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Financial giants and moral pygmies?

Author

Listed:
  • Shaomin Li
  • Ajai Gaur

Abstract

Purpose - – How should a multinational corporation (MNC) from a mature democracy deal with the human rights issues in a country with a poor human rights standard? The paper aims to discuss these issues. Design/methodology/approach - – The authors develop a mathematical model to depict MNC's behavior in response to human rights violations in the host country. Findings - – The authors show that, first, in a country with a high level of human rights abuses, a firm will have to lower its human rights standards to survive; but, second, a collective effort by all firms is essential to improve the human rights conditions in the host environment; and third, a firm's human rights practices may have a multiplicative effect that can significantly affect the momentum of human rights development in a host country. Originality/value - – This study is one of the first attempts to provide a theoretical framework on the issue of MNCs and human rights in host countries.

Suggested Citation

  • Shaomin Li & Ajai Gaur, 2014. "Financial giants and moral pygmies?," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 9(1), pages 11-32, January.
    • Handle: RePEc:eme:ijoemp:ijoem-09-2013-0143
    DOI: 10.1108/IJoEM-09-2013-0143
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