imarino-dissertation-28-08-2010.doc - What drives indigenous corporations in the developing world to engage in CSR as a management strategy Case study

imarino-dissertation-28-08-2010.doc - What drives...

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What drives indigenous corporations in the developing world to engage in CSR as a management strategy? Case study of the sugarcane and ethanol industry in the Cauca Valley, Colombia Isabella Mariño Rivera August, 2010
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CONTENTS I. Introduction II. Conceptualising CSR III. Case study of the sugarcane and ethanol industry in the Cauca Valley, Colombia 1. Social, economic and political context of the industry a. Characterization of the industry and its socioeconomic impact on the region b. Labour conditions of the workers in the industry c. 2005 and 2008 strikes and the political context of the sector 2. History of CSR in the sector a. From corporate social awareness to corporate responsibility b. Moving forwards: regional and enterprise-based efforts to achieve corporate citizenship i. The Regional System of CSR and the Global Compact ii. Riopaila-Castilla S.A. and Manuelita S.A. iii. Asocaña and the certification process with Better Sugarcane Initiative IV. Discussion 1. The “CSR System” in the sugarcane industry 2. Key drivers of CSR management strategies V. Conclusions 2
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“There can not exist a “healthy” corporation in a “sick” society” Manuel Carvajal I. Introduction Within the context of globalization, factors such as privatization, capital mobilization, private foreign investment flow and trade liberalization have propelled non-state actors like corporations towards great prominence (Koenig-Archibugi, 2005). In the world today, 51 of the 1000 largest economies are business enterprises, while only 49 are countries (Anderson & Cavanagh, 2000). Hence, there has been a paradigm shift: today firms are essential to the development and protection of Human Rights (HR), and are expected to act as necessary partners to governments and international organizations in their promotion and respect (IBLF, 2005). Nevertheless, corporations are not legally compelled to act under guidelines of the United Nations (UN) HR framework. This in turn, alongside globalization, has created a governance gap in enabling a permissive environment for wrongful acts by companies without proper sanctioning or reparation. To this day, International HR Law has not been able to cope with the challenge of overcoming its state-centric approach and the private-public divide built under the Westphalia system (Alston, 2005). Hence, the main objectives of the Business and HR predicament lie in tackling theses deficiencies in the global order. The corporate HR movement has debated between advocating for voluntary or regulatory regimes, differentiating between corporate “responsibility” and “accountability” (Clapham, 2006) 1 . Amidst this discussion, Corporate Social Responsibility (CSR) has evolved as a tool of the voluntary regime, based on the 1 There is a current debate between voluntary and regulatory initiatives to control corporate activity. For further reading see: International Council on HR Policy (2002); Chandler (2003); Van der Putten (2003); Koenig-Archibugi (2005), Villiers, (2005) Weissbrodt & Kruger (2005); McLeay (2006) and Corkin (2008).
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