Critical perspectives on CSR and development: what we know, what we don't know, and what we need to know

The May 2005 issue of International Affairs addressed the theme of critical perspectives on Corporate Social Responsibility (CSR) in the developing world. The aim of this article is to take the debate a step further. Five researchers and practitioners on corporate social responsibility and development in various regions in the developing world—Central America, Pakistan, China, Vietnam, Argentina and India—using knowledge gained by their empirical research, argue that the management-oriented perspective on CSR and development is one-sided. While recognizing that critical approaches to the question have emerged, there is still a need to know which issues should form part of a critical research agenda on CSR and development.
In this article the authors seek to fill this gap in order to facilitate a more in-depth investigation of what CSR initiatives can or cannot achieve in relation to improving conditions of workers and communities in the global South. They suggest that a critical research agenda on CSR and development should encompass four areas: a) the relationship between business and poverty reduction; b) the impact of CSR initiatives; c) governance dimensions of CSR; and d) power and participation in CSR. Such an alternative critical approach focuses on society's most vulnerable groups and adopts a 'people-centred' perspective as a counterbalance to the dominant 'business case' perspective. The authors conclude that this has significant implications for CSR practice.     

Citizenship, accountability and community: the limits of the CSR agenda

While the issue of the role of the private sector in development is very much on the agenda of donors and governments, mainstream Corporate Social Responsibility (CSR) debates continue to neglect questions with regard to the accountability of companies to the communities in which they invest. Liberal notions of CSR place great emphasis on voluntary, partnership and market based approaches to tackling social and environmental problems and managing conflict. While the rise of voluntary standards and codes of conduct in the North and the growing popularity of various forms of 'civil regulation' has improved the responsiveness of corporations to social and environmental issues, there are doubts about their transferability or relevance in many southern settings. This is particularly so when viewed from the perspective of communities pursuing corporate accountability in the absence of donor, NGO or government pressure for company reform. It is in these 'majority world' settings that we encounter the limits of the liberal CSR agenda.
This article therefore explores the different tools that poorer communities have developed in order to construct mechanisms of corporate accountability. Recent work in India is drawn upon to ground the analysis, but reference is made to many other cases in different regions of the world and across a variety of sectors. It is suggested that many state-based, community-based and company-based factors determine the likely success of such initiatives. Power disparities and how to contest them emerge as key, however, and their neglect within mainstream CSR approaches undermines their ability to address issues of corporate accountability in situations characterized by sharp inequities in power. The emphasis here is on the process of promoting corporate accountability, and the relations of power that underpin these, rather than the achievement of more narrowly defined indicators of corporate performance.     

Corporate accountability in South Africa: the role of community mobilizing in environmental governance

Contrasting perspectives of international companies and civil society groups have divided recent debates about corporate responsibility in developing countries. The Corporate Social Responsibility discourse has been promoted by business lobbies, emphasizing the role of international companies in voluntarily contributing towards the solution of pressing social and environmental problems through partnerships with other stakeholders. The notion of corporate accountability has become the rallying point for sustainable development, demanding stricter regulation of corporate behaviour by national governments and the enactment of an international corporate accountability convention. This article assesses the promises and pitfalls of these two competing approaches to industries in South Africa. The article argues that a multi-level approach is necessary to the impact of CSR and corporate accountability initiatives. It concludes that CSR may improve environmental management systems and reduce corporate pollution levels whereas corporate accountability approaches may provide important incentives for companies to improve their environmental performance, assist in the development of national environmental governance frameworks guiding company-community interaction, and facilitate the enforcement of national legislation pertaining to corporate responsibility. However, both approaches fail to address the underlying, globallevel structural causes of conflicts between companies and stakeholders affected by their operations. These conflicts can only be reversed by fundamental changes in the global economy.     

