Aligning MNEs with SDGs: peace, justice, and strong institutions

This chapter examines specific targets within UN Sustainable Development Goal (SDG) 16 for promoting "peace, justice, and strong institutions." The focus in this chapter is on 16.4 (organized crime), 16.5 (corruption), 16.10 (strengthening institutions in support of 16.4 and 16.5), and 16a (human rights institutions). The methodology is an integrative review of literature, empirical studies, and case studies. The general purpose is to assess knowledge about determinants of MNE corruption and MNE anti-corruption efforts and relative efficacy of alternative approaches for influencing MNEs. The basic thesis of the chapter is that four interacting dimensions affect implementation and effectiveness of SDG 16 targets: organized crime and terrorism, money laundering, government and private corruption, and citizen access to information and channels of influence. There are four levers for action: international intergovernmental cooperation, domestic government action, domestic and multinational business action, and domestic and international civil society mobilization. MNEs play two very different roles in corruption. One role is to be the subject of extortion by public officials. The other role is to be the willing instigator of, or at least participant in, bribery of public officials. There is also commercial (business-to-business) bribery. MNEs have five strategic options: avoidance through not entering or by exiting countries; not engage in corruption and money laundering; actively engage in such misconduct; actively combat corruption and money laundering; and actively foster constitutional and democratic institutions. MNEs are key players in reducing corruption. However, a constellation of varying circumstances makes the task both difficult and country specific.