THE GEOPOLITICAL CORPORATION: HOW MULTINATIONAL FIRMS ARE NAVIGATING “NEUTRALITY” IN AN INCREASINGLY POLARISED WORLD
AUTHOR – MAYURI SINHA, THIRD‑YEAR LAW STUDENT AT SCHOOL OF LAW, CHRIST (DEEMED TO BE UNIVERSITY), BENGALURU
BEST CITATION – MAYURI SINHA, THE GEOPOLITICAL CORPORATION: HOW MULTINATIONAL FIRMS ARE NAVIGATING “NEUTRALITY” IN AN INCREASINGLY POLARISED WORLD, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (2) OF 2026, PG. 253-259, APIS – 3920 – 0001 & ISSN – 2583-2344.
ABSTRACT
This article examines how multinational corporations are renegotiating the meaning and practice of “neutrality” in an increasingly polarised international order, with particular reference to corporate responses to the Russian Federation’s full-scale invasion of Ukraine and to intensifying United States–China trade and technology tensions. It places this recent corporate conduct in the context of a broader transformation from a liberal paradigm of apolitical, efficiency-maximizing firms to a world described by international relations scholars as “weaponised interdependence,” in which states use their control of key economic and information centers to coerce others. In this regard, the article argues that against this context, the concept of neutrality is not only normatively contested but also operationally constrained in the sense that while some firms are using the concept of neutrality to continue their operations in conflict zones or to attempt to straddle competing blocs, soft-law regimes such as the United Nations Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises are starting to presume that corporate inaction in the face of serious human rights risk could represent a failure of corporate responsibility.
Through the use of empirical studies on corporate disengagement in Russia, the study on China plus one and friendshoring strategies in the context of the US-China rivalry, and the emerging body of research on partisan corporate social responsibility, the article demonstrates that the concept of corporate neutrality is no longer understood as abstention from politics, but rather as a complex configuration of legal compliance, supply chain strategies, reputation management, and stakeholder engagement. An original normative and conceptual framework is developed in the article on what the author calls the “geopolitical corporation,” understood as a firm in which the very heart of its governance structures, risk calculations, and stakeholder engagements is significantly influenced by interstate conflict, sanctions, and human rights. The article concludes that rather than aspiring to an impossible apolitical neutrality, multinational enterprises should adopt transparent, principled processes for navigating geopolitical dilemmas, grounded in human‑rights due diligence, board-level oversight of geopolitical risk, and a consistent application of normative standards across conflicts and regions.