www.ebook3000.com Multinational Enterprises and the Challenge of Sustainable Development www.ebook3000.com www.ebook3000.com Multinational Enterprises and the Challenge of Sustainable Development Edited by John R McIntyre Georgia Institute of Technology, USA Silvester Ivanaj ICN Business School, France Vera Ivanaj Institut National Polytechnique de Lorraine (INPL), France Edward Elgar Cheltenham, UK • Northampton, MA, USA www.ebook3000.com © John R McIntyre, Silvester Ivanaj and Vera Ivanaj 2009 All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise without the prior permission of the publisher Published by Edward Elgar Publishing Limited The Lypiatts 15 Lansdown Road Cheltenham Glos GL50 2JA UK Edward Elgar Publishing, Inc William Pratt House Dewey Court Northampton Massachusetts 01060 USA A catalogue record for this book is available from the British Library Library of Congress Control Number: 2009936229 ISBN 978 84844 413 Printed and bound by MPG Books Group, UK www.ebook3000.com Contents List of figures List of tables List of contributors Introduction Acknowledgments PART I vii viii ix xv xxvi CORPORATE GOVERNANCE FRAMEWORKS Multinational enterprises and sustainable development: a review of strategy process research Vera Ivanaj and John R McIntyre The UN galaxy, transnational corporations and sustainable development Tagi Sagafi-nejad Are multinational corporations compatible with sustainable development? The experience of developing countries Abdulai Abdul-Gafaru Sustainable development and resource-based foreign direct investment in developing economies: models of corporate production behavior Kofi Afriyie Of butterflies and hummingbirds: industrial ecology ‘on the wing’ Van V Miller and Charles T Crespy Multinationals and the challenge of sustainable development: knowledge in cooperative networks Mohamed Bayad, Michaël Bénédic, Malek Bourguiba and Christophe Schmitt The future of sustainable development and MNEs: a diffusion framework Jonathan Lefevre and Gabriele Suder v www.ebook3000.com 28 50 73 85 104 120 vi Multinational enterprises and sustainable development PART II 10 Multinationals’ sustainable supply chains and influence on suppliers inside and outside the USA: a comparative approach Bernd Philipp Sustainability metrics for multinational corporations – greater profits and a more sustainable world Salwa M Beheiry Assessing the sustainable development commitment of European MNEs Silvester Ivanaj, Jacky Koehl, Sandrine Peney and E Günter Schumacher PART III 11 12 13 14 15 STRATEGIC IMPLICATIONS AND ASSESSMENT 141 164 184 DISCOURSE AND BEST PRACTICES Understanding the self-regulation potential of voluntary international initiatives for corporate conduct: the role of sponsor goals Glen Taylor and Petra Christmann Sustainable development and corporate social responsibility of multinational enterprises in China Maria Lai-Ling Lam The discourses and practices of corporate social responsibility as a new component of the strategies of multinational companies: an illustration with French multinational companies Pierre Bardelli and Manuela Pastore-Chaverot International supply chain management: lever for sustainable development? An analysis of discourses and applications Yvette Masson-Franzil The search for a sustainable approach to traditional French wine production in the face of competition from multinational companies Marie-Pierre Arzelier Index 207 230 245 261 283 295 www.ebook3000.com Figures 1.1 2.1 4.1 4.2 4.3 5.1 6.1 6.2 7.1 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 13.1 The dimensions of empirical research in the context of SD/CSR strategic decision-making processes The UN galaxy: the institutional constellation of organs relevant to FDI/TNCs Evolution of international business, stage one – export trade Evolution of international business, stage two – multinational production Evolution of international business, stage three – global business networks A sustainability roadmap for production sites–exchanges in North America Sustainable development – interface management The different dimensions of a cooperative network: the case of a multinational in the domain of motorized recreational products Conceptualizing pressures and commands in SD diffusion The three pillars of sustainability Research premise of indirect influence of sustainable practices Hypothesized influence diagram for impact of unsustainable practices The relationship between CSCI and SCPPI The relationship between CSCI and cost deviation The relationship between SCPPI and cost deviation The relationship between CSCI and schedule deviation The relationship between SCPPI and schedule deviation Theoretical and empirical results vii www.ebook3000.com 29 76 77 79 99 107 113 128 166 171 172 179 180 180 181 181 256 Tables 5.1 5.2 8.1 8.2 8.3 8.4 8.5 8.6 8.7 9.1 9.2 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 11.1 14.1 14.2 14.3 14.4 Sustainability pillars Linking exchanges with flows Common points and differences between SD and CSR Müller and Seuring’s (2006, 2008) literature review findings relevant to our research issue Country-specific ecological involvement levels regarding three supply chain relationship items A comparison of ecological influence exertion mechanisms on suppliers Min and