Philanthronationalism: Junctures at the Business–Charity Nexus in Post‐war Sri Lanka

Over the past few years, the role of private sector organizations as actors and investors in development processes has received increased attention. This article explores the rise of ‘philanthronationalism’ in Sri Lanka: the co‐development of business and philanthropy methods as a response to patronage, nationalization and militarization in the post‐war environment. Drawing on ethnographic research into indigenous forms of corporate social responsibility (CSR), the article identifies four kinds of philanthronationalist practice — passive, assimilative, reactive and collaborative — that provide a logic, mechanism and ethic for private sector development initiatives in the island whilst promoting a vision of the ‘Sinhala Buddhist’ nation state. Noting the emergence of similar philanthronationalist practices in Myanmar, the article concludes by arguing that the Sri Lankan case is unlikely to be unique and calls for further research into the partnerships that emerge between private philanthropy and nationalist movements in conflict/post‐conflict processes around the world.     

Corporate gift or political sacrifice? State-sponsored CSR and electricity provision in Guinean extractive enclaves

Going beyond a static conceptualization of the mining enclave, recent research increasingly scrutinizes the role of corporate social responsibility (CSR) schemes as a means of territorial entanglement. Several authors refer to the notion of the “corporate gift” to describe these control and coping strategies as well as the resulting power relations between companies and the population around the production facilities. In this article, we focus on electricity provision as an example for such a “gift”. Extensive field research in the Guinean mining areas of Siguiri, Kamsar, and Mambia showed that in all of these areas, the mining companies not only acted as “givers” of electricity, but also handed over the bill for this electricity provision to the state. Confronted with this curious fact of state-sponsored CSR, this article questions the foundations of the arguments around the notion of the corporate gift and comes to the conclusion that these three electrification projects were, at the same time, acts of “political sacrifice”. This concept points beyond the obvious conclusion that mining companies try to maximize their legitimization efforts in an increasingly competitive environment and underlines the role of the state in “company-community” relations and the maintenance of extractive enclaves.     

跨国公司地方嵌入新视角:基于地方劳工市场的研究进展与理论思考

20世纪90年代以来,跨国公司地方嵌入研究相对聚焦于资本密集型或技术密集型企业,而需要大量非熟练工人的劳动密集型跨国企业并未引起足够关注,建立在产业联系、技术外溢、社会网络等核心概念基础上的跨国公司地方嵌入分析框架很显然不能很好地解释劳动密集型跨国公司地方嵌入的理论与实践问题。在劳工地理学、新经济地理学等学科背景下,基于全球生产网络、关系嵌入、空间修复等核心概念,研究分别从劳工能动性的空间尺度、跨国公司地方嵌入的劳工要素、劳工管控对跨国公司的地方嵌入、区域劳工景观的空间修复等视角出发,系统梳理相关研究进展并提出未来主要研究议题,包括如何识别劳工供需因素对跨国公司地方嵌入的影响机制,如何剖析特殊劳工管控体制下劳工空间实践与能动性的关系,如何刻画跨国公司地方嵌入对区域劳工经济地理景观的影响,如何总结跨国公司地方嵌入与区域发展的战略耦合模式等。     

Globalization, Corporate Social Responsibility and poverty

Corporate Social Responsibility (CSR) has become a major focus of interest for development practitioners in recent years. While development NGOs have been critical of voluntary corporate initiatives, official development agencies have taken a more positive view and in some cases encouraged CSR. This article locates the growth of CSR in the context of global deregulation since the early 1980s, highlighting the key drivers that have led to its adoption by many leading transnational corporations. It then describes the factors that have led to the recent emphasis given to CSR by both bilateral and multilateral development agencies and the United Nations. A framework for analysing the links between foreign direct investment and poverty is developed focusing on the impacts on the poor as producers, consumers and beneficiaries of government expenditures. This framework is used to illustrate the limitations of CSR in terms of likely impacts on poverty reduction through each of the channels identified and also to point to areas in which CSR may have some positive benefits. Overall, the article concludes that it is unlikely to play the significant role in poverty reduction in development countries that its proponents claim for it.     

Enrolling the Private Sector in Community Development: Magic Bullet or Sleight of Hand?

