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In the following article, we propose an analytical framework for the analysis of Corporate Social Responsibility (CSR) Standards based on the paradigmatic nexus of voice and entitlement. We follow the theory of decentration and present the concept of Transnational Norm-Building Networks (TNNs), which — as we argue — comprise a new nexus of voice and entitlement beyond the nation—state level. Furthermore, we apply the analytical framework to the ISO 26000 initiative and the Global Compact. We conclude the article with remarks (...) |
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This article explains problems and opportunities created by standardized ethics initiatives (e.g., the UN Global Compact, the Global Reporting Initiative, and SA 8000) from the perspective of stakeholder theory. First, we outline differences and commonalities among currently existing initiatives and thus generate a common ground for our discussion. Second, based on these remarks, we critically evaluate standardized ethics initiatives by drawing on descriptive, instrumental, and normative stakeholder theory. In doing so, we explain why these standards are helpful tools when it (...) |
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A number of international organizations have identified eliminating gender inequality as a critical element in poverty reduction and development. Given that the Global Compact (GC) was launched, in part, to work toward the achievement of these goals, this article argues that the GC should pay significant attention to gender inequality in its learning network. The article discusses the findings of a review of the GC learning network, which reveals that the issue of gender inequality was missing from its agenda in (...) |
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This paper presents a report on the first Swiss Master Class in Corporate Social Responsibility, which was held between the 8th and 9th December 2006 at HEC Lausanne in Switzerland. The first section of the report introduces the topic of the master class – ‚Corporations as Political Actors – Facing the Postnational Challenge’ – as well as the concept of the master class. The second section gives an overview of papers written by nine young scholars that were selected to present (...) |
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The United Nations Global Compact has difficulties in attracting new voluntary members and inciting them to implement its ten principles. The present article analyzes this implementation deficit from the perspective of Lockean social contract theory and derives new strategies for reducing it. On this view, the UNGC presents itself as the attempt to realize a set of moral norms, typically enforced by an impartial minimal state, protecting its citizens from violations of their natural rights, negative externalities and discrimination by bribed (...) |
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At the UN, important projects laying down transnational corporations' (TNCs) human rights responsibilities have been launched without ever clarifying the relevant theoretical foundations. One of the consequences is that the human rights principles in projects like the 2000 UN Global Compact and the 2003 Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights can be understood in different ways, which should not cause surprise given that their authors come from diverse backgrounds, including economics (...) |
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The United Nations Global Compact (UNGC) is a Global Public Policy Network supporting ten universal principles in the areas of human rights, labor standards, environmental protection, and anticorruption. Networks such as the UNGC are an organizational form with distinct structural properties and specific requirements regarding coordination. Relationships among network partners are typically complex, reciprocal, and trust based. Despite the relevance of trust for a successful coordination of networks, the literature on the UNGC remains relatively silent when it comes to this (...) |
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In multi-stakeholder networks, actors from civil society, business and governmental institutions come together in order to find a common solution to a problem that affects all of them. Problems approached by such networks often affect people across national boundaries, tend to be very complex and are not sufficiently understood. In multi-stakeholder networks, information concerning a problem is gathered from different sources, learning takes place, conflicts between participants are addressed and cooperation is sought. Corporations are key actors in many networks, because (...) |
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In this paper, I aim to critically examine a set of assumptions that pervades human resource management and HR practices. I shall argue that they experience a remarkable ethics deficit, explain why this is so, and explore how the UN Global Compact labor principles may help taking ethics seriously in HRM. This paper contributes to the understanding and critical examination of the undisclosed beliefs underlying theory and practice in human resource management and to the examination of how the UN Global (...) |
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The implementation of corporate social responsibility is crucial for the legitimacy of an organization in today’s globalized economy. This study aims to enrich our knowledge of the implementation of the largest voluntary CSR initiative—the UN Global Compact. Drawing on insights from stakeholder, network, and institutional theory, I derive a positive impact of UNGC participation duration on the implementation level of the UNGC principles, despite potential weaknesses in the initiative’s accountability structure. Moreover, I scrutinize the validity of the newly introduced UNGC (...) |
