As conflict between multinational corporations and local communities escalates, scholars, executives, activists, and community leaders are calling for companies to become more accountable for the impact of their activities on external stakeholders. In order for business to do so, managers must first understand the causes of conflict with local communities, and communities must understand what courses of action are available to challenge activities they deem harmful to their interests. In this article, I present a framework for examining the (...) factors that contribute to multinational and community conflict including stakeholder power inequality, stakeholder perception gaps and cultural context. Moreover, I describe some of the ways that communities can increase their leverage in conflict situations. (shrink)

The challenge -- No silver bullet -- Protect, respect and remedy -- Strategic paths -- Next steps.

Globalization has increased the economic power of the multinational corporation (MNC), engendering calls for greater corporate social responsibility (CSR) from these companies. However, the current mechanisms of global governance are inadequate to codify and enforce recognized CSR standards. One method by which companies can impact positively on global governance is through the mechanism of Global Public Policy Networks (GPPN). These networks build on the individual strength of MNCs, domestic governments, and non-governmental organizations to create expected standards of behaviour in (...) such areas as labour rights, environmental standards, and working conditions. This article models GPPN in the issue area of CSR. The potential benefits of GPPN include better overall coordination among industry and government in establishing what social expectations the modern MNC will be expected to fill. (shrink)

Contemporary advances in the fields of globalization and technologies raise the question of the relationship between international business and the global common good. Half of the hundred biggest economies in the world are now corporations. Nation-states were tradi- tionally viewed as the guarantors of the common good; however, the current historical stage is marked by the waning of the role of government, and reveals an emerging situation characterized by a co-responsibility of multiple agents in this respect. Three major evolu- (...) tions are likely to induce multinational corporations (MNCs) to take the global common good into account: the imperative of the preservation of our biosphere, the rise of an anti-globalization sentiment with all its potential consequences, and the necessity to design a global social contract. Besides, these three phenomena are interconnected, which adds to the pressure on MNCs to change their policies. ba. (shrink)

Multinational corporations dominate the global business arena, but new expectations for MNC boards call to question how they might effectively manage global stakeholder relationships in this new era of accountability. Uniting political behavior theory, which describes a board’s international political orientation, and global operating governance systems outlining a set of board behaviors, we develop a typology of four types of boards. We then provide recommendations for the development of an integrative governance structure, taking into account the mechanisms, structure, (...) endorsements, and codes of conduct that MNCs can use to promote ethical behavior across MNC horizons. (shrink)

Increased and active involvement of multinational corporations in the promotion of social welfare, in developing countries in particular, through the facilitation of partnerships and cooperation with public and nonprofit sectors, challenges the existing framework of our social and political institutions, the boundaries of nation-states, the distinction between the private and public spheres of our lives, and thus our freedom. The blurring of certain distinctions, which ought to be observed between the political and the economic is most manifest in (...) the gradual saturation of the field of business ethics with rights-based arguments and analyses. In this article, I first argue against endorsing positive rights as having the same status as negative rights, and then try to demonstrate that, with the transportation of 'rights talk' into business ethics, the dangers of conflating positive and negative rights are superimposed on the dangers of conflating the private and the political. I conclude by presenting my own stance on the debate on what our basic institutionally sanctioned rights should be, and what the corresponding duties of multinational corporations really are. (shrink)

