Multinational Corporations and Global Governance

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.