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This paper extends scholarship on multi-stakeholder initiatives (MSIs) in the context of corporate social responsibility in three ways. First, I outline a framework to analyze the strength of couplings between actors participating in MSIs. Characterizing an MSI as consisting of numerous local networks that are embedded in a wider global network, I argue that tighter couplings (within local networks) and looser couplings (between local networks) coexist. Second, I suggest that this coexistence of couplings enables MSIs to generate policy outcomes which (...) |
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This paper addresses recent calls to study the role of the state in private regulation. Integrating current scholarship on the state as a catalyst of private regulatory regimes with prior literature on regulatory failure and self-regulation, it identifies and problematizes unsettled assumptions used as a starting point by this growing body of research. The case study traces the evolution of public debates and the interaction of different regulatory initiatives dealing with corporate social responsibility issues in Canada’s mining industry. Findings reveal (...) |
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ABSTRACT:Based on theoretical insights of discourse ethics as developed by Jürgen Habermas, we delineate a proposal to further develop the institutionalization of social accounting in multinational corporations (MNCs) by means of “Social Accountability 8000” (SA 8000). First, we discuss the cornerstones of Habermas's discourse ethics and elucidate how and why this concept can provide a theoretical justification of the moral point of view in MNCs. Second, the basic conception, main purpose, and implementation procedure of SA 8000 are presented. Third, we (...) |
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The United Nations Global Compact (UNGC) was created in 2000 to leverage UN prestige and induce corporations to embrace 10 principles incorporating values of environmental sustainability, protection of human rights, fair treatment of workers, and elimination of bribery and corruption. We review and analyze the GC’s activities and impact in enhancing corporate social responsibility since inception. First, we propose an analytical framework which allows us to assess the qualities of the UNGC and its principles in the context of external and (...) |
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ABSTRACT:This article assesses the proliferation of international accountability standards (IAS) in the recent past. We provide a comprehensive overview about the different types of standards and discuss their role as part of a new institutional infrastructure for corporate responsibility. Based on this, it is argued that IAS can advance corporate responsibility on a global level because they contribute to the closure of some omnipresent governance gaps. IAS also improve the preparedness of an organization to give an explanation and a justification (...) |
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Companies that have joined the United Nations Global Compact are required to submit a Communication on Progress, which is an environmental, social, and governance report, to the UNGC every year. If they fail to do so, they are marked and listed as non-communicating on the UNGC website. Using the event study methodology, this study shows that a company that fails to report to the UNGC is penalized in the financial markets with an average cumulative abnormal return of −1.6% over a (...) |
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This paper presents a report on the first Swiss Master Class in Corporate Social Responsibility, which was held between the 8th and 9th December 2006 at HEC Lausanne in Switzerland. The first section of the report introduces the topic of the master class – ‚Corporations as Political Actors – Facing the Postnational Challenge’ – as well as the concept of the master class. The second section gives an overview of papers written by nine young scholars that were selected to present (...) |
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This article reviews the interdisciplinary literature on the UN Global Compact. The review identifies three research perspectives, which scholars have used to study the UN Global Compact so far: a historical perspective discussing the Global Compact in the context of UN-business relations, an operational perspective discussing the composition and impact of its participants, as well as a governance perspective discussing the constraints and opportunities of the initiative as an institutionalized arena for addressing global governance gaps. The authors contrast these three (...) |
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ABSTRACT:A common complaint by academics and practitioners is that the application of international accountability standards (IAS) does not lead to significant improvements in an organization’s social responsibility. When organizations espouse their commitment to IAS but do not put forth the effort necessary to operationally enact that commitment, a “credibility cover” is created that perpetuates business as usual. In other words, the legitimacy that organizations gain by formally adopting the standards may shield the organization from closer scrutiny, thus enabling rather than (...) |
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We examine market reactions to publicly held multinational firms announcing their affiliation with the United Nations Global Compact (UNGC). The UNGC is a voluntary initiative to support four areas of United Nations viz. Human Rights, Labor, Environmental, and Anti-Corruption. Because firms must file annual Communication on Progress (COP) reports toward these initiatives, we argue this creates a differentiating transparency of interest to stakeholders. Using a sample of 175 global firms, we find support to the theory for joining the UNGC. Returns (...) |
