This article proposes a way to zoom in on the concept of the social license to operate from the broader normative perspective of contractarianism. An SLO can be defined as a contractarian basis for the legitimacy of a company’s specific activity or project. “SLO”, as a fashionable expression, has its origins in business practice. From a normative viewpoint, the concept is closely related to social contract theory, and, as such, it has a political dimension. After outlining the contractarian normative background (...) to the SLO, we will show how academic concepts such as legitimacy and stakeholder management have a tendency to provide the intellectual underpinning for the business case for securing an SLO. While business case perspectives on the SLO may well be in line with the use of the term in business practice, we will highlight certain difficulties and ambiguities related to the instrumental use of the expression. In the final section, we briefly introduce the articles of this Special Issue to the reader and explain how they relate to the topic. (shrink)

Business ethicists should examine ethical issues that impinge on the perimeters of their specialized studies (Byrne 2011 ). This article addresses one peripheral issue that cries out for such consideration: the international resource privilege (IRP). After explaining briefly what the IRP involves I argue that it is unethical and should not be supported in international law. My argument is based on others’ findings as to the consequences of current IRP transactions and of their ethically indefensible historical precedents. In particular I (...) examine arguments from political philosophy for more equitable distribution of resources and appeals to property rights as a means of achieving this; business ethicists’ critiques of contemporary resource appropriations; and legal historians’ accounts of despoliation of aboriginal peoples, especially in what is now the United States, involving acquisition via conquest, asserted jurisdiction, and religious and racial preeminence. I also consider relevant human rights’ standards; supportive views of some theorists, especially early modern realists and current supporters of group rights and multidimensional rectification; some de facto incidences of substantive restitution; and proposals for effecting further rectification. (shrink)

This article explores the possible convergence between the capabilities approach and utilitarianism to specify CSR. It defends the idea that this key issue is related to the anthropological perspective that underpins both theories and demonstrates that a relational conception of individual freedoms and rights present in both traditions gives adequate criteria for CSR toward the company's stakeholders. I therefore defend "relational capability" as a means of providing a common paradigm, a shared vision of a core component of human development. This (...) could further lead to a set of indicators aimed at assessing corporate social performance as the maximization of the relational capability of people impacted by the activities of companies. In particular, I suggest a way of evaluating the contribution of extractive companies to the communities close to their industrial sites in extremely poor areas, not from the viewpoint of material resources and growth, but from the viewpoint of the quality of the social environment and empowerment. (shrink)

In recent years, corporate social responsibility (CSR) of Multinational Corporations (MNCs) in developing countries has received more attention. However, in this literature, Africa is much less well represented than other regions, and existing studies about Africa have mainly focused on South Africa and Nigeria. This focus has resulted in scant research on other African countries where MNCs are located as well, and where their presence is notable. Settings largely unexplored include conflict-ridden areas in Central Africa where a limited number of (...) usually large MNCs can potentially have a large impact on the local situation and play a role in addressing the huge problems with which these countries are confronted. Moreover, the MNCs themselves face large CSR dilemmas, related to the contribution they can (or cannot) give in the different setting compared to their home countries as well as their attitude vis-a-vis ongoing conflicts. In order to help shed light on these issues, this article explores how MNCs report on CSR and conflict in three Central African countries (Angola, Democratic Republic of the Congo, and Republic of the Congo). Our analysis of company information reveals that opportunities are widely seen and that most MNCs report on their economic and social impacts. However, CSR reporting is fairly generic, and the specific context seems to bear little influence on the type of CSR activities. The conflict dimension also receives limited attention, although some companies show awareness and outline the limitations of their power and the dilemmas inherent to their presence in these countries. The potential for MNCs' involvement in (co)creating sustainable economies is recognised, and needs further research attention in the coming years. (shrink)

Based on my study of the Rhodes Must Fall movement, I develop a rejectionist perspective by identifying the understanding and mobilization of epistemic disobedience as the core premise of such a perspective. Embedded in this contextual perspective, epistemic disobedience refers to the decolonization of the self and a fight against colonial legacies. I argue that, rather than viewing a rejectionist perspective as a threat, it should be integrated into the moral learning of contemporary institutions and businesses. This approach is important (...) in ensuring colonial legacies and biases do not create further racism or unequal situations for marginalized groups. The implication for critical management studies is that scholars from this camp should be more sensitive to issues of black consciousness and implement an authentic pragmatic ideal to promote black culture and historiographies in universities and curricula. It also highlights a need for the field of business ethics to apply more sensitive theory of marginalized stakeholders in order to prevent any escalation of violence by multinational corporations in the name of shareholder value creation and profit-maximization. (shrink)

