An institutional perspective on the social responsibility of TNCs

This paper explores the work of the late John Dunning on institutions and the moral imperatives of global capitalism in the context of the social responsibilities of transnational corporations (TNCs). TNCs are viewed as institutional entrepreneurs that develop new governance solutions in response to the complexity and uncertainty they encounter while engaging in value adding activities. Specifically, the paper examines the case where TNCs need to overcome institutional voids or deficits in order to be able to operate in developing host countries. The paper concludes with some reflections on possible future directions for research, particularly at the intersection of law and international business.