The role of the private sector in international development is growing, supported by new and evolving official programmes, financing, partnerships and narratives. This article examines the place of the private sector in ‘community development’ in the global South. It situates corporate community development (CCD) conceptually in long‐standing debates within critical development studies to consider the distinct roles that corporations are playing and how they are responding to the challenges and contradictions entailed within ‘community development’. Drawing on field‐based research across three different contexts and sectors for CCD in Fiji, Papua New Guinea and South Africa, the article suggests that caution is required in assuming that corporations can succeed where governments, non‐governmental organizations (NGOs) and international development organizations have so often met with complex challenges and intractable difficulties. We argue that four specific problems confront CCD: (a) the problematic ways in which ‘communities’ are defined, delineated and constructed; (b) the disconnected nature of many CCD initiatives, and lack of alignment and integration with local and national development planning policies and processes; (c) top‐down governance, and the absence or erosion of participatory processes and empowerment objectives; (d) the tendency towards highly conservative development visions.     

Mining amid armed conflict: nonferrous metals mining in the Philippines

In recent years the government of the Philippines has attempted to accelerate the growth of the nation's economy by encouraging the extraction of its mineral resources by multinational corporations. The Philippines is also a nation beset by armed violence carried out by anti-state groups. This article discusses how the presence, and activities, of these groups generate problems for a mining-based development paradigm. The article examines: the literature on the topic of natural resource abundance and conflict, how there have been attacks upon mines by armed groups, how mining companies have served as a target of extortion, how grievances related to mining can act as a source of conflict, how mining could disrupt the peace process with the Moro Islamic Liberation Front and how mines are accompanied by a militarization of the area in their vicinity. Ultimately, violence is a manifestation of poverty and social exclusion inherent in Philippine society. Mining may not diminish, and indeed may increase, this poverty and social exclusion. Unless poverty and social exclusion is alleviated the violence will continue and alternative efforts to develop the Philippine economy will be precluded.     

Corporate Social Responsibility: reinventing the meaning of development?

Corporate Social Responsibility (CSR) has been adopted as an approach to international development. But who does it benefit and in what ways? Most importantly, does it allow certain interest groups to redefine the meaning of international development success? This article examines the historical relationship between business and development and compares how expectations of business as exemplified through CSR practices differ from those in the past. It then looks at the role and expectations of business in developing countries and proposes two tests for assessing if CSR makes a positive contribution to development goals based on whether it redefines the meaning of good business practice in the interests of the poor and marginalized, and if it helps development practitioners to manage more effectively the possibility and consequences of global capitalism for poor countries. The article argues that the interests of business are not adequately aligned with those of the poor, and explains why CSR does little to redress this. It argues that the business case in some instances overrides the developmental case for certain actions, and that business thinking is increasingly evident in the policies and practices of international development. Although CSR may have a positive contribution to make in some circumstances, its limitations need to be understood if development's case for involving business is not to be subsumed by business reasons for engaging with (and by‐passing) developing countries.     

Ecclesial opposition to nonferrous mining in Guatemala: neoliberalism meets the church of the poor in a shattered society

Guatemala, a nation plagued by the legacy of its brutal 36-year civil war, has, in recent years liberalized its mining law to encourage the entry of multinational mining corporations. These mining companies have included two Canadian companies, which have developed the two most prominent, and controversial, mining projects in Guatemala. Using the lens of political ecology to demonstrate how environmental analysis and policy can be reframed towards addressing the problems of the socially vulnerable, this article analyses the opposition of the Roman Catholic Church to mining in Guatemala. The article reviews the development of liberation theology in Latin America and how this has imparted empathy for the poor into the pastoral praxis of the church. The church is opposed to mining largely because of the potential implications of mining's environmental effects upon the livelihoods of the poor. The article postulates that the opposition of the church to mining is an example of an environmental issue connecting groups of people across class and ethnic lines to offset powerful global political and economic forces. The article concludes with a discussion of how this opposition to mining is a demonstration of the opposition of the progressive church to neoliberalism in general.     

