Global Rules and Private Actors - Towards a New Role of the Transnational Corporation in Global Governance

Business Ethics Quarterly, Vol. 16, pp. 505-532, 2006

45 Pages Posted: 23 Mar 2007

See all articles by Andreas Georg Scherer

Andreas Georg Scherer

University of Zurich - IBW Department of Business Administration

Guido Palazzo

University of Lausanne

Dorothée Baumann-Pauly

New York University, Center for Business and Human Rights

Abstract

We discuss the role that transnational corporations (TNCs) should play in developing global governance, creating a framework of rules and regulations for the global economy. The central issue is whether TNCs should provide global rules and guarantee individual citizenship rights, or instead focus on maximizing profits. First, we describe the problems arising from the globalization process that affect the relationship between public rules and private firms. Next we consider the position of economic and management theories in relation to the social responsibility of the firm. We argue that instrumental stakeholder theory and business and society research can only partially solve the global governance issue, and that more recent concepts of corporate citizenship and republican business ethics deliver theoretically and practically helpful, fresh insights. However, even these need further development, especially with regard to the legitimacy of corporate political activity.

Keywords: global governance, private actors, globalization, transnational corporations

Suggested Citation

Scherer, Andreas Georg and Palazzo, Guido and Baumann-Pauly, Dorothée, Global Rules and Private Actors - Towards a New Role of the Transnational Corporation in Global Governance. Business Ethics Quarterly, Vol. 16, pp. 505-532, 2006. Available at SSRN: https://ssrn.com/abstract=959416

Andreas Georg Scherer (Contact Author)

University of Zurich - IBW Department of Business Administration ( email )

Plattenstrasse 14
Zurich, 8032
Switzerland
+41 44-63 45302 (Phone)
+41 44-63 45301 (Fax)

HOME PAGE: http://www.business.uzh.ch/professorships/as.html

Guido Palazzo

University of Lausanne ( email )

Quartier Chambronne
Lausanne, Vaud CH-1015
Switzerland

Dorothée Baumann-Pauly

New York University, Center for Business and Human Rights ( email )

44 West 4th Street
Suite 9-160
New York, NY NY 10012
United States

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