This paper addresses the topic of this special symposium issue: how to enhance the impact of cross-sector partnerships. The paper takes stock of two related discussions: the discourse in cross-sector partnership research on how to assess impact and the discourse in impact assessment research on how to deal with more complex organizations and projects. We argue that there is growing need and recognition for cross-fertilization between the two areas. Cross-sector partnerships are reaching a paradigmatic status in society, but both research (...) and practice need more thorough evidence of their impacts and of the conditions under which these impacts can be enhanced. This paper develops a framework that should enable a constructive interchange between the two research areas, while also framing existing research into more precise categories that can lead to knowledge accumulation. We address the preconditions for such a framework and discuss how the constituent parts of this framework interact. We distinguish four different pathways or impact loops that refer to four distinct orders of impact. The paper concludes by applying these insights to the four papers included in this special issue. (shrink)

The purpose of this article is to demonstrate, based on an extensive study of the Shell-led Camisea gas project in Peru, how what we believe to be a new approach to dealing with stakeholders, focusing on sense-making and combining industry dynamics and stakeholder empowerment, was developed. The project’s success was measured by the fact that, unlike similar projects around the world, it did not meet with major opposition during its 4-year life span. Those involved in the Camisea project succeeded in (...) creating an open approach to building stakeholder relationships, allowing them to navigate through a number of diverse and challenging socio-political and ecological issues. An integral part of Shell’s approach was acting upon its commitment to high standards of operation and values. The insights from this case clearly indicate that stakeholder management and theorizing can profit from a less controlled, open and sense-making oriented strategizing with stakeholders. (shrink)

A common moral imperative to reduce human suffering in developing countries has helped to bring the international poverty reduction and conflict mitigation agendas together. But while research and practice are well established in the fields of poverty and conflict, the nexus between these two fields at the theoretical and practical levels is largely nascent. Lack of a shared body of knowledge has arguably impeded the ability of these communities to work together toward the overlapping goals of reducing poverty and conflict (...) in countries affected by violence and instability. Business, as a key sector of the international community, could potentially make significant contributions to the joint agenda if it were better integrated in efforts to develop the nexus. This article surveys the current states-of-knowledge in the fields of poverty and conflict, including the increasing influence of the fragile states theory. It then discusses some of the major schools of thought helping to bring poverty reduction efforts into alliance with conflict mitigation efforts. The third section identifies important conceptual convergences and divergences between the fields and reconsiders the prominent assumption that economic opportunity can be a powerful incentive for peace and stability. Finally, this article discusses potential areas that could advance the nexus of poverty and conflict at both a theoretical and practical level. (shrink)

The consequences of foreign direct investment (FDI) for human rights protection are poorly understood. We propose that the impact of FDI varies across industries. In particular, extractive firms in the oil and mining industries go where the resources are located and are bound to such investment, which creates a status quo bias among them when it comes to supporting repressive rulers (“location-bound effect”). The same is not true for nonextractive multinational corporations (MNCs) in manufacturing or services, which can, in comparison, (...) exit problematic countries more easily. We also propose that strong democratic institutions can alleviate negative impacts of extractive FDI on human rights (“democratic safeguard effect”). Using U.S. FDI broken up into extractive and nonextractive industries in 157 host countries (1999–2015), we find support for these propositions.1 Extractive FDI is associated with more human rights abuse, but nonextractive FDI is associated with less abuse, after controlling for other factors, including concerns about endogeneity. We find also that the negative human rights impact of extractive FDI vanishes in countries where democratic institutions are stronger. Our results are robust to a range of alternative estimation techniques. (shrink)

This article examines how corporate social responsibility (CSR) can serve as an external source of rents for governments that depend on foreign financing for state-building and development. The strategic, instrumental use of CSR has been overlooked in previous research on governments and CSR, especially in the Global South. To understand how CSR can serve as a lever for rents, the concept of “extraversion” is introduced to describe the way in which rent-seeking African governments instrumentalize their asymmetric external relations for political (...) and private benefit. The connection between CSR and rent-seeking is analyzed through a case study of large gas investments in Tanzania. The article finds that the government has set up regulation that enables local and central government authorities to appropriate, mediate, reclaim, or possibly trick CSR practices to gain rents. Based on the study, two contributions are made to the literature on CSR and governments. First, the instrumental use of CSR in the Global South is added to the variety of perspectives that can be taken when studying government agency. Second, CSR is conceptualized as a potential stream of rents for governments to exploit. The article ends with discussing that the outcome of CSR in a rent-seeking environment depends on whether the leveraged resources are managed well to support peaceful and locally beneficial economic development or whether they serve private accumulation through corruption. (shrink)

