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• W2185043552 abstract "Transnational corporations’ (TNCs’) economic operations cover numerous countries and can be diverted between several continents. These units have reached a level of significance, having not only economic, but also social and environmental implications. This justifies that they shall be treated separately as a social phenomenon, when considering strategies for the development towards sustainability. This paper presents the concept of Responsible Corporate Governance (RCG), as a strategy to “govern” TNCs. RCG is suggested as a stakeholder based policy instrument, which aims at allocating responsibilities to societal actors aiming at corporate accountability. RCG recognises that the process of societal change is strongly based on what can be called as bottom up-processes. Learning processes take place through the interaction of the different societal members, which eventually leads to macro changes. Therefore, governing TNCs towards sustainability improvements is considered to be a collective process including all stakeholders. Firstly, the paper places the concept of RCG in the ongoing debate of political modernization based on the fact that society develops overtime and the political system must correspondingly modernize. In this context, political overload developed as a consequence of increased resource interdependencies is explained and as a resolution, network approach is discussed. Secondly, demands on the orientation of the TNCs in terms of accountability and innovative action are brought forward. Here, the paper also lists down corporate elements (stakeholder empowered corporate governance, management and performance evaluation systems, transparency enhancement and accountability verification), which need to be in place to attain an accountable orientation in the society. Following, using an analytical framework, the orientation and capabilities of each societal actor (environmental non-governmental organisations, financial institutions, intergovernmental organisations) to affect improvements in the corporate responsibility elements are investigated and recommendations for their effective orientation are listed. We would like to sincerely thank Jola Welfens for her review, Timo Busch for his valuable and extensive input regarding the section on financial institutions, Andreas Villar and Martin Herrndorf for their indispensable work, Wolfgang Sachs, Tilman Santarius and Yuval Somekh for his comments, Monika Kieslich for her efforts to make this paper reader friendly and many more, whose name we can not state here, for their contribution to this Wuppertal Paper. Responsible Corporate Governance 3 Wuppertal Institute for Climate, Environment and Energy" @default.
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• W2185043552 date "2004-01-01" @default.
• W2185043552 modified "2023-09-27" @default.
• W2185043552 title "Responsible Corporate Governance" @default.
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