Transnational Power and Translocal Governance

Abstract

This chapter provides a critical analysis of the politics of corporate social responsibility (CSR). It argues that CSR is a strategy that enables multinational corporations (MNCs) to exercise power in the global political economy. Using the global extractive industries as a context, the chapter focuses on conflicts between communities, the state and MNCs that arise from the negative social and environmental impacts of mining and extraction. In particular, it analyzes the role of political CSR and multi-stakeholder initiatives in managing conflicts and argues that these initiatives cannot take into account the needs of vulnerable stakeholders. Power asymmetries between key actors in the political economy can diminish the welfare of communities impacted by extraction. Several governance challenges arise as a result of these power asymmetries and the chapter develops a translocal governance framework from the perspective of vulnerable stakeholders that can enable a more progressive approach to societal governance of MNCs.