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41. International Corporate Responsibility Series: Volume > 4
Ahmed Koudri The Social Responsibility of the Public Enterprise: A Case Study of Sonatrach in Algeria
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The purpose of this paper is to analyze the meaning and scope of social responsibility in a state-owned enterprise. Is corporate social responsibility (CSR) a meaningful concept for a state-owned enterprise, as opposed to a privately-owned corporation, given that it is created with social as well as economic aims? To try to answer to this question, the case of Sonatrach, an Algerian oil company, is examined. The lack of statistical data does not allow an assessment of CSR actions undertaken by this company since 2004. The analysis identifies two main obstacles to the effectiveness of CSR in state-owned enterprises: (a) the system of internal governance ischaracterized by a lack of control; (b) the competitive and social environment is characterized by a partial application of the logic of the market, which does not allow the optimal allocation of means.
42. International Corporate Responsibility Series: Volume > 4
Saad Al-Harran A Proposed Strategic Alliance between the Qatar Foudation and the Al-Jazeera Channel to Face the Challenges of the 21st Century
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The paper highlights the importance of a strategic alliance between the Qatar Foundation for Education, Science and Community and the Al-Jazeera International Channel. Secondly, we discuss the global outlook as to how Qatar can position itself on the world map as knowledge-based nation and a land of innovative ideas. Thirdly, we analyse the new role of Islamic finance in social responsibility and why investment in social capital is vitally important in a challenging world. We select four Muslim countries that Qatar should consider for human capital investment purposes—Egypt (the brain and heart of the Arab world), Syria, Turkey, and Malaysia—and justify this selection. Fourthly, we discuss a new role for the Aljazeera International Channel as a promoter of successful entrepreneurs and venture capitalists in the Muslim World, to show what real Islamic finance is. Finally, the challenges ahead are discussed and policy recommendations suggested.
43. International Corporate Responsibility Series: Volume > 4
Siti Musa The Relationship Between Food Security and Trade Liberalization: Assessing the World Trade Organization’s Agreement on Agriculture and the Role of Transnational Corporations
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This paper addresses the issue of food security in developing countries and how agriculture plays an important role in achieving not only food security, but also in reducing poverty and promoting sustainable development. The promotion of trade liberalization by the World Trade Organization (WTO) through the Agreement on Agriculture (AoA) has undermined the productive capacity of developing countries and their comparative advantage in the agricultural sector, marginalizing small-scale farmers and benefitting the big corporations. The paper looks at the issue of intellectual property rights that big corporations have for seeds and their effects on small-scale farmers, and how corporate social responsibility (CSR) is insufficient to regulate the dominance of big corporations in the food and agricultural market. The paper is divided into seven sections: trade liberalization and food security, the WTO and the AoA, the effects of the AoA on developing countries, the role of transnational corporations (TNCs) on food security, CSR and TNCs, policy recommendations, and conclusions.
44. International Corporate Responsibility Series: Volume > 4
Muhammad Z. Mamun, Mohammad Aslam Conflicting Approaches of Managers and Stockholders in a Developing Country: Bangladesh Perspective
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In general it is found that the corporate managers and stockholders possess totally different view about good governance of a company. Managers strongly believe that governance of their companies is quite well but stockholders view that it is very poor. The study found that the groups differ in perception especially in terms of turnover, production, capital, leverage, debt service, credit policy, solvency, human resource, recruitment, technology, customer satisfaction, internal control, strength, opportunity, competition, industry position, collective bargaining agent (CBA) issues, and economic remedies; whereas, they have similar view in terms of adequacy of research fund, company weaknesses and threats, contingency plans, presence of political influence. The managers think that the companies do not have enough retained earnings and these should not be distributed among stockholders, but the stockholders thinkotherwise. Managers always perceive that they are underpaid whereas stockholders express the opposite view. Each group believes that it is the other group that dominates the decision-making. Both the group wants to have mutual interaction but stockholders want to interact more than the mangers. The study noted that corporate managers’ tenure is more with the company than a stockholder’s holding of stock. The study also found that the managers are better educated than the stockholders. The study observed serious gender biasness both in management position and stockholding of the corporations. Though both the groups belong to same age level but their distribution shows stockholders enter into the share market at an early age.
45. International Corporate Responsibility Series: Volume > 4
Irina Soboleva Internal CSR Practices: Social Dialogue Versus Corporate Paternalism (Case of Russia)
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The paper is focused upon the relations of key inside stakeholders—managers and employees whose interests are supposed to be represented by trade unions while shaping internal CSR practices. It discusses real, perceived and desired role of TU in the process and the outcomes of internal CSR in the fields of work related security and access to social benefits. It is demonstrated that the internal social policy of corporate management pursues pragmatic goals seeking the least costly way to compete for skilled manpower and accumulate human capital. The role of TU is chiefly limited to assisting the management in distribution of social benefits. As a result the benefit distribution contributes to social inequality patterns inside corporation. It is safe to conclude that so far the internal CSR patterns in Russia are formed under a mixture of pragmatic and paternalistic reasons with minor traces of social dialogue.
