The impact of multinational enterprises in the global value chain: opportunities and challenges

Abstract

The appearance of new globalized production systems has profoundly changed the conditions of competition in the world and the way of doing business. Workers rights are frequently violated and their health is often compromised as a matter of fact. Consequently, more and more multinational enterprises (MNEs) are asked to demonstrate their socially responsible behavior. Many multinational enterprises and large national companies have adopted policies that regulate the aspects inherent to work, even in their value chain, and more and more are those involved in multistakeholder or sectoral initiatives. Governments are introducing Corporate Social Responsibility (CSR) policies in the areas of trade, investment and public procurement. Multilateral institutions are developing, updating and promoting their own CSR tools to encourage responsible business practices and respond to new problems that arise. Even small local producers are increasingly aware of the importance of CSR as a result of their participation in the global value chain. Several major brands, including Nike, have begun to take some actions with the aim of improving working conditions, wages and working hours for the millions of workers employed in today’s global economy. The paper is made up of three chapters. In chapter one is analysed the role of MNEs n the process of internationalisation. The second chapter will discuss the action taken by international actors and the European Union towards the regulation of MNEs. The final chapter will discuss the opportunities and challenges in promoting core labour standards.