Private sector engagement (PSE) is increasingly acknowledged in both literature and practice as a necessary mechanism to sustainably address development challenges. Despite increased practitioner and academic interest in these partnerships, there have been negligible attempts to systematically investigate cross‐sector partnerships to distill best practices from the multiple environments in which they are employed. This manuscript presents a robust review of the social science and business literatures on cross‐sector partnerships, yielding an interdisciplinary, evidence‐based framework detailing archetypes of three prominent partnership characteristics (...) of purpose, context, and relationship enablers. This work integrates a wide range of best practices and values pertinent to businesses and society, enabling researchers, practitioners, and partnership managers to characterize and evaluate partnerships systematically. The introduced framework also enables partners to situate and evaluate their partnership activities to optimize outcomes for each partner and impact on the challenge at hand. (shrink)

In reality, most state actors—especially those in the developing world—are usually incapable of effectively governing all facets of their territory. This has necessitated the intervention of non-state actors (in this instance, corporations), who through their social responsibility engagements act as functional equivalents to state-driven government. Using empirical data, this article evaluates the “governance” interventions of corporations in the oil industry in Nigeria’s Delta region. While arguing that the area qualifies as an area of limited statehood, the article asserts that corporate (...) social responsibility practices that are based on Western (neoliberal) approaches cannot contribute effectively to the sustainable development of host-communities. In this context, the article contends that since the social responsibility engagements of corporations in the Niger Delta (as in most developing countries) are influenced by a pro-West philosophy, the end result is a business responsibility engagement which is ineffective as a development strategy. (shrink)

In recent years, the stakeholder approach has been widely applied in the debate on corporate social responsibility (CSR). Although many authors of this approach have reviewed many elements of the model, they have unconditionally accepted several criteria assumed by Freeman ( 1984 ) to identify stakeholders. In general, stakeholder authors have assumed that (a) the company establishes dyadic relationships with other agents, and (b) decisions made by a company only have foreseen and direct effects on other agents. These criteria have (...) enabled researchers to understand simple processes. However, they have also prevented researchers from explaining how action comes about, and how responsibility is shared, in many complex processes taking place in contemporary societies. Such complex processes involve many agents, and each decision can generate unexpected effects which accumulate or disseminate. Furthermore, the normative structure governing these processes can affect and/or be affected by the actions of agents. In this study, we propose new criteria to expand the stakeholder model and facilitate the study of CSR in such processes. (shrink)

Business Ethics: A European Review, EarlyView.

Few industries have been pressured to develop corporate social responsibility standards and policies like oil and gas. This has translated into the creation of non-governmental organizations and branches of the oil and gas firms focused on CSR. However, given the intrinsic complex characteristics of this industry, its global reach, and the fact that its operations affect and involve a wide variety of stakeholders, CSR issues cannot be defined and implemented exclusively at the industry or firm levels, but require the participation (...) of other actors affected directly or indirectly by oil and gas activities. In this paper we argue, first, that oil and gas CSR issues are collectively constructed through meta-organizations, and, second, that the complexity and variety of CSR issues require companies to build industry-specific and non-industry-specific collective actions. Based on how oil and gas firms participate in this multi-level co-construction of CSR issues, we created a typology of meta-organizations as infra-sectoral, sectoral, cross-sectoral, and supra-sectoral meta-organizations. (shrink)

This study explores how paradoxical tensions between economic growth and environmental protection are avoided through organizational mythmaking. By examining the European oil and gas supermajors’ “CEO-speak” about climate change, we show how mythmaking facilitates the disregarding, diverting, and/or displacing of sustainability tensions. In doing so, our findings further illustrate how certain defensive responses are employed: regression, or retreating to the comforts of past familiarities, fantasy, or escaping the harsh reality that fossil fuels and climate change are indeed irreconcilable, and projecting, (...) or shifting blame to external actors for failing to address climate change. By highlighting the discursive effects of enacting these responses, we illustrate how the European oil and gas supermajors self-determine their inability to substantively address the complexities of climate change. We thus argue that defensive responses are not merely a form of mismanagement as the paradox and corporate sustainability literature commonly suggests, but a strategic resource that poses serious ethical concerns given the imminent danger of issues such as climate change. (shrink)

Being a controversial industry, oil companies turn to corporate social responsibility (CSR) as a means to obtain legitimacy. Adopting a case study methodology, this research examines the characteristics of CSR strategies and CSR communication tactics of six oil companies by analyzing their 2011–2012 web site content. We found that all six companies engaged in CSR activities addressing the needs of various stakeholders and had cross-sector partnerships. CSR information on these companies’ web sites was easily accessible, often involving the use of (...) multimedia technologies and sometimes social media platforms. Furthermore, to boost the credibility of their CSR messages, these companies utilized a variety of tactics, such as factual arguments and two-sided messages. In sum, this research unveils the interconnectedness among business strategy, CSR practices, and CSR communication in oil companies’ attempt to gain legitimacy in an environment of controversy. The article ends with a discussion of the theoretical and practical implications of the research findings. (shrink)

