Between ethics and law:: TNCs’ behaviour in modern economic globalisation

TLDR: In this paper, the authors provide a critical and broad perspective on how transnational companies (TNCs) behave in the global context, focusing its attention on the controversial issue of tax avoidance in the UK.

Abstract: Purpose - The purpose of this article is to offer a critical and broad perspective on how transnational companies (TNCs) behave in the global context, focusing its attention on the controversial issue of tax avoidance in the UK. It pursues this aim by taking into account not only economic globalisation, mobility of capital and tax havens, but also ethics and corporate social responsibility. Design/methodology/approach - This article seeks to provide an interdisciplinary viewpoint drawing not only from well-established scholarly literature but also from real cases and evidence, such as the scandals involving corporate giants, such as Starbucks, Google and Amazon in the UK. Findings - This article highlights the fundamental interplay and mutual aid of ethics and international laws, underlining the increasing importance of corporate social responsibility principles in todays’ business practices. However, it also emphasises the need of reinforcing these principles with either regional or universalistic legal approaches to tackle TNCs’ misconduct in the international arena. Practical implications - This article suggests that by establishing and enforcing international business laws, increasingly aligned with ethical principles, the gap between ethics and legislation can be consistently bridged. Hence, TNCs’ behaviour could be more efficiently controlled. Originality/value - The paper contributes to the literature on modern economic globalisation by providing a comprehensive and integrative perspective on TNCs’ behaviour, accounting for the interplay of socio-ethical, legal and business principles.