The social construction of global corporate citizenship: Sustainability reports of automotive corporations

What does global corporate citizenship mean? In the absence of formal definitions, a place where understandings of corporate citizenship can be found is corporate texts. From the perspectives of sociological institutional theory and strategic legitimacy theory, we utilized critical discourse analysis as a methodology to study the corporate sustainability reports of multinational automotive corporations. We observed isomorphic themes that constitute socially constructed expectations of global corporate citizenship regarding climate change. We also observed heterogeneity in how these themes are manifested. We examined the rhetorical features of these reports as ways that corporations strategically position themselves in the global marketplace.     

Using Indicators to Measure Sustainability Performance at a Corporate and Project Level

More and more businesses are aligning their activities with the principles of sustainable development. Therefore they need to adapt their ways of measuring corporate performance. However, it includes issues which may be outside the direct control of the organisation, that are difficult to characterise and often are based on value judgements rather than hard data. The difficulty in measuring performance is further complicated by the fact that many corporations have a complex organisational structure, with different business streams, functions and projects.This paper has used two case studies to explore how the appropriate use of indicators can be a powerful tool in addressing the sustainability of businesses both at a corporate wide level and at a project level.     

Contrasting the evolution of corporate governance models: A study of banking in Hong Kong

The sub-prime mortgage crisis, the bankruptcies of important US banks, and many originally family controlled enterprises coming under non-family, CEO-type leadership during the 2008 global credit crunch led many people to rethink the relationship between risk management and family businesses. One of the foci was on the doctrine of separation of ownership. This paper attempts to compare and examine the evolution of corporate governance in the banking business in Hong Kong by using two key financial institutions based there. By contrasting the evolution of corporate governance, management style and pattern of succession, we can see that although they developed under the same business environment and legal framework, the East-West business culture and ideology led them to choose different ownership structures and ways of succession, which ultimately determined their different developmental trajectories.     

Critical assumption planning: A practical tool for managing business development risk

Although much has been written about the practice of new business development, the authors continue to find corporate managers and entrepreneurs repeating the same mistakes and often reaching the conclusion that venturing in the corporate environment won't work. The problem stems from a mental model about how business should be managed and managers' performance assessed. Corporate managers of existing businesses are judged against meeting plan. In growing new businesses, however, strict adherence to “the plan” can lead to business failure. To manage business development risk, venture managers must learn to deal with uncertainty. Whereas managers of mature businesses practice the ethic of predictability, venture managers must follow a learning ethic.Working with Fortune 100 corporations, the authors have evolved a practical, disciplined process for business development risk management that focuses on learning. Titled critical assumption planning (CAP), the process maximizes learning about new markets at lowest cost. Major uncertainties in the business proposition are isolated as critical planning assumptions. Critical assumptions in the plan are then tested. The test sequence is determined by the potential reduction of uncertainty per dollar of test cost. Assessment of the assumption test results marks a milestone. At each milestone the business plan is revised to reflect what has been learned, and the venture is redirected or terminated. This process avoids the wasted effort and expense of pursuing the original plan until commercial failure becomes obvious.The key steps in this learning process are identification of critical assumptions and cost-effective testing of assumptions. Because these steps are unfamiliar to most corporate managers, effective use requires a new perspective and new planning tools. The study explains this perspective and introduces new tools for employing the process. Following are some planning innovations that have been effective in changing perspective and that also are of practical use:

1. 1. Differentiation between primary and derivative assumptions with focus on extracting and understanding the primary assumptions.

2. 2. Early construction of a model of the business plan that allows calculation of the impact of primary assumptions such as price or sales productivity factors on derivative assumptions such as revenues and income.

3. 3. Assignment of uncertainty ranges to the primary assumption values, not just the most likely values.

4. 4. Identification of the critical planning assumptions by determining the impact of their uncertainty ranges on venture net present value.

5. 5. Selection of the next venture milestone based on the test program that results in maximum reduction of uncertainty at least cost in least time for the most critical assumption(s).

Using CAP, managers can control risk despite the many uncertainties surrounding a new business proposition. Above all, decisions to stop or redirect ventures can be taken earlier, saving the corporation money and venture managers their career credibility.     

Business ethics and a state–owned enterprise in China

Since China's Reform Era began in 1979, corporations of all shapes and sizes mushroomed in the economic landscape. Among these companies, a few have distinguished themselves by their unique corporate cultures and financial performance. The Chinese state–owned enterprises (SOEs) are notorious for their inefficiency, conservatism, bloated bureaucracy, and obsoleteness. However, a few good SOEs stand out as corporations of excellence with commitment to business ethics. Very little study has been done on SOE corporate cultures and business ethics, especially in the western literature. This paper provides an insight into one such organisation – the Double Star Group of Qingdao. This paper includes the results of an empirical survey on Double Star's employees' perception of its corporate culture and business ethics.     

