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)

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)

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 article examines joint action initiatives among small- and medium-sized enterprises in the manufacturing industries in developing countries in the context of the ascendancy of corporate social responsibility and the proliferation of a variety of international accountability tools and standards. Through empirical fieldwork in the football manufacturing industry of Jalandhar in North India, the article documents how local cluster-based SMEs stay coupled with the global CSR agenda through joint CSR initiatives focusing on child labor. Probing further, however, also reveals patterns (...) of selective decoupling in relation to core humanitarian and labor rights issues. Through in-depth interviews with a wide range of stakeholders involved in the export-oriented football manufacturing industry of Jalandhar in North India, the article highlights the dynamics of coupling and decoupling taking place, and how developing country firms can gain credit and traction by focusing on high visibility CSR issues, although the plight of workers remains fundamentally unchanged. The authors revisit these findings in the discussion and concluding sections, highlighting the main research and policy implications of the analysis. (shrink)

Interest shown on the environmental impact of operations of multinational enterprises in developing countries has grown significantly recently, and has fuelled a heated public policy debate. In particular, there has been interest in the environmental degradation of host communities and nations resulting from the operations of multinational oil companies in developing countries. This article examines the issue of environmental costs and responsibilities resulting from oil exploitation and production in the Niger Delta region of Nigeria. The case study is based, in (...) part, upon series of interviews with key stakeholders in the Nigerian oil industry. The article further examines the implications of the current practice and policies of multinational oil companies with respect to environmental impact of oil exploitation. The study’s findings illustrates that it is becoming increasingly apparent to oil companies that pollution prevention pays while pollution does not and under pressure from stakeholder groups, oil companies now routinely incorporate environmental impact assessments into their corporate strategy. (shrink)

Calls for greater corporate responsibility have resulted in the creation of various extralegal mechanisms to shape corporate behavior. The number and popularity of corporate responsibility standards has grown tremendously in the last three decades. Current estimates suggest there may be over 300 standards that address various aspects of corporate behavior and responsibility (e. g., working conditions, human rights, protection of the natural environment, transparency, bribery). However, little is known about how these standards relate directly to the notion of peace through (...) commerce and the reduction of violent conflict in the world. This article explores the relationship between corporate responsibility standards and peace through commerce. After a summary of the current state of standards with respect to the creation of peace and the reduction of violent conflict, I explore concerns regarding the effectiveness of standards in shaping corporate behavior and the potential future role standards could have in creating peace through commerce. (shrink)

Based on the findings of a qualitative empirical study of corporate social responsibility (CSR) in Swiss MNCs and SMEs, we suggest that smaller firms are not necessarily less advanced in organizing CSR than large firms. Results according to theoretically derived assessment frameworks illustrate the actual implementation status of CSR in organizational practices. We propose that small firms possess several organizational characteristics that are favorable for promoting the internal implementation of CSR-related practices in core business functions, but constrain external communication and (...) reporting about CSR. In contrast, large firms possess several characteristics that are favorable for promoting external communication and reporting about CSR, but at the same time constrain internal implementation. We sketch a theoretical explanation of these differences in organizing CSR in MNCs and SMEs based on the relationship between firm size and relative organizational costs. (shrink)

While tourism's positive contributions to societies have long been debated, commerce based tourism activities can strengthen peaceful societies by adhering to sustainable tourism principles. This study utilizes content analysis to examine 136 tourism practices from four major awards programs for their contributions to sustainability and peace. Specific practices which illuminate each of these contributions are highlighted. The findings reveal the most common initiatives focus on environmental quality, economic development, and community nourishment efforts, with substantially less focus on initiatives to engage (...) citizen diplomacy and increase transparency. The use of awards programs to further sustainable tourism is discussed, and suggestions for future research in this important area of study are shared. (shrink)

While Corporate Social Responsibility (CSR) has traditionally been the domain of the corporate sector, recognition of the growing significance of the Small and Medium Sized Enterprise (SME) sector has led to an emphasis on their social and environmental impact, illustrated by an increasing number of initiatives aimed at engaging SMEs in the CSR agenda. CSR has been well researched in large companies, but SMEs have received less attention in this area. This paper presents the findings from a U.K. wide study (...) of socially responsible SMEs. The 24 companies studied were chosen as “exemplars” of␣CSR in SMEs. The aim of this study therefore is to progress understanding of both the limitations on and opportunities for CSR in SMEs through the exploration of exemplary characteristics in the study companies. Key areas of investigation were CSR terminology, the influence of managerial values, the nature of SME CSR activities, motivation for and benefits from engaging in CSR, and the challenges faced. The results of this study demonstrate some of the exemplary goals and principles needed to achieve social responsibility in SMEs, and begin to provide knowledge that could be used to engender learning in other SMEs. In particular, there is evidence that stakeholder theory may provide a framework in which SMEs and CSR can be understood. SMEs prefer to learn through networking and from their peers, so this is a possible avenue for greater SME engagement in CSR. This would require strong leadership or “championing” from individuals such as highly motivated owner–managers and from exemplary companies as a whole. (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)

Peace through Commerce literature has discussed how business can engage in more responsible behavior in order to mitigate conflict risk and promote conflict resolution. However, in many conflict situations, the question arises at what point does it become impossible for a firm to remain engaged on the ground and still function as an ethical business? This article discusses the role of divestment activist groups in changing institutional norms among MNCs operating in conflict situations. Institutional norms shift from firms conducting "business (...) as usual" without heed to conflict impact, to engagement policies promoting more responsible business practices, to divestment from conflict zones when circumstances are seen to preclude ethical business conduct. Engagement and divestment are explored as tools for discouraging unethical and promoting ethical business activity, considering conflict situations in South Africa and Sudan as case examples. (shrink)

