Corporate Governance and Corporate Social Responsibility of Multinational Enterprises and Transnational Law The FIFA Case

Abstract

Transnational law is a fertile ground for the development of corporate governance and corporate social responsibility (CSR) worldwide, where multinational enterprises (MNEs) have a central position. The private governance system involving MNEs entails two roles: as object and as subject of transnational law. Such a framework is presented herein against the case analysis of Federation Internationale de Football Association (FIFA) and the World Cup tournaments. With this purpose in mind, this paper explores the governance structure of FIFA and the steps of the World Cup bidding process and certain facts of interest related to the Brazil, Russia and Qatar World Cups. This study engaged into a functional approach to the problem if FIFA could be deemed a MNE; FIFA was considered in a broad sense, involving both its MNE and public natures. The global regulation of MNE’s corporate governance is formed mainly by soft law instruments, and their governance model encompasses the shareholders’ primacy versus the stakeholders’ principle traditional corporate governance debate. Hence, this paper describes two material instruments for CSR regulation: the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights (UNGP) against FIFA’s activities. Finally, FIFA’s accountability is further analysed in view of the level of power the entity has over the international community, pointing out an enforcement system comprised mainly by monitoring, surveillance and disclosure.