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21. International Corporate Responsibility Series: Volume > 2
Laura Radulian Marketing of Harmful Products
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The paper focuses on the rapidly evolving concept of “harmful products” and its connection with marketing practices. It examines (a) products generally recognized as harmful, and (b) innocuous products that are sometimes (unintentionally) transformed into harmful ones by marketing activities. We indicate how the effects of these activities depend on individual perceptions as well as the norms of social and business ethics. We advocate the creation of marketing codes of ethics for particular product categories, as well as the dissemination of product information that can link the ethical codes with individual values. We illustrate these concepts with a case study of the fragrance industry and olfactory marketing.
22. International Corporate Responsibility Series: Volume > 2
Vivien T. Supangco Exploring Organizational Determinants and Consequences of Contingent Employment in the Phillipines
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This study looks into the factors that foster the use of contingent employment in the Philippines, and its consequences. It also explores the relationship between corporate social performance and the nature of contingent employment. Results indicate an inverse relationship between levels of social performance and utilization of contingent employment. There is a direct relationship between the size and intensity of utilization of temporary employees and the combined effects of unionization and total employment size. Publicly listed companies exhibit higher utilization of temporary employees. However, factors that foster the use of project employees need tobe explored further. Benefits are influenced by the intensity of utilization of contingent employees. Formalization of the use of contingent employees tends to blur the difference between casual and regular employees. The use of subcontracting positively influences the number of benefits provided and diminishes the differential benefits between regular and project employees. Unionization, however, tends to increase the differential benefits between regular employees and project employees.
23. International Corporate Responsibility Series: Volume > 3
Preface
24. International Corporate Responsibility Series: Volume > 3
Asolo Adeyeye Adewole Corporate Social Responsibility, Self-Regulation, and the Problems of Unethical Business Practices in Africa: A Case for the Establishment of a United Nations Global Business Regulatory Agency
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The paper examines the issue of corporate social responsibility (CSR) against the backdrop of its self-regulatory posture. Using the African experience as a case study, the paper observes that the activities of multinationals show very clearly that they are grossly irresponsible despite their professed self-regulation. Instead, the multinationals have created an image of terror due to their deep-rooted involvements in human rights abuses, environmental degradation, tax evasion, bribery, market manipulation, and other forms of unethical practices, notwithstanding their so-called self-regulation. The paper concludes by advocating the establishment of a broad-based United Nations Global Business Regulatory Agency to fully take charge of corporate regulation in the global business terrain.
25. International Corporate Responsibility Series: Volume > 3
Rama B. Rao Good Corporate Governance Initiative to Ensure Corporate Social Responsibility: A Study of the State of the Art in Rwanda
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Rwanda is recovering from the trauma of the 1994 war and genocide but continues to have a weak corporate and industrial infrastructure. Against this background, the present study was undertaken with the aim of tracing to what extent Rwandan enterprises are geared for the fulfillment of social responsibility within a strained socioeconomic milieu. The objectives of the study are to review the concept of corporate governance and its relation to corporate social responsibility (CSR), to describe the current state of corporate governance in Rwanda, to establish the relationship between corporate governance and CSR and standard ethical practice, and to suggest solutions for problems encountered in the system.
26. International Corporate Responsibility Series: Volume > 3
Junwei Shi, Haiyan Fu, Lijun Hu Social Responsibility, Social Capital, and Corporate Competitive Advantage in Transitional China
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In this paper, we analyze the impact of interaction between corporate social responsibility (CSR) and corporate social capital on corporate competitiveadvantage in a transitional context. Using survey data of Chinese companies, we examine the theoretical relationship empirically. Results show that CSR has no direct association with corporate financial performance or organizational reputation. However, corporate social capital can very much magnify the impact of CSR in a transitional context. Specifically, the social responsibility of a firm with higher social capital is more positively related to organizational reputation than that of a firm with lower social capital, and this expands the theory of CSR. We present the strategic implication that the interaction between CSR and social capital improves corporate sustainable advantage.
27. International Corporate Responsibility Series: Volume > 3
Douglas K. Peterson Partner Selection for Corporate Social Responsibility Efforts: The Case of Choosing NGO Partners
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The objective of this paper is to suggest types of analysis that can help managers effectively choose NGO partners that help them meet their international corporate sustainability and social responsibility goals. NGO partner choices should offer a good fit to corporate goals/objectives and create opportunities to reap the benefits of social responsibility and sustainability efforts, which include public image, environmental protection, customer and stakeholder satisfaction, employee morale, and (most importantly) the completion of work that serves a social responsibility or sustainability goal. Examples of this type of goal include providing income generation activities for persons with HIV/AIDS, and educational opportunities for people who would not normally get them. The paper exploresthree lenses through which partner choice may be viewed: agency theory, transaction cost economics, and resource dependency. Areas for further exploration are suggested, and a comprehensive research agenda/model is discussed.
