The shaping of relations between a developing economy and MNCs: Bangladesh and Shipping

Abstract

Much has been written about the behaviour of muntinational corporations (MNCs) and their relations with the nation state. However, there seems room for closer examination of the dynamics of such relations between developing economies and MNCs operating in sectors of strategic importance to the developing economy. The research reported here examines relations between international shipping companies and Bangladesh. The paper starts by reflecting on the growth and influence of the MNC, and the varied ways that such influence is manifest. This provides a backdrop against which to examine relations between shipping MNCs and Bangladesh. Following this review, the research design is sketched out, as a study of relations between Bangladesh as an emerging economy and shipping MNCs in pursuit of their business objectives. The study finds that regardless of political ambitions by the host economy, and regardless of the ethical proclamations of MNCs, it is the everyday challenges and opportunities of doing business that shapes ethical practices. Corporate officers, in dealing with local officials, take a pragmatic approach to achieving business objectives, while being fully aware that such pragmatism is often at odds with corporate moral intention. The study also finds that what counts as corporate socially responsible behaviour is politically defined.

Citation

Rayman‐Bacchus, L. and Chowdhury, S. (2006), "The shaping of relations between a developing economy and MNCs: Bangladesh and Shipping", Social Responsibility Journal, Vol. 2 No. 2, pp. 165-172. https://doi.org/10.1108/eb059261