Donald H. Schepers

The Impact of NGO Network Conflict on the Corporate Social Responsibility Strategies of Multinational Corporations

Multinational corporations (MNCs) are the frequent target of nongovern-mental organizations (NGOs) in their advocacy efforts. In this article, the author examines NGO advocacy as it occurs in the NGO network and, using insights from the political science literature in conjunction with the resourcebased view of the firm, posits that NGO intranetwork conflict will result in a skewing of corporate social responsibility practices by the multinational corporation toward the MNCs developed country stakeholders. This skewing is a product of the asymmetric accountability of NGOs (upwardly accountable to donors, downwardly accountable to recipients). Developing country government and MNC strategies in the face of such skewing are discussed.

Machiavellianism, Profit, and the Dimensions of Ethical Judgment: A Study of Impact

Research by Reidenbach and Robin (1990) provides a means to study the differential impact of three dimensions of attitude toward ethics: moral equity, relativism, and contractualism. It is hypothesized that moral equity will be the most significant predictor of ethical judgment and intent to act. It is also hypothesized that Machiavellianism and profit will affect relativism and contractualism dimensions, but not moral equity. Additionally, it is hypothesized that Machiavellianism will interact with profit to affect intent to act. Moral equity was found to be the only predictor of ethical judgment, and moral equity and contractualism were predictors of intent to act. Machiavellianism impacted contractualism, but not relativism. Corporate profit did not affect either ethical judgment or intent to act, and did not interact with Machiavellianism. Implications for business ethics education and training are discussed.

Why we do the things we do: a discussion and analysis of determinants of just treatment in layoff implementation decisions

Abstract We present a model to explain the variation that exists in how individuals are treated (e.g., notice and explanation provided) during corporate layoffs. Propensity to treat individuals justly and costs and constraints that limit just treatment in a layoff situation are discussed at the organizational and managerial levels. A survey of human resource (HR) managers (n=543) was used to examine predictors of layoff informational justice (e.g., advanced notice, method of informing, and amount of information) and interpersonal justice (e.g., manager demeanor, concerns for sabotage, and escorting layoff victims off the premises). Responses demonstrated more justice in the implementation of layoffs than is suggested from anecdotal “downsizing horror stories” found in the popular press. Informational justice dimensions were predicted by both organizational and managerial factors. For example, less advanced notice was provided when the reason for the layoff was exogenous, such as an economic downturn, then when it was endogenous, such as an organizational restructuring. Additionally, although many companies used individual meetings when informing victims of a layoff, group notification was used more as the size of the layoff increased. There was also much variation in layoff implementation that was not readily explainable by organizational and managerial factors, particularly with regard to interpersonal justice.

The Equator Principles: a promise in progress?

Purpose – The purpose of this paper is to examine the legitimacy of the Equator Principles as a form of private governance of the investment banking industry.Design/methodology/approach – The project finance industry is first described, followed by a consideration of the theories of private governance and legitimacy. The governance of project finance by the Equator Principles is then examined against the backdrop of private governance and legitimacy theory. Cases regarding project finance and the Equator Principles are discussed.Findings – The moral legitimacy of the governance of the Equator Principles is highly questionable, a serious issue for private governance schemes. There are large gaps in the governance structure, and the processes and content of much of the Principles are left to each bank, with little mandated transparency or accountability, particularly at the level of individual deals.Practical implications – The Equator Principles have legitimacy problems arising from their governance struct...

Beyond Transparency: Information Overload and a Model for Intelligibility

The role and evaluation of the modern corporation is being challenged by multiple stakeholders, changing markets and public expectations. Unfortunately, corporate governance, