Following the offshoring of production to developing countries by transnational corporations, unions and non-governmental organisations have criticised working conditions at TNCs' offshore factories. This has led to the emergence of two different approaches to operationalising TNC responsibilities for workers' rights in developing countries: codes of conduct and global agreements. Despite the importance of this development, few studies have systematically compared the effects of these two different ways of dealing with workers' rights. This article addresses this gap by analysing how codes (...) of conduct and global agreements both independently and interactively affect workers' rights. We do this based on a qualitative study of the Sri Lankan operations of a Swedish TNC in Sri Lanka, and on interviews with union and NGO representatives actively involved in codes of conduct and global agreements. Our results indicate that global agreements independently address all the aspects included in codes of conduct, while also addressing additional, more process-oriented aspects of workers' rights. Hence, on their own, global agreements seem to comprise the superior approach to promoting workers' rights. Furthermore, our results indicate that promoting codes of conduct has negative interactive effects on global agreements. Based on these results, we argue that the current focus on codes of conduct is counterproductive for the promotion of workers' rights. (shrink)

Abstract:Comparatively few studies have analyzed the social behavior of multinational corporations (MNCs) at a cross-national level. To address this gap in the literature, we propose a “transnational” model of corporate social responsibility (CSR) that permits identification of universal domains, yet incorporates the flexibility and adaptability demanded by international research. The model is tri-dimensional in that it juxtaposes: 1) Bartlett and Ghoshal’s (1998, 2000) typology of MNC strategies (multinational, global, “international,” and transnational); 2) the three conceptual domains of CSR (human rights, (...) labor, and the environment) proposed by the UN Global Compact (Compact 2003); and 3) Zenisek’s (1979) description of three CSR perspectives (ideological, societal, and operational). The end result is a multidimensional typology that permits the organization and development of empirical CSR research in an international setting. (shrink)

Although contract sugarcane farming is the most dominant and popular land use among farmers in Nzoia Sugarbelt, results from a 2007 study suggests that the intended goal of increasing farmers’ incomes seems to have failed. With a mean monthly income of Kenya Shillings 723 (US $ 10) from an average cane acreage of 0.38 hectares, it would be difficult for a household of eight family members to meet their basic needs and lead a decent life. Analysis of farmer statements showed (...) that up to 86% of the changes in net income were significantly determined by six cost variables as a group (i.e., acreage, tillage costs, seedcane costs, transport costs, yield, and farmer’s education level). Area under sugarcane had the greatest influence on net income whereby an increase in one hectare under cane would result in an increase of Kenya Shillings 110,427 in net income (per crop cycle of 21 months), holding other variables constant. This translates into Kenya shillings 5,258 per month (or 175 per day per household, or for a family of eight people—KES 22 or US $ 0.3) per member, which is far below the international standard of absolute poverty. Key net income depressors were tillage, seedcane, and transportation costs, all of which were determined by the company with no input from farmers. To bridge income gaps between the company and farmers in favor of sustainable community livelihoods, this paper argues strongly for the need to institutionalize Corporate Social Responsibility within the daily operations of the company particularly to address net-income depressors. Ten key building blocks for such a policy for Nzoia Sugar Company are suggested, based on farmers’ responses and ethical considerations. (shrink)

One of the fundamental struggles in corporate social responsibility (CSR) is the uncertainty and inherent contradictions that stem from a company being an individual legal entity and a community of persons. The authors contend that CSR has departed from the essence of “social responsibility.” The paper is a commentary on CSR, presented as two frameworks rooted in individualism—The Merchant Trade (the strategic view of CSR) and The White Man’s Burden (self-righteous CSR heroism that assumes the shackles of responsibility normally offered (...) by others). Both, however, contradict the essence of “social responsibility” pitting individual against community, business against society, and economic needs and realities versus ethical reflection. The authors present a model that advocates a more moderate and realistic approach to CSR that goes back to the essence of social responsibility. (shrink)

There has been much theoretical debate on issues of business ethics during the last decades, but there has been little research which could concretise the content of these issues in terms of practical business. Although business life must frequently deal with concepts such as corporate social performance, business ethics and the acceptability of operations, the content and meaning of these concepts has remained flexible. In addition, rapid internationalisation and globalisation have introduced a number of new phenomena related to corporate social (...) performance. An attempt at defining the concepts more precisely and searching for a potential indicator was considered necessary in order to concretise the business environment facing corporations engaged in internationalisation and globalisation. The connection between corporate social performance and stakeholder theory provides a basis for the proposal put forward here that acceptability of operation could be employed as an indicator of corporate social performance. This approach was then applied to developing a model which could be used to assess corporate social performance. (shrink)