46. International Corporate Responsibility Series: Volume > 4
Takuya Takahashi CSR that Incorporates Local and Traditional Knowledge: The Sampo-yoshi Way
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This paper examines prospects for and content of a global regime for human rights. Competing schools of thought forecast convergence and divergence of national standards under stress of globalization. No such regime exists, and there is no compelling theory of international corporate social responsibility. However, elements of an emerging global regime can be identified and partially overlap with environmental protection issues. This regime is highly fragmented, underdeveloped, and only partially enforceable—but it is in development. The UN Global Compact, the Global Reporting Initiative (GRI), ISO 26000 (expected in 2010), the U.S. Alien Tort Claims Act (ATCA) of 1789 and the permanent international criminal court established in 2002 are illustrations of such elements. The third Ruggie Report, issued 2008, is an important summary of conditions and proposes a strategy for forward progress. Human rights impose important obligations on multinational enterprises (MNEs) operating across highly diverse political, legal, and cultural realities.
47. International Corporate Responsibility Series: Volume > 4
Esther M. J. Schouten The Process of Embedding Human Rights within Subsidiaries of a Multinational Corporation
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Multinational companies (MNCs) can have positive and negative impacts on the human rights situation of a country. More and more MNCs have made a commitment to respect human rights. So far, little research has been done on how MNCs can embed their commitment and which factors determine its success. This paper therefore aims to describe and learn from the process of embedding human rights in six subsidiaries of the multinational oil company Royal Dutch Shell (in short, Shell), operating in different parts of the world. It develops an approach based on the model of Tatiana Kostova. Using a specific tool called the Human Rights Compliance Assessment, the paper concludes that, despite differences in local context, the process requirements of embedding global standardscan be the same.
48. International Corporate Responsibility Series: Volume > 4
Duane Windsor Developing a Global Regime for Human Rights
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This paper examines prospects for and content of a global regime for human rights. Competing schools of thought forecast convergence and divergence of national standards under stress of globalization. No such regime exists, and there is no compelling theory of international corporate social responsibility. However, elements of an emerging global regime can be identified and partially overlap with environmental protection issues. This regime is highly fragmented, underdeveloped, and only partially enforceable—but it is in development. The UN Global Compact, the Global Reporting Initiative (GRI), ISO 26000 (expected in 2010), the U.S. Alien Tort Claims Act (ATCA) of 1789 and the permanent international criminal court established in 2002 are illustrations of such elements. The third Ruggie Report, issued 2008, is an important summary of conditions and proposes a strategy for forward progress. Human rights impose important obligations on multinational enterprises (MNEs) operating across highly diverse political, legal, and cultural realities.
49. International Corporate Responsibility Series: Volume > 4
M. Gunawan Alif, Retno Artsanti Nutrition for Kids Was Good for the Company: Lesson From JAPFA4Kids Nutrition Campaign
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Indonesia is developing greater opportunities for CSR activities, along with some obstacles and constraints. Unlike the Western world, one of the important drivers of CSR in this country is the importance of avoiding conflict. The agribusiness company JAPFA is very keen to promote CSR activities, not only to benefit the needy, but also for the survival of the organization in a very dynamic and turbulent market. This study elaborates how the JAPFA CSR program benefited the community around the company’s strategic business unit operations, and what kind of return the company received. To give a wider perspective on CSR activities in Indonesian organizations,the study also investigates employee commitment to JAPFA, its corporate culture, and employee attitudes toward social responsibility.
50. International Corporate Responsibility Series: Volume > 4
Adli Juwaidah, Ruksana Banu Management Style and Decisions from the Perspective of Cultural Differences: A Study with Special Reference to the Sultanate of Oman
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It is common today that organizations have their own distinctive cultures, even in cases when they may not have willfully attempted to create them. Rather, cultures have most likely been created unconsciously, forced by the values of top level managers, the founder, or core people who have built or direct the organization. Leaders frequently attempt to change the culture of their organizations to suit their own preferences. The resulting culture will influence the decision-making process, market demand, and nature of the business. It affects management styles and what everyone determines as success. This study is an attempt to discover how culture influences management styles and decisions, with special reference to the local environment in Oman.
51. International Corporate Responsibility Series: Volume > 4
Michael Funke Rawlsian Primary Goods and CSR: The Case of PT Freeport in Papua New Guinea
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John Rawls defines “primary social goods” to be the benefits of social co-operation that are valuable no matter what one’s life-plan. The benefit for international trade of talking in terms of primary goods is that such goods represent a fixed or standard rate, and thus facilitate efficient negotiation. The difficulty, however, is that such discussions appear to ignore, and thereby do violence to, significant cross-cultural value differences. I argue that an appropriate view of Rawlsian primary goods helps to facilitate inter-subjective agreement about what constitutes an advantage to the least advantaged. I illustrate this in a case study of the PT Freeport mining operations in Papua New Guinea.
