Handbooks of Global Policy

The Handbook of Global Companies

Edited by John Mikler

The Handbook of Global Companies Handbook of Global Policy Series

Series Editor David Held Master of University College and Professor of Politics and International Relations at Durham University

The Handbook of Global Policy series presents a comprehensive collection of the most recent scholarship and knowledge about global policy and governance. Each Handbook draws together newly commissioned essays by leading scholars and is presented in a style which is sophisticated but accessible to undergradu- ate and advanced students, as well as scholars, practitioners, and others interested in global policy. Available in print and online, these volumes expertly assess the issues, concepts, theories, methodologies, and emerging policy proposals in the field.

Published The Handbook of Global Climate and Environment Policy Robert Falkner

The Handbook of Global Energy Policy Andreas Goldthau

The Handbook of Global Companies John Mikler The Handbook of Global Companies

Edited by John Mikler

A John Wiley & Sons, Ltd., Publication This edition first published 2013 C 2013 John Wiley and Sons Ltd.

Wiley-Blackwell is an imprint of John Wiley & Sons, formed by the merger of Wiley’s global Scientific, Technical and Medical business with Blackwell Publishing.

Registered Office John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, UK

Editorial Offices 350 Main Street, Malden, MA 02148-5020, USA 9600 Garsington Road, Oxford, OX4 2DQ, UK The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, UK

For details of our global editorial offices, for customer services, and for information about how to apply for permission to reuse the copyright material in this book please see our website at www.wiley.com/wiley-blackwell.

The right of John Mikler to be identified as the author of the editorial material in this work has been asserted in accordance with the UK Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs and Patents Act 1988, without the prior permission of the publisher.

Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books.

Designations used by companies to distinguish their products are often claimed as trademarks. All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners. The publisher is not associated with any product or vendor mentioned in this book. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold on the understanding that the publisher is not engaged in rendering professional services. If professional advice or other expert assistance is required, the services of a competent professional should be sought.

Library of Congress Cataloging-in-Publication Data

The handbook of global companies / edited by John Mikler. pages cm. Includes bibliographical references and index. ISBN 978-0-470-67323-2 (cloth) 1. International business enterprises–Political aspects. 2. Business and politics. 3. International relations. I. Mikler, John. HD2755.5.H368 2013 322.3–dc23 2012047270

A catalogue record for this book is available from the British Library.

Cover image: cityscape at sunset C Jason Ho / Shutterstock Cover design by Design Deluxe

Set in 10/12.5pt Sabon by Aptara Inc., New Delhi,

1 2013 For Kara, Annika, and Erin

Contents

List of Illustrations xi Notes on Contributors xiii Preface xxi

1 Global Companies as Actors in Global Policy and Governance 1 John Mikler

Part I Locating Global Companies 17 2 The Global Company 19 Hinrich Voss 3 The National Identity of Global Companies 35 Stephen Wilks 4 Big Business in the BRICs 53 Andrea Goldstein

Part II Global Companies and Power 75 5 Theorizing the Power of Global Companies 77 Doris Fuchs 6 Why, When, and How Global Companies Get Organized 96 Tony Porter and Sherri Brown 7 How Governments Mediate the Structural Power of International Business 113 Stephen Bell viii CONTENTS

8 How Global Companies Wield Their Power: The Discursive Shaping of Sustainable Development 134 Nina Kolleck

Part III Global Companies and the State 153 9 How Global Companies Make National Regulations 155 Terry O’Callaghan and Vlado Vivoda 10 Making Government More “Business-Like”: Management Consultants as Agents of Isomorphism in Modern Political Economies 173 Denis Saint-Martin 11 East Asian Development States and Global Companies as Partners of Techno-Industrial Competitiveness 193 Sung-Young Kim 12 Varieties of the Regulatory State and Global Companies: The Case of 209 Shiufai Wong 13 Global Companies and Emerging Market Countries 227 Caner Bakir and Cantay Caliskan