Galle’s (2001) findings relevant to our research issue Murphy and Poist’s (2003) findings relevant to our research issue Synopsis of our findings Descriptive statistics Data analysis summary Corporate sustainability assessment criteria Types and ranking of sustainability reports published Economic indicator rates Environmental indicator rates Social indicator rates The DJ EURO STOXX 50 businesses in the main SRI indexes at June 2006 French SRI funds with at least one title in the DJ EURO STOXX 50 index French SRI funds titles and number of titles in the fund Typology and design of voluntary international initiatives (VIIs) Main strategies of sustainable development (environment axis) Main strategies of sustainable development (CSR axis) Occurrence rates of company C Occurrence rates of company L viii www.ebook3000.com 96 98 145 149 151 154 155 157 158 178 179 188 189 190 190 191 195 197 198 224 268 271 273 273 Contributors Abdulai Abdul-Gafaru obtained his first-class Honors Bachelor’s degree in Political Science at the University of Ghana He has been a doctoral teaching assistant in the Political Science Department at the University of Cambridge, UK He taught courses in ‘Politics in Developing Countries’ and ‘Local Government Administration in Ghana’, carrying on independent research on the achievements and challenges of parliamentary democracy in Ghana He received his MPhil at the University of Cambridge, UK and is pursuing his PhD there Kofi Afriyie is Associate Professor of Management and International Business in the Global MBA program at Kean University He received a PhD and MBA from the University of California, Los Angeles (UCLA) and a BSc from the University of Ghana His research interests focus on patterns of foreign direct investment and sustainability in emerging markets and developing economies, international strategic alliances and political risk factors in global business Dr Afriyie is a member of several scholarly organizations, including the Academy of International Business and the International Academy of African Business and Development He served as Vice Chair of the Academy of International Business (Northeast chapter) between 2003 and 2006 From 1995 to 1999, Dr Afriyie was a business planning manager at Dow Jones and Company and a senior analyst at Deloitte and Touche He has been a consultant to several organizations, including the Multilateral Investment Guarantee Agency (MIGA) of the World Bank Group, where he worked on a project on foreign direct investment in Africa Marie-Pierre Arzelier holds a Doctorate in Economic Sciences She is an associate professor in Management, and a member of two French research centers: CEREFIGE (Centre Européen de Recherche en Economie Financière et Gestion des Entreprises), Metz, and PRATIC (Pratiques agro-alimentaires et théorie de l’internationalisation du commerce), Avignon Her research interests focus on international trade and economics Pierre Bardelli is a university professor at the University of Metz, France He received his PhD in Economics in 1978 and has taught monetary ix www.ebook3000.com 300 Multinational enterprises and sustainable development environmental resources, safeguarding 266 increasing importance of 59 environmental SD strategies, integration of 13 environmental standards in developing countries 56 environmental strategies 11‒12 environmental supply chain participation 152 environmental welfare, 231 environment and ethics 266 environment axis, biodiversity, forests and GMO 267 Environment Impact Assessments (EIAs) 173 equipment transfer,too sophisticated or too obsolete 55 ethical behaviour 8, 59, 66 ethical financial practices 171 ethical investment (market of financial capital) 186‒90 pressure on MNEs 123 ethics and codes of conduct of company 172 ethics and morals, local definitions 133 ethics codes, Europe and USA, differences 14 ethics codes, priorities for Europeans employees as primary 14‒15 European Alliance for CSR, large national differences 144 European Court of Human Rights 65 European Management model social dimension, integration of 247 European reality and moral dimension 200‒201 Europeans, ethics codes 14 European Stock Exchange DJ EURO STOXX 50 index 50, 187, 193‒4 businesses, 203‒4 businesses in main SRI indexes 195‒6 French SRI funds 197‒8 European Union CSR seen as strategic objective 144 Evin Law, France 1991 advertising alcoholic beverages restriction 285 health warnings 285 exchanges and flows, linking 98 expense of pollution control equipment 60 export entry mode, ethnocentric 80 export of modern technologies 51 export processing zones 32 exports from domestic firms 75 external audits for firms 217 external focus, strong 133 external pressures 13, 125‒6 extra-financial analysis results, information source 186 fad and fashion, perspectives 128 fair trade movement, pressure on MNEs 123 Fair Trade Organization, Fair Trade Certification 215 fertilizers 44 finance and supply CSR-related questions, strategies to respond 144 financial motivation for SD/CSR activity 12 Financial Times Stock Exchange, FTSE4Good Index 194 firms outsourcing to CAFTA and NAFTA 101 Food and Agricultural Organization (FAO) Millennium Development Goals 43‒4 food safety standards 44 Forbes magazine on US multinational