Despite increased academic and practitioner interest in codes of conduct, there has been little research into the actual compliance of suppliers in developing countries with the codes of conduct of multinational corporations. This paper addresses this lack by analysing Chinese suppliers' level of compliance with Swedish toy retailers' codes of conduct. Based on unannounced and unofficial interviews with employees of Chinese suppliers, the study shows that all of the nine studied suppliers breached some of the standards in the toy retailers' (...) codes, with over two-thirds of the suppliers not complying with the majority of the studied standards. While there are different explanations of this lack of compliance, the main explanation seems to be that Chinese suppliers successfully deceive toy retailers' monitoring organisations by decoupling the formal monitored part of their organisation from the actual operational part of their organisation. The paper concludes with a discussion of how to increase compliance with MNCs' codes of conduct. (shrink)

The social dimension of sustainable development and its impact on supply chains have so far received less attention than the environmental dimension. The aim of the research is to explore the intersection between social issues, corporate social responsibility actions and performance outcomes. A structured literature review of social issues in supply chains is presented, analysing the research published so far in peer-reviewed publications. Linking CSR and supply chain management allows the exploration of strategies and performance outcomes with a focus on (...) social issues. The corresponding responsible supply chain actions adopted by firms to address these issues are grouped into communication, compliance and supplier development strategies. Social and economic as well as buyer and supplier performance are identified as the key outcomes, but the interactions among these constructs would require further research. This paper contributes to the understanding of managing social issues in supply chains by linking social issues, responsible supply chain actions and performance outcomes. The paper consolidates related research by offering an overarching conceptual framework and points to future research directions and simultaneously provides insights into the management of social issues in supply chains. (shrink)

This article examines whether the involvement of stakeholders in the design of corporate codes of conduct leads to a higher implementation likelihood of the code. The empirical focus is on Occupational Safety and Health (OSH). The article compares the inclusion of OSH issues in the codes of conduct of 30 companies involved in International Framework Agreements (IFAs), agreed upon by trade unions and multinational enterprises, with those of a benchmark sample of 38 leading Multinational Enterprises in comparable industries. It is (...) found that codes of the IFA group have a higher implementation likelihood in OSH than the codes of the benchmark group. Further, European firms, culturally more used to stakeholder involvement, score higher than their US and Japanese competitors, and hence are more capable of addressing the safety and health issues in international supply chains. The implementation likelihood of codes seems closely related to the type of corporate CSR approach. (shrink)

Conflict zone entrepreneurs—local entrepreneurs running small businesses in conflict settings—have paradoxical impacts on stability: holding the ability both to foster peace but also to enhance conflict. Prior scholarly work has been unable to explain this divergence, as existing entrepreneurial indicators do not account for fundamental peacebuilding elements. In response, the article consolidates divergent fields of study, applies paradox theory to analyze underlying tensions in the field, and reframes entrepreneurship through a peacebuilding lens based on intergroup inclusivity and value-creating business practices. (...) Using several cases, this article shows how entrepreneurial activity in conflict zones can foster sustainable peace, limited peace, or conflict, arguing that entrepreneurship based on value-creating and inclusive practices can result in pro-peace outcomes. The article offers policy recommendations for local governments and the humanitarian sector seeking to use entrepreneurship in conflict zones to promote peace. (shrink)

Conflict zone entrepreneurs—local entrepreneurs running small businesses in conflict settings—have paradoxical impacts on stability: holding the ability both to foster peace but also to enhance conflict. Prior scholarly work has been unable to explain this divergence, as existing entrepreneurial indicators do not account for fundamental peacebuilding elements. In response, the article consolidates divergent fields of study, applies paradox theory to analyze underlying tensions in the field, and reframes entrepreneurship through a peacebuilding lens based on intergroup inclusivity and value-creating business practices. (...) Using several cases, this article shows how entrepreneurial activity in conflict zones can foster sustainable peace, limited peace, or conflict, arguing that entrepreneurship based on value-creating and inclusive practices can result in pro-peace outcomes. The article offers policy recommendations for local governments and the humanitarian sector seeking to use entrepreneurship in conflict zones to promote peace. (shrink)

Business codes are a widely used management instrument. Research into the effectiveness of business codes has, however, produced conflicting results. The main reasons for the divergent findings are: varying definitions of key terms; deficiencies in the empirical data and methodologies used; and a lack of theory. In this paper, we propose an integrated research model and suggest directions for future research.

