ABSTRACT
Several examples, such as the problem of child work in India, the oppression of free labour unions in China and corporate indifference to ecological issues in many countries of the world, demonstrate that multinational corporations (MNCs) not only interact with market actors such as customers, suppliers, and shareholders, but also are also exposed to the influence of sociopolitical stakeholders such as governments, the media and non-governmental organizations (NGOs). The insufficient consideration or ignorance of sociopolitical issues may not only cause severe conflicts and moral condemnation, but also may lead to financial losses and other negative results for MNCs. As a consequence, public affairs management becomes a critical success factor in international business (Nigh and Cochran 1987; Wartick and Wood 1998).