28. International Corporate Responsibility Series: Volume > 3
Eric Palmer Corporate Responsibility and Freedom
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Milton Friedman’s famous comment on Corporate Social Responsibility is that “there is one and only one social responsibility of business—to use its resources and engage in activities to increase its profits so long as it stays within the rules of the game.” I reply to Friedman, Michael Jensen, and others, in argument that accepts their implicit premise—that business can be a virtuous mechanism of free society—but that denies their delimitation of responsibility. The reply hinges upon precisely the virtue of “freedom” these authors clearly consider intrinsically valuable. In the extreme case where maximizing profits would place government underthreat, such activity will not coincide with maximizing social value and would undermine the freedoms these authors claim to value. Responsibilities will also apply in less extreme cases, if we develop Amartya Sen’s argument showing that, “we have to see individual freedom as a social commitment.”
29. International Corporate Responsibility Series: Volume > 3
Runa Sarkar Policy Approaches to Induce Corporate Social Responsibility in Public and Private-Sector Firms in Developing Countries
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Corporate social responsibility (CSR) concerns the realm of business behavior in which the firm tries to effectively manage its business and non-market environment interface. Coerced CSR refers to taking socially responsible action in response to or in anticipation of retaliation in some form (boycott, adverse publicity, introduction of regulatory laws, etc.) from interest groups who are not directly part of the market to which the firm caters. In contrast, strategic CSR or altruistic CSR refers to socially responsible activities undertaken out of enlightened self-interest. The focus of this paper is to understand whether the impact of coercion is different for government-owned organizations and privately owned firms in developing countries. Activities that are in response to or in anticipationof threats by interest groups are identified and compared across publicly and privately owned firms, against the backdrop of weak enforcement of fairly stringent environmental regulation. We then generalize our observations and attempt to distinguish the intensity of pressures felt by public and privately owned firms and their speed of response. As a result of this understanding, we attempt to suggest specific policy mixes for various types of industry, depending on whether they are dominated by the public sector or private sector.
30. International Corporate Responsibility Series: Volume > 3
Jeanne M. Logsdon, Harry J. Van Buren III National Styles of Corporate Social Responsibility: Exploring Macro Influences on Responsible Business Behavior
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While the literature on corporate social responsibility (CSR) suggests that its form and content differ at least somewhat from country to country, it has not begun to address whether CSR practices converge or diverge over time as countries benefit from higher levels of economic development, or whether these practices relate to specific cultural values and institutional structures. This paper proposes an initial conceptual model and propositions to begin to assess whether and how the different levels of economic development, cultural values, and institutional structures influence CSR behaviors. Mediating variables related to industry sector and executive moral development are also included in the model. The paper begins to lay the groundwork for empirical country and regional studies that cancontribute to a greater understanding of the factors that influence CSR behaviors.
31. International Corporate Responsibility Series: Volume > 3
Daylian M. Cain, George Loewenstein, Don A. Moore The Dirt on Coming Clean: Perverse Effects of Disclosing Conflicts of Interest
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Conflicts of interest can lead experts to give biased and corrupt advice. Although disclosure is often proposed as a potential solution to these problems, we show that it can have perverse effects. First, people generally do not discount advice from biased advisors as much as they should, even when advisors’ conflicts of interest are disclosed. Second, disclosure can increase the bias in advice because it leads advisors to feel morally licensed and strategically encouraged to exaggerate their advice even further. As a result, disclosure may fail to solve the problems created by conflicts of interest and may sometimes even make matters worse.
32. International Corporate Responsibility Series: Volume > 3
Irina Soboleva Corporate Social Responsibility in Russia: Peculiarities and Problems
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Corporate social responsibility (CSR) has been a subject of broad public and academic discussion in Russia for several years now. The author argues that the key criterion for CSR is direct (non-market-based) cooperation among all stakeholders, cooperation that to a large extent shapes the behavior of the firm and therefore includes ethical and social concerns in the decision-making process. On the basis of this criterion, three levels of CSR are distinguished. The main factors that are gradually shaping the Russian model of CSR are emphasized. It is shown that lack of state social expenditure and a coherent system of benefits for socially responsible firms, coupled with the persistence of paternalistic relations, hinder and bias the development of socially responsible behavior at all levels.The author argues that CSR practices can be effectively realized only if accompanied by a coherent state social policy.
33. International Corporate Responsibility Series: Volume > 3
Gwendolyn Yvonne Alexis Coming Home to Roost: Offshore Operations from an In-House Perspective
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Greatly aided by an information age in which protesting laborers in a remote offshore outpost can capture front page headlines around the globe, theSarbanes-Oxley Act of 2002 (SARBOX) has made corporate transparency the linchpin for good corporate governance. Under a SARBOX-enhancedregulatory framework, publicly traded corporations are required to rapidly disclose material changes in their financial conditions or operations—changes such as impairments to goodwill, a trademark, or some other intangible corporate asset. Especially challenging for multinational corporations (MNCs) with far-flung corporate empires is the need to stay abreast of the ebb and flow of goodwill, at a time when transnational human rights groups are aggressively mobilizing world opinion against the sweatshop labor conditions that abound at the offshore production sites favored by MNCs. The author explains why the convergence of a digital age of free-flowing information and the advent of SARBOX, a legislative enactment of paraenetic design, is causing the boards of MNCs to more critically evaluate the long-term costs of their offshore operations.
