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Multinational investment in corrupt environments through social brokers : the good, the bad, and the ugly

Year: 2025

Type: article

Abstract: Western multinationals investing in highly corrupt regions often depend on intermediaries to navigate local complexities. This article introduces “social brokers” — individuals or firms with social legitimacy who help foreign companies gain acceptance and access in such environments. We categorize social brokers into three types: the good, the bad, and the ugly, based on their formality, uncertainty of outcomes, and costs. We also offer governance recommendations for managers and policymakers to reduce corruption risks. Additionally, we highlight how Western firms can actively contribute to improving governance — an often overlooked component of the Environmental, Social, and Governance (ESG) framework.

Source: St Andrews Research Repository (St Andrews Research Repository)

Authors: Godinez, Jose, Khalik, Mahmoud, Sanchez-Barrios, Luis

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W7118222270

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