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

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.