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In Lieu of a Sovereignty Shield, Multinational Corporations Should Be Responsible for the Harm They Cause

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  • Edmund Byrne

Abstract

Some progress has been made in recent decades to articulate corporate social responsibility (CSR) and, more recently, to associate CSR with international enforcement of human rights. This progress continues to be hampered, however, by the ability of a multinational corporation (MNC) that violates human rights not only to shift liability from itself to a nation-state but even to win compensation from that nation-state for loss of profits due to restrictions on its business activities. In the process, the nation-state’s sovereignty is diminishing; and, in effect, though still attributed to nation-states, it is being transferred to the MNC. The main aim of this article is (1) to draw on normative considerations to claim that this MNC proto-sovereignty should be modified and (2) to contend that this can eventually be accomplished by adding to corporate adoption of CSR guidelines a regimen of global human rights enforcement. I base this contention on expectations about the internationalization of corporate criminal law and the globalization of civil society in general and of NGOs in particular. I consider various jurisdictions but I focus on US jurisprudence. Copyright Springer Science+Business Media Dordrecht 2014

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  • Edmund Byrne, 2014. "In Lieu of a Sovereignty Shield, Multinational Corporations Should Be Responsible for the Harm They Cause," Journal of Business Ethics, Springer, vol. 124(4), pages 609-621, November.
    • Handle: RePEc:kap:jbuset:v:124:y:2014:i:4:p:609-621
    DOI: 10.1007/s10551-013-1891-z
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    References listed on IDEAS

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    1. Claus Frederiksen, 2010. "The Relation Between Policies Concerning Corporate Social Responsibility (CSR) and Philosophical Moral Theories – An Empirical Investigation," Journal of Business Ethics, Springer, vol. 93(3), pages 357-371, May.
    2. Paul Neiman, 2013. "A Social Contract for International Business Ethics," Journal of Business Ethics, Springer, vol. 114(1), pages 75-90, April.
    3. Ann Mayer, 2009. "Human Rights as a Dimension of CSR: The Blurred Lines Between Legal and Non-Legal Categories," Journal of Business Ethics, Springer, vol. 88(4), pages 561-577, October.
    4. Thomas Maak, 2009. "The Cosmopolitical Corporation," Journal of Business Ethics, Springer, vol. 84(3), pages 361-372, February.
    5. Daniel Arenas & Josep Lozano & Laura Albareda, 2009. "The Role of NGOs in CSR: Mutual Perceptions Among Stakeholders," Journal of Business Ethics, Springer, vol. 88(1), pages 175-197, August.
    6. Hildy Teegen & Jonathan P Doh & Sushil Vachani, 2004. "The importance of nongovernmental organizations (NGOs) in global governance and value creation: an international business research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(6), pages 463-483, November.
    7. Denis Collins, 2009. "The Failure of a Socially Responsive Gold Mining MNC in El Salvador: Ramifications of NGO Mistrust," Journal of Business Ethics, Springer, vol. 88(2), pages 245-268, September.
    8. Campbell, Tom, 2006. "A Human Rights Approach to Developing Voluntary Codes of Conduct for Multinational Corporations," Business Ethics Quarterly, Cambridge University Press, vol. 16(2), pages 255-269, April.
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    Cited by:

    1. Edmund F. Byrne, 2018. "Making Drones to Kill Civilians: Is it Ethical?," Journal of Business Ethics, Springer, vol. 147(1), pages 81-93, January.
    2. Cuervo-Cazurra, Alvaro & Dieleman, Marleen & Hirsch, Paul & Rodrigues, Suzana B. & Zyglidopoulos, Stelios, 2021. "Multinationals’ misbehavior," Journal of World Business, Elsevier, vol. 56(5).
    3. E.O. Marfo & L. Chen & H. Xuhua & H.A. Antwi & E. Yiranbon, 2015. "Corporate Social Responsibility: Driving Dynamics on Firm’s Profitability in Ghana," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 5(3), pages 116-132, July.
    4. Pisani, Niccolò & Kourula, Arno & Kolk, Ans & Meijer, Renske, 2017. "How global is international CSR research? Insights and recommendations from a systematic review," Journal of World Business, Elsevier, vol. 52(5), pages 591-614.

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