chapter  6
The European Union and corporate responsibility in vulnerable states
Pages 42

Even though host states have the primary obligation to monitor MNCs, home countries of MNCs also have a role to play if effective control of MNCs is to be achieved. This chapter focuses on EU regional arrangements and how they interact with developing countries. This is because, as noted earlier, major MNCs domiciled in EU member states are operating in Nigeria and other major developing countries. EU member states are second only to the United States as home jurisdictions of major MNCs. The EU provides viable opportunities because of its approach to human rights, developmental issues and trade-related matters. The chapter is divided into two parts. The first examines the EU institutional approach to CSR which is a part of a broader social policy agenda. The part considers the developments within the EU that have influenced CSR practice. It considers whether these developments are relevant when it comes to the EU’s relationship with the developing world. The second part examines an important aspect of the EU relationship with African, Caribbean and Pacific countries’ trade agreements. These agreements are significant because the direct beneficiaries of the agreements are often EU domiciled MNCs. The part considers whether it is possible to exert influence on host states to control activities of MNCs through such trade agreements. The validity of these agreements is also considered in the context of the World Trade Organization (WTO). The discussion here is unique and significantly different from mainstream discussions in this area because it focuses on how such agreements can impact on MNCs.