ABSTRACT
Companies carry out their business activities with a high degree of independence within the limits set by national laws and regulations, and this freedom to maneuver without direct state supervision or involvement creates space for them to engage in opaque behavior when pursuing their interests. Because companies’ interests overlap with those of states in many respects, what companies do within this space is generally positive for the states – contributing in numerous ways to their economic strength, for example. Yet where the overlap is absent, companies may take advantage of the lack of oversight to act in ways that prejudice the states’ interests. When this sort of conduct becomes exposed through its visible results, states usually respond by asserting new or tighter authority as opposed to taking other measures such as seizing control of the enterprises involved; action of this sort allows them to address the companies’ behavior without disturbing the broader economic systems in which they flourish.
