Journal of Economic Literature
Book Reviews
2026-08-28
Robert Kennedy of U of MI reviews “A Corporate Solution to Global Poverty: How Multinationals Can Help the Poor and Invigorate Their Own Legitimacy” by George Lodge, Craig Wilson,. The EconLit Abstract of the reviewed work begins “Explores how the managers of the world's multinational corporations can understand and better deal with the threats to their legitimacy. Contends that multinational organizations can invigorate their legitimacy through better use of their resources to reduce poverty in developing countries. Studies the issue of globalization and the challenges to the legitimacy of international companies. Examines the gap between the ideas upon which these corporations rely for authority and the reality that exists around them. Describes the nongovernmental organizations that exploit the gap between themselves and multinational corporations. Addresses the corporate response. Explores the international consensus and institutional structure dealing with the issue of global poverty. Discusses how the wealth gap can be closed; the options that businesses have; how the power of the world's global corporations can be turned toward the goal of reduction of global poverty; and how corporate legitimacy can be enhanced. Lodge is Jaime and Josefina Chua Tiampo Professor of Business Administration Emeritus at Harvard Business School. Wilson is with the International Finance Corporation. Bibliography; index.”