With the expansion of multinational corporations, the alarming upsurge in widely publicized and notable corporate scandals involving MNCs in emerging markets has begun to draw both academic and managerial attention to look beyond home market practices to the pressing concern of CSR in emerging markets. Previous studies on CSR have focused primarily on Western markets, reserving limited discussions in addressing the issue of MNC attitudes and CSR practices in their emerging host markets abroad. Despite this incongruity in academic (...) response to CSR in emerging markets, managers of multinational companies continue to face mounting and most often conflicting pressures to weigh among multiple strategic CSR responses in emerging markets. Such a task is often further complicated by the complexity of varying business norms and standards, regulatory environments, and stakeholder demands for CSR across national boundaries. With such a challenge in mind, I attempt to examine the explanatory factors in leading MNCs, otherwise recognized for accountability and integrity in their home markets, to employ inconsistent or negligent practices under CSR pressure in Chinese emerging economy. Preliminary findings reveal that discrepancies exist in how MNCs perform in CSR in home countries versus in host countries. While MNCs do have much to improve, the institutional environment in the emerging market, including the legal framework and the ethical culture, also needs to be improved by the host country governments, the industry associations, and local firms. Meanwhile, media interest and journalists, NGOs, third party monitors, industry stakeholders as well as consumer advocacy groups can raise the visibility of MNC’s contradictory practices between their origin nations and countries with emerging economies and offer the pressures and incentives for MNCs to amend their ethical shortcomings. This article also suggests implications for both theory and practice. (shrink)

The article identifies the challenges that multinational corporations (MNCs) from the developed world face in sub-Saharan Africa and examines the direct foreign-investment and development interests of the region. In light of these challenges and interests, it also explores answers to the question What is to be done?The occurrence of MNCs' operations in culturally pluralistic societies suggest that they use, as the basis for a corporation-formulated regional code of conduct, a value-based corporate social policy process. That process should embody (...) utilitarian and situation ethics in the exercise of MNCs' prima facie operations and of their responsibilities to society. For the African normative environment, the appeal of this approach is substantiated by the notion that both utilitarian and situation ethics are at once consistent with the region's investment codes, development interests, and value systems. But more than that, utilitarian and situation ethics are consistent with corporate social policy process and can assist MNCs to meet effectively their social responsibilities by helping them reverse the economic stagnation of most of the continent. (shrink)

The constitutions of many nations have been explicitly or implicitly founded upon principles of the social contract derived from Thomas Hobbes. The Hobbesian egoism at the base of the contract fairly accurately represents the structure of market enterprise. A contractarian analysis may, then, allow for justified or rationally acceptable universal standards to which businesses should conform. This paper proposes general rational restrictions upon multi-national enterprises, and includes a critique of unjustified restrictions recently proposed by the Organization for Economic Cooperation and (...) Development (OECD). I propose restrictions that may be tighter than the OECD and international law currently demand, because reason requires that the activities of enterprises accord with standards of environmental and governmental sustainability in addition to consortium, national law and international law agreements. I argue that it is justifiable that indictments may be presented by a citizen or a government against the local arm of a multinational enterprise in response to violations committed by an arm within a different country. (shrink)

Why and how does a multinational corporation adapt its strategy and organizational capabilities to address markets at the base of the pyramid? This paper builds on the results of a 3-year action research program conducted with Lafarge, a global building materials company, during which it started to consider the BOP segment as a strategic business opportunity. The article shows how pilot projects and global action networks created as part of the action research in the Indonesian subsidiary and the firm’s (...) head office contributed to this change. The paper then discusses the implications of BOP strategies in terms of organizational capabilities. (shrink)

This paper examines the question of how to determine the extent of a multinational corporation ’s corporate social responsibility for actions by its suppliers. Drawing on three theories of power and influence from the organization and management literature—resource-dependence theory, social exchange theory and social network theory, this paper presents a conceptual framework for analysing the extent of power and influence of an MNC in a global supply chain based on a consideration of economic and non-economic exchanges and direct and (...) indirect exchanges in the MNC’s industry network. The paper also shows how the legal concept of complicity can be incorporated by considering the knowledge links of the MNC to other organizations in the industry network. Finally, the paper demonstrates how the concepts can be integrated to construct a power assessment grid which can be used to assess the extent of responsibility of an MNC for the actions of its suppliers and other parties in the industry, as well as a map of power and knowledge relationships between organizations in the industry which can be used for further analyses using social network analysis techniques. (shrink)