Relations between non-governmental organizations (NGOs) and companies have been the subject of a sharply increasing amount of publications in recent years within academic business journals. In this article, we critically assess this fast-developing body of literature, which we treat as forming a ‘business and society discourse’ on NGO–business relations. Drawing on discourse theory, we examine 199 academic articles in 11 business and society, international business, and management journals. Focusing on the dominant articulations on the NGO–business relationship and key signifiers they (...) rely on, we analyze the problem-settings of articles in order to reveal the statements that are acceptable and appropriate within this field. Our threefold aim is to (1) identify dominant articulations of NGO–business relations in business and society discourse, (2) expose those articulations that are silenced or suppressed by these dominant articulations, and (3) critically assess possible power effects of these discursive dynamics in the field of discursivity. While business and society discourse on NGO–business relations overall remains open to many different articulations, we also find that those articulations that focus on NGO–business partnerships and governance initiatives tend to privilege collaborative and deliberative ways of engaging and marginalize more adversarial subject positions. We call for more recognition of the potentially constructive role that can be played by conflict. (shrink)

A recent preoccupation in scholarly research is the capacity of firms in developing country industrial clusters to comply with international corporate social responsibility policies and codes of conducts. This research is at an early stage and draws on several—often quite distinct—scholarly traditions. In this paper, we argue that future work in this area would benefit from a more explicit examination of the connection between cluster firms and human rights defined according to the 1948 Universal Declaration of Human Rights and subsequent (...) covenants and treaties. We argue that cluster firms’ adoption of CSR policies, often indiscriminately imposed by global buyers, should be differentiated from firms’ actual human rights practices. Based on this distinction, we elaborate a typology of industrial clusters and identify a set of factors likely to influence their practice. Against this background, we discuss an agenda for future research and elaborate on the potential methodological intricacies related to research on the interface between industrial clusters and human rights. (shrink)

Heeding the call for a deeper understanding of how cross-sector social partnerships can be managed across different contexts, this article integrates ideas from institutional theory with current debate on cross-boundary collaboration. Adopting the point of view of business actors interested in forming a CSSP to address complex social problems, we suggest that “appropriateness” needs shape business approaches toward partnering for social change, exerting an impact on the benefits that can be gained from it. A theoretical framework is proposed that identifies (...) and frames four CSSP styles, as resulting from combinations of dominant institutional orientations in a field and its general level of coherence. We show how, depending on prevailing institutional logics, intervention models underlying the CSSP have to emphasize either the business soundness of the initiative or its social value, together with a consistent leadership style. Moreover, while directive approaches based on concentrated governance structures aimed at setting the rules of the game are shown to prevail in fields characterized by low level of institutional coherence, participative models emerge in more established fields, with CSSP’s promoter playing an integrative role through distributed governance structures. The article concludes with a summary and implications of an institutional-based view of CSSPs. (shrink)

Business Ethics: A European Review, EarlyView.

Corporate Social Responsibility amongst Small and Medium Enterprises is often characterised in the literature as unstructured, informal and ad hoc discretionary philanthropic activities. Drawing insights from recent theoretical/analytical frameworks :52–78, 2010), and on empirical data collected from both Nigeria and Tanzania, we found that CSR practices in SMEs are much more nuanced than previously presented. In addition, SMEs undertake their CSR practices to varying degrees in multiple spaces—i.e. the workplace, marketplace, community and the ecological environment. These CSR practices go beyond (...) philanthropy and in some instances involve institutional works aimed at addressing some of the institutional gaps in the environments where these SMEs operate. The paper makes a contribution by drawing attention to the multiple spaces of CSR practices amongst SMEs, and the institutional works they do, which are often taken for granted in the extant literature. We provide a unique perspective—by arguing that what is frequently conceptualised as philanthropic CSR in Africa is ‘institutional works’. (shrink)

ABSTRACTThis article reports a case study of how organizational antecedents, specifically leadership choices, decisions, culture, and organizational learning, impact and construct the corporate social responsibility initiatives of a Canadian mid‐tier mining firm operating in Ghana. The primary objective of the article is to demonstrate, through an in‐depth study of a single case, that organizational‐ and firm‐level antecedents are a powerful tool for understanding how ethical, socially responsible, and community‐relevant behaviors of a mining firm in a developing area come to be (...) constructed. The article thus contributes to the conceptual and applied literatures on CSR by suggesting that much as the voice of moral suasion, advocacy, and critical censure have been important motive forces behind CSR efforts, it seems that the sustainability and community relevance of CSR efforts are linked to identifiable internal response mechanisms that dispose or enable firms to behave in responsible ways. (shrink)