Increasing attention to the issue of child labor has been reflected in codes of conduct that emerged in the past decade in particular. This paper examines the way in which multinationals, business associations, governmental and non-governmental organizations deal with child labor in their codes. With a standardized framework, it analyzes 55 codes drawn up by these different actors to influence firms' external, societal behavior. The exploratory study helps to identify the main issues related to child labor and the use of (...) voluntary instruments such as codes of conduct. Apart from a specific indication of the topics covered by the code, especially minimum-age requirements, this also includes monitoring systems and monitoring parties. Most important to company codes are the sanctions imposed on business partners in case of non-compliance. Severe measures may be counterproductive as they do not change the underlying causes of child labor and can worsen the situation of the child workers by driving them to more hazardous work in the informal sector. This underlines the importance of a broad rather than a restrictive approach to child labor in codes of conduct. The paper discusses the implications of this study, offering suggestions for future research. (shrink)

This paper examines some of the paradoxes and dilemmas facing firms in the extractive sector when they attempt to take on a more stakeholder-responsive orientation towards issues of environmental and social responsibility. We describe the case of Shell and the Ogoni and attempt to draw out some of the lessons of that case for more sustainable operations in the developing world. We argue that firms such as Shell, Rio Tinto and others may well exhibit increasingly stakeholder-responsive behaviours at the corporate, (...) strategic level. However for reasons of strategy, lack of competency or institutional will this increasing level of corporate responsiveness may not be mirrored effectively in dealings between subsidiary business units and their most important direct stakeholders: for example local communities and in the developing world. We contrast the struggles of Shell to replicate its corporate stakeholder-responsiveness at the local level in Nigeria with the experiences of other firms that seem to have developed managerial capabilities at a somewhat deeper level throughout the firm with consequent benefits both for stakeholders and the business. (shrink)

Over the last one hundred and fifty years, the extraction and processing of non-renewable resources has provided the basis for the three industrial revolutions that have led to the modern economies of the developed world. In the process, the nature of resource extraction firms has also changed dramatically, from small-scale operations exploiting easily accessible deposits to large, vertically integrated, capital intensive transnational corporations characterized by oligopolistic competition. In the last ten to fifteen years, coinciding with processes of economic globalization, another (...) major change has been occurring as resource extraction industries have been shifting their operations from developed to developing countries. This shift has greatly impacted the populations of these countries and raises a variety of ethical issues. This article investigates the nature of these changes and the ethical issues that arise, focusing in particular on the development impact of the activities of these industries and the potential adequacy of different policy approaches to regulating them. (shrink)

: We discuss the role that transnational corporations should play in developing global governance, creating a framework of rules and regulations for the global economy. The central issue is whether TNCs should provide global rules and guarantee individual citizenship rights, or instead focus on maximizing profits. First, we describe the problems arising from the globalization process that affect the relationship between public rules and private firms. Next we consider the position of economic and management theories in relation to the social (...) responsibility of the firm. We argue that instrumental stakeholder theory and business and society research can only partially solve the global governance issue, and that more recent concepts of corporate citizenship and republican business ethics deliver theoretically and practically helpful, fresh insights. However, even these need further development, especially with regard to the legitimacy of corporate political activity. (shrink)

Since the end of the Cold War, there has been a substantial increase in the number of intrastate conflicts around the world. During the last two decades, there have been more than 125 violent conflicts resulting in 7 million deaths (Smith, 2003). Given the prevalence of these conflicts, the inability of some governments to resolve them, and the reluctance of multilateral institutions to intervene, multinational enterprises (MNEs) engaged in international ventures may find themselves in situations where they must respond to (...) violent conflict to minimize investment risk and to promote stability in countries where they operate. Research on business response to violent conflict has tended to treat conflict as a homogeneous problem, when in fact conflicts vary on several dimensions. The purpose of this article is to extend the research with a focus on how the characteristics of the conflict affect MNE intervention strategies. Drawing on insights from the research on conflict resolution and the risk that violent conflict poses to the firm, we develop a framework and propositions that provide guidance to MNEs confronting violent conflict with respect to existing projects or facilities. (shrink)

Four international codes of conduct (those of the International Chamber of Commerce, the Organization for Economic Cooperation and Development, the International Labor Organization, and the United Nations Commission on Transnational Corporations) are analyzed to determine the ethical bases of the behaviors they prescribe for multinational enterprises (MNEs). Although the four codes emphasize different aspects of business behavior, there is substantial agreement regarding many of the moral duties of MNEs. It is suggested that MNEs are morally bound to recognize the codes (...) and to take them into account when engaging in international business. (shrink)

This article explores the international dimensions of multinationals' corporate political activities, focusing on an international issue—climate change—being implemented differently in a range of countries. Analyzing data from Financial Times Global 500 firms, it examines the influence on types and process of multinationals' political strategies, reckoning with institutional contexts and issue saliency. Findings show that the type of political activities can be characterized as an information strategy to influence policy makers toward market-based solutions, not so much withholding action on emission reduction. (...) Moreover, multinationals pursue self-regulation, targeting a broad range of political actors. The process of political strategy is mostly one of collective action. International differences particularly surface in the type of political actors aimed at, with U.S. and Australian firms focusing more on nongovernment actors (voluntary programs) than European and Japanese firms. Influencing home-country (not host-country) governments is the main component of international political strategy on climate change. (shrink)

This book argues that ethical business behavior can be enhanced by taking fuller account of human nature, particularly with respect to the need for creating relatively small communities within the corporation. Timothy Fort discusses this premise in relation to the three predominant theories of business ethics--stakeholder, virtue, and contract. Drawing heavily from philosophy, he analyzes traditional business ethics and legal theory. Overall, his work provides a good example of how to integrate normative and empirical studies in business ethics, a task (...) that often receives substantial discussion in academic journals. (shrink)