Abstract:
This article examines corporate social responsibility from the perspective of
documented cases of governmental institutional failures in holding foreign
multinational enterprises (MNEs) accountable in the host states in which
they operate. Such institutional failures are evident in a number of cases involving
multinational enterprises operating in South Africa and other developing host
countries. These cases demonstrate that with weak regulation, the foreign direct
investment (FDI) of MNEs can in some cases do more harm than good, resulting in
lapses in accountability; harming the environment and human health. Accordingly,
it is argued that special attention should be given to MNEs as a result of their unique
nature and characteristics, as well as for the dynamic global context within which
they operate. The focal area of the paper is concentrated on examining some of
the legal aspects and complications associated with the FDI of MNEs with the
expectation of exploring the prospects for regulatory reform in South Africa.