firms foreign companies in mainland China interpretation of actions 236 foreign direct investment (FDI) 28 countries’ fear of losing 62 in developing economies 73‒83 foreign MNEs in China 230, 232 environmental practices monitored 231 fraud encouraged in internal policies 237 Index need for addressing CSR in Chinese subsidiaries 238‒40 foreign ownership, cleaner energy, Mexico, Venezuela, Côte d’Ivoire 51 foreign trade CSR-related questions, strategies to respond 144 forest management, sustainable 216 Forest Product Certification external audits of forest land 217 forestry industry and defensive initiative 143, 219 Forest Stewardship Council (FSC) Forest Product Certification 215‒17 formal political pressure 127‒30 formation process of SD/CSR strategy Fortune 100 product companies 175 fossil fuel from mangrove trees 57 fossil fuels, harmful effect of transport 276 fossil resources, exhaustion 267 Framework Convention of Tobacco Control (FCTC) 37‒8 binding 47 free association, rights to 35 freedom and human rights 267 free press curbing and control over media reaction against globalization by developing countries 42 ‘French cultural heritage’ taste of wine specialized knowledge in production process 284 French legal culture 256 French-listed MNEs, new economic regulations’ law 142 French MNEs, survey French multinational companies, and CSR 245‒59 French wine, unique product 286 consumer education about wines 291 French wine production, know-how transmission 289 Friends of the Earth, standards for corporate conduct 216 future generations’ interests, present and future concern 106 301 gap analysis 152 gas flaring in Niger Delta, contribution to acid rain 57 crop growth stunting, damage to ecosystem 57 gender equity 44 General Agreement on Tariffs and Trade (GATT) 42 General Agreement on Trade in Services (GATS) 43 generic standards 221 genetically modified corn, kills butterfly larvae 86 geographic diversification as antitobacco strategy 37 Germany, research strategies in sustainability 144 global business networks 79 global capitalism, responsible human rights, labor, environment 40 Global Compact, voluntary 47 Global Compact initiative ethics-based concept and instrument 39‒41 TNCs joining 41 Global Compact of the UN UN Rio Conference on Environment and Development 212‒13 global companies, corporate involvement Millennium Development Goals 41 global economic system, strain on nature 121‒2 global environmental problems, first UN program 212 global evolutionary expansion multinational production 75‒9 globalization and dominance of MNCs 62 and ecology 185 and financial markets 185 reaction against 39‒40 globalization deepening Internet and technological revolutions in IT 78‒9 global monitoring system 222 global public goods, meanings and management 288‒9 302 Multinational enterprises and sustainable development Global Reporting Initiative (GRI) 11 ineffective because voluntary agreement 60 Global Reporting Initiative Sustainability Reporting Guidelines 142, 233 global strategy and CSR strategy, link 252‒5 global supply chains, high transaction costs 221 global-theoretical approach 18 global warming 267 changing migratory flows 86 gold-mining in Ghana ecological effects, cyanide spills into rivers 81 FDI, lack of sustainable development 81 social disruption effects 81 social reaction, backlash from unemployed youth 81 governance mechanisms for social justice 17 green agenda, over-alignment with 165 greenhouse effect 267 Greenpeace, standards for corporate conduct 216 green strategy ‘greenwashing’ , professing green practices, gain support 130 Guidelines for Multinational Corporations ineffective because voluntary agreement 60 health and safety report (HR) 187 health as physical and mental well-being 36 herbicides 44 Hewlett Packard, global PC industry spying on own directors, illegally 94 horizontal production system, FDI value for host country 78 host countries developmental needs 65 essential technical skills 82 human capital attraction and retention 172 human resource management 173, 236 human rights 12, 65 in Hong Kong 231 hunger elimination, aim by 2015 43 hybrid organization forms 148, 192 hypothesis testing 176‒8 ideological beliefs of nature at humanity’s disposal 121 implementation of codes of conduct independent monitoring of firms 210, 222 Indian Oil Corporation, Global Compact goals 41 indigenous people, acknowledgement of 172 industrial ecological behavior eco-defensive, favor short term gains 12 industrial ecology (IE) 85‒102 comparison with biological ecosystem 87‒9 industrialization in developing countries 43 industrial transformation of world 121 industry associations, sponsors of defensive initiatives 219 inequalities between and within countries 120 infant food products, unethical marketing in Africa 38 Infant Formula Action Coalition (INFACT) 38 infant mortality rate higher with infant formula 38 influence diagram for impact of unsustainable practices 172 influence exertion on suppliers 147‒50 in academic literature 151‒6 influence of NGOs and MNEs 185 influences, indirect, of sustainable practices 171 information command 134 information sources on financial analysis 187 information technology (IT) 123, 264 initatives with less stringent requirements low behavior modification 