Shaping Economic Regulation: The Role of Transnational Corporations

Global supply networks (GSNs) are both an economic and political phenomenon encompassing interconnected functions and transactions, which extend beyond national boundaries. While these networks can be visualised as a highly complex, dynamic set of inter-connected relationships between all engaged actors, they are generally ‘driven’ by trans-national corporations (TNCs) (Coe et, al 2008) which operate as the primary focal point within the network. We develop a theory of how and why TNCs articulate and operationalise the shaping of economic policy, contrasting this with other policy areas, including trade, and climate change - with preliminary results indicating, for example, that the articulation of economic preferences is relatively formal, often taking place through structured consultations, with less emphasis placed on societal engagement through the media. To explain this difference, we investigate the role of TNCs’ organisational structure in developing their strategy of engagement with the economic policy process. Here we show that the means by which TNCs seek to implement change are varied and are adapted to meet specific objectives across a wide range of stakeholders. Further, in taking account of the complex network of global relationships in which TNCs operate, we also examine and account for differential behaviour between policy making venues, including the national level (both home country and those in which firms engage), regional, global institutional, and, at international private standard setting bodies. We draw on several data sources to assess our ideas, but in particular we use new survey data comprising responses from 80 of the largest corporations across the United States, Germany and the United Kingdom.