Difficult but Not Impossible: The ANC's Decentralization Strategy in South Africa

As the neo‐liberal project has spread across the globe, decentralization has been a key component of it. In South Africa, the neo‐liberal macro‐economic strategy of the African National Congress (ANC) involves support for fiscal and administrative decentralization partly as a way to bring the private sector into basic service delivery and supposedly to make local government more efficient and effective. However, the ANC also sees decentralization as a way to empower the historically disadvantaged black population. Community‐based public–private partnerships have been one of the chief initiatives in this regard. In the metropolitan municipality of Port Elizabeth, small black contracting companies have been hired and trained to dispose of waste, construct roads and build houses. While not free of tensions and problems, this approach to decentralization has fostered a form of democratic development. This article uses examples from the Port Elizabeth experience to test and reflect upon a number of issues which are raised in the literature on decentralization.     

Company Growth,Acquisitions and Access to Complementary Assets in Israel's Data Security Sector

This article analyses aspects of high-tech cluster emergence in Israel during the 1990s with focuses on the data security software industry and on strategies of very successful companies dominating such an industry. Most of the industry is concentrated in Tel Aviv and close-by Hertzliya and to a lesser extent Haifa and Jerusalem. It starts by characterizing the industry as a whole and the universe of 19 companies comprising it. It then proceeds with an in-depth analysis of the growth trajectories of very successful companies, some of which are listed in NASDAQ or have been acquired by large multinational corporations. A fast 'IPO' and a 'fast M&A' track have been identified and characterized. The analysis suggests that while globalization could be beneficial to skill intensive peripheral economies like Israel, a significant economic impact may require an appropriate balance between start-up activity and downstream production and marketing activities.     

‘Tailoring the Millions‘; the Women Workers of the Leeds Clothing Industry, 1880–1914

Abstract

This article concerns the ways in which J. &; P. Coats, the major British multinational company manufacturing cotton thread, did business in Latin America before 1945. The company carried out a total of some 21 foreign direct investments in six countries, including Brazil, Mexico and Argentina, exemplary business practice among British contemporaries. The evidence on origins, performance and management, drawn from the company's archives for the first time, begins to fill a long-standing gap in the history of British business in Latin America. To this point, most studies have focused on the tertiary and primary industries. In the light of the extensive business interests of J. &; P. Coats alone, further research may show that the significance and role of British manufacturing companies, seemingly minor actors in Latin American economies, was much greater than has been assumed.     

Confidence Building in Local Planning and Development. Some Experience from Norway

Can local confidence building and cooperation strengthen local communities and have a positive influence on local development? This is the main question in this article. In the first part of the article the conditions for confidence building, mobilization, self-development and self-confidence in local planning are presented. A planning process called strategic and mobilizing planning which is built on these conditions is described. This planning or development process is drawn as an infinite spiral with an increasing 'radius'. As examples of such local confidence building and mobilization processes the cases of 'Nordvest Forum' and 'Cooperation in Haram commune' are presented and discussed. Nordvest Forum is a collaborative activity owned by competing companies in the region, which have recognized that they have a common problem related to recruitment and training of leaders. This has lead to new activities and new cooperation especially related to management training and cooperation. The collaboration between private and public institutions in Haram is an example where common challenges for companies and community were recognized. This process started as a concrete activity regarding recruitment of skilled workers with participation from a few but nevertheless important persons in the private and public sectors. The learning and confidence developed as a result of this cooperation lead to new and broader activities concerning the future of the community with many more participants. In the conclusion some practical advice is given for community planning and confidence building, informed by the theoretical discussion and the empirical examples in the article.     

Just war theory and private security companies

This article examines the ethics of using private security companies to undertake combat operations in modern conflict zones. Previous studies on this topic, including those that have drawn on the principles of just war theory, have, out of necessity, been highly speculative because they lacked a strong empirical basis on which to evaluate the behaviour of private security personnel during their operations. Indeed, most scholarship on the ethics of private security companies has relied on a handful of anecdotal examples that happened to receive extensive media coverage. In contrast, this article undertakes the first quantitative analysis of how well the employees of a dozen private security companies adhered to the jus in bello tenets of just war theory and also how their degree of adherence to these tenets affected their tendency to suffer friendly casualties during their security operations in Iraq. It finds that the employees of most of the firms under study exhibited a moderate or high level of adherence to the jus in bello principles of proportionality and discrimination during their security operations in Iraq. Moreover, it also finds that close adherence to these principles did not necessarily expose private security personnel to greater risk of suffering harm.     