225 initiative for corporate conduct voluntary and international 207‒27 Index initiatives and voluntarism, Anglo-Saxon 247 proactive 215 with stringent requirements 210 low adoption rates 225 with weak requirements 210 innovation adoption decisions 123‒9 desire for efficiency, wider sense 133 moral command 135 study on integrated structure 193 intellectual property protection 45‒6 intellectual property rights 97 China 237 fair distribution 117 Inter-American Court of Human Rights 65 inter-company interaction 108 internal branding, improved 16 internal consistency of firms 130‒33 internal procedures, improvement 16 international business, evolution of, export trade 76‒9 international capital mobility 62 International Finance Corporation (IFC) 42 International Labor Organization (ILO) 92 Charter 30 company’s awareness and compliance 173 compliance with principles 142 Declaration of Fundamental Principles and Rights at Work 214 Multinational Enterprise and Social Policy 33 social justice and labor rights 30 international labor standards Conventions and Recommendations 30 International Monetary Fund (IMF) 42‒3 International Organization for Standardization (ISO) sponsors of trade-promoting initiatives 221 international production stage dispersed production system 78 303 international strategies 12 international supply chain management 261‒79 International Trade Centre (ITC) training programs for developing countries 44‒5 International treaty on Plant Genetic Resources 44 International Union for Conservation of Nature ‘World Conservation Strategy’ 122 international voluntary initiatives for corporate conduct 211 investment-like relationships, market power 147 investment relationships 112, 147 inventions, creation of ideas 123‒4 isomorphism 126 joint-trade organizations, French wine-growers New World in ‘free-rider’ position 289‒90 joint training courses 116 Judaeo-Christian religions placing man over nature 121 Kalundborg, Danish island, industrial operators link 88 Kantian moral standards know-how communications, creation of corporate culture 16‒17 organizational, enhanced motivation, staff involvement 16 technological, products and procedures innovation 16 wine production 284 knowledge cooperative networks 104‒18 knowledge-based economy 104, 106‒10 knowledge inherited, French wine 284 knowledge management, role of 123 within cooperative networks 114‒16 knowledge transfer 11 Labor Commission pollution penalties, little evidence 91 labor expenditure on CAFTA venture 100 304 Multinational enterprises and sustainable development labor and environmental issues in NAFTA and CAFTA 92 labor practices in company 172‒3 labor relations 32‒4 labor rights 30, 92‒3 land tenure 44 Latin-American countries, laissez-faire attitude to MNEs 63 laws and rules promotion, France 247 learning opportunities 109‒10 legal action for breaches of environment law 132 legal command 131‒3 legal decision-making legal enforcement, weak in China 236 legal foundations, reporting New Economic Regulations, France 249‒51 legitimacy, symbolic display 218 ‘legitimacy theory’ ‘politically correct’ or ‘socially acceptable’ 250 legitimation of corporate actions toward internal and external stakeholders 15 Likert Scale survey format 169 Lima Declaration, 1976 43 literature on research, findings 148‒50 litigation, pressure on MNEs 123 local communities, acknowledgement of 172 local firms and environmental deterioration MNEs, enhanced responsibility because bigger 56 logistics, study on, 8, 143, 264, 274‒6 long term shareholder value 123 low-income countries, lax environmental standards 50 low-income markets, African countries 15 LVMH, adaptive company, report 254 machinery, inferior, to developing countries 50 macroeconomic versus microeconomic 18 macroeconomic context, environmental factors 13‒15 management science 3, 147 management team, characteristics 13 management theory managerial choices and site management 13‒14 managerial involvement 151 managerial practice, new implications 19 mangrove trees in Nigeria, major source of soil stability 57 mankind, survival of 47 market-based mechanisms for self-regulation 226 marketing tool for French wine, ‘regional product’ 286‒7 market power and influence exertion, alternative suppliers 153 market push, regulation or quasiregulation 141 market structure of wines France and MNEs world-wide 285‒6 Marrakech Agreement 42‒3 mass media as external influence 127 medical matters codes of conduct for pharmaceutical giants 36 methodological level 19‒20 Mexican maquiladora program 97 cheaper labor and highly trained 100 Mexico, contaminant release report, late and incomplete 101 microeconomic context, organizational factors 13‒15 milkweed plant and monarch butterflies plant for sustaining migratory flow 86 Millennium Development Goals 29, 213 nine principles 40 ‘mimicry’ completion within groups 125 minimum requirements from defense initiatives 220 models and decision-making process money enforcement penalties against polluters 91 no evidence in USA 91 monitoring, third-party 208 moral command 133‒4 strong authoritative powers 133 Index vulnerability to economic pressure 133 moral constraints, use of maximization of economic returns 133 motorized recreational products sea-doo, ski-doo, research