Corporate Social Responsibility for International Business (original) (raw)
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TRENDS IN CORPORATE OBLIGATIONS UNDER INTERNATIONAL LAW: AN OVERVIEW
Although Transnational Corporations (TNCs) and all other related forms of business enterprises are now generally accepted as non-state actors in international law, the extent of their exact responsibilities and obligations vis-à-vis other institutional actors like states and international organisations is still largely a matter of huge conjecture. This is particularly so on the question of whether or not corporations - just like states, individuals and international organisations - should have direct obligations under international law, and if yes, to what extent and in what manner? Meanwhile, the debates on the status and hence obligations of corporations, under international law, has been largely, if not wholly, anchored on the concept of Corporate Social Responsibility (CSR) and in relation to human rights. This paper seeks to overview how modern international law has embraced the arguments for integration of corporate obligations and hence CSR. In doing this, the paper, among others, examines the progression of the debates from an initial scepticism - if not hostility - to the present day gradual acceptance and recognition, under international law, of some form of socially responsible obligations for corporations. The paper notes further that despite the initial opposition to imposition of standards on corporate non-state actors, there appears to be consensus now that some level of international regulation might be needed in view of the complex transnational nature of corporate activities. The paper then concludes that despite the absence of mandatory international legal obligations for corporations under international law, the present favourable paradigm shift in favour of debates on such trend, as presently demonstrated, amongst others, by the United Nations Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights (UN Norms), suggests a brighter future in favour of well-entrenched mandatory regulations.
Rights, responsibilities and regulation of international business
Columbia Journal of Transnational Law, 2003
This essay discusses the paradox of the emergence of corporate codes of conduct in the 1990s, following pressures from consumer and labor activism, in a period of more general liberalization of international investment leading to deregulation. It suggests that the advantages of flexibility and adaptability to specific circumstances offered by such codes are counterbalanced by their self-selected content and inadequate enforcement. Rejecting the assumption that there is a sharp distinction between voluntary standards and binding law, the essay analyzes various ways of grounding codes in legal obligations. It proposes that a safer and more dependable environment for international investment could be provided by a framework agreement, which would link binding standards for corporate social responsibility in key areas, such as combating bribery and cooperation in tax enforcement, with traditional investor rights based on investor protection and liberalization rules.
Business Ethics Quarterly, 2013
This paper aims to shed some more light on the current debate related to corporate social responsibility (CSR), specifically considering multinational enterprises (MNEs) and the complexities they face when dealing with international issues and a range of stakeholders. It discusses notions of CSR in the context of wider debates, including the question for whom and for what the firm exists, how responsibilities can or should be managed and by whom, and what room there is for managerial discretion. Particular attention is paid to cross-cultural differences, exploring the existing variety in ethical and societal norms relevant to MNEs: those originating from international agreements, those that are part of a so-called 'market morality' and those applicable in home and host countries. Although these norms may overlap, they can diverge as well, leaving ample room for managerial discretion in a 'moral free space'. The paper also explores recent trends, particularly the increasing importance of emerging economies such as China, which suggests that the picture is becoming even more complex, pointing at clear challenges for research and practice.
This article examines the corpus of multinationals' codes of conduct on CSR issues which has been collated by the ILO. Through lexical software analysis we identify three main points of reference in CSR codes of conduct: respect for ILO norms, discussion of the company's relationship to society, and reinforcement of its internal discipline and organisation. Surprisingly, the issue of corporate responsibility itself constitutes a small part of the text of the codes. Their main targets are employees, who are charged with a dual task: to ensure the implementation of the principles stated in the codes, and to protect the assets of the company. In a reflexive dimension, codes of conduct help us to understand the key characteristics of the companies which made them.