34. International Corporate Responsibility Series: Volume > 3
Pat Auger, Timothy Devinney, Jordan Louviere Measuring the Importance of Ethical Consumerism: A Multi-Country Empirical Investigation
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This paper describes the results of several large empirical studies that investigated the impact of social product attributes on consumer purchase intentions. Our results show that some consumers are willing to pay for more socially acceptable products, but that most of those consumers do not think about the social product features of the products they purchase. Furthermore, our analyses demonstrate that consumers can be segmented based on their preferences for (or against) social product features and that these segments are not country-specific.
35. International Corporate Responsibility Series: Volume > 3
Elbe M. Kloppers, Henk J. Kloppers Skills Development as Part of CSR: A South African Perspective
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In this paper it is argued that no CSR program can be successful in a development context in general, and in South Africa in particular, unless skills development and therefore empowerment is integrated in every part of the program. The Chinese proverb, “give a man a fish and he will eat for a day; teach him to fish and he will eat for a lifetime,” is the theme of this paper. While it is good to provide people with financial and other means in order to help them, sustainable development cannot be achieved if people are not equipped with the necessary skills to use these means, and thereby empowered to provide for themselves and others in the future.
36. International Corporate Responsibility Series: Volume > 3
Walden Bello The Capitalist Conjuncture: Overaccumulation, Financial Crises, and the Retreat from Globalization
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This article argues that the key crisis that has overtaken today’s global economy is the classical capitalist crisis of over-accumulation. Reaganism and structural adjustment were efforts to overcome this crisis in the 1980s, with little success, followed by globalization in the 1990s. The Clinton administration embraced globalization as the “Grand Strategy” of the United States, its two key prongs being the accelerated integration of markets and production by transnational corporations and the creation of a multilateral system of global governance, the pillars of which were the World Trade Organization, the International Monetary Fund and the World Bank. The goal of creating a functionally integrated global economy, however, stalled, and the multilateral system began to unravel,thanks among other things to the multiple crises created by the globalization of finance, which was the main trend of the period. In response partly to these crises, partly to increasing competition with traditionally subservient centre economies, and partly to political resistance in the South, Washington under the Bush administration has retreated from the globalist project, adopting a nationalist strategy consisting of disciplining the South through unilateralist military adventures, reverting to methods of primitive accumulation in exploiting the developing world, and making other centre economies bear the brunt of global adjustments necessitated by the crisis of over-accumulation.
37. International Corporate Responsibility Series: Volume > 3
Jacob Park China’s Rapid Industrialization and its Sustainability Discontents: Understanding the Strategic Implications for Business
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Despite the attention given to China’s rising importance in the international marketplace, I argue that corresponding attention has not been given to the sustainability dimensions—the social and environmental dimensions of this economic development trajectory. Specifically, what type of business strategy can and will best serve the economic, environmental, and social needs of China, and what role, if any, can the private sector play to facilitate the development of such a strategy? In exploring this question, I first examine the evolving relationship between business and sustainable development. I then outline the sustainability challenge within the regional context in the Asia-Pacific region. Finally, I analyze sustainability challenges posed by China’s rise in the global economy and assess the impacts of these challenges on current and future business strategies.
38. International Corporate Responsibility Series: Volume > 3
Liu Goggin, Aidan Kelly, John F. Hulpke Good Guanxi, Bad Guanxi?: Drawing the Line
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Guanxi is essential to doing business in China. Even those who are minimally familiar with business in the People’s Republic seem to know this. How should Western business organizations look at guanxi? Further, if guanxi is seen as essential, what is the responsible approach to guanxi building? These questions may have different answers depending on one’s perspectives. First, what is guanxi?
39. International Corporate Responsibility Series: Volume > 3
Betty Dee Makani-Lim, Felix Chan Lim Corporate Responsibility as a Strategic Element in the Systemic Approach to Sustainable Community Health Care
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This paper presents the critical role of corporate responsibility in the sustainability of health care programs in lower income communities mostly located in the rural areas. The Leaders for Health Program (LHP)—a tri-partite partnership between the Philippine Department of Health, the Health Unit of the Ateneo de Manila University Graduate School of Business, and Pfizer Philippines, Inc.—is an innovative approach focusing on health promotion and education as the cornerstone for community development. LHP adopts a systemic and comprehensive approach that takes into consideration all the major stakeholders in health, especially in rural communities. This paper aims to support the viability of education as the main catalyst for community empowerment and self-sufficiency.
40. International Corporate Responsibility Series: Volume > 3
Vladimir Petkoski From International Corporate Responsibility to Local CSR: Empirical Evidence from Macedonia
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While the concept of Corporate Social Responsibility (CSR) is based predominantly on the experiences of developed countries, the context in developing countries differs greatly, varying according geography, culture, and level of development. A survey was conducted in Macedonia with the aim of determining the local context and specifics of CSR through an analysis of four elements: the rule of law, competition and standards, complementary CSR institutions, and internal corporate structures and practices. It showed that an increasing number of companies are starting to consider CSR as an investment and not simply as a cost.