Abstract:
With a GDP size comparable to that of many national economies, transnational companies have today a significant economic, social, and environmental impact on the countries in which they operate — especially in the global south, where the governance structures are weaker than elsewhere. What this thesis work seeks to investigate is determining to what extent TNCs are held accountable for the environmental damages they create all around the world, and what are the reasons for their partial lack of liability.
By following the meaningful case study of Chevron, the US multinational energy corporation, this dissertation will examine the issue from both a legal and a business management perspective. We will first analyze the legal strategies deployed by TNCs, the legislative framework in which they operate, and the role played by states; subsequently, we will inquire about the shareholders’ engagement, the functioning of ESG assessment, and the practice of greenwashing. The underlying assumption proposed here is that large corporations can afford to violate environmental laws because the consequences they face are negligible; and even when their misconduct is exposed and gets criticized, TNCs usually try to improve their public image instead of the actual policies creating the damages.
The final section of this thesis will then explore a range of possible practices which aim to enhance TNCs’ accountability, while also attempting to assess their chance of success in the local and international context.
