ABSTRACT

Company managers want to get it right in their dealings with host governments. They are distressed by human rights abuse and environmental damage and would like to see governments that are stable, democratic, and accountable. Corporate headquarters often deal with the pressures their field managers face by referring them to corporate codes of conduct and international standards. Through joint ventures, taxation, sign-up bonuses, bribes, or other fees, companies provide revenue to governments. Corrupt leaders may use such proceeds for personal gain or to support conflict — sometimes against their own people. Company infrastructure such as airstrips or roads, or other assets such as vehicles and helicopters, can be misused by authorities. Companies sometimes develop agreements with governments, implicit or explicit, that state security forces will provide security around company operations. In response to problematic relationships with governments, corporations have adopted policies and procedures to differentiate themselves from host governments.