Part IV Global Companies and International Organizations 239 14 Regulating Global Corporate Capitalism 241 Sarianna M. Lundan 15 Global Companies as Agenda Setters in the World Trade Organization 257 Cornelia Woll 16 Business Interests Shaping International Institutions: Negotiating the Trans-Pacific Partnership Agreement 272 Deborah Elms 17 Global Companies and the Environment: The Triumph of TNCs in Global Environmental Governance 285 Matthias Finger 18 Global Companies, the Bretton Woods Institutions, and Global Inequality 300 Pamela Blackmon 19 Outsourcing Global Governance: Public-Private Voluntary Initiatives 316 Marianne Thissen-Smits and Patrick Bernhagen CONTENTS ix

Part V Global Companies and Society 333 20 Global Companies and Global Society: The Evolving Social Contract 335 Ann Florini 21 Global Companies as Social Actors: Constructing Private Business in Global Governance 351 Tanja Bruhl¨ and Matthias Hofferberth 22 The Socially Embedded Corporation 371 Kate Macdonald 23 Ecological Modernization and Industrial Ecology 388 Frank Boons

Part VI The Exercise and Limitations of Private Global Governance 403 24 Global Companies as Agents of Globalization 405 Shana M. Starobin 25 The Greening of Capitalism 421 John A. Mathews 26 Global Companies and the Private Regulation of Global Labor Standards 437 Luc Fransen 27 Global Private Governance: Explaining Initiatives in the Global Mining Sector 456 Hevina S. Dashwood 28 Will Business Save the World? 474 Simon Zadek

Index 493

List of Illustrations

Figures

4.1 BRIC companies in Fortune Global 500 54 9.1 A simplified spectrum of regulation 164 12.1 Varieties of Chinese regulatory capitalism across the 100 largest global companies 222

Tables

2.1 The ten economically largest countries and enterprises, 2010 23 2.2 The ten most internationalized developed country MNEs, 1995 and 2010 25 2.3 The ten most internationalized developing country MNEs, 1995 and 2009 26 3.1 Transnationality index for countries, 2005 37 3.2 National distribution of large corporations 43 4.1 BRIC companies in Fortune Global 500 54 4.2 Data on big business in the BRIC 58 4.3 Top 100 companies’ sales in the BRICs, by ownership 58 4.4 Varieties of state capitalism in China 60 4.5 CEOs in the United States, Brazil, India, and China 64 4.6 The quality of management in Brazil, India, and China 65 4.7 Boards of directors in the BRICs 66 8.1 WBCSD and econsense 139 10.1 European consulting market, 2010 180 12.1 Conflicting features of Chinese regulations 210 18.1 ECA supported global companies 310 21.1 Sub-categories for corporate participation in CSR and their keywords 363 26.1 Overview of private standard organizations 441

Notes on Contributors

Caner Bakir is Assistant Professor in the International Relations Department at Koc University, Istanbul, Turkey. He has worked as an Assistant Lecturer in the Accounting and Finance Department at Monash University, Melbourne. Prior to this, he worked as a banking specialist. His areas of research include institutional analysis, public policy, globalization, and governance. His work has been published in a number of leading journals including Governance and Public Administration and he has published a book with Bilgi University Press. His researches have been supported by the Scientific & Technological Research Council of Turkey (TUBITAK) and COST ACTION ISO905 (European Cooperation in Science and Technology). Bakir received the Incentive Award in Political Science awarded by TUBITAK in 2010. Stephen Bell is Professor and former Head of the School of Political Science and International Studies at the University of Queensland. He is a Fellow of the Academy of Social Sciences in Australia. His recent books include The Rise of the People’s Bank of China: The Institutional Development of China’s Financial and Monetary System and Rethinking Governance: The Centrality of the State in Modern Society. He is currently working on two Australian Research Council funded projects, one on banking reform in China and the other on the performance of banks in the global financial crisis. Patrick Bernhagen is Professor of Political Science at Zeppelin University, , and Senior Lecturer in Politics and International Relations at the University of Aberdeen, . His main research interests are the political partici- pation of citizens and firms as well as their strategies and success in gaining political influence. He is the author of The Political Power of Business: Structure and Informa- tion in Public Policymaking (2007) and co-editor (with Christian Haerpfer, Ronald Inglehart, and Chris Welzel) of Democratization (2009).