chapter  4
Legal and institutional framework and the control of multinationals in developing countries with a focus on Nigeria
Pages 60

It is generally assumed that home jurisdictions, especially in the countries of the South, are impotent when it comes to the control of multinational corporations (MNCs).1 While this assertion is largely correct, this book contends that there cannot be an effective control of MNCs whether at international or regional level without a corresponding development of a minimum institutional framework at the domestic level.2 This chapter uses the Nigerian legal framework for the regulation of MNCs as an example with a view to determining the weaknesses in the domestic forum, asking what minimum standards should be in place and how such standards can be achieved. References shall also be made to other relevant jurisdictions. The issues raised in this chapter relate to understanding the gap within the domestic context that has made corporate social responsibility (CSR) important in the circumstances. It further analyses the issues that have emerged from the operation of MNCs within the local context and the recourse by corporations to the concept of CSR. The chapter’s position is that while CSR practices by MNCs are becoming more widespread, the development cannot replace the need for effective home state regulation. It also examines the weaknesses in the domestic legal framework and suggests viable possibilities within the local context that may enhance the control of MNCs. The areas of law that are relevant in the control of MNCs which are examined in the chapter include company law, tort law, human rights law, criminal law, labour law and anti-corruption regulation.