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The Multinational Corporation and Social Justice: Experiments in Supranational Governance

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  • Brent McClintock
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    Abstract

    The multinational corporation (MNC) is dichotomous in nature. While on the one hand it is a vehicle for private capital accumulation, when socially-embedded it may serve as a means to further social provisioning and social justice. A social economics approach to the MNC is developed to incorporate both private and social transaction costs in international production and trade where the divergence in these costs may require collective action to mitigate the effects of social dislocation. These issues are illustrated by experiments in corporate codes of conduct related to child labor and environmental sustainability. Since corporate codes may be insufficient to socially embed the activities of MNCs, efforts to develop supranational governance mechanisms to better achieve social justice are also considered.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/00346769900000019
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Review of Social Economy.

    Volume (Year): 57 (1999)
    Issue (Month): 4 ()
    Pages: 507-522

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    Handle: RePEc:taf:rsocec:v:57:y:1999:i:4:p:507-522

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    Web page: http://www.tandfonline.com/RRSE20

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    Related research

    Keywords: Multinational corporation; social justice; corporate codes of conduct; child labor; transaction costs; supranational governance;

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    Cited by:
    1. Muel Kaptein & Mark Schwartz, 2008. "The Effectiveness of Business Codes: A Critical Examination of Existing Studies and the Development of an Integrated Research Model," Journal of Business Ethics, Springer, vol. 77(2), pages 111-127, January.
    2. Eric Neumayer & Indra de Soysa, 2003. "Trade Openness, Foreign Direct Investment and Child Labor," International Trade 0312001, EconWPA, revised 16 Mar 2004.
    3. Chen, Lujie & Olhager, Jan & Tang, Ou, 2014. "Manufacturing facility location and sustainability: A literature review and research agenda," International Journal of Production Economics, Elsevier, vol. 149(C), pages 154-163.

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