Mining, Corporate Social Responsibility and the "Community": The Case of Rio Tinto, Richards Bay Minerals and the Mbonambi

Mining companies have long had a questionable reputation for social responsibility, especially in developing countries. In recent years, mining companies operating in developing countries have come under increased pressure as opponents have placed them under greater public scrutiny. Mining companies have responded by developing global corporate social responsibility strategies as part of their larger global business strategies. In these strategies, a prominent place is given to their relationship with local communities. For business ethics, one basic issue is whether such an approach to corporate responsibility is likely to effectively address the development concerns of local communities in developing countries. This paper addresses this question by investigating how the corporate social responsibility agenda of a major minor company has been implemented by one of its subsidiaries in South Africa.     

Implementing global corporate citizenship: An integrated business framework

Recent economic, social-political, and natural disasters have all served to highlight the fragility of the global marketplace. As such, it is no longer questioned as to whether or not companies should be good corporate citizens; that is a given. Rather, concern in the 21^st century centers on how businesses can become better global corporate citizens. Unfortunately, without clear guidance regarding how this may be accomplished, global corporate citizenship will remain a fringe activity and not become a critical component of an organization's core business strategy. The integrated framework presented herein identifies key elements and tips for implementing a business-based approach to global corporate citizenship.     

How global is the Global Compact?

Launched by the United Nations in 2000, the Global Compact (GC) promotes private sector compliance with 10 basic principles covering human rights, labour standards, the environment, and anti-corruption. Its sponsors aim to establish a global corporate social responsibility (CSR) network based on a pledge to observe the 10 principles adopted by companies across the range of company size and regional origin, backed by a modest reporting system and collaborative programmes. The author analyzes the GC's progress toward building a global network from its launch through 2006 and finds that, while the GC's nominal membership base of nearly 3000 companies makes it the largest system among collective action institutions (CAIs) for corporate responsibility, the GC has not reached 'critical mass'. Deficiencies in its nascent global network include limited market penetration among the largest corporations, a membership heavily weighted toward Western European companies, and major weaknesses in compliance with its reporting system. The author concludes that the GC must improve both penetration and compliance if it is to succeed in building a global standard for CSR.     

The internationalization of small firms: The relationship between the global mindset and firms’ internationalization behavior

Some firms in internationally oriented industries are internationalized while other comparable firms in the same sector or industry do not. Observing this difference in strategic behavior among small firms led us to consider how differences in CEOs’ attitudes, international orientation, and mindset might explain it. Therefore, this study adopts a cognitive perspective on management to explore the formation of the global mindset and the relationship between the global mindset of small-firm decision makers and their firms’ internationalization behavior. A theory-based conceptual model and measurement instrument are developed and—using structural equation modeling—the model is estimated based on empirical data from cross-sectional samples of small Norwegian and Portuguese firms. The study finds: (1) a strong causal relationship between the global mindset and firms’ internationalization behavior; (2) the combination of the findings and substantive theory indicates that the main driver of firms’ internationalization operates through the global mindset. This study also covers the factors that strongly influence the formation of a global mindset, especially the decision makers’ work experience and personal characteristics in terms of propensity to interdisciplinary collaboration, cognitive flexibility, and networking capability. Based on these findings, suggestions are made for policies that can foster the internationalization of small firms.     

Investigating the direct and indirect effects of corporate hypocrisy and perceived corporate reputation on consumers’ attitudes toward the company

Consumers are placing increasing importance on the social responsibility of firms when making purchase decisions. Nonetheless, corporate irresponsibility has become more prevalent in the corporate world. Through corporate social responsibility (CSR), companies can showcase their virtues and appear as good citizens while ignoring many internal standards. Hence, the primary purpose of this study was to explore the impact of corporate hypocrisy on CSR belief, corporate reputation, and consumers’ attitudes toward a company that may have a bad reputation. Second, we investigated the mediating effect of CSR belief and perceived corporate reputation on the relationships between corporate hypocrisy and consumers’ attitudes toward the company. We asked a sample of respondents in Australia (n =518) to respond to a real CSR campaign launched by a beer company. The results showed that CSR belief mediates the relationship between corporate hypocrisy and consumers’ attitudes toward the company. The results indicated a perception that companies may use CSR to try to shift the blame from producers to users. The results of this study provide guidelines for managers, social marketers, and public policy makers on how to create and evaluate companies’ CSR campaigns. The results of this study contribute to the debate on how consumers respond to various CSR campaigns as well as the intended or unintended consequences of CSR in directing consumers’ attention away from the negative impacts businesses have on society.     