hypothesis 112‒13 Multinational Corporations, environmental construction voluntary codes 59 multinational corporations (MNCs) growth of activity, 1970-2000 53 influence on domestic policy 53 Multinational Enterprises and Social Policy 147 multinational enterprises (MNEs) 5, 17 China 230‒42 coffee trade, list 9‒10 commitment to sustainable development 185‒91 company with at least one production unit abroad 141 control of companies in at least two world-economies 141 and employment, ILO studies, 32 increased investment and environmental sustainability 54 investment,not necessarily good 62‒3 lack of measuring instruments 277 moral dimension of commitments 185 motorized recreational products 113 negative’ influence 32 opportunistic behaviors 277 production in several national markets 141 spreading of responsibilities 277 sustainable development (SD) 50‒68 Multinational Enterprises team 147 multinational owner corporations 175 NAFTA as initial site choice, sustainability roadmap 99 national accrediting organizations ISO Environmental Management System Standard 222 national culture and market economy 249 305 national differences 248 national government regulations 208 national media, state control 42 National Science Foundation (NSF) Construction and the Environment workshop 170 national strategies CSR-related questions, strategies to respond 144 nation-states 28 and MNCs, relationship 62 natural resources husbanding of 111, 267 sustainable agricultural and rural development 43 Natural Resources Management and Environment Department replaces Sustainable Development Department 44 negotiation and compliance 132 Nestlé, giant Swiss TNC WHO controversy on infant food products 38‒9 network theory, social networks 264‒5 New Economic Regulations, France 251 declarations only, no sanctions for nonconformity 250 social and environmental consequences, accounting for 250 New International Economic Order (NIEO) contfrontational concept of 34 New International Information Order (NIIO) 42 New World, trade internationalization, competitiveness 258 New World MNEs in wine trade benefit from wines’ positive image 290 ‘New World’ multinational firms wine production, more recent than Europe’s 283 New World wine, product for profit 289 Nigeria, lack of enforcement of environmental guidelines 58 lack of pollution control policy 58 oil fields, global warming effects 57 306 Multinational enterprises and sustainable development Nike Corporation, questionable social practices 142 Nike, member of Fair Labor Association better working conditions 132 Nobel Peace Prize for ILO 31 non-governmental organizations (NGOs) informing on certified products 226‒7 sponsoring organizations 216 non-US, explicit environmental policy 157 normative isomorphism 126‒9 normative pressures, culture 125 norms and beliefs 130 norm-setting initiatives 211‒23 lack of widespread adoption 213 North American Agreement on Environmental Cooperation 89‒90 North American Agreement on Labor Cooperation 89 international constraints 90 North American Free Trade Agreement (NAFTA) 87‒91 economic agreement, Mexico,USA, Canada 89‒91 environmental pillar 90‒91 labour commission, social pillar 90 preferential rule of origin 97 social and environmental matters, inclusion 89 obligations on national governments 65 occupational health and safety 30, 173 OECD Guidelines for Multinational Enterprises 212‒13 oil extraction in Niger Delta causing deforestation, gas-flaring, oil spills 57 oil platform, Shell-operated, planned sea immersion 142 oil spills in Niger Delta, high incidence contamination of water bodies 57‒8 mangrove trees, destruction of, by oil spills 57 operations, unsafe 171 options scandal in 100 US corporations 94 organization and management structure sustainability implementation 191‒3 Organization of Economic Cooperation and Development (OECD) 212‒3 Organization of Petroleum-Exporting Countries (OPEC) 42 Ottawa Charter for Health Promotion 36 outputs and inputs, comparison with biological ecosystem 88 outsourcing of business activities, upgrading of labor 101 overdevelopment 166 owner commitment to sustainable practices 176 partial integration phase companies Arcelor, Bouygues, Thomson, Thalès 254 participants, sustained integration 116‒17 partner interaction 110 partner outsourcing in host countries 142 partnership approaches 157 peer group pressure 124 performance appraisal system 240 pesticides 44 petrochemical companies 175 petroleum companies, global, conduct codes pharmaceutical industry 175 bilateral agreement, Thailand and USA 97 philanthropic community development 171 philanthropic programs in China 230 philanthropy in company 172 political pressures, informal 128, 132 pollution abatement technologies 55 pollution-intensive equipments, cheaper 55 pollution-intensive industries 50 positive spillovers in national economy 73 poverty reduction through productive activities 43 Index pressure and commands in SD diffusion 128 price-competitive market in China 236‒7 proactive companies, Danone, Véolia 253 proactive initiatives, low adoption rates, 223, 225 process characteristics 9‒11 process model, SD/CSR research 7‒9 producer behavior monitoring 215 product certifications 215 production of products and services environmentally appropriate methods 79 