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A Corporate Solution to Global Poverty: How Multinationals Can Help the Poor and Invigorate Their Own Legitimacy

A Corporate Solution to Global Poverty: How Multinationals Can Help the Poor and Invigorate Their Own Legitimacy

Authors
Publisher Princeton University Press
Year 2006
Pages 208
Version hardback
Readership level General/trade
Language English
ISBN 9780691122298
Categories Poverty & unemployment
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Book description

World leaders have given the reduction of global poverty top priority. And yet it persists. Indeed, in many countries whose governments lack either the desire or the ability to act, poverty has worsened. This book, a joint venture of a Harvard professor and an economist with the International Finance Corporation, argues that the solution lies in the creation of a new institution, the World Development Corporation (WDC), a partnership of multinational corporations (MNCs), international development agencies, and nongovernmental organizations (NGOs). In A Corporate Solution to Global Poverty, George Lodge and Craig Wilson assert that MNCs have the critical combination of capabilities required to build investment, grow economies, and create jobs in poor countries, and thus to reduce poverty. Furthermore, they can do so profitably and thus sustainably. But they lack legitimacy and risk can be high, and so a collective approach is better than one in which an individual company proceeds alone. Thus a UN-sponsored WDC, owned and managed by a dozen or so MNCs with NGO support, will make a marked difference.
At a time when big business has been demonized for destroying the environment, enjoying one-sided benefits from globalization, and deceiving investors, the book argues, MNCs have much to gain from becoming more effective in reducing global poverty. This is not a call for philanthropy. Lodge and Wilson believe that corporate support for the World Development Corporation will benefit not only the world's poor but also company shareholders as a result of improved MNC legitimacy and stronger markets and profitability. "A Corporate Solution to Global Poverty provides a valuable--and exceedingly readable--primer on corporate social responsibility as well as a compelling approach to the use of corporate wealth to benefit the world's poorest."--Joshua Rosenthal, International Law and Politics

A Corporate Solution to Global Poverty: How Multinationals Can Help the Poor and Invigorate Their Own Legitimacy

Table of contents

Acknowledgments ix List of Abbreviations xi Prologue 1 PART I: The Legitimacy Gap Chapter 1: Introduction 9 Chapter 2: The Legitimacy of Business 21 PART II: Reactions, Responses, and Responsibilities Chapter 3: NGOs and the Attack: Critics, Watchdogs, and Collaborators 45 Chapter 4: The Corporate Response 71 Chapter 5: International Development Architecture 90 Chapter 6: The Emerging International Consensus 117 PART III: Global Poverty Reduction and the Role of Big Business Chapter 7: The Options for Business Contributions 137 Chapter 8: A World Development Corporation 155 Notes 165 Bibliography 177 Index 185

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