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)

The Russia–Ukraine war has challenged our understanding of corporate social responsibility (CSR). Whereas CSR is traditionally associated with business self-regulation that benefits business and society, the conflict has revealed new forms of what we call “partisan CSR.” Based on comprehensive data from Fortune Global 500 firms, this study discovers that in particular Western, but also some non-Western, corporations have engaged in partisan CSR activities, ranging from (1) strengthening Ukraine’s economy, to (2) enhancing security and protection for Ukrainian citizens, (3) providing (...) military support, (4) weakening Russia’s economy, and (5) supporting Ukraine in symbolic ways. By comparison, several mostly non-Western firms, e.g. from Asian countries, have chosen to be “neutral”, while, in some cases, exploiting economic opportunities arising from the conflict. This study also discusses major drivers of these CSR responses, including political climate, resource availability and economic dependency, isomorphism, and regulatory requirements. Our findings suggest a shift from political CSR to partisan CSR, which we expect to become more important with growing geopolitical divides and territorial conflicts. (shrink)

The private sector is vital to building and sustaining peace. These efforts are often recognized as “Business for Peace” or “Peace through Commerce.” Academic research on Business for Peace is almost twenty years old and tends to be theoretical. This paper is the first to present qualitative findings on businesses operating in an active violent conflict such as the case of Iraq. Companies in Iraq operate under the constant threat of violence and yet many still try to enhance peace through (...) operations. We interviewed more than 40 participants who were business owners, managers, government officials, and international policymakers who were active in the Iraqi theater. We discuss our findings that relate to the perception of company activities as peace enhancing into four categories: capacity building, rule of law, social cohesion, and local engagement. Our findings support the existing business and peace categories of rule of law and social cohesion. Our findings also suggest that current theory may be missing capacity building and local engagement as important business activities to promote peace. We conclude by noting the limitations of the paper and the need for more qualitative research. (shrink)

The private sector is vital to building and sustaining peace. These efforts are often recognized as “Business for Peace” or “Peace through Commerce.” Academic research on Business for Peace is almost twenty years old and tends to be theoretical. This paper is the first to present qualitative findings on businesses operating in an active violent conflict such as the case of Iraq. Companies in Iraq operate under the constant threat of violence and yet many still try to enhance peace through (...) operations. We interviewed more than 40 participants who were business owners, managers, government officials, and international policymakers who were active in the Iraqi theater. We discuss our findings that relate to the perception of company activities as peace enhancing into four categories: capacity building, rule of law, social cohesion, and local engagement. Our findings support the existing business and peace categories of rule of law and social cohesion. Our findings also suggest that current theory may be missing capacity building and local engagement as important business activities to promote peace. We conclude by noting the limitations of the paper and the need for more qualitative research. (shrink)

Market-based social governance schemes that establish standards of conduct for producers and traders in international supply chains aim to reduce the negative socioenvironmental effects of globalization. While studies have examined how characteristics of social governance schemes promote socially responsible producer behavior, it has not yet been examined how these same characteristics affect consumer behavior. This is a crucial omission, because without consumer demand for socially produced products, the reach of the social benefits is likely to be limited. We develop a (...) comprehensive model that links twocharacteristics of market-based social governance schemes—(1) stringency and enforcement of requirements, and (2) promotion—to two conditions required for governance schemes to generate significant social benefits: (1) socially responsible behavior of participating firms; and (2) consumer demand for socially produced products which, in turn, expands products produced according to social governance schemes, and thus, the quantity of social benefits. We discuss market-based social governance schemes in the context of fair trade coffee. (shrink)

Codes of conduct have proliferated not only at company level, but also at supra-and suborganisational levels. However, the latter have remained an under-researched area within the CSR literature. Hence, this article examined what range of organisational and sub-organisational codes large companies - here the FTSE100 constituent companies -have developed. The article isolated seven different types of organisational and sub-organisational codes, which together with six supraorganisational ones form a lattice-work of intermeshing documents. Such a division of labour between types of codes (...) has two significant implications for CSR practice and research. In terms of corporate practice, an analysis of the content of the organisational and sub-organisational codes indicates that companies seem to enter into generalised commitments in the more visible documents, whereas other aspects, in particular more coercive aspects of CSR, get buried in the lower levels of the code hierarchy. In terms of research methodology, the differentiation between codes highlights that an analysis of codes of conduct alone is insufficient to establish what the CSR approach of a company is. Rather, it is the entire range of codes at organisational and sub-organisational levels that scholars of codes of conduct should be concerned with. (shrink)