An Exploratory Study of the Impact of Degree of Religiousness Upon an Individual's Corporate Social Responsiveness Orientation

The recent failures and scandals involving many large businesses have highlighted the importance of corporate social responsibility as a fundamental factor in the soundness of the free market system. The corporate social responsiveness orientation of business executives plays an important role in corporate decision making since managers make important decisions on behalf of their corporations. This paper explores whether there is a relationship between an individual's degree of religiousness and his or her corporate social responsiveness (CSR) orientation. The results of a survey of 473 business students found a significant relationship between degree of religiousness and attitudes toward the economic and ethical components of CSR. Some explanations as well as limited generalizations and implications are developed.     

The Decomposition of the Corporate Body: What Kant Cannot Contribute to Business Ethics

Kant is gaining popularity in business ethics because the categorical imperative rules out actions such as deceptive advertising and exploitative working conditions, both of which treat people merely as means to an end. However, those who apply Kant in this way often hold businesses themselves morally accountable, and this conception of collective responsibility contradicts the kind of moral agency that underlies Kant’s ethics. A business has neither inclinations nor the capacity to reason, so it lacks the conditions necessary for constraint by the moral law. Instead, corporate policies ought to be understood as analogous to legal constraints. They may encourage or discourage certain actions, but they cannot determine a person’s maxim – which for Kant is the focus of moral judgment. Because there is no collective intention apart from any intentions of the individual agents who act as members of the corporation, an organization itself has no moral obligations. This poses a dilemma: either apply the categorical imperative to the actions of particular businesspeople and surrender the notion of collective responsibility, or apply a different moral theory to the actions of businesses themselves. Given the diffusion of responsibility in a bureaucracy, the explanatory usefulness of collective responsibility may force business ethicists to abandon Kant’s moral philosophy.     

Towards Enforceable Bans on Illicit Businesses: From Moral Relativism to Human Rights

Many scholars and activists favor banning illicit businesses, especially given that such businesses constitute a large part of the global economy. But these businesses are commonly operated as if they are subject only to the ethical norms their management chooses to recognize, and as a result they sometimes harm innocent people. This can happen in part because there are no effective legal constraints on illicit businesses, and in part because it seems theoretically impossible to dispose definitively of arguments that support moral relativism. Progress is being made, however, towards a “second best” arrangement consisting of widespread institutional agreements regarding ethical norms. This development might eventually enable us to transcend moral relativism in some respects. Indeed, although some business ethicists who examine illicit business practices accept moral relativism, others attempt to surmount it. The latters’ endeavor, I show, is cross-cultural in nature in that it involves businesses that are deemed illicit in at least one but not every culture. I then recall some traditional solutions and their limits: ideological teachings are culture-specific, hence both temporally and spatially limited; legal constraints, though potentially helpful, are too diverse hence often narrow in reach. Especially problematic are defense industry businesses, which are inherently transcultural and, though uniquely harmful, are not effectively banned in any culture. Harm to quality of life (QoL) can, however, be measured. So I recommend institutional support for international human rights tied to QoL data as a workable way to counter moral relativism regarding illicit businesses.     

Astroturfing Global Warming: It Isn’t Always Greener on the Other Side of the Fence

Astroturf organizations are fake grassroots organizations usually sponsored by large corporations to support any arguments or claims in their favor, or to challenge and deny those against them. They constitute the corporate version of grassroots social movements. Serious ethical and societal concerns underline this astroturfing practice, especially if corporations are successful in influencing public opinion by undertaking a social movement approach. This study is motivated by this particular issue and examines the effectiveness of astroturf organizations in the global warming context, wherein large corporate polluters have an incentive to set up astroturf organizations to undermine the importance of human activities in climate change. We conduct an experiment to determine whether astroturf organizations have an impact on the level of user certainty about the causes of global warming. Results show that people who used astroturf websites became more uncertain about the causes of global warming and humans’ role in the phenomenon than people who used grassroots websites. Astroturf organizations are hence successful in promoting business interests over environmental protection. In addition to the multiple business ethics issues it raises, astroturfing poses a significant threat to the legitimacy of the grassroots movement.     

