Abstract

With the power shifts in the global system between business and government, and the evolution of our relationship with capital, the role that capital generated by MNCs plays in society has developed considerably in the last century or so. The lines between government and business are becoming increasingly blurred, with CSR policies often complementing, supplementing or even replacing state governments’ agendas on some societal issues. Through the CSR ideology, and increasingly in the wider implication of human rights, business is generally coming to the fore in societal and environmental issues. As we emerge from financial crisis, the challenge is in maintaining and advancing engagement between government and business in social issues (for the benefit of the communities in which the business operates) and in ensuring that CSR benefits national development as well as the MNC’s agenda. The challenge is augmented somewhat by the inequalities in the relationship between government and MNCs. Although not necessarily focused on CSR, much has been written on the contribution of MNCs to national development and specifically how the rising role of the MNC within a state can influence and shape development within its borders (Blowfield, 2005; Luetkenhorst, 2004; Idemudia, 2008; Bondy, Moon and Matten, 2012).

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