John Paul II’s vision of the role of multinational enterprise expansion in building the social economy

Abstract

This essay uses three of Pope John Paul II’s encyclicals, Laborem Exercens, Sollicitudo Rei Socialis, and Centesimus Annus to articulate principles that may be useful in evaluating public oversight of multinational enterprises (MNE). These encyclicals are challenges to the prevailing socio‐economic order by an institution that cannot be dismissed as “knee‐jerk liberal” carping. On the contrary, the fact that a conservative institution asserts these principles repeatedly and over time may mean that they should be included in our public consideration of the global resonance of MNEs. Insofar as MNE expansion can mean pervasive improvements in the standard of living of the earth’s population, the writings of Pope John Paul II lead to the conclusion that MNE expansion should be encouraged as long as all of the participants, especially the citizens of developing countries, participate in the benefits. MNE expansion and the expected socio‐economic dislocations accompanying the expansion will require institutional arrangements to minimize conflict, promote cooperation, and encourage solidarity. An organization for multinational enterprises (an OMNE) could fill this need by reducing MNEs’ fears about adverse host country policy changes and simultaneously providing assurances that the citizens of the MNE‐host country will share in the rents generated by the MNE’s expansion.