Advancing the Business and Human Rights Agenda: Dialogue,Empowerment, and Constructive Engagement

As corporations are going global, they are increasingly confronted with human rights challenges. As such, new ways to deal with human rights challenges in corporate operations must be developed as traditional governance mechanisms are not always able to tackle them. This article presents five different views on innovative solutions for the relationships between business and human rights that all build on empowerment, dialogue and constructive engagement. The different approaches highlight an emerging trend toward a more active role for corporations in the protection of human rights. The first examines the need for enhanced dialogue between corporations and their stakeholders. The next three each examine a different facet of empowerment, a critical factor for the respect and protection of human rights: empowerment of the poor, of communities, and of consumers. The final one presents a case study of constructive corporate engagement in Myanmar (Burma). Altogether, these research projects provide insight into the complex relationships between corporate operations and human rights, by highlighting the importance of stakeholder dialogue and empowerment. All the five projects were presented during the Second Swiss Master Class in Corporate Social Responsibility, held in Lausanne, Switzerland on December 12, 2008. The audience for this conference, which examined business and human rights, was composed of researchers, governmental representatives, and business and non-governmental organization practitioners.     

Reconsidering the Common Good in a Business Context

In our contemporary post-modern context, it has become increasingly awkward to talk about a good that is shared by all. This is particularly true in the context of mammoth multi-national corporations operating in global markets. Nevertheless, it is precisely some of these same enormous, aggrandizing forces that have given rise to recent corporate scandals. These, in turn, raise questions about ethical systems that are focused too myopically on self-interest, or the interest of specific groups, locations or cultures. The obvious traditional alternative to moral bellybutton gazing is the common good, which challenges the modern business enterprise to realize non-instrumental values that can only be attained in our life together. The common good dictates that leadership should be judged, first of all, according to moral criteria rather than professional competence. It helps correct the distorted prioritization of the maximization of profit in every business decision, recognizing that businesses have a multitude of rights and responsibilities, and the common good reminds us that the first of these is not always profit-making.     

Doing Business with Rights Violating Regimes Corporate Social Responsibility and Myanmar’s Military Junta

Whether to do business with rights violating regimes is one of many dilemmas faced by socially responsible corporations. In this article the difficult case of Myanmar is considered. Ruled for decades by a closed and sometimes brutal military elite, the country has long been subject to informal and formal sanctions. However, as sanctions have failed to trigger political reform, it is necessary to review the policy options. The focus here is on the contribution socially responsible corporations might make to change. The article sketches contextual features of the case, examines the recent history and present pattern of business links with Myanmar, and assesses whether current approaches can stimulate reform. Concluding that they cannot, it considers fresh possibilities for corporate engagement. The argument is that socially responsible corporations, committed to improving individual life chances through engagement with developing societies, should undertake collaborative and principled direct investment in Myanmar. The underlying strategy and problems of codification and implementation are all analyzed. To close, the article contends that, by doing business with Myanmar’s rights violating regime, multinational corporations can extend the frontiers of global corporate social responsibility. Ian Holliday is Professor of Policy Studies and Dean of the Faculty of Humanities and Social Sciences, City University of Hong Kong     

Corporate venturing: the origins of Unilever's pregnancy test

Large established corporations face many challenges to develop and sustain dynamic capabilities in innovation and the creation of new businesses because of constraints arising from technological and resource lock-ins, and routine and cultural rigidities. From the 1960s large corporations became increasingly aware of such problems. Heavy research spending was not translated into successful new business creation. The formation of autonomous entrepreneurial units within large corporations was one response. The origins of Unilever's home pregnancy test, Clearblue, which was launched in 1985, is used as a case study to examine the viability of one version of this strategy. Unilever was able to translate its extensive knowledge base in immunology into a successful branded product in medical diagnostics by creating a separate corporate entity, Unipath, with a distinctive culture, shielded from the mainstream Unilever organisation, yet able to draw on corporate capabilities in marketing, and financial resources. Yet the very distinctiveness of Unipath orphaned it within Unilever, and the business was divested in 2001.     

The Influence of Corporate Psychopaths on Corporate Social Responsibility and Organizational Commitment to Employees