Encouraging Development of a Global Mindset Among Students in Online International Management Courses

ABSTRACT

This research explores how a multiple intelligences approach can be used to build a global mindset among students in online international management courses. It draws upon research in the areas of global mindset, education, cognition and learning, and neuroscience to discuss how pedagogical tools and strategies relevant to each specific intelligence can contribute to cognitive complexity and cosmopolitanism. Suggestions are offered for online teaching methods that can incorporate the multiple intelligences in international management courses.     

“Minding Our Business”: What the United States Government has done and can do to Ensure that U.S. Multinationals Act Responsibly in Foreign Markets

The United States Government does not mandate that US based firms follow US social and environmental law in foreign markets. However, because many developing countries do not have strong human rights, labor, and environmental laws, many multinationals have adopted voluntary corporate responsibility initiatives to self-regulate their overseas social and environmental practices. This article argues that voluntary actions, while important, are insufficient to address the magnitude of problems companies confront as they operate in developing countries where governance is often inadequate. The United States can do more to ensure that its multinationals act responsibly everywhere they operate. First, policymakers should define the social and environmental responsibilities of global companies. They must consistently make their expectations for global business clear – and underscore that this objective can often be accomplished without mandates. Second, the US should closely examine the policies that undermine global Corporate Social Responsibility (CSR) and address the many conflicting signals sent by policymakers. Third, the President should make the US government a CSR model by examining how to use its purchasing power to promote human rights. Finally, the US government should require pension funds to report on the social and environmental consequences of their investments. In these ways, Americans can mind our business – and thus make sure that US based firms do not undermine social and environmental progress when they operate in the developing world. Susan Aaronson is Senior Fellow and Director of Globalization Studies at the Kenan Institute Washington Center, an arm of the Kenan-Flagler Business School, University of North Carolina Chapel Hill. Her scholarly research focuses on international investment and social responsibility issues. Aaronson devised and directed a study, funded by the Ford, UN and Levi Strauss Foundations, that examined how U.S. public policies can promote or undermine global corporate social responsibility. She is now beginning a Levi-Strauss funded project on trade and human rights. Aaronson is a frequent speaker on public understanding of globalization issues and the author of four books on globalization including, Taking Trade to the Streets: The Lost History of Public Efforts to Shape Globalization (Michigan: 2001).     

全球价值链下的地方产业集群持续竞争优势研究

文章从能力的角度对全球价值链下的地方产业集群进行了研究.文章认为异质性能力是全球价值链下地方产业集群竞争优势的基础;动态能力是全球价值链下地方产业集群持续竞争优势的来源;集群学习是全球价值链下地方产业集群持续竞争优势获得的路径.最后,文章从集群学习的视角提出了全球价值链下地方产业集群发展战略.     

Internal and external drivers of anticorruption policies in multinationals

This research investigates internal and external drivers that push multinational companies to establish anticorruption policies. The authors build on institutional theory, in particular on the concept of legitimacy, to examine how corporate headquarters design anticorruption policies. They conducted case studies based on semi-structured interviews with managers of Italian multinationals. The findings show how internal and external drivers interplay to affect anticorruption policies at the headquarters level. They suggest that multinational companies align their anticorruption policies to achieve global legitimacy. The study shows how internal and external pressures influence the process of gaining legitimacy.     

The Study of the Relations among Ethical Considerations, Family Management and Organizational Performance in Corporate Governance

Corporate governance is increasingly becoming an issue of global concern, not least because we are more and more living in a corporate world that transcends international boundaries. The main purpose and motivation of this study is to determine how the international community should motivate businesses in fostering exemplary corporate governance, therefore eliminating obstacles to ethically exemplary behavior. The empirical approach utilized here has been applied to 161 businesses, both listed and over-the-counter (OTC) companies, with the results indicating that ethical considerations, corporate governance and organizational performance are inextricably linked and, to an extent, demonstrably proportional. This study also indicates a major finding that family management is a significant mediating variable of the ethical considerations of corporate governance and organizational performance. Finally, this study has developed an operational model of ethical considerations of corporate governance as a consultancy aid for businesses that wish to implement and/or boost their performance in respect to corporate governance.     

