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Multinational Corporations and Local Communities: A Critical Analysis of Conflict

  • International Management
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Abstract

As conflict between multinational corporations and local communities escalates, scholars, executives, activists, and community leaders are calling for companies to become more accountable for the impact of their activities on external stakeholders. In order for business to do so, managers must first understand the causes of conflict with local communities, and communities must understand what courses of action are available to challenge activities they deem harmful to their interests. In this article, I present a framework for examining the factors that contribute to multinational and community conflict including stakeholder power inequality, stakeholder perception gaps and cultural context. Moreover, I describe some of the ways that communities can increase their leverage in conflict situations.

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Acknowledgments

I would like to thank Lynne Andersson, Michaela Driver, Robert Giacalone, Maasaki Kotabe and Gerald Zeitz for their helpful comments on previous drafts of this article.

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  1. Fox School of Business, Temple University, Philadelphia, U.S.A.

    Lisa Calvano

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Correspondence to Lisa Calvano.

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Calvano, L. Multinational Corporations and Local Communities: A Critical Analysis of Conflict. J Bus Ethics 82, 793–805 (2008). https://doi.org/10.1007/s10551-007-9593-z

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