meeting needs of community 79 production of wine, knowledge transfer fear of knowledge disappearance 287‒8 production sites-exchanges in North America 99 products and services, study on profits generation 51, 54, 121, 132, increase and focus on 131 maximization, primary objective 63 motives of MNEs 66 project form, organizational choice 192 project performance indicators four parameters for project success 173‒4 project cost and schedule performance 176 PR orientation of firm, goals, transactions, behavior 10 protectionist policies 35 protection of firm’s economic interests 218 psychological theory public education pressure on MNEs 123 public goods, threats to 289 public purchasing 148 purchasing staff, ethical demands on 148 quality and service emphasis 108 quality policy, measurement 193 307 R&D investment 172‒3, 187 Rainforest Alliance, standards for corporate conduct 216 rationality 5‒6 reactive strategy of companies risks from global supply chains 150 recycling, reusing, reprocessing products and packaging 263 Reebok, member of Fair Labor Association better working conditions 132 refinery, power station, fish farm, interconnected operations 88 regional trade agreements 87 regional wine production, France 284‒5 regulated environmental aspects versus voluntary economic and social aspects 165 regulation compliance and avoidance 16, 132 regulation of business activities, need for by national governments of developing countries 61 regulation of TNCs, resource guide, 44 regulatory constraints, for supply chains and suppliers 141 regulatory mechanism for MNEs 65‒6 regulatory reform 123 regulatory regime, coherent 59 Renault, adaptive company, professional ethics code 254 report design, content and process, themes 11 reputation of firm, improvement 16 research on ethnic Chinese in foreign MNEs in China 232 on sustainability 166‒7 research findings Min and Galle, environmental issues 155 Murphy and Poist 157 synopsis 158‒9 research hypothesis 168‒9 business of motorized recreational products 112‒13 research methodology 169‒70 308 Multinational enterprises and sustainable development research proposals and hypotheses building 81‒3 research scope, ‘Fortune 100’ owner corporations 169 resource conservation, long-term 105 resource consumption, excessive firms must avoid, for future generations 95 resource-dependence theory 128, 135 resource-dependent approach, to innovation adoption 126 resource pooling 110 resources, intangible 106 responses validation 174‒5 responsibilities, perceived, of foreign subsidiaries in China profit, not social problem solving 233 responsibility without accountability 67 responsible authority CSR-related questions, strategies to respond 144 retention stage of process reverse logistics 148‒9 rhetorical process right and wrong, perceptions of, variations in 134 Rights to Work Declaration 35 Rio Declaration of 1992 214 risk and crisis management 190 risk-averse workers in China 237 roadmapping 98 Royal Dutch Shell Niger Delta, Nigeria, environmental degradation 56‒9 using carbon-dioxide from factories, in greenhouses 132 rules of conduct and behavior courts and penalties 28 mutual benefit, good citizenship 28 rural employment 44 safety and health practices, ILO studies 32 safety measurement 174 sample size, increased 19‒20 sanctions for non-compliance 210 Sarbanes-Oxley Act on accounting frauds 131 schedule data, collection of 177‒8 scientific maturity 144 selection stage of process self-contained standalone entities, manufacturing firms 78 self-evaluation and self-reporting by firms 213 self-interested homo economicus 121 self-regulation, effectiveness as a tool 213 defensive initiatives 219‒20 potential 207‒27 trade-promoting initiatives 221 self-reporting on implementation of Global Compact 41 shared expertise 113 shareholder accountability 54 activism, pressure on MNCs 123 value 106, 135 value enhancement 51 short-term economic growth at expense of environmental protection, China 235 short-term returns on capital 106 skills management 115 smoking and tobacco companies 36 smoking, preventable cause of death 36‒7 social and economic development lagging in parts of world 165 social and financial scandals, Enron, Worldcom 245 social and labour practices, ILO studies 32 social constraint, host-country regulations 141‒2 social contribution to SD by firm treatment of workers of firm 94 workers in developing countries, offshore involvement 94 social factors of sustainable development effect on firm’s business on interested parties 106 social indicators 190‒91 social justice problem, China 237 socially responsible investment (SRI) European MNEs 193‒9 index, information source 186, 193 Index specific indexes Advanced Sustainable Performance Indices (ASPI) 194 Ethibel Sustainability Index Excellence (ESI) 194 social networks and adoption decisions 124 social reporting, various forms 10 social reports (SO) 187 social responsibility of businesses, 3‒10, 132, 185‒6, 193 Anglo-Saxon and French 247 five capacities 10 four theoretical focus areas 10 viewed as too costly in China 234 social responsibility of MNEs 186 socioeconomic interface 111 employee rights, good governance 107 hygiene, health and safety at work 107 sociology and ethics 184 sourcing policy, ecological parameters 153 