Accountability of Transnational Corporations in the Developing World: The Case for an Enforceable International Mechanism

Omoteso, Kamil and Yusuf, Hakeem O. (2017). Accountability of Transnational Corporations in the Developing World: The Case for an Enforceable International Mechanism. Critical Perspectives on International Business, 13(1) pp. 54–71.

DOI: https://doi.org/10.1108/cpoib-08-2014-0040

Abstract

Purpose – The purpose of this paper is to contend that the dominant voluntarism approach to the
accountability of transnational corporations (TNCs) is inadequate and not fit-for-purpose. The authors argue
for the establishment of an international legal mechanism for securing the accountability of TNCs,
particularly in the context of developing countries with notoriously weak governance mechanisms to protect
all relevant stakeholders.
Design/methodology/approach – The study adopts insights from the fields of management and
international law to draw out synergies from particular understandings of corporate governance, corporate
social responsibility and international human rights. The challenges to governance in developing countries
with regard to securing the accountability of TNCs are illustrated with the Nigerian experience of oil-industry
legislation reform.
Findings – The specific context of the experiences of developing countries in Africa on the operations of
TNCs particularly commends the need and expedience to create an international legal regime for ensuring the
accountability of TNCs.
Originality/value – Mainstream research in this area has focused mainly on self and voluntary models of
regulation and accountability that have privileged the legal fiction of the corporate status of TNCs. This paper
departs from that model to argue for an enforceable model of TNC’s accountability – based on an international
mechanism.

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About

  • Item ORO ID
  • 76014
  • Item Type
  • Journal Item
  • ISSN
  • 1742-2043
  • Keywords
  • Organizational culture; accountability; corporate governance; transnational companies; corporate and social responsibility; international criminal court
  • Academic Unit or School
  • Faculty of Business and Law (FBL) > Law
    Faculty of Business and Law (FBL)
  • Copyright Holders
  • © 2017 Kamil Omoteso, © 2017 Hakeem Yusuf
  • Depositing User
  • Hakeem Yusuf

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