Voluntary Agencies as Development Organizations: Theorizing the Problem of Efficiency and Accountability

Co-operatives, NGOs and community groups are being increasingly used as development agencies by policy-makers, because they are thought to provide more accountable, effective and equitable services in many areas than public or private agencies. This article attempts to consider some of the theoretical and practical implications of this growing role by treating them as ‘value-driven’ organizations, and asking how this differentiates them, in terms of efficiency and accountability, from public or private agencies. It notes the lack of developed theoretical models capable of dealing with this question, and examines the relevance of existing theories (neo-classical economics, public administration and especially varieties of organization theory including the New Institutional Economics) in dealing with agencies which claim to be dominated by motivations based on democracy and altruism rather than self-interest. The author looks at problems associated with the measurement of efficiency and enforcement of accountability in organizational life and at the need for effective incentives and sanctions which provide a stable basis for maintaining commitment. He then considers the issues involved in the enforcement of accountability to ensure the efficient use of resources in producer co-operatives on the one hand and service delivery NGOs on the other. In the former, the focus is on the strengths and weaknesses of market competition and the costs of collective management; in the latter on the varied relationships between ‘principals and agents' involved in the production and management of services.     

Can MNCs promote more inclusive tourism? Apollo tour operator's sustainability work

ABSTRACT

Outbound tour operators are key actors in international mass tourism. However, their contribution to more sustainable and inclusive forms of tourism has been critically questioned. Drawing from new institutional theories in organization studies, and informed by the case of one of the largest Scandinavian tour operators, we examine the corporate social responsibility (CSR) and sustainability work in large tour operators and the challenges faced in being more inclusive. On the basis of in-depth interviews with corporate officers, document analysis and media reports, we show how top-down coercive and normative pressures, coming from the parent company and the host society shape the ability of the daughter corporation to elaborate a more inclusive agenda. However, daughter companies do not merely comply with these institutional pressures and policy is also developed from the ‘bottom-up’. We show how the tour operator's sustainability work is also the result of organizational responses including buffering, bargaining, negotiating and influencing the parent organization. By creating intra and inter-sectoral learning and collaborative industry platforms, MNCs not only exchange and diffuse more inclusive practices among the industry, but also anticipate future normative pressures such as legislation and brand risk. Daughter organizations help shape their institutional arrangements through internal collaborative platforms and by incorporating local events and societal concerns into the multinational CSR policy, especially when flexible policy frameworks operate, and the corporate CSR agenda and organizational field are under formation. However, risks do exist, in the absence of institutional pressures, of perpetuating a superficial adoption of more inclusive practices in the mass tourism industry.     

我国人文地理学研究的若干基本意识问题

自1980年代复兴以后的近三十年来,我国人文地理学研究和教学取得了可喜的成绩,但参照国际人文地理学的发展以及我国其他领域改革的深入和推进,存在的问题也日益明显,突出表现在五种意识的不足或缺乏。这使我们在服务国家经济建设方面作出令人注目的成绩的同时,未能对世界人文地理学发展作出我们应有的贡献。亟待反思,找到问题之所在以及通向世界学术殿堂的"桥梁",以便"重新出发"。在恪守学术规范的基础上,增强学术史和与同行对话的意识、以问题和理论为导向,立足本土,加强人文地理研究的理论化,作出原创性的发现,是我国人文地理学者面临的一项艰巨任务。     

Corporate Regional Responsibility – Warum engagieren sich Unternehmen gemeinsam für ihre Region?

Companies can voluntarily participate in matters of regional developments, thereby accepting responsibility on a regional level. Referring to the concept of Corporate Social Responsibility (CSR), the term Corporate Regional Responsibility (CRR) is used to describe this behavior. Moreover, companies can form a CRR-corporation with other companies in order to take over a collective CRR. So far, the motives of companies for exercising collective CRR are unknown, thus, corporate resources can not be mobilized and utilized efficiently for regional developments. This article explores the subject of collective CRR and illustrates CRR motives using the example of the two CRR-cooperations Initiativkreis Ruhr and Wirtschaftsinitiative FrankfurtRheinMain.