Good guys, bad guys: transnational corporations, rational choice theory and power crime

While its scope and scale can be exaggerated, the power transnational corporations (TNCs) exert in the contemporary world is considerable. This is often at the expense of states, or at least is exercised in a way that can undermine states. Some interactions between corporations and states or their officers constitute prime examples of power crime. A blatant form is where corporations either offer or else agree to pay bribes to state officials in order to secure a major contract. This capacity to corrupt state officials via large scale bribes gives corporations significant potential power. This article begins by citing allegations of active corruption of state officials by TNCs, as well as counter-examples (i.e. where TNCs have taken a stand against rent-seeking officials). It then argues that active corruption by corporations constitutes a major dimension of power crime, and seeks to explain apparently contradictory behaviours by TNCs, relating these to rational choice theories and neo-liberalism. It is argued that recent changes in corporate governance and behaviour have made rational-choice models and simplistic neo-liberalism either questionable or redundant. Bu at the same time, globalisation and its stable mate neo-liberalism encourage improper behaviour–various forms of power crime-by corporations.