Summary As a result of the ruling neo‐liberal paradigm and increasing economic, social and political globalisation, the nature of the relationship between transnational corporations (TNCs) and non‐governmental organisations (NGOs) has been transformed significantly. TNCs are increasingly perceived as more powerful than governments. In response, NGOs identify TNCs as prime targets to affect change and have diversified their responses and strategies accordingly New alliances have been forged and new types of integrated NGOs have been created. In addition, NGOs have sought direct engagement with corporations through strategies of engagement and confrontation. With this three‐tier response (alliance‐building, integration and engagement), NGOs have driven the corporate responsibility agenda, which, while part of a longer history, is a particular response of both NGOs and TNCs initiated by the value‐changes brought about by globalisation.