The corporate social challenge for the multinational corporation

The modern corporation has come to be regarded as a dynamic force for subverting traditional norms in repressive societies. However, the role that MNCs can play in transforming the socio-political landscapes of most host countries is largely circumscribed by the actions that host governments can take. In the case of South Africa, the vast disparities and inequalities created and maintained by many years ofapartheid rule are limiting factors to the trickle-down effect that would normally take place. The paper argues that under the existing circumstances, the corporate withdrawal strategy proved to be the most effective catalytic role MNCs could play in the transformation of SA society.The author, holder of an M.B.A. and a Ph.D. in Strategic Management, is a native of South Africa. He lived there and worked for a large MNC prior to going to the U.S. nine years ago. He teaches at the University of Massachusetts' School of Management in the areas of Business Policy & Strategy, Organization Theory, and Business and Its Environment. He is the Director of the M.B.A. program.