Multinational Corporation Codes of Conduct: Governance Tools for Corporate Social Responsibility
Corporate Governance-an International Review, 2008
Manuscript Type: EmpiricalResearch Issue: We investigate the assumption found in code and corporate social responsibility (CSR) literature that suggests codes are primarily associated with the CSR practices of an organization.Research Findings/Results: A web-based study of 150 corporations from three different countries indicates there is little empirical support for this link between codes and CSR. Thus, if a corporation has a code, it is more likely used to govern traditional business concerns, such as compliance with third party governance requirements, internal issues such as conflict of interest, bribery and corruption, insider trading, etc. This is consistent across all three countries. Therefore we must be cautious against assuming a link between codes and CSR. Evidence of the different governance contexts is also briefly discussed.Theoretical Implications: Findings are addressed to theoretical debates about the construction of corporate identity, the amoralization of business, and the globalization of management practices.Practical Implications: Stakeholders must be careful in assuming that the presence of a code indicates CSR commitments or behavior. Stakeholders need to look at the content of the code to confirm or deny this assumption, particularly such stakeholders as investors who tend to use the existence of a code as evidence of CSR practices to tick “check the box.”
The multiplicity of international corporate social responsibility standards
Multinational Business Review, 2019
Purpose This paper aims to examine the multiplicity of corporate social responsibility (CSR) standards, explaining its nature, dynamics and implications for multinational enterprises (MNEs) and international business (IB), especially in the context of CSR and global value chain (GVC) governance. Design/methodology/approach This paper leverages insights from the literature in political science, policy, regulation, governance and IB; from the own earlier work; and from an inventory of CSR standards across a range of sectors and products. Findings This analysis’ more nuanced approach to CSR standard multiplicity helps distinguish the different categories of standards; uncovers the existence of different types of standard multiplicity; and highlights complex trends in their evolution over time, discussing implications for the various firms targeted by, or involved in, these initiatives, and for CSR and GVC governance research. Research limitations/implications This paper opens many aven...
Corporations “should” behave ethically. For twenty years the international community, states, businesses and NGO’s have been striving to secure this. The success of law is limited by the will of states to implement and enforce it. This lack of will has been seen domestically, and internationally. States yearn for the economic development that the presence of a corporation in their territory promises. Economic benefits can override their desire to protect their environment and their people. Corporate economic and political influence affects the development of new legislation and legal enforcement in developing countries and the west. Corporate Social Responsibility sought to address this by creating a responsibility to behave well. This responsibility is voluntary. This article will analyse where the compulsion of law meets voluntarism and how they can work together to transform the ethical “should” into a “must”.
Putting regulation before responsibility: Towards binding norms of corporate social responsibility
bepress Legal Series, 2006
Globalization of business has heightened concerns regarding corporate conduct in developing countries. Critics have charged that multinational firms in particular have exported social harms involving labor, the environment, bribery, and human rights to jurisdictions outside of their home countries. Opportunities for regulatory arbitrage and the associated collective action problem such opportunities suggest, highlight the need for strong regulatory responses to these issues. Rather than prioritize the strengthening of national or international regulatory actors to address these social harms, voluntary corporate social responsibility initiatives have emerged as a favored response within the international community. This article undertakes a critical examination of the rationale for these initiatives. It argues that the premises on which they are grounded are flawed insofar as they ignore basic research concerning the drivers of regulatory compliance, fail to remedy underlying social harms, contravene broader goals of fostering strong regulatory institutions in developing countries, and undermine economic development to the extent that they erode state capacity in setting economic and regulatory policies. As an alternative to purely voluntaristic measures, this article emphasizes the need to build the capacity of local regulatory authorities. It cites two cases involving the use of domestic regulatory and enforcement power in African states as examples of how the empowerment of state institutions can constitute more effective responses to significant social harms.
Journal of Developing Societies, 2020
Multinationals affirm corporate social responsibility (CSR) is a way to go further than national and international law to build a social compact. While CSR can contribute to an effective global labor governance scheme, we argue that national and international laws must be engaged to regulate CSR private governance schemes. We will support this argument and, furthermore, we will argue that international trade agreements can provide, if effectively enforced, grounds for the articulation. It can be argued that hybrid governance schemes could ensure that result-oriented and pragmatic developmental processes are at the core of the CSR–development nexus. In this article, we argue for the need to socialize CSR to make it more efficient, and that trade agreements can be part of this process. CSR is not an autonomous regulatory trajectory, and it will probably become increasingly regulated through institutional means.