Although not frequently regarded as controversial, digital communications industries continue to be sites of CSR conflicts, particularly internationally. Investigating CSR issues in the digital communications industry is pertinent because in addition to being one of the fastest growing industries, it has created a host of new CSR issues that require further attention. This case study examines an incident in early 2010, when Google Inc. China and the Chinese government reached an impasse that produced a large-scale, transnational conflict that reached a (...) head ostensibly over state-mandated censorship, ultimately prompting Google to withdraw from the mainland Chinese market and redirect its activities to Hong Kong. We track Google's experience in China, both to explore its strategies and to consider the implications for corporate social responsibility. We situate Google's drastic decision to withdraw entirely from mainland China in the complex multiplicity of ethical, cultural, and political conflicts that affect this particular case. On a broader level, the incident raises the question of how multinational corporations (MNCs) can achieve corporate growth while negotiating the highly sensitive sociopolitical and institutional environments of foreign nations. (shrink)

The advent of the sharing/gig economy has created new forms of employment embedded in new labor practices. Advocates of the sharing economy frame it in salutary terms, lauding its sustainability, decentralization, and employment-generation capabilities. The workers of the gig economy are seen as independent contractors under law rather than employees, and the owners of the gig economy platforms celebrate this categorization as a form of entrepreneurship. In this paper, we use insights from the entrepreneurship literature to examine this claim critically. (...) Taking Uber as an exemplar, we look at the arguments behind the company’s contention that its drivers are actually “partners” who are engaged in entrepreneurship, and demonstrate why these claims are problematic. We utilize a stakeholders’ theory framework that initiates a dialogue between ethics and entrepreneurship in order to focus on the mechanisms that help ensure ethical practices in the sharing economy and to examine the efficacy of these mechanisms. We also discuss the role of the entrepreneurship literature in promoting entrepreneurial behaviors that lead to income inequality. We conclude by arguing that the sharing economy reflects the intensification of an ongoing neoliberal trend that misuses the concept of entrepreneurship in order to justify certain forms of employment practices, and make a case for regulatory oversight. (shrink)

Using panel data of 4,244 company years, we examine whether and how corporate social performance affects a firm's capacity to achieve profitable sales in foreign markets. Based on our extension of instrumental stakeholder theory into the international arena, we hypothesized a U-shaped relationship between CSP and multinationality. Results supported our contention that multinational enterprises need to be substantially committed to social performance objectives if they are to recoup the cost of their CSP investments, and improve their capacity to compete in (...) foreign markets. MNEs engaged in intermediate levels of CSP achieve lower levels of multinationality than firms operating at either anchor of the social performance continuum. In addition, this study demonstrates that CSP moderates a well-established relationship in international business literature - the relationship between R&D investment and a firm's multinationality. Implications for research and practice are discussed. (shrink)

In recent years, there has been increasing managerial and academic attention given to a variety of mechanisms for companies to respond to stakeholder concerns about global business ethics. One area that merits further analysis is the role of industry‐level cooperation regarding issues in global business ethics such as labor practices. There are two main issues that we will address in this article: institutional pressures that predict when an industry will create a code of conduct and institutional complements for an industry‐level (...) code of conduct to be “successful” with regard to responding to stakeholder concerns about international business operations. We offer a number of propositions—bringing together work from both the corporate social responsibility and institutional theory literatures—with regard to both predictors and complements of industry self‐regulation in reference to labor practices. (shrink)

An interdisciplinary theoretical framework is proposed for analysing justice in global working conditions. In addition to gender and race as popular criteria to identify disadvantaged groups in organizations, in multinational corporations (MNCs) local employees (i.e. host country nationals (HCNs) working in foreign subsidiaries) deserve special attention. Their working conditions are often substantially worse than those of expatriates (i.e. parent country nationals temporarily assigned to a foreign subsidiary). Although a number of reasons have been put forward to justify such inequalities—usually with (...) efficiency goals in mind—recent studies have used equity theory to question the extent to which they are perceived as fair by HCNs. However, since perceptual equity theory has limitations, this study develops an alternative and non-perceptual framework for analysing such inequalities. Employment discrimination theory and elements of Rawls’s ‘Theory of Justice’ are the theoretical pillars of this framework. This article discusses the advantages of this approach for MNCs and identifies some expatriation practices that are fair according to our non-perceptual justice standards, whilst also reasonably (if not highly) efficient. (shrink)

