Reducing unethical investment

Transnational corporations tend to be motivated to disinvest as a result of economic pressures in other locations where they have business, especially in their home countries where selective purchasing policies by major clients have the potential to severely damage business. They are also encouraged to do so by any progressively worsening situation in any country targeted by a disinvestment campaign. Amongst the most common stated objectives for disinvestment are therefore the need to project a positive public image.

With respect to the apartheid regime in South Africa, disinvestment campaigns initiated in 1984, action has been taken by 155 USA-based transnational corporations and 122 transnational corporations based elsewhere up to 1989.