This paper argues that the literature examining the role that MNCs play in ‘political CSR’—an emerging area of management research concern—can be enhanced by more a fulsome examination of the ‘varieties of capitalism’ that currently exist in the global economy. We argue that the willingness and capacity of a particular MNC to participate in governance activity—which we broadly equate to political CSR—are contingent, at least in part, upon the national systems of government-business relations present in its home market. We argue (...) that the decisions MNCs make in terms of whether and how to participate in governance are predicated in part on the domestic system of business-government relations out of which they emerge. The paper then asserts that our current conceptions of political CSR are limited, because they do not take fully into account the increasingly important corporate form of statism, in which home governments maintain a large ownership position in the country’s MNCs, even as they expand abroad. We posit that a key question this reality poses is whether such companies will reinforce established patterns of ‘political CSR’, whether they will challenge those established patterns, or whether some mutual adaptation will occur. We conclude the article with some suggestions for how this question might be explored in future work by interested scholars. (shrink)

In 1861 John Stuart Mill published Considerations on Representative Government to discuss the justifications for democracy. In the third chapter of this book he explores why a government run by a Good Despot is unacceptable. In this Article we revisit Mill’s critique of the Good Despot to problematize the contemporary exercise of authority and influence by multinational companies, especially in foreign countries. Inspired by Mill, we redefine the problem of privatization. The challenges of privatization are mostly defined by essentialist (...) concerns or a consequentialist critique of the problematic outcomes of privatization. In this Article we shift the attention to the democracy losses associated with the privatized decision-making process. We identify the growing influence of private, particularly foreign, actors as a democratic problem of exclusion of persons from decision-making processes on issues with constitutive influence on their lives, and explore the different aspects of what we regard as an acute problem of democratic deficit. The redefining of the problem as one of process and democratic deficit allows us toconclude with a critical assessment of the potentials and limitations of contemporary attempts to solve it. (shrink)

A critical literature on mulitnational corporate social responsibility has developed in recent years. Many authors addressed the issue in the Third World countries. This paper reviews the literature, focusing on the relationship between the multinational corporations (MNCs) and Third World governments in fulfilling the social responsibility, based on the underlying ethical imperative.There is a growing consensus that both corporations and governments should accept moral responsibility for social welfare and individual interests in their economic transactions. A collaborative relationship (...) is proposed where the MNCs share information based on global experiences and offer input into host government developmental policies, and aid their implementation. The government, in turn, provides a reasonable regulatory environment. This calls for ongoing interactions among officials at all levels of the two institutions, with the local corporate subsidiary playing a pivotal role. The desired conduct of the parties is reinforced by international organizations and other constituents, representing common human concerns across cultures. These relationships are examined and an agenda for policy and action by the MNCs and the Third World governments is developed. (shrink)

Increasingly, global businesses are confronted with the question of complicity in human rights violations committed by abusive host governments. This contribution specifically looks at silent complicity and the way it challenges conventional interpretations of corporate responsibility. Silent complicity impliesthat corporations have moral obligations that reach beyond the negative realm of doing no harm. Essentially, it implies that corporations have a moral responsibility to help protect human rights by putting pressure on perpetrating host governments involved in human rights abuses. (...) This is a controversial claim, which this contribution proposes to analyze with a view to understanding and determining the underlying conditions that need to be met in order for moral agents to be said to have such responsibilities in the category of the duty to protect human rights. (shrink)

Organizations such as multinational corporations are the most important form of business globally. The defining role on the world economy could be seen at the onset of the financial crisis of 2008, but also in the recent events related to the Covid-19 pandemic, when corporations transformed their production lines to respond to the need for protective equipment for the frontline workers in the health system, but also for the broader population. Through Foreign Direct Investment, multinational (...) class='Hi'>corporations make a positive impact on economies around the world. In addition to contributing to the local development of areas where they setup subsidiaries, multinational corporations are a form of integration of a local economy into the global economy. In the Romanian economy, multinational corporations play a decisive role, representing the companies with the highest turnover, but also the most desired employers for those looking for a job. (shrink)