Our goals in this article are to summarize the existing literature on the role business can play in creating sustainable peace and to discuss important avenues for extending this research. As part of our discussion, we review the ethical arguments and related research made to date, including the rationale and motivation for businesses to engage in conflict resolution and peace building, and discuss how scholars are extending research in this area. We also focus on specific ways companies can actively engage (...) in conflict reduction including promoting economic development, the rule of law, and principles of external valuation, contributing to a sense of community, and engaging in track-two diplomacy and conflict sensitive practices. We conclude by developing a set of future research questions and considerations. (shrink)

Labour and employment law no longer has a monopoly on regulating labour relations and is facing a crisis as its effectiveness is questioned. Codes of conduct adopted by companies to recognise their social responsibility for the global supply chain are instruments that can usefully complement labour and employment law. The aim of this paper is to analyse in depth the legal nature of codes of conduct and their impact on labour and employment law. Will the use of codes of conduct (...) reinforce the crisis of labour and employment law in the era of globalisation or will these codes be part of a solution to this crisis? Do we have to consider codes of conduct as competitors to labour and employment law or as an opportunity for rethinking the way that labour and employment law norms should be produced and applied? (shrink)

When is industry self-regulation (ISR) a legitimate form of governance? In principle, ISR can serve the interests of participating companies, regulators and other stakeholders. However, in practice, empirical evidence shows that ISR schemes often under-perform, leading to criticism that such schemes are tantamount to firms marking their own homework. In response, this paper explains how current management theory on ISR has failed to separate the pragmatic legitimacy of ISR based on self-interested calculations, from moral legitimacy based on normative approval. The (...) paper traces three families of management theory on ISR and uses these to map the pragmatic and moral legitimacy of ISR schemes. It identifies tensions between the pragmatic and moral legitimacy of ISR schemes, which the current ISR literature does not address, and draws implications for the future theory and practice of ISR. (shrink)

Existing literature on business and peace is in need of more examples of business practices, and at a more dissaggregated level, within conflict-sensitive regions that promote peace. This article examines whether business practices within a conflict-sensitive region, the island of Cyprus, are consistent with existing business and peace literature and how the specific business practices promote peace. In particular, the article examines in detail two business practices: Green Line Trade and cross-territorial joint ventures and promotions. Our findings suggest that existing (...) business activities in Cyprus are consistent with those proposed by the literature, but their significance in promoting peace was limited. We propose an alternative explanation for why such business practices were pursued in Cyprus at the time, drawing on studies of identity-based conflicts. And we suggest that business has a unique role to play compared with other public institutions when addressing identity conflict. Finally, we suggest that both theoretical and empirical studies of business and peace should include consideration of how business practices might help alleviate identity-related issues in conflict-sensitive regions. (shrink)

According to the reports in the past decade, some Asian subcontractors, mainly Taiwan, Hong Kong and Korea transnational corporations, tend to be labor abusive in their overseas investment destinations like China or Southeast Asia. Taking Vietnam as an example, this paper raises questions as to why Taiwanese transnational companies can control workplace unions in a trade-union-supportive regime. Given the government s constraint of political rights, and the individualized workplace unions, the function of trade unions in Vietnam is destined to be (...) limited. The trade unions turn out be an arm of management, rather than representing workers interests in these transnational companies. This article also explores the influence of the newly developed codes of conducts from Western buyers. In the survey of three companies which are required to follow the codes of conduct by buyers, trade unions had no more freedom than those in companies without codes of conduct. The paper discusses the implications of this research, offering strategies for labor rights improvements. (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)

Despite the centrality of the topic for the debate on sustainability, future generations have largely been ignored by business ethics. This neglect is in part due to the enormous philosophical challenges posed by the concepts of future generations and intergenerational duties. This article reviews some of these difficulties and defends that much clarity would be gained from making a distinction between future generations and the next generations. It also argues that the concept of next generations offers a better starting point (...) for business ethics to incorporate the topic in its research agenda. We then suggest four potential pathways to explore this territory. The four approaches build on the notion of organizations as communities with memory and vision, on the narrative shape of organizational life, on the affinity of stakeholders with the next generation, and on systems of indirect reciprocity. These first two approaches are connected to communitarian approaches to business ethics, and the last two engage in a dialog with contractarian views and stakeholder theory. The article ends with some implications for theory and practice. (shrink)

