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The Geography of NGO Activism against Multinational Corporations

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  • Sophie Hatte
  • Pamina Koenig

Abstract

To what extent do Non-Governmental Organizations (NGOs) monitor global value chains? While NGOs regularly denounce the behavior of multinational corporations throughout the world, their motivations for choosing campaign targets remain largely unknown. Using a new dataset on activists’ campaigns toward multinational firms, we estimate a triadic gravity equation for campaigns, involving the NGO, firm, and action countries. Our results point to a strong proximity bias in NGO activity: Distance, national borders, and lack of a common language all contribute to impede the intensity of campaigns. We estimate the distance elasticity of campaigns to be −0.2 and further document that NGOs strongly bias their actions toward home firms or foreign firms with home actions. A domestic firm is 3.45 times more likely to be attacked than a foreign one. Foreign firms headquartered in common language countries draw 1.63 times more campaigns. Overall, campaigns seem to be designed so as to include at least one element of proximity drawing the attention of consumers. This pattern questions the role of NGOs in the monitoring of multinational production operated in remote, unfamiliar locations.

Suggested Citation

  • Sophie Hatte & Pamina Koenig, 2020. "The Geography of NGO Activism against Multinational Corporations," The World Bank Economic Review, World Bank, vol. 34(1), pages 143-163.
    • Handle: RePEc:oup:wbecrv:v:34:y:2020:i:1:p:143-163.
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    File URL: http://hdl.handle.net/10.1093/wber/lhy007
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    Cited by:

    1. Koenig, Pamina & Krautheim, Sebastian & Löhnert, Claudius & Verdier, Thierry, 2025. "Local global watchdogs: Trade, sourcing and the internationalization of social activism," Journal of International Economics, Elsevier, vol. 157(C).
    2. Pamina Koenig, 2017. "Notes on Sigwatch's NGO campaign database," PSE Working Papers halshs-01671758, HAL.
    3. Lilac Nachum & Stephan Manning & Sankar Sen, 2025. "Consumers as regulators of global value chains’ conduct? A consumer-inclusive framework of change," Journal of International Business Policy, Palgrave Macmillan, vol. 8(2), pages 172-193, June.
    4. Pamina Koenig & Sandra Poncet, 2018. "Activism and Trade," PSE Working Papers halshs-01959943, HAL.
    5. Koenig, Pamina & Poncet, Sandra, 2019. "Social responsibility scandals and trade," World Development, Elsevier, vol. 124(C), pages 1-1.
    6. Julien Vastenaekels, 2023. "Degrowth and Capital: Assembling a Power-Centred Theory of Change," ULB Institutional Repository 2013/362596, ULB -- Universite Libre de Bruxelles.
    7. Gani ALDASHEV & Cecilia NAVARRA, 2018. "Development Ngos: Basic Facts," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(1), pages 125-155, March.
    8. Olivier Beaumais & Mireille Chiroleu-Assouline, 2020. "Informal versus Formal Corporate Social Responsibility: a Tale of Hidden Green Attitude," Working Papers halshs-03073242, HAL.
    9. repec:bla:annpce:v:89:y:2018:i:1:p:125-155 is not listed on IDEAS
    10. Herkenhoff, Philipp & Krautheim, Sebastian, 2022. "The international organization of production in the regulatory void," Journal of International Economics, Elsevier, vol. 137(C).

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