The criticism that voluntary codes of conduct are ineffective can be met by giving greater centrality to human rights in such codes. Provided the human rights obligations of multinational corporations are interpreted as moral obligations specifically tailored to the situation of multinational corporations, this could serve to bring powerful moral force to bear on MNCs and could provide a legitimating basis for NGO monitoring and persuasion. Approached in this way the human rights obligations of MNCs can (...) be taken to include support for political as well as economic rights. This will go some way towards filling the regulatory gap created by the difficulty of controlling the activities of corporations operating globally. However, such a proposal will require a measure of ‘meta-regulation’ whereby the operations of MNCs are legally required to be sufficiently transparent to create the conditions for effective external moral scrutiny. (shrink)

This study brings an organizational identity perspective to the debate regarding corporate social responsibility (CSR) and multinational corporations (MNCs). The basic proposition is that organizational identities warrant closer attention since they influence CSR strategies. It is further argued that a more explicit distinction between principles and practices, or between 'being' and 'doing', is needed when debating whether multiple organizational identities are required for MNCs operating in locations characterized by different stakeholder demands. In terms of identity construction, two translation (...) processes are suggested to be pertinent; from hypernorms to organizational principles and the translation of organizational principles to practices. The first translation is relevant since 'hypernorms' alone do not create the distinctiveness needed for an organizational identity to develop and the second translation helps in explaining the ability to endorse local contracts. (shrink)

The ethical dilemma of large-scale multinational corporations is presented. The list of complaints and issues is summarized. A case is made for the concept of multinationals being inherently beneficial in today's world of high technology and dependence on international trade. The difficulty is extreme power wielded by some groups. It is concluded that a philosophical ideal is for control on size and power as well as international rules to prevent abuses of power. The concern is that today the (...) worthiness of being relatively small is slowly but surely being eroded. (shrink)

It is widely thought that firms that employ workers in “sweatshop” conditions wrongfully exploit those workers. This claim has been challenged by those who argue that because companies are not obligated to hire their workers in the first place, employing them cannot be wrong so long as they voluntarily accept their jobs and genuinely benefit from them. In this article, I argue that we can maintain that at least many sweatshop employees are wrongfully exploited, while accepting the plausible claim at (...) the core of many defenses of sweatshops, namely that engaging in a voluntary and mutually beneficial transaction with a person in need cannot constitute morally worse treatment of that person than doing nothing at all to benefit her. We can do this, I claim, by accepting that wealthy multinational corporations have positive duties to employ or otherwise benefit the global poor. I argue that these duties can be plausibly grounded in the fact that potential sweatshop workers are victims of global structural injustice, from which multinational corporations typically benefit. (shrink)

Multinational corporations face a litany of challenges regarding ethical decision-making as they traverse new variables in each country they operate in. Presented here is a new approach to ethical decision-making research for multinational corporations with the inclusion of moral virtues, national culture, and a feedback mechanism. The new proposed model builds off of the existing work by Trevino’s Person-Situated Interactionist Model. Hofstede’s work on individual national culture characteristics is used to move the conversation forward by explaining (...) the relationships between individual moderators in Trevino’s model and the effect of national culture on them. The new proposed model recommends the inclusion of moral virtues, with honesty and integrity as examples, as individual moderators in the decision-making process based on previous work. It contributes to the literature by introducing moral virtues into traditional ethical decision-making process models and introduces a new variable with a feedback mechanism for future learning. The paper concludes with recommendations for the future direction of research for ethical decision-making models for multinational organizations. (shrink)