Soviet infiltration, fear of, into ILO 31 spillover effects of FDI 75, 81‒2 sponsoring organizations, goals of 207‒27 defensive initiatives, industry associations 218‒19 sponsors of norm-setting initiatives 212‒13 of proactive initiatives 215‒17 stakeholder pressure, importance of 226 stakeholders expectations identification, company 172 interest 10, 11 management needs, meeting of 16 report (SHR) 187 value 123 standards, costly to adopt 217 state-owned enterprises in China 234 state regulation of big business 59 state’s responsibility to use capital 64 statistical differences, Germany, UK, USA 152 309 statistical indicators, as trend indicators 176 statistics in engineering and science fields 176 status or social recognition not sought by legal command 131 status-seeking groups 128, 130 Stockholm Declaration 1972, environmental sustainability 54 strategic decision-making processes 4‒6 stress levels high, in MNEs, China, undervaluation of CSR 236 subjective norms, beliefs about others’ expectation 129 subsidiary outsourcing in host countries 142 substantial strategy leads to response to social demand 11 supplier awareness, lack of 155 suppliers dependence on buyer, influence 154 outsourcing in host countries 142 selection criteria 153‒4 relations 190 supply chain management (SCM) 261‒79 definition of 143 managerial approach 262‒3 purchase and sourcing 142‒3 supply chains 143 influence on suppliers 141‒61 within sustainability 144 supply economy to demand economy 108 supply sources, geographical substitution 153 sustainability and supply chains social and ecological requirements 144 Sustainability Component of Project Planning Index (SCPPI) 168‒9, 176 economic, environmental and social pillars 173 Likert Scale project performance 170 relationship with cost deviation 180 relationship with CSCI 179 relationship with schedule deviation 180 310 Multinational enterprises and sustainable development sustainability metrics 164‒83 sustainability pillars, economic, environmental, social 96 sustainability reports (SR) 187 types and ranking 189 sustainable agendas, absence of competitive advantage reduction 171 investment value reduction 171 sustainable consumerism, market pull constraint on supply chains 142 sustainable development (SD) 10 93, 120‒23 community of common interest 135 CRS common points and differences 145 CSR process, multidimensional 18 diffusion framework 120‒36 ecological and economic development 166 environment, economics, society and culture 267 FDI in developing economies 73‒83 global economic development 266 interface management 107 macro-voluntarism approach, global practices effect 247 main strategies listing (CSR axis) 271‒3 (environment axis) 268‒9 micro-behaviorist approach companies’ practices in CSR 247 multinational enterprises (MNEs) NAFTA and CAFTA difficulties 101‒102 need for in Chinese business 240 reports of multinational companies 270‒76 research models 18 social development 166 three pillars, balanced approach 164 undermining by MNCs 53 value adding to company 165 Sustainable Forests Initiative (SFI) gradual increase of standard stringency 219 sustainable supply chain management (SSCM) 148‒9, 262‒6, 274, 277 tacit knowledge and communication interpersonal exchanges 115 Taiwanese subsidiaries in China 236 tariff duties 100 tax incentives inadequate for CSR in China 238 technological skills, lack of, in host country 78 technology and environment 266 technology choice in developing countries, ILO studies 32 technology transfer 44, 46 to developing countries 54 telecommunications, multinational enterprises (MNEs) 32 terminology 142‒5 territorial reference for French wine appellation d ‘origine contrôlée (AOC) 286, 290‒91 textile-apparel industries, NorthAmerican goods must be all-American components and work on it 97 textual study 273‒4 Thailand physician, drugs for treatment of AIDS seeking weaker protection for USA IPR 97 theoretical models integrative perspective 18 think tanks 44‒5 business interests and decision-making 131 third-party enforcement mechanism 217 interventions for pre-emption 132 monitoring 219 third party technique 131 third party verification of compliance 215 Third World dictators (Idi Amin) threatened by free press 42 tobacco control, WHO research on smoking 36‒8 opposition to WHO top management buy-in on sustainable practices 171 total quality management (TQM) 123 trade agreements 87 trade capacity-building 43 trade-promoting initiatives 221, 225 Index Trade-Related Aspects of Intellectual Property Rights (TRIPs) 43, 45 royalty fees for transfer of ‘clean’ technologies 55 Trade-Related Investment Measures (TRIMs) 43 illegal to control MNCs through local content requirements 62 trade, replaced by FDI in host country 76 trade unions’ involvement 31 green jobs, ecology, sustainable development 35 trading agreements 95 training and education of populations in developing countries 111 transaction cost economics (TCE) 265 transaction costs 100, 221 from taxes, tariffs and transportation 98 transfer technologies, MNEs to host countries 75 transformation costs/benefits from materials, labor and environment 98 transnational companies (TNCs) 5, 12, 8, 85 contributions to economic and social progress 34 nature and growth enlightened labor relations