Forty of the 100 largest economic entities in the world in 2012 were corporations, not countries, according to business consultants Global Trends. The sheer size of multinational enterprises (MNEs) leads many citizens to worry that they will abuse their economic power and political influence. This is not a new concern, and in fact was one of the reasons the OECD produced its Guidelines for Multinational Enterprises in 1976. The original Guidelines were published as an Annexe to a Declaration on International Investment and Multinational Enterprises. At the time, much of the pressure to create some kind of framework for MNE activities came from the firms themselves.
After the Second World War, government intervention in the economy was direct and widespread, through nationalisations and strategies designed to build strong national champions in key domains. At the same time, today’s highly integrated, globalised economy was starting to emerge, and companies at the forefront of the process wanted reassurances that their investments abroad would be safe and government regulation would not constrain them too much.
See full Article: http://oecdinsights.org/2014/06/26/how-to-stop-businesses-behaving-badly/
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