This study investigated whether employee perceptions of corporate social responsibility (CSR) were associated with the presence of Corporate Psychopaths in corporations. The article states that, as psychopaths are 1% of the population, it is logical to assume that every large corporation has psychopaths working within it. To differentiate these people from the common perception of psychopaths as being criminals, they have been called “Corporate Psychopaths” in this research. The article presents quantitative empirical research into the influence of Corporate Psychopaths on four perceptual measures of CSR and three further measures of organizational commitment to employees. The article explains who Corporate Psychopaths are and delineates the measures of CSR and organizational commitment to employees that were used. It then outlines the research conducted among 346 corporate employees in Australia in 2008. The reliability of the instrument used is commented on favorably in terms of its statistical reliability and its face and external validity. Results of the research are described showing the highly significant and negative influence of Corporate Psychopaths on all of the measures of CSR and of organizational commitment to employees used in the research. When Corporate Psychopaths are present in leadership positions within organizations, employees are less likely to agree with views that: the organization does business in a socially desirable manner; does business in an environmentally friendly manner and that the organization does business in a way that benefits the local community. Also, when Corporate Psychopaths are present in leadership positions within organizations, employees are significantly less likely to agree that the corporation does business in a way that shows commitment to employees, significantly less likely to feel that they receive due recognition for doing a good job, to feel that their work was appreciated and to feel that their efforts were properly rewarded. The article argues that academics and researchers in the area of CSR cannot ignore the influence of individual managers. This is particularly the case when those managers have dysfunctional personalities, or are actually psychopaths. The article further argues that the existence of Corporate Psychopaths should be of interest to those involved in corporate management and corporate governance because their presence influences the way corporations are run and how corporations affect society and the environment.     

Managing Institutional Complexity: A Longitudinal Study of Legitimacy Strategies at a Sportswear Brand Company

Multinational corporations are operating in complex business environments. They are confronted with contradictory institutional demands that often represent mutually incompatible expectations of various audiences. Managing these demands poses new organizational challenges for the corporation. Conducting an empirical case study at the sportswear manufacturer Puma, we explore how multinational corporations respond to institutional complexity and what legitimacy strategies they employ to maintain their license to operate. We draw on the literature on institutional theory, contingency theory, and organizational paradoxes. The results of our qualitative longitudinal study show that managing corporate legitimacy is a dynamic process in which corporations adapt organizational capacities, structures, and procedures.     

Engaging values in international business practice

Managerial decisions and behaviors in the international business arena have ethical implications across cultures and countries. The need for ethics and core values in business practice has been heightened by continued business scandals and ethical managerial lapses that have violated public trust. Global businesses can offer practical guidance and set ethical examples for others to follow by establishing corporate values beyond written business codes. Four key work values (Honesty, Fairness, Concern of Others, and Achievement) known to be present in businesses across cultures, are put forth as a baseline start for multinational corporation leaders. Offered is a process for making the core values unique to an organization, and for adopting and training managers in the use of core values. Presented is evidence of managerial implementation of the core work values, and managers’ alignment of work values with organizational strategies. By addressing the values and principles of their workplaces, international businesses can achieve cross-cultural ethical practices, managerial alignment, and global social responsibility.     

What Makes a Successful Global Executive?

Even organizations with long histories and considerable success in staffing their global businesses often feel their strategies for executive development are inadequate. This article, based on an in-depth study of successful global executives,seeks to identify the best ways of developing their talent - arguing that they are made, not born. The authors found that the underlying development processes are the same for global as for domestic executives, but that the experiences they need and the lessons they must learn are very different. The article discusses these and what both the organizations and the executives themselves must do to make it all happen.     

Corporations and NGOs: When Accountability Leads to Co-optation

Interactions between corporations and nonprofits are on the rise, frequently driven by a corporate interest in establishing credentials for corporate social responsibility (CSR). In this article, we show how increasing demands for accountability directed at both businesses and NGOs can have the unintended effect of compromising the autonomy of nonprofits and fostering their co-optation. Greater scrutiny of NGO spending driven by self-appointed watchdogs of the nonprofit sector and a prevalence of strategic notions of CSR advanced by corporate actors weaken the ability of civil society actors to change the business practices of their partners in the commercial sector. To counter this trend, we argue that corporations should embrace a political notion of CSR and should actively encourage NGOs to strengthen “downward accountability” mechanisms, even if this creates more tensions in corporate–NGO partnerships. Rather than seeing NGOs as tools in a competition for a comparative advantage in the market place, corporations should actively support NGO independence and critical capacity.     

Lowell J. Satre. Chocolate on Trial: Slavery, Politics, and the Ethics of Business. Athens: Ohio University Press, 2005. xi + 308 pp. ISBN 0-8214-1625-1, $55.00 (cloth); 0-8214-1626-X, $24.95 (paper).

Solid scholarly historical studies of overseas businesses inAfrica are rare. Rarer still are studies of this area that dealwith ethics and corporate responsibility without cant or overheatedrhetoric. Lowell J. Satre’s Chocolate on Trial standsout as a nuanced history of the dilemmas of doing business responsiblyin a colonial setting. The paradoxes it describes are similarto what many corporations face today. The book demonstratesthat the     

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.