AND S OC Y R EV 95 95124 2014 56 GIOVANNI A RRIGHI T HEL ONG T WENTIETH C

And s oc y r ev 95 95124 2014 56 giovanni a rrighi t

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ANDSOCYREV.95, 95–124 (2014). 56GIOVANNIARRIGHI, THELONGTWENTIETHCENTURY: MONEY, POWER, ANDTHEORIGINSOFOURTIMES(2010); FERNANDBRAUDEL, THEWHEELSOFCOMMERCE(Siân Reynolds trans., 1992); MAXWEBER, THETHEORYOFSOCIALANDECONOMICORGANIZATION(A.M. Henderson and Talcott Parsons trans., 1947).
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JUNE2015WHOLEADSINAG-ZEROWORLD?11enforce the rule of law, contract obligations, and the sanctity of private property,and it is able to do so because, at least in the most developed capitalist economies,the state possesses “the monopoly on the legitimate use of physical force.”57Thestate, in other words, can potentially deploy violence—whether in the form ofpolice enforcement, imprisonment, or, in some cases, execution—in order topreserve the core pillars of a modern capitalist society. For organizations operatingin the developed world, the state plays a key role in ensuring the rule of law,contract, and private property.58A baseline of “security” can be expected.The problem of “security” for MNCs operating in a global context, though,is rather different. It is not only that MNCs have to negotiate the complexities ofinternational law, local customs, and unfamiliar political constellations.59Theymust also operate in a fundamentally different “security” environment.60Whathappens when corporations domiciled in London, New York, Frankfurt or Tokyooperate in countries where the state is unable to guarantee contract, privateproperty, and the rule of law?61Political Scientist Joel Migdal called these “StrongSocieties” with “Weak States,” and in countries of this sort, religious, ethnic, orpolitical groups may supply the goods and services—from health care to food andsanitation—that the state is unable to deliver.62In strong societies with weakstates, the ability to enforce the rule of law, contract, and private property isfundamentally contested. Who, then, guarantees “security” in its broad sense,ensuring that property will not be expropriated, contracts will be fulfilled, andsafety can be expected?These are questions that MNCs regularly face, particularlywhen operating in politically contested regions.63Historically, MNCs have allied with the state,even in situations where thestate was weak, and society was strong. This is understandable, because evenweak states maintain nominal control of legal, political, and military institutions,and are typically recognized by international bodies.64This approach to the security57Max Weber, Politics as a Vocation,inMAXWEBER. ESSAYSINSOCIOLOGY77128 (H. H. Gerth and C.Wright Mills trans. 1946).58RAJAK, supra note 32, at 27.59GLOBALPERSPECTIVESONCORPORATEGOVERNANCEANDCSR (Gϋler Aras and David Crowther eds.,2009).60Dima Jimali, CSR in Developing Countries Through an Institutional Lens,inCORPORATESOCIALRESPONSIBILITYANDSUSTAINABILITY: EMERGINGTRENDSINDEVELOPINGECONOMIES21 (Gabriel Edejwe ed.,2014).
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