Review of Corporate Social Responsibility of Multinational Corporations in Developing Countries: Perspectives on Anti-Corruption

• Author: Rhuks Ako
• Position: Lecturer at the University of Hull Law School, UK
• Pages: 136-138

Rhuks Ako, ‘Corporate Social Responsibility of Multinational Corporations

in Developing Countries: Perspectives on Anti-Corruption’ (2014) 30(78)

Utrecht Journal of International and European Law 136, DOI: http://dx.doi.

org/10.5334/ujiel.cg

In Corporate Social Responsibility of Multinational Corporations in Developing Countries: Perspectives on

Anti-Corruption by Adefolake O. Adeyeye, the author argues that a Corporate Social Responsibility (CSR)

approach should be adopted to curb Multinational Corporation (MNC) involvement in corrupt practices,

particularly in developing countries. The book’s viewpoint is premised on the argument that corruption is a

CSR issue and engages in critical discussions on how best to regulate corporations within this (CSR) frame-

work. In other words, it critically analyses the voluntary and legal approaches to regulating MNCs, particu-

larly to curb their involvement in international corruption (transnational bribery). An interesting implicit

part of the argument is that if MNCs are dissuaded from corrupt practices, the ugly trend will abate as the

financial inducement often moves from the supply (corporations) to the demand side (often government

officials). The analysis of CSR mechanisms; voluntary and legal, applicable to curbing international corrup-

tion are comprehensive with reference to relevant examples and cases across international jurisdictions thus

providing the reader with a wide berth for understanding and comparison.

Corporate Social Responsibility (CSR) and corruption are the two themes that resound throughout the

book with the former being the more controversial. Unlike corruption, the concept of CSR is contentious

mainly because its theoretical underpinnings and practical interpretations remain divisive. Friedman’s con-

ception of CSR (the neoliberal approach) is that the primary function of the corporation is to make profits

as long as it ‘engages in free and open competition, without deception or fraud.’ A lot of the debate on the

nature and scope of CSR emanates from the above expression, with critics such as the stakeholder theory

group arguing that the responsibility of a corporation extends beyond the purview of its shareholders. They

argue that the complexity of the modern business environment is such that ‘business success depends

on motivated employees, satisfied consumers, institutional investors with a long-term investment horizon,

trusting regulators etc.’ In other words, corporations have a wider spectrum of those that impact and may

be affected by corporate activities. The radical political economy perspective disagrees with these views.

Emphasizing the power of corporations and the limitations of self-regulation, they express the view that

corporations should be held accountable for their actions, hence the need for legal rules. With such differ-

ing theoretical underpinnings to the concept, it is easy to criticise, or even disagree with a viewpoint on CSR

however painstakingly researched and effectively communicated. Adeyeye avoids the theoretical debates

and proceeds from the pragmatic viewpoint that MNCs ‘social responsibilities’ to avoid international corrup-

tion (or, transnational bribery) are regulated by both voluntary guidelines and legal rules.

The book is divided into two sections with the first discussing the conceptual topics; that is, CSR and cor-

ruption. Section two focuses on the ‘mechanisms for curbing international corruption through the lens of

CSR’ and is spread over five chapters. The arrangement of the chapters makes for easy reading. Each chapter

is premised by an introduction that sets the tone of the discussion to follow and a conclusion that succinctly

recaps the issues addressed, as well as the contribution to the book’s general theme. Chapter One addresses

three questions that define the character of CSR. First, do corporations’ responsibilities extend beyond profit

BOOK REVIEW

Corporate Social Responsibility of Multinational

Corporations in Developing Countries: Perspectives

on Anti-Corruption

Corporate Social Responsibility of Multinational Corporations in Developing

Countries: Perspectives on Anti-Corruption

, Adefolake O. Adeyeye, Cambridge

University Press, pp. xxi+223, Hardcover: £75 and $115, 2012, ISBN

9781107013629

Rhuks Ako*

* Lecturer at the University of Hull Law School, UK

r.ako@hull.ac.uk

UTRECHT JOURNAL OF

INTERNATIONAL AND EUROPEAN LAW