In this article, we build on the stakeholder-politics literature to investigate how corporate scandals transform political contexts and give impetus to the contentious movements of fringe stakeholders against multinational corporations (MNCs). Based on Adut’s scandal theory, we flesh out three scandal-related processes that directly affect political-opportunity structures (POSs) and the generation of social movements against MNCs: convergence of contention toward a single target, publicization of deviant practices, and contagion to other organizations. These processes reduce the obstacles to collective (...) actions by fringe stakeholders by pushing corporate elites to be more sensitive to their claims, by decreasing MNCs’ capability to repress contentious movements, by forcing the targeted MNCs to formalize a policy to monitor and eradicate the controversial practices, and by helping fringe stakeholders find internal and external allies to support their claims. This conceptual model of scandals as catalysts of contentious actions contributes to a better understanding of stakeholder politics by unveiling the role of the political context in the coordination of fringe stakeholders. (shrink)

The economic and socio-political impact of multinational corporations (MNCs) on third world countries has been the subject of intense debate and controversy leading to charges of exploitation and colonization on the one hand, and demands for codes of conduct on the other. This article examines the working of one of the most comprehensive of such codes under the most reprehensible political conditions, i.e., the operations of U.S.—based multinational corporations in South Africa under the acgis of the (...) Sullivan Principles. It is argued that despite the best intentions, and considerable social goodwill, the Sullivan Principles were seriously flawed both as to goals and as to means of achieving them. Finally, it suggests a new approach to developing standards of MNC behavior in third world countries which emphasizes those areas of activities that are directly under the control of MNCs, and offers targets of achievement to which MNCs can and should be held accountable.The paper is a revised and expanded version of a keynote speech delivered by the author at the First Biannual Conference on Advances in Management, Orlando, Florida March 25–28, 1992. (shrink)

With the expansion of multinational corporations (MNCs), the alarming upsurge in widely publicized and notable corporate scandals involving MNCs in emerging markets has begun to draw both academic and managerial attention to look beyond home market practices to the pressing concern of CSR in emerging markets. Previous studies on CSR have focused primarily on Western markets, reserving limited discussions in addressing the issue of MNC attitudes and CSR practices in their emerging host markets abroad. Despite this incongruity in (...) academic response to CSR in emerging markets, managers of multinational companies continue to face mounting and most often conflicting pressures to weigh among multiple strategic CSR responses in emerging markets. Such a task is often further complicated by the complexity of varying business norms and standards, regulatory environments, and stakeholder demands for CSR across national boundaries. With such a challenge in mind, I attempt to examine the explanatory factors in leading MNCs, otherwise recognized for accountability and integrity in their home markets, to employ inconsistent or negligent practices under CSR pressure in Chinese emerging economy. Preliminary findings reveal that discrepancies exist in how MNCs perform in CSR in home countries versus in host countries. While MNCs do have much to improve, the institutional environment in the emerging market, including the legal framework and the ethical culture, also needs to be improved by the host country governments, the industry associations, and local firms. Meanwhile, media interest and journalists, NGOs, third party monitors, industry stakeholders as well as consumer advocacy groups can raise the visibility of MNC's contradictory practices between their origin nations and countries with emerging economies and offer the pressures and incentives for MNCs to amend their ethical short-comings. This article also suggests implications for both theory and practice. (shrink)

The stakeholder approach has become a popular perspective in mainstream management and the corporate social responsibility (CSR) literature. However, it remains an open question as to how real-life managers actually view stakeholders and what rationales and logics are used for explaining the relationship between the firm and its constituencies. This article examines whom managers in multinational corporations (MNCs) consider to be their important stakeholders, and how they describe the societal responsibilities towards these groups and individuals. It is concluded (...) that managers still tend to hold a rather narrow (managerial) view of the firm and generally give priority to stakeholder groups who are directly involved in the firm's core transformation system. The conclusions are derived from interview and survey data from 647 managers in four MNCs. The paper is based on data collected as part of project RESPONSE: a European Union- and corporate-funded initiative on CSR. (shrink)

In this paper the importance of public affairs management in multinational corporations in India will be examined. After briefly discussing the state of the art in international business and society literature, a conceptual framework for public affairs management in multinational corporations will be developed. This framework serves as the theoretical basis for an empirical study among German multinational corporations in India. In the main part of this paper the results of this study will be (...) presented and discussed. The paper ends with a critical assessment and some major implications for future studies. (shrink)

