Multinational Corporations and Global Justice: Human Rights Obligations of a Quasi-Governmental Institution
Contents
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Governing People: Derber's “Corporate Mystique” Governing People: Derber's “Corporate Mystique”
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Governing Markets: Networked Capitalism Governing Markets: Networked Capitalism
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Governing Governments: Sovereignty of States or of Corporations? Governing Governments: Sovereignty of States or of Corporations?
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The “Golden Straitjacket” The “Golden Straitjacket”
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Shifting Authority to Multinationals in Production: the Exit Threat Shifting Authority to Multinationals in Production: the Exit Threat
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Evasion of Taxes and Regulations Evasion of Taxes and Regulations
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Exit Threat Exit Threat
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Playing off Governments Against Each Other Playing off Governments Against Each Other
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Shifting Authority to Multinationals in the Public Sector: Privatization of State Functions Shifting Authority to Multinationals in the Public Sector: Privatization of State Functions
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Shifting Authority to Multinationals in Political Processes: Lobbying Shifting Authority to Multinationals in Political Processes: Lobbying
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Sovereignty at Bay? Sovereignty at Bay?
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Governing Themselves: Corporate Rule Making Governing Themselves: Corporate Rule Making
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Multinational Corporations as Economic Rule Makers Multinational Corporations as Economic Rule Makers
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Multinational Corporations as Regulators of Social and Environmental Side Effects Multinational Corporations as Regulators of Social and Environmental Side Effects
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Multinational Corporations as Public Policy Makers in the Global Political Arena Multinational Corporations as Public Policy Makers in the Global Political Arena
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7 When Multinational Corporations Act Like Governments
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Published:08 October 2009
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Abstract
This chapter examines position of multinational corporations (MNCs) as quasi-governmental institutions, focusing on the two constitutive aspects of authority in the corporate context. First, it shows how MNCs successfully create a veil of legitimacy around the exercise of their power and how they factually govern people. Second, it argues that the authority of MNCs evolves as countervailing power diminishes. The chapter also illustrates how MNCs have outpowered the market mechanism in many respects and govern markets today, analyzes the potential countervailing power of national governments, and discusses Charles Derber's so-called corporate mystique that has effectively disguised the steadily growing power of corporations for decades. Finally, it considers the reach of effective control of the largest corporations in today's “networked capitalism” as well as the sovereignty of states versus that of corporations.
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