and employment 33 low-cost niches, easier and cheaper to pollute 101 UNESCO and 41‒2 transparency and reporting CSR-related questions, strategies to respond 144 and social action leading to increased revenue 132 triangulation, quantitative/qualitative data combination 20 Tripartite Declaration 32, 35, 147 statement of principles 34 tropical timber boycotts 216 UN Center on Transnational Corporation (UNCTC) 28 311 UN Committee on Economic, Social and Cultural Rights 56‒7 UN Conference on Trade and Development (UNCTAD) 28 UN Conference on Environment and Development Rio de Janeiro 1992 122, 216 UN Development Program, Our Common Future, 1987 standard definition of sustainable development 122 UN Educational, Scientific and Cultural Organization (UNESCO) New International Economic Order (NIEO) 41‒2 UN Environment Program (UNEP) relocation of hazardous industries, US to Mexico 50 UN galaxy, organs relevant to FDI/ TNCs 29 UN Global Compact ineffective voluntary agreement 60 principles of 213 human rights, labour, environment 214 Unilever, sustainability reports 133 UN Industrial Development Organization (UNIDO) industrialization in developing countries 43 UN Institute for Training and Research (UNITAR) training programs and research 44‒5 unique products and tradition, wines of France 290 United Nations Children’s Fund (UNICEF) 46 United Nations (UN) galaxy 28‒48 United Nations (UN), sponsor for global environment 212 Universal Declarationof Human Rights, 1948 40, 214 UN research Institute for Social Develoment (UNRISD) research on civil society, social movements 44‒5 upper-level management, realization of values 16 Uruguay Round 43 312 Multinational enterprises and sustainable development USA, no strategy to promote global CSR 144 USA and non-USA companies cost reduction, no differences 156 differences formal policies for non-US, informal for US 155 visual and odor pollution, importance of for US 155 environmental issues, no differences 156 environmental policy, informal 157 rejection of suppliers on environmental grounds 156 US Environmental Protection Agency research strategies in sustainability 144 US forestry industry, Sustainable Forests Initiative (SFI) 219 utilitarian perspective, maximisation of financial results value-added production as spillover effect 81‒3 value chain management company-independent perspective 143 value creation process 106, 108, 131 values or culture of country 13 variables, institutional, pressure groups, media, law, crises 14 variables, managerial, leader commitment, autonomy in decision-making 14 variables, organizational market share, financial performance, capital stucture 14 size, host countries, sector 14 variation stage of process Véolia, proactive company SD and CSR at heart of their vision 253 ‘vertical’ FDI host-country’s technological learning capacity 80 vertical integration production 73 visibility, CSR-related questions, strategies to respond 144 vocational training 30 ‘voluntary code’ 32 voluntary international initiatives 207, 223, 226 conduct guidelines 208 firm and industry self-regulation 208 tools for self-regulation of firms 209‒10 typology and design 224 wages and working conditions, ILO studies 32 Wal-Mart 133‒4 waste recycling, investigation of ways 132 waste valorization 148 watchdog activism, pressure on MNCs 123 water and land management 44 water poisoning in Niger Delta 57 water pollutions, continental 267 weight of strong players 126 ‘whistle blowing’ prohibition in China 237 wine bottle as object of art, France 284 wine circuits and vineyard visits consumer education about wines 290‒91 wine consumption decrease in France, reasons for 285 wine drinking, subjective aspects culture of ‘drinking’ in France, inheritance 287 wine market, world-wide against sustainable development 290 wine production in France crisis 283 French protection from standardization 288 importance of, largest worldwide wine exporter 284‒5 traditional French, competition from MNCs 283‒91 win-win situations 132, 135 women workers in developing countries, ILO studies 32 work breakdown structure 174 workers’ basic rights 142 working conditions, poor in corporate foreign operations 120 Index work standards hygiene, health and safety at work 116 World Bank (WB) 42‒3 World Business Council for Sustainable Development (WBCSD) 135 World Commission for Environment and Development 54, 111 World Economic Forum, Davos Switzerland United Nations global compact 40 World Health Organization (WHO) 35‒9 Thailand physician 97 World Intellectual Property Organization (WIPO) intellectual property rights 45‒6 World Trade Organization (WTO) 42 Worldwide Fund for Nature standards for corporate conduct 216 313 .. .Multinational Enterprises and the Challenge of Sustainable Development www.ebook3000.com www.ebook3000.com Multinational Enterprises and the Challenge of Sustainable Development Edited... discuss the multinational enterprise as a knowledge network and its capabilities in coping with the challenges of sustainable development The traditional models of growth and development of multinational. .. juncture The theme of the book is the role that transnational corporations play in the design, diffusion and consolidation of sustainable development in the context of globalization The book