This paper examines the extent to which the voluntary adoption of codes of conduct by multinational corporations (MNCs) renders MNCs accountable for the performance of actions specified in a code of conduct. In particular, the paper examines the ways in which codes of conduct coordinate the expectations of relevant parties with regard to the provision of assistance by MNCs on grounds of rescue or justice. The paper argues that this coordinative role of codes of conduct renders MNCs more (...) accountable for the performance of actions specified in a code of conduct than they would be without a code of conduct. This interpretation of the significance of codes of conduct is contrasted with the view that codes of conduct render MNCs accountable for performing actions specified in a code of conduct by grounding contractual obligations for the performance of such actions. (shrink)

This paper explores the concept of sustainable development and its ethical and public policy implications for engineering and multinational corporations. Sustainable development involves achieving objectives in three realms: ecological (sustainable scale), economic (efficient allocation) and social (just distribution). While movement toward a sustainable society is dependent upon satisfying all three objectives, questions of just distribution and other questions of equity are often left off the table or downplayed when engineers and corporate leaders consider sustainable development issues. Indeed, almost (...) all the effort of engineers and engineering organizations on the issue of sustainable development has been focused on striking a balance between economic development and environmental protection. Similarly, corporate approaches rely on technological fixes to the challenges posed by sustainable development. While there have been some efforts aimed at incorporating environmental and social equity concepts into engineering codes of ethics, social concerns have been secondary to environmental issues. The incongruity between the ideal of sustainable development and the way in which it is typically characterized by the engineering and business communities has significant implications for engineering and public policy, engineering ethics, and the potential roles of engineers and multinational corporations as facilitators of a transition to a sustainable society. (shrink)

The purpose of this study was to examine how young publics in the United States and South Korea perceive the corporate social responsibility (CSR) practices of multinational corporations and evaluate the effectiveness of CSR practices in terms of organization–public relationship (OPR). Results showed that young publics in the United States and South Korea differently characterized CSR practices of multinational corporations and evaluated relationships with them. Young American participants evaluated the CSR practices of multinational corporations (...) more favorably than did the young Korean participants. In addition, four CSR practices (internal environment, moral, discretionary, and relational) were associated with OPR dimensions in the United States, while only relational CSR practices were significantly related to OPR dimensions in South Korea. Overall, the findings highlight that cultural and societal meanings were embedded in identifying CSR practices and evaluating the relationship with multinational corporations involved in CSR practices. (shrink)

The paper examines relationships between multinational corporations and the unwaged work women do in their homes. It is argued that far from being a sanctuary, the home has become a dumpsite for unnecessary and unsafe products. Women in North America and the Third World are now dealing with health and safety issues in their neighbourhoods and households. Consciousness of these dangers has resulted in mobilization and the formation of alliances aimed at confronting multinationals and securing more government regulation. (...) The experience of one group of women in a small Ontario community is described. (shrink)

Some progress has been made in recent decades to articulate corporate social responsibility (CSR) and, more recently, to associate CSR with international enforcement of human rights. This progress continues to be hampered, however, by the ability of a multinational corporation (MNC) that violates human rights not only to shift liability from itself to a nation-state but even to win compensation from that nation-state for loss of profits due to restrictions on its business activities. In the process, the nation-state’s sovereignty (...) is diminishing; and, in effect, though still attributed to nation-states, it is being transferred to the MNC. The main aim of this article is (1) to draw on normative considerations to claim that this MNC proto-sovereignty should be modified and (2) to contend that this can eventually be accomplished by adding to corporate adoption of CSR guidelines a regimen of global human rights enforcement. I base this contention on expectations about the internationalization of corporate criminal law and the globalization of civil society in general and of NGOs in particular. I consider various jurisdictions but I focus on US jurisprudence. (shrink)

