with English as more of an intrinsic tool than one of misguided
social capital accumulation might be found in one of my students who works for a large
multinational corporation. The student entered the corporation with little English ability and
with little thought that they would ever pursue study of English. The student was chosen to work
at the MNC's international headquarters in Europe, based not on their language ability, but on
what work the student did best and what that student found most interesting in that job.

Although, it would seem in the above example that the MNC has no direct intent to create
an unnecessary drive for English, it took the student's ability to realize what intrinsically worked
in terms of satisfaction in order to make learning decisions based on clear criteria.
Unfortunately, this student's experience seems far from the norm. The study of English, from my
experience as an English teacher, works best when either the student finds it intrinsically
satisfying, or that it is part of a project that the student has decided on where the reward is clear,
near, and satisfying. If the students can't envision such a clear, intrinsic value from the activity,
which I see more often the younger the learner, the result seems counter-productive in terms of
even individual welfare.
Agency is something that should be dealt with carefully though. At times, I feel the drive
in ELT to supposedly empower students is ultimately disempowering for society, as the goal
itself may be based on a negative-sum gain for social welfare. It would be a mistake to instil
feelings of moral agency into an individual along the lines of feeling superior or inferior to
others because of what they may or may not have 'accomplished.' Thinking along the lines of
Rorty (1979), moral agency is problematic for society in the sense that it fosters the positional
externalities that we are trying to eliminate. It is a distraction from thinking logically how to
solve our problems.
It is too much of a burden, simply too inefficient and laden with error, to expect moral
agency of individuals. Using the term neoliberalism as a pejorative term is an example of this
kind of moral agency, and a failure to look carefully at and critique actual systems that need to
be changed. Instead, we as a society need to focus on systems that work best in removing
positional goods from our range of choices and use terms to this effect that will allow dialogue
across ideological boundaries. The stakes could not be higher. Education as a positional good
further alienates those within a society and societies themselves from one another (e.g., Frank,

2005; Reich, 2002). Through this process, one can lose empathy for those not in one's 'group'
and this leads to the great failings of humanity in terms of justice (e.g., Rawls, 1999). To prevent
or ebb this tide, there needs to be a focus on, or at least a significant inclusion of, what creates
intrinsic satisfaction in a learning decision, such as those of learning a language.
Conclusion
This paper has examined how the language policies created within MNCs can cause
misconceptions in language learners as to what linguistic capital English can afford them.
Considering the heightening of 'competition' around the globe along economic liberalist lines,
this is an important issue to address in avoiding systemic failure in education policy.
The first section of this paper dealt with the concept of neoliberalism, showing that in
trying to combine ideologies such as economic liberalism and neoconservatism, the dominance
of corporate discourse may be overlooked. The second section then described how the MNC has
become the dominant global institution today, and has been positioned to indirectly push
language learning decisions. The third section then examined how language policies made by
these powerful MNCs are proliferated and filtered throughout society as a perceived international
standard. The fourth section highlighted how this perception of English as an international
standard can lead to misconceptions as to the social welfare value of the language and
counterproductive language policies within other institutions. Finally, the paper ended with a
discussion of possible responses to the influence of multinational corporations on language
learning decisions and education in general.
This paper examined to what extent the language policies of multinational corporations
influence those formulating language policies within other institutions at various levels. The
evidence suggests that the language policies created within multinational corporations create
misconceptions as to the value of languages such as English in the formulation of language

learning decisions and initiatives in other institutions. In effect, language learning decisions are
being shaped, albeit indirectly, to cater to the interests of multinational corporations. Therefore,
the study of English has in it high potential of being a negative, positional externality harmful to
social welfare if not that of the individual. Manias, such as the mania to learn English described
in the first paragraph of this paper, should be looked at carefully and with concern. Certainly,
unexamined demand should not be allowed to dictate how or why educational policies and
initiatives are developed.

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