Thesis Defence by Daniel Litwin
Economic inequality has grown dramatically within many countries in recent decades, with farreaching consequences for society. Rising disparities in income and wealth can undermine economic growth, reduce access to healthcare, education, housing, and contribute to political and social unrest. These consequences underscore the urgency of addressing inequality.
States have traditionally led efforts to address inequality, typically through tax-and-transfer programs. Yet economic globalization, capital mobility, and political polarization increasingly constrain the effectiveness of these domestic measures, while international coordination remains limited. This context creates transnational distributive governance gaps in which no single state can correct the distributional outcomes of global economic activity.
As they operate within these governance gaps, multinational corporations (MNCs) play a central role in shaping the global distribution of economic value through decisions on wages, global value chains, and tax strategies. Their decisions have important implications for inequality. Yet the potential role of MNCs in mitigating inequality alongside states remains little examined.
In response, this thesis examines how MNCs can address economic inequality within their existing corporate governance and human rights responsibilities. First, it argues that where state action is constrained and the efficiency costs of inequality are significant, it may be more effective for corporations to internalize their inequality externalities. Second, it contends that certain business practices with important impacts on inequality, such as wage disparities and tax avoidance, can amount to adverse human rights impacts under the UN Guiding Principles on Business and Human Rights (UNGPs), and thus fall within the scope of human rights due diligence.
This thesis ultimately contributes a practical legal and policy framework, grounded in corporate governance and human rights, for MNCs to play a more active role in addressing economic inequality.
Register