A growing literature argues for the importance of MNE engagement to solve global challenges and ensure societal progress. Yet many of these challenges present most acutely in places characterised by extractive institutional environments. There, narrow elites act predominantly to accumulate wealth and preserve power, frustrating broader social inclusion in political processes and a fairer allocation of social and economic benefits. We therefore ask, how can MNEs with a commitment to broad-based societal goals navigate extractive institutional environments that inherently restrict inclusive progress? We present a framework that situates inclusive MNE purpose as part of ongoing social and political negotiations within extractive institutional environments. We then explore how institutional dynamics in such places tend to constrain the agency of MNEs to pursue inclusive agendas, creating substantial gaps between inclusive MNE purpose as articulated by the company and its manifestation in practice. We propose that taking constructive action requires MNEs to employ nonmarket strategies that go beyond traditional corporate social responsibility or lobbying, rather working to shape inclusive institutional reform. We identify the skills, commitments, and risks that MNEs must embrace to catalyse such meaningful institutional change, with implications for practice and international business policy.
