Global Business in Local Culture

Philipp Aerni is Director of the Center for Corporate Responsibility and Sustainability (CCRS). He received his Master's in Geography from the University of Zurich and completed his PhD in agricultural economics at the ETH Zurich. Prior to his position at the CCRS, Dr. Aerni was a research fellow at Harvard University, the ETH Zurich, the University of Berne, and the Food and Agriculture Organisation of the United Nations (FAO).

This book examines the impact of multinational enterprises (MNEs) on local economies, and presents selected case studies of MNEs operating in low income countries. By balancing external social and environmental costs against its corresponding benefits, the book demonstrates that MNEs can have a positive net-impact on local development if they build up social capital by embedding themselves in local economies and engaging responsibly with local stakeholders. By doing so MNEs contribute to inclusive growth, a central pillar of the UN Sustainable Development Goals. In this context, the book challenges popular narratives in civil society and academia that frame foreign direct investment (FDI) merely as a threat to human rights and sustainable development. Moreover, it offers practical guidance for globally operating businesses seeking to establish progressive Corporate Social Responsibility (CSR) strategies of their own.

Examines the impact of MNEs on local economic development

Introduction.- Societal foundations of economic development.- Neoliberalism: a mythical and meaningful term devoid of any deep thought.- The impact of popular stereotypes in academic research and public policy.- New Economic Sociology and re-definition of the term 'embeddedness'.- Economic globalization as a "disembedding" force?.- Embedded MNEs and their contribution to sustainable change.- Development cooperation as a catalyst for sustainable long- term FDI.- Concluding remarks.