How Best to Communicate Intangible Resources on Websites to Inform Corporate‐Growth Reputation of Small Entrepreneurial Businesses

Identifying disclosure communication signals as narrative, visual, and numerical, and measuring them using two methods, this study investigates how best the intangible resources can be used to communicate future‐period corporate‐growth reputation, measured as future sales growth, of the fastest growing small companies in Australia over a continuous three‐year period. Using insights from resource‐based theory and signaling theories, and generating data using content analysis from 276 companies, this study finds that communication signals when combined rather than in isolation are predictors of future‐period corporate‐growth reputation. The study provides additional support for current‐period corporate‐growth reputation mediating intangible resource signals in predicting future‐period corporate‐growth reputation.     

Aligning responsible business practices: A case study

This article offers an in-depth case study of a global high tech manufacturer that aligned its ethics and compliance, corporate social responsibility, and sustainability practices. Few large companies organize their responsible business practices this way, despite conceptual relevance and calls to manage them comprehensively. A communities of practice theoretical lens suggests that intentional effort would be needed to bridge meaning between the relevant managers and practices in order to achieve alignment. The findings call attention to the important role played by employees who broker understanding between managers and practices, and the boundary objects used to create shared meaning and engagement. They also highlight that an organizing logic is necessary but not sufficient to align practices. This study describes the dynamics of alignment and provides a practical road map for scholars and managers interested in understanding how responsible business practices may be collectively organized.     

Understanding Japanese CSR: The Reflections of Managers in the Field of Global Operations

This paper examines how Japanese multinational companies manage corporate social responsibility (CSR). It considers how the concept has come to be framed within Japanese business, which is increasingly globalized and internationally focused, yet continues to exhibit strong cultural specificities. The discussion is based on interviews with managers who deal with CSR issues and strategy on a day-to-day basis from 13 multinational companies. In looking at how CSR practice has been adopted and adapted by Japanese corporations, we can begin to see what implications arise from the fact that CSR is a Western-led concept, so opening up critical questions about the future development and evolution of CSR practice within a global context. In being exposed to the concept of CSR as practiced vigilantly in western countries, Japanese multinational company managers have certainly come to re-evaluate aspects of business likely to need rectifying (with potential concerns being gender inequalities, discrepancies in employee conditions, and issues over human rights and supply chains). Japan can be thought to be lagging behind in its understanding and adoption of CSR, in part because corporations do not necessarily state their policies as formally as might be expected. Yet, by analyzing more deeply the kinds of responses gained from CSR managers in Japan (and by placing their remarks within a broader context of Japanese culture and business practices) a far more subtle and revealing picture becomes apparent, not least a more complex picture of the local/global interaction of the frames of reference of corporate responsibility.     

Institutions,paradoxes, and compensation logics: evidence from corporate values of the largest Chinese and US companies

This study introduces the concept of Institutional Compensation Logics, which suggests that organizations can dynamically balance coexisting local and global logics, through a process known as the ‘paradox of embedded action’. Through this process, managers can gradually adapt institutional logics to the global environment, even if their actions, intentions, and rationality are embedded in the very logics that they wish to change. We propose that one important way they do that is by designing corporate values that challenge the organization’s local values. To test this approach, we use the mission-based corporate values’ framework and analyse the corporate values of a sample from the largest Fortune companies in the two most influential world economies: China (PRC) and the United States (US). Our study also helps advance the understanding of how espoused values are related to cultural values, often in paradoxical ways, thus supporting a negative relationship between espoused organizational and cultural values.     

The double bottom line: Profit and social benefit

There is an important shift in business focus in the United States that is empowering companies to not only declare their intent to be ethical firms which do good while making a profit, but also to submit proof of that commitment for annual review by outside evaluators. A new business model is providing structure for non-profits that wish to grow, for for-profits that wish to be socially responsible, and for individuals who wish to invest in companies with a commitment to corporate social responsibility and sustainability. B Lab has taken the lead in providing the models necessary for this shift to a focus on the double bottom line: profit and social benefit. It has created the legal documents for state legislatures to use to pass a new corporate structure called the ‘benefit corporation.’ In the 3 years of its existence, legislatures in 19 states and the District of Columbia have ratified the new corporate structure. Likewise, B Lab offers a performance assessment program to become a Certified B Corporation, independent of legal corporate status, which also serves as an evaluation program for benefit corporations. Additionally, it has created a ratings agency and analytics platform, the Global Impact Investing Rating System (GIIRS), to help institutional investors evaluate the impact of companies’ corporate social responsibility initiatives. This article discusses the requirements and benefits of the new models and addresses the issues that have been raised about them. It also identifies companies that are incorporating the benefit corporation structure and are becoming Certified B Corporations.     

