Multinational Corporations and Governance Effectiveness: Toward a More Integrative Board

Journal of Business Ethics 132 (3):565-577 (2015)
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Abstract

Multinational corporations dominate the global business arena, but new expectations for MNC boards call to question how they might effectively manage global stakeholder relationships in this new era of accountability. Uniting political behavior theory, which describes a board’s international political orientation, and global operating governance systems outlining a set of board behaviors, we develop a typology of four types of boards. We then provide recommendations for the development of an integrative governance structure, taking into account the mechanisms, structure, endorsements, and codes of conduct that MNCs can use to promote ethical behavior across MNC horizons.

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