52. International Corporate Responsibility Series: Volume > 4
Lovasoa Ramboarisata Cooperative Values as Potential Hypernorms: Evidence from Large Cooperative Banks
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In this paper I argue that large cooperative organizations, in particular cooperative banks, are better positioned than business firms to be ethically responsible, global citizens. These organizations include cooperative networks in France, the Netherlands, and Germany, provident societies in the United Kingdom, and Mouvement des caisses populaires Desjardins and credit unions in Canada. Large cooperatives are distinct from firms but compete with them and are major socio-economic actors in their respective communities. They are more predisposed to implement policies that are compatible with local expectations and simultaneously reflect fundamental macro-social principles or hypernorms. The advantage of these particular economic organizations springs from their institutional and historical background, and particularly from the cooperative values on which they are founded and which make them different from firms.
53. International Corporate Responsibility Series: Volume > 4
Byron Kaldis Transnationals and Corporate Responsibility: A Polythetic View of Moral Obligation
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This paper proposes a model of transnational corporations that calls for a non-unitary normative approach to ground the kind of corporate social responsibility that must, maximally, be ascribed to them. This involves injecting the notion of moral obligation into the picture, a particularly strict notion with an equally rigorous set of requirements that is not normally expected to be applicable to the case of big business operating internationally. However, if we are to be honest about the prospects of establishing a viable regime of international justice in conditions of globalized economies, the litanies of half-measures, wishful thinking, and lame excuses for nottackling the responsibilities of multinationally operating economic units will obviously lead us nowhere. Neither will any lists of principles of a voluntary global compact type, nor the intuitions of business ethics writers, be of any help either. We must go back to the historical kernel of ethical systems, identify key concepts, and ascertain for which particular issues raised by the operation of transnationals each such concept best delivers the corresponding moral obligation, thus silencing the traditional realist worry that the international arena is, logically, a Hobbesian state of nature. My proposal rests on the idea that transnationals are polythetic organisms,both internally and externally, that require a corresponding multi-positioned ethical approach to cover their overlapping operating units.
54. International Corporate Responsibility Series: Volume > 4
Grant Walton Rifling Through Corruption’s Baggage: Understanding Corruption Through Discourse Analysis
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This paper examines several primarily academic discourses on corruption to demarcate the assumptions embedded within each one. It begins by discussing different definitions of corruption, which leads to an identification of five prominent discourses on the subject that are examined in some detail. The paper concludes by considering some implications of this analysis.
55. International Corporate Responsibility Series: Volume > 4
Preface
56. International Corporate Responsibility Series: Volume > 4
Aigul Maidyrova, Baurzhan Esengeldi, Aidana Sariyeva Social Responsibility of Business in Kazakhstan
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This article studies the possibility of forming social policy, and in particular policies for social security, through the participation of domestic business. By taking on social responsibility, business can eventually, of own its own accord, offer the state and society its assistance in dealing with social problems. In Kazakhstan, a major part of business people see their responsibility as many-sided, consisting of duties to employees, consumers, business partners, the local community, and the country as a whole. They acknowledge responsibility along three dimensions: financial, ecological, and social.
57. International Corporate Responsibility Series: Volume > 4
Simeon Obidairo International Framework of Corporate Liability for Transnational Corruption: A Case Study of the OFFP and BAE Scandal
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The revelation of widespread corruption in the Oil-for-Food Programme (the “Programme”) and the recent scandal involving the British arms manufacturer BAE Systems threatens to unravel the fragile global consensus on combating corruption. This paper outlines the emerging global consensus and legal framework on corruption and assesses the extent to which this consensus has been undermined by the above mentioned revelations of corruption. Both incidents provide an interesting context in which to analysesome of the difficult issues presented in the regulation of transnational corruption. The regulation of transnational corruption provides a framework for analyzing the critical dimensions of the interaction between the norms in various domestic communities and the transnational context of these interactions. The paper argues that the current framework of multilateral efforts to curb transnational corruption is unable to tackle the problem effectively and concludes that the liability framework for engaging in transnational corruption has almost exclusively been the result of political expediency rather than that of empirical information. By examining the multilateral efforts by the international community to combat corruption, the paper generates questions about the status and future direction of thefight against corruption under international law.
58. International Corporate Responsibility Series: Volume > 4
Betty Dee Makani-Lim, Felix Chan Lim Global Players in the Local Field: Changing Corporate Practices in Response to the Local Culture
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For the most part, the primary driver for international businesses in establishing operations in other countries is the reduction of overall operating costs. Host countries, especially developing nations, welcome multinational corporations (MNCs) because of the perceived economic benefits that international businesses can bring to their local communities. Surprisingly, one of the most understudied, under-analyzed, and sometimes even completely neglected factors when international businesses consider setting up shop in other countries is the local culture of their chosen destination country. This paper substantiates the thesis that international businesses should adapt their corporate practices to the local cultures in which they operate to achieve effective and superior businessperformance. The paper goes further in identifying corporate practices that were adapted or revised by international businesses to respond to the culture of local communities in the Philippines.