Multinational enterprises (MNEs) have long had a reputation of not doing enough for their host communities in developing countries. This study critically examines the role of MNEs in community development initiatives in developing countries, using the Nigeria oil industry and the South African mining industry as case study. Specifically, the study assessed the usefulness of MNE-supported community development projects as a means of demonstrating corporate social responsibility. The findings suggest that expectations for community development projects are greater in developing countries. (...) This study introduced new information on MNEs'local development programs that were drawn from interviews with MNEs'managers, government officials, and local communities. (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)

The macro-level debate on the economic impact of multinational enterprises (MNEs) is still unsettled. This article explores micro-level evidence by examining what Fortune Global 250 firms themselves report about their economic impact. Such reporting embodies corporate attempts to account for their economic implications, in addition to the environmental and social aspects of their activities that have traditionally received more attention in the context of corporate responsibility. Firms' reports turn out to provide a rich illustration of the mechanisms through which MNEs (...) (can) affect economic development (including sheer size, technology transfer, and backward linkages) and of how such impacts are being operationalized and measured. The authors test which MNEs are most likely to disclose information on the various mechanisms and find that it is influenced by region, sector, and size but not by profitability. Implications of this exploratory study for research and practice are discussed. (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)

Mining companies have long had a questionable reputation for social responsibility, especially in developing countries. In recent years, mining companies operating in developing countries have come under increased pressure as opponents have placed them under greater public scrutiny. Mining companies have responded by developing global corporate social responsibility strategies as part of their larger global business strategies. In these strategies, a prominent place is given to their relationship with local communities. For business ethics, one basic issue is whether such an (...) approach to corporate responsibility is likely to effectively address the development concerns of local communities in developing countries. This paper addresses this question by investigating how the corporate social responsibility agenda of a major minor company has been implemented by one of its subsidiaries in South Africa. (shrink)

In recent years, global corporations, especially in the oil and mining sectors, have been speaking the language of development. While corporations are increasingly being imputed a major development role by multilateral organizations, this remains a controversial topic. Even more controversial is the question of whether corporations make a meaningful contribution to development in conflict situations or the absence of democratic government. Some firms, however, such as Talisman Oil, do try to justify their operating in conflict zones such as Sudan on (...) this very basis. This paper contends that Talisman has not contributed to development, but rather is a part of the problem. The paper also develops a more general argument as to why this situation is not particular to Talisman, but is likely to hold for any corporation operating under similar circumstances. (shrink)

This study examines the issues associated with the disinvestment of U.S. interests from South Africa that took place in the mid-80s from the perspective of three dominant moral theories: utility, rights, and justice. By examining the issues in light of these three theories, the paper attempts to establish a decision framework from which managers and investors can evaluate similar decisions they are facing around the world today. Similarly, the reading may prove useful to educators who incorporate discussions of ethical decision (...) making into the classroom.Training in business ethics too often takes a strictly utilitarian perspective, or worse, a relativistic one. This study attempts to illustrate how utilitarian theory and related rights and justice issues can he interwoven into the heuristics associated with the contemporary concepts of corporate social responsibility. (shrink)