Social Behavior Of Transnational Corporations During The Economic Crisis Of Late 2000s

753 Words Jun 23rd, 2016 4 Pages
The present thesis, is aimed to analyze the social behavior of transnational corporations during the economic crisis of late 2000s. While the growth of world´s GDP was negative in 2009 (-2.1%) and many corporations experienced cuts in employment, limited access to credit, and reductions in capital and technological spending (Campello et al., 2010: 1), the social investment of many firms followed a counter-intuitive move by increasing their social contributions in more than 228%. Between 2004 and 2013 the corporate social responsibility investments of the 261 world leading companies increased from US$7,6 billion to US$25 billion (CECP, 2005 and 2014). By the same token, a qualitative change occurred in social corporate thinking where the so called Shared Value Strategies gained momentum over the classical approaches of Philanthropy and Corporate Social Responsibility (Kramer, 2011). Under this scenario, the research questions that guide this thesis is: How do we account for this counter-intuitive move of corporations aimed at expanding its social investments under a major economic recession? To what extent Shared Value Strategies have changed the way corporate thinking understands social and environmental problems and what are its implications?
Since 1970s, transnational corporations have played a prominent role in the ascendance of globalization and neoliberal economics, following the direct foreign investment paradigm and the Washington Consensus imperatives of…

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