Globalization and Corporate Social Responsibility: How Non-Governmental Organizations Influence Labor and Environmental Codes of Conduct

Concerns over the potential negative spillovers from globalization have resulted in increasing demands for multinational corporations (MNCs) to adhere to international standards and codes of responsibility. Nongovernmental organizations (NGOs) have been important advocates for development and adoption of these standards and codes.In this paper, we provide a brief review of the emergence of NGOs and their influence on debates about globalization, and a specific assessment of NGO efforts to promote stronger labor and environmental policies of multinational corporations.We examine the role of NGOs in development and enforcement of twelve international agreements and codes of conduct addressing labor issues and environmental practices. We use findings from these cases and insights from international business and other managerial theory to develop propositions that explain the circumstances under which NGOs have more or less influence in developing and enforcing international codes.