No such thing as a global manager

With the continuing growth of globalization, companies need to pay careful attention to selecting and managing people who may become their “global managers.” The best way to achieve this is by coming up with a clear concept of what constitutes such a manager. But the examination of a wide set of possible characteristics indicates that there seems to be no distinct set of such individual qualities, so there is no consistent way to point out what a global manager is. What we are left with is the search for good “conventional” managers with a global mindset who could succeed in the international marketplace.     

The trillion-dollar enterprise: An interview with Booz.Allen & Hamilton's Vice Chairman,Cyrus F. Freidheim,Jr.

The Trillion-Dollar Enterprise: How The Alliance Revolution Will Transform Global Business by Cyrus F. Freidheim, Jr. (Reading, Massachusetts: Perseus Books; 1998. pp. xiii + 253. ISBN 0-7382-0004-2, Price: $25.00) is an interesting, timely, and provocative book that uncovers the alliance revolution and other forms of cooperative activities taking place in global business. The work is one of the first genuine attempts to share many years of a groundbreaking research at Booz.Allen & Hamilton on corporate networks, interorganizational alliances, and cooperative activities of global companies. The concept of the trillion-dollar enterprise that Freidheim convincingly puts forward provides a refreshing and new addition to the lexicon of global business. In this interview with Thunderbird International Business Review's Book Editor, Syed Tariq Anwar, Freidheim describes the trillion-dollar enterprise, its place in the twenty-first century, and its future impact on world industries. Freidheim predicts that the trillion-dollar enterprise will change the way companies do business in the domestic and international markets. Alliances, corporate networks, and megaventures will be the name of the game in the future, eventually bringing new types of companies and competitive environments that will have a lasting effect on multinational corporations (MNCs) as well as consumers. © 1999 John Wiley & Sons, Inc.     

Mapping the Relationship Among Political Ideology,CSR Mindset,and CSR Strategy: A Contingency Perspective Applied to Chinese Managers

The literature on antecedents of corporate social responsibility (CSR) strategies of firms has been predominately content driven. Informed by the managerial sense-making process perspective, we develop a contingency theoretical framework explaining how political ideology of managers affects the choice of CSR strategy for their firms through their CSR mindset. We also explain to what extent the outcome of this process is shaped by the firm’s internal institutional arrangements and external factors impacting on the firm. We develop and test several hypotheses using data collected from 129 Chinese managers. The results show that managers with a stronger socialist ideology are likely to develop a mindset favouring CSR, which induces the adoption of a proactive CSR strategy. The CSR mindset mediates the link between socialist ideology and CSR strategy. The strength of the relationship between the CSR mindset and the choice of CSR strategy is moderated by customer response to CSR, industry competition, the role of government, and CSR-related managerial incentives.     

Development of Norms Through Compliance Disclosure

This article introduces compliance disclosure regimes to business ethics research. Compliance disclosure is a relatively recent regulatory technique whereby companies are obliged to disclose the extent to which they comply with codes, ‘best practice standards’ or other extra-legal texts containing norms or prospective norms. Such ‘compliance disclosure’ obligations are often presented as flexible regulatory alternatives to substantive, command-and-control regulation. However, based on a report on experiences of existing compliance disclosure obligations, this article will identify major weaknesses that prevent them from becoming effective mechanisms to discipline a certain type of behaviour. It will be argued that regulatory recourse to compliance disclosure obligations is nonetheless worthwhile if we view them as mechanisms that can initiate a dialogue about norm interpretation, application and norm desirability. From this perspective, compliance disclosure obligations serve less to discipline companies by making corporate practices transparent, and more to trigger a process of norm development, in which the law, companies and their stakeholders interact. This article provides an illustration of how mandatory disclosure, if it is restricted to a unilateral communication process, may produce no effective results (or even prove counterproductive), whilst highlighting the alternative potential of disclosure as an initiator of dialogue, supported by laws, geared towards the development and refinement of norms applicable to business in a global context and the values they promote.