Multinational Corparate Entities: Is Corporate Social Responsibility An Inducement?

Abstract

Over the past years, there have been lots of terminologies used for global corporations like multinational corporations, transnational corporations and multinational enterprises. In practice, there are no specific differences between them today[1]. Muchlinski suggested some characteristic behaviours of MNEs. Firstly, they operate their assets and control their functions across national borders[2]. Secondly, the managers of the MNEs have right to control the activities across national frontiers despite the different national identities. Thirdly, MNEs have liability to trade across national borders not only with the products but also some technical and managerial skills. Multinational enterprises choose to work with subsidiaries in the Host States. The companies are binded with the domestic company laws but the problem is which law do the belong to while they operating through their subsidiaries across the world and who will be responsible for the activities. In addition to this, there are three major areas of MNEs whose activities captured attention; issues relating to human rights, risks in international financial transactions and corporate social responsibility. In this part, corporate social responsibility will be mentioned with the legal issues of its effect on global conduct of business including international human rights law and international criminal law. Also, the question of whom or which company would be responsible for the harms cause by MNEs will be answered

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