Multinational Corporations
and Global Governance
The rise of globalization and a globalized economy,
particularly the proliferation of Multinational Corporations (MNCs), have
raised questions about the role of business in global governance. The increased
presence of MNCs in the International Political Economy has led to the
startling reality that companies can be political entities and their influence
as political actors can be sizeable, both in positive and negative capacities.
A contemporaneous trend used to combat the negative actions of MNCs has been
the emergence of Corporate Social Responsibility (CSR), the principle that
companies have a duty to practice better business norms and use their resources
for the best interest of the international community. Nevertheless the nature
of certain corporate practices continues to be controversial, sparking a debate
on the best way to regulate business across national borders. MNCs have been
evaluated and studied from both internal and external frameworks with
accountability awarded to the companies themselves, the governments of the home
country, the governments of the host country, the citizens of the host country,
transnational soft law agreements, and the global social community. There is no
transparent path to standardize to corporate citizenship.
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