The relationship between multinational corporations and nongovernmental organizations on social and environmental issues sometimes evolves from being antagonistic to cooperative. To explore how MNCs and NGOs are able to cooperate as friends rather than remain foes, this conceptual research drawing on complexity theory examines a proposed process of mutual adaptation occurring through more flexible semi-structures that support the evolution of joint strategic responses enabled by future gazing, communication systems that facilitate joint strategic responses, and coordinated, timed-based change that (...) supports joint strategic responses. The article provides illustrations from MNC–NGO collaborations. Conclusions are that mutual adaptation and cooperative resolutions are more likely when organizations either share these capabilities or compensate for each other’s shortcomings, and make trade-offs that align with joint strategic objectives. This article contributes to complexity theory and the NGO–MNC literature by exploring how interorganizational cooperative behavior incorporates mutual adaptation so that more sustainable practices are implemented and continuously improved upon by MNCs. (shrink)

The actions of “world‐based” multinational corporations (MNCs) have effectively decoupled the revenue generation and the production sides of the business equation. This decoupling has led to an end of “virtuous capitalism,” which has widespread ramifications for the societies within highly developed countries as well as those in developing and underdeveloped nations. This article presents an overview of the defining aspects of virtuous corporations and the linkages to virtuous capitalism. It then describes the actions of Apple Computer as (...) emblematic of an MNC that is nonvirtuous in its practices. The article then discusses how the encouragement of globalized trade has prompted the shift away from virtuous capitalism and closes with a summary of possible actions that could reverse the decline in corporate virtue. (shrink)

This study explores corporate social responsibility (CSR) by conducting a cross-cultural analysis of communication of CSR activities in a total of 16 U.S. and European corporations. Drawing on previous research contrasting two major approaches to CSR initiatives, it was proposed that U.S. companies would tend to communicate about and justify CSR using economic or bottom-line terms and arguments whereas European companies would rely more heavily on language or theories of citizenship, corporate accountability, or moral commitment. Results supported this expectation (...) of difference, with some modification. Specifically, results indicated that EU companies do not value sustainability to the exclusion of financial elements, but instead project sustainability commitments in addition to financial commitments. Further, U.S.-based companies focused more heavily on financial justifications whereas EU-based companies incorporated both financial and sustainability elements in justifying their CSR activities. In addition, wide variance was found in both the prevalence and use of specific CSR-related terminology. Cross-cultural distinctions in this use create implications with regard to measurability and evidence of both strategic and bottom-line impact. Directions for further research are discussed. (shrink)

This paper examines the different mechanisms used by multinational corporations (MNCs) in Nigeria seeking to make long-term social investments by meeting the critical challenge of improving water provision. Community enterprise – an increasingly common form of social enterprise, which pursues charitable objectives through business activities – may be the most effective mechanism for building local capacity in a sustainable and accountable way. Traditionally, social investments by MNCs have involved either donations to a charity, which then assumes responsibility for (...) delivering social outcomes, or direct management of social investment in-house. These approaches have been criticized, however, for their limited contribution to local capacity building, their focus on short-term outcomes, and the restricted role that they afford to communities. Partnering with community enterprise, provided there is sufficient local capacity to support it, is the most effective mode of governance through which MNCs can manage social investments in developing countries. (shrink)

This essay poses the question of whether grassroots organizations can provide an alternative center of authority to the state in inducing multinational corporations to incorporate human rights criteria in their investment and trade decisions. In examining the anti-apartheid movement and attempts to replicate it in the 1990s in the campaigns against corporate involvement in Burma and Nigeria, it presents a mixed picture. In each case, citizen pressures increased the costs and risks of "business as usual" with target states (...) and induced corporations either to undertake social obligations or to disengage beyond what was required by national regulations or market forces. At the same time, nonstate actors are limited by the fact that they can induce but, unlike the state, cannot command corporate behavior; their success is dependent upon state policies; and their most powerful weapon—municipal procurement power—has been predominantly a U.S. phenomenon. (shrink)