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The United Nations Global Compact – which is a Global Public Policy Network advocating 10 universal principles in the areas of human rights, labor standards, environmental protection, and anticorruption – has turned into the world's largest corporate responsibility initiative. Although the Global Compact is often characterized as a promising way to address global governance gaps, it remains largely unclear why this is the case. To address this problem, we discuss to what extent the initiative represents an institutional solution to exercise (...) |
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The United Nations (UN) Global Compact’s journey over the last 12 years can be summarized as building and integrating UN issues into the global corporate responsibility movement. This summary begs the question as to how a policy speech developed for the UN secretary-general has evolved into an innovative public–private partnership initiative. This article argues that the following four factors contributed to creating enabling ingredients for the UN Global Compact’s growth: continued relevance of the initiative’s underlying idea, sustained institutional leadership support, (...) |
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The United Nations Global Compact – which is a Global Public Policy Network advocating 10 universal principles in the areas of human rights, labor standards, environmental protection, and anticorruption – has turned into the world's largest corporate responsibility initiative. Although the Global Compact is often characterized as a promising way to address global governance gaps, it remains largely unclear why this is the case. To address this problem, we discuss to what extent the initiative represents an institutional solution to exercise (...) |
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Regulatory schema has shifted from government to governance-based systems. One particular form that has emerged at the international level is the multi-stakeholder voluntary code of conduct (MSVC). We argue that such codes are not only simply mechanisms by which various stakeholders attempt to govern the action of the corporation but also systems by which each stakeholder attempts to gain or retain some legitimacy goal. Each stakeholder is motivated by strategic legitimacy goal to join the code, and once a member, is (...) |
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This article develops an "ordonomic" approach to business ethics in the age of globalization. Through the use of a three-tiered conceptual framework that distinguishes between the basic game of antagonistic social cooperation, the meta game of rule-setting, and the meta-meta game of rule-finding discourse, we address three questions, the answers to which we believe are crucial to fostering effective business leadership and corporate social responsibility. First, the purpose of business in society is value creation. Companies have a social mandate to (...) |
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Since it was first introduced 13 years ago in 2000, the UN Global Compact has become the world's largest voluntary corporate responsibility initiative. The benefits for companies that have voluntarily affiliated with the UN Global Compact have been little documented from an empirical perspective, especially regarding the integration of this information by capital markets. This study attempts to address this question, drawing on a sample of French companies listed on the SBF 250 index. Results suggest that, within the French context (...) |
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In multi‐stakeholder networks, actors from civil society, business and governmental institutions come together in order to find a common solution to a problem that affects all of them. Problems approached by such networks often affect people across national boundaries, tend to be very complex and are not sufficiently understood. In multi‐stakeholder networks, information concerning a problem is gathered from different sources, learning takes place, conflicts between participants are addressed and cooperation is sought. Corporations are key actors in many networks, because (...) |
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The article discusses the role of the UN Global Compact in the emerging global corporate social responsibility infrastructure. It evaluates the debate around the effectiveness and legitimacy of the UNGC alongside the arguments of its supporters and critics and thereby introduces the Thematic Symposium contributions. The article further identifies three theoretical perspectives that are used by scholars to discuss the performance of the UNGC: economic, socio-historical, and normative. It proposes that these perspectives can serve as generic distinctions with direct relevance (...) |
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The United Nations Global Compact is with currently more than 6,000 voluntary participants the world’s largest corporate citizenship initiative. This article first analyzes three critical allegations often made against the Compact by looking at the academic and nonacademic literature. (1) The Compact supports the capture of the United Nations by “big business.” (2) Its 10 principles are vague and thus hard to implement. (3) The Compact is not accountable due to an absence of verification mechanisms. This article discusses these three (...) |
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The United Nations Global Compact has generated a lively debate among academics, activists, and policy practitioners. Given the scope and ambition of this program, and the prestige of the United Nations associated with it, its supporters believe it will fundamentally reshape how businesses practice corporate social responsibility. Its critics view it as a flawed program because it does not impose verifiable obligations and does not compel its participants to adhere to their program obligations. We present an approach to study CSR (...) |
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