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21. 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.
22. 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.
23. 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.
24. 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.
25. 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.
26. 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.
27. 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.
28. 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?
29. 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.
30. 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.