This review shows how the relationship between nongovernmental organizations (NGOs) and businesses has been examined in business and society, management, and international business (IB) literatures. Altogether 88 relevant studies have been identified through the analysis of article abstracts from 11 leading journals in these fields. The articles have been classified into three categories according to their focus: NGO—business interface, NGO—business— government interface, and NGOs as one of many corporate stakeholders. Six main themes are identified: (a) Activism and NGO influence, (b) (...) dyadic partnership (NGO—business), (c) cross-sector partnership (NGO—business— government), (d) global governance and standardization, (e) national-level governance, and (f) stakeholder management. The state of the research topic is assessed, and implications and avenues for further research are provided. (shrink)

ABSTRACT:Although the literature on multi-stakeholder initiatives for sustainability has grown in recent years, it is scattered across several academic fields, making it hard to ascertain how individual disciplines, such as business ethics, can further contribute to the debate. Based on an extensive review of the literature on certification and principle-based MSIs for sustainability, we show that the scholarly debate rests on three broad themes : theinputinto creating and governing MSIs; theinstitutionalizationof MSIs; and theimpactthat relevant initiatives create. While our discussion reveals (...) the theoretical underpinnings of the 3Is, it also shows that a number of research challenges related to business ethics remain unaddressed. We unpack these challenges and suggest how scholars can utilize theoretical insights in business ethics to push the boundaries of the field. Finally, we also discuss what business ethics research can gain from theory development in the MSI field. (shrink)

In recent years, there has been increasing managerial and academic attention given to a variety of mechanisms for companies to respond to stakeholder concerns about global business ethics. One area that merits further analysis is the role of industry‐level cooperation regarding issues in global business ethics such as labor practices. There are two main issues that we will address in this article: institutional pressures that predict when an industry will create a code of conduct and institutional complements for an industry‐level (...) code of conduct to be “successful” with regard to responding to stakeholder concerns about international business operations. We offer a number of propositions—bringing together work from both the corporate social responsibility and (neo)institutional theory literatures—with regard to both predictors and complements of industry self‐regulation in reference to labor practices. (shrink)

We examine three business-related initiatives designed to achieve peace positive impacts in the Cape Town township of Langa. Each was seemingly straightforward in its purpose, logic, and implementation. However, their positive intent was frustrated and their impacts ultimately harmful to their articulated goals. Understanding why this is so can be difficult in violent, turbulent, and information-poor environments such as Langa, confounding progress even by actors with ethical intentions. To aid in sense making and to provide insight for more positive future (...) action, we develop from 125 interviews conducted for this study causal loop models for these initiatives within their conflict subsystems. These explain the perverse impacts of these initiatives by illuminating their (lack of) salience to key conflict factors, their (in)sufficiency to effect positive change in light of competing systems dynamics, and their (in)attentiveness to interdependencies with the intentions and actions of others. We thus contribute to understanding of the factors required to achieve positive social outcomes in more extreme contexts. More generally, we demonstrate the value of systems analysis both for scholarship related to business and peace and for reducing blind spots that can inhibit sound planning for ethical business action amidst complexity. (shrink)

This article examines four leading multi-stakeholder labour monitoring organizations. All operating in the maquiladora industry, these organizations are viewed in light of the growing global trend toward industry self-regulation, or what has been referred to as the 'global out-sourcing of regulation'. Their Board compositions, codes of conduct and monitoring and enforcement strategies are all examined as a means of tentatively positioning these organizations along an 'egoist-instrumentalist-moralist' ethical culture continuum. Such a framing provides insights into the perceived salience of these organizations' (...) broader stakeholders, the effectiveness of codes of conduct on workplace practices more generally, and the role that ethics plays in the governance and accountability of these increasingly important types of organizations. (shrink)

The field of “business for peace” recognizes the role that businesses can play in peacebuilding. However, like much of the discussion concerning business in conflict zones, it has prioritized the view of multinationals, often overlooking the role of indigenous local firms. The economic, social, and intergroup dynamics experienced by local businesses in conflict zones are understudied, with the current paper beginning by positioning micro- and small enterprises in the peacebuilding debate, then engaging with multidisciplinary works to understand how they foster (...) peace. Through a case study set in north Lebanon, we conducted semi-structured interviews with twenty-three MSE owners in one industry who operate across sectarian divisions and with recently displaced Syrian refugees. Our findings indicate that local business activity can simultaneously promote peace and foster conflict, with peacebuilding improved when intergroup differences are reduced within the operating environment. Furthermore, the importance of economic development was elevated for local businesses, suggesting that peace through mechanisms such as social development, the rule of law, and training, is only achieved if economic needs are alleviated through these measures. We conclude by citing how contextual factors in conflict zones can enhance intergroup differences, and how resolving such factors can promote peacebuilding, with further empirical work needed in this area. (shrink)