Heightened interest in business-conflict linkages has materialized with the advent of globalization and the rise of multinational corporations (MNCs). We examine business-conflict linkages in this article both theoretically and empirically. Theoretically, we examine three streams of the relevant academic literature: the academic business and society literature, the practitioner business and society literature, and the international business political behavior literature and argue that there is room and indeed need for their cross fertilization and integration in research on business-conflict linkages. We then (...) consolidate the three streams into a matrix that reconciles relevant dimen- sions and which can serve as a typology of intervention strategies of business firms in conflict zones. Empirically, the article makes use of the integrative matrix in the context of an interpretive research methodology to examine the perceptions and behavioral orientations of a sample of MNCs in Lebanon in an actual conflict context. (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)

Recent research has focused on business as a mediating institution that can influence society while engaging in the traditional profit-making and value generation functions. This work includes Professors Fort's and Schipani's arguments about how business may be able to play a role in promoting more peaceful societies, and other research addressing how businesses might serve a role in reducing violence in society and the workplace. Although there is a significant body of scholarship on the role of business in reducing violence (...) in society, there is little research on concrete steps for businesses to take to achieve this goal. This article attempts to begin to fill that void. As identified by Fort and Schipani, business may promote more peaceful societies by encouraging a sense of community. We argue that one way to reach that goal is for business to provide what we denote as complementary alternative benefits (CABs), to its workforce. In this article, we advocate for businesses to offer CABs which focus on sustaining the health, reducing the stress, and improving the camaraderie of its workforce. We argue that business can use these benefits to promote a healthy, less-stressed, and collegial workforce that is less prone to resolve conflicts by violence. Further, we examine the role business plays in promoting more peaceful societies and how employer-initiated stress reduction programs are consistent with both business ethics and peace-building principles. Finally, using case studies we demonstrate how CABs may also reduce costs related to absenteeism and turnover, and thus improve the bottom line. (shrink)

Numerous scholars have observed that the relationship between poverty and violent conflict is endogenous. As a result, the area of Peace Through Commerce argues as one of its central tenets that the institution of business may be able to contribute to sustainable peace by creating economic development where poverty is a critical issue. While this argument may be valid, it leaves the question open — what is the business case for engaging in poverty alleviation business strategies? Strategic Management scholars are (...) addressing this question, arguing the general proposition that poverty is not only experienced by the people, but also impacts businesses operating in environments where the phenomenon is pervasive. By addressing poverty, businesses can help themselves. Yet, organizational theory justifying this proposition is still emerging, consisting of only a few studies that generally suggest that these strategies can help firms develop competitive advantage through the lens of the resource-based view. This article extends the theoretical application of the resource-based view, suggesting that conditions of poverty directly suppress the value of organizational resources and capabilities that are or could be contributed by people affected by it. In addition, it characterizes poverty alleviation strategic capabilities as dynamic capabilities. Finally, it describes a framework of "base of the pyramid dynamic capabilities" that could guide both future discourse in the area and deductive-disconfirmatory research examining the efficacy of these strategies. (shrink)

Corporate social responsibility (CSR) has acquired an unquestionably high degree of relevance for a large number of different actors. Among others, academics and practitioners are developing a wide range of knowledge and best practices to further improve socially responsible competences. Within this context, one frequent question is according to what theory should general knowledge of CSR be developed, and in particular the relationship between CSR and small and medium-size enterprises (SMEs). This paper suggests that research on large firms should be (...) based on stakeholder theory, while research on CSR among SMEs should be based on the concept of social capital. This paper first provides a theoretical and practical perspective on CSR today; the focus then shifts to the specific literature on CSR and SMEs; some data and information follow on SMEs in Europe and Italy; finally, some conclusions and questions for future research are suggested. (shrink)

Although business–NGO (nongovernmental organizations) partnerships have received much attention in recent years, insights have been obtained only from research in “stable” contexts, not from conflict-ridden countries where such collaboration may be even more crucial in building trust and capacity and in addressing governance problems given the absence of a reliable state. This article aims to shed light on business–NGO collaboration in a conflict setting, exploring partnership activities in the Democratic Republic of Congo (DRC). Most partnerships found are philanthropic and deal (...) with “traditional” issues such as health and education in a donor-recipient mode with limited community involvement. There are only a few real transformative partnerships, which address aspects directly related to the conflict from a wider community focus; these involve extractive companies most exposed via mineral development/production. The study also found so-called engagement collaboration that can be divided into activities including the transfer of funds (and characterized by service delivery), and those without funds, focusing on knowledge exchange that furthers companies’ awareness of conflict-sensitive issues into their operations. Peculiarities of the different types of partnerships as well as implications for research and practice are discussed. (shrink)

Despite the so-called ‘paradigm wars’ in many social sciences disciplines in recent decades, debate as to the appropriate philosophical basis for research in business ethics has been comparatively non-existent. Any consideration of paradigm issues in the theoretical business ethics literature is rare and only very occasional references to relevant issues have been made in the empirical journal literature. This is very much the case in the growing fields of cross-cultural business ethics and undergraduate student attitudes, and examples from these fields (...) are used in this article. No typology of the major paradigms available for, or relied upon in, business ethics has been undertaken in the wider journal literature, and this article addresses that gap. It contributes a synthesis of three models of paradigms and a tabulated comparison of ontological, epistemological and methodological assumptions in the context of empirical business ethics research. The author also suggests the likely (and usually unidentified) positivist paradigm assumptions underlying the vast majority of empirical business ethics research published in academic journals and also argues for an increased reliance on less positivist assumptions moving forward. (shrink)