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3 - Extraterritorial Attempts at Addressing Challenges to Corporate Sustainability

from Part I - Global Business and Fragmented Regulation

Published online by Cambridge University Press:  25 November 2019

Beate Sjåfjell
Affiliation:
Universitetet i Oslo
Christopher M. Bruner
Affiliation:
University of Georgia
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Summary

Multinational enterprises operate in an increasingly international environment and their operations are subject to a variety of rules from both hard and soft law. They take advantage of weak accountability systems and poor law enforcement in developing countries, necessitating a better understanding of the most appropriate hard-law approach to regulate them and address business sustainability challenges. Despite the division between the hard and soft legislative approaches used to address extraterritorial challenges, current efforts have been criticised primarily regarding their impact and enforceability. This chapter explores possible approaches for better extraterritorial regulation of corporate sustainability, including more detailed and extended directorial duties, together with enforcement measures driven by the state. Such efforts may direct board members’ attitudes towards more active involvement with extraterritorial corporate sustainability challenges.

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Publisher: Cambridge University Press
Print publication year: 2019

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