
Contents
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(1) The Principal Actors (1) The Principal Actors
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(2) Developing a Regulatory Agenda (2) Developing a Regulatory Agenda
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(3) The Role of Ideology (3) The Role of Ideology
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(a) The Ideological ‘Building Blocks’: 1960–1990 (a) The Ideological ‘Building Blocks’: 1960–1990
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(i) The ‘Neo–Classical Market’ Perspective (i) The ‘Neo–Classical Market’ Perspective
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(ii) The ‘Regulated Market Perspective’ (ii) The ‘Regulated Market Perspective’
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(iii) The ‘Marxist’ Perspective (iii) The ‘Marxist’ Perspective
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(iv) The Influence of Nationalism (iv) The Influence of Nationalism
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(b) The Influence of the Debate on ‘Globalization’ (b) The Influence of the Debate on ‘Globalization’
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(i) Globalization and MNE Regulation (i) Globalization and MNE Regulation
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(ii) ‘Global Consumerism’ (ii) ‘Global Consumerism’
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(iii) ‘International Corporate Social Responsibility’ (iii) ‘International Corporate Social Responsibility’
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(4) Bargaining Power, Sources and Sites of MNE Regulation (4) Bargaining Power, Sources and Sites of MNE Regulation
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(a) Bargaining Between States and MNEs (a) Bargaining Between States and MNEs
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(b) Sources of Regulatory Standards (b) Sources of Regulatory Standards
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(c) ‘Sites’ of Regulation (c) ‘Sites’ of Regulation
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(i) Self–Regulation (i) Self–Regulation
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(ii) Regulation by NGOs (ii) Regulation by NGOs
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(iii) National Regulation (iii) National Regulation
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(iv) Bilateral Regulation (iv) Bilateral Regulation
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(v) Regional Regulation (v) Regional Regulation
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(vi) Multilateral Regulation (vi) Multilateral Regulation
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Concluding Remarks Concluding Remarks
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3 Regulating Multinationals
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Published:July 2007
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Extract
The preceding chapters have offered certain building blocks for understanding the nature of MNE regulation. The focus has been, first, on the reasons for MNE growth, including the role, if any, of legal factors in its promotion and, secondly, on the relationship between the business and legal forms of MNEs, as an introduction to the problems of control through legal forms of business association. However, a developed understanding of the regulation of MNEs requires a further dimension. This stems from the interaction of MNEs with the political communities in which they operate. In the first edition of this book these were identified simply as nation states, given their role as the main source of formal legal regulation. A state–centric approach is no longer adequate for at least two reasons.
First, it fails to reflect the full range of regulatory actions and responsibilities to which MNEs may be subject, or indeed voluntarily undertake, in a complex globalizing environment. For example, it does not permit a proper appreciation of the interaction between formal ‘command and control’ regulation and informal ‘self–regulation’. Secondly, it does not allow an adequate examination of the full range of parties that may seek to exert regulatory influence upon these firms. In particular, it leaves out informal regulation, carried out by non–state actors who monitor the activities of MNEs, such as campaigning non–governmental organizations (NGOs). This has become increasingly significant in the shaping of the regulatory agenda. That said, the nation state and its regulatory emanations, regional and multilateral inter–governmental organizations (IGOs), remain the central focus of regulatory action. As noted in chapter 1, these ‘sites’ of formal regulation couple with the ‘sites’ of informal regulation by non–state actors and self–regulating MNEs to form a pluralistic regulatory environment.1
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