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1 results

  • 7 - Transnational Blame Attribution

  • from Part II - Transnational Attribution
  • Edited by Melissa J. Durkee, Washington University, St Louis
  • Book:
    States, Firms, and Their Legal Fictions
    Published online:
    29 February 2024
    Print publication:
    07 March 2024, pp 131-150

  • Summary

    When corporations engage in misconduct, we rely on two types of sanctions to discipline them: legal and reputational. For various reasons, both types of sanctions have limitations. This chapter argues that a combination of legal and reputational sanctions for corporate misconduct can help to improve the effectiveness of blame attribution, deliver meaningful punishment for misconduct, and foster organizational change. For example, legal sanctions through lawsuits and government fines can trigger reputational sanctions that can unleash a subsequent wave of monetary costs because the publicity associated with the lawsuit or government fine can lead a corporation’s stakeholders to re-evaluate their relationship with it. Alternatively, legal rules can facilitate the operation of reputational markets by increasing information flows and thereby improving attribution of conduct to particular companies.