Multinational firms and political actors: the issue of corruption and transparency

Globalisation and increasing availability of information frequently face multinational firms with the serious issue of transparent business activities and avoidance of corrupt behaviour. The question addressed is how MNCs handle these issues. Based on business network theory, the article presents an analytical view on business and political actors' relationship, with emphasis on transparent and corrupt behaviours. The analytical view holds the relationship elements of knowledge and legitimate/illegitimate commitment and this is illustrated with cases showing two European MNCs and their behaviours in foreign markets. By adding elements from behavioural theory, the study contributes new knowledge on: a) analytical tools for studying both transparent and corruptive behaviour; b) embeddedness of transparency and corrupt behaviour in a network of business and political relationships; c) the impact of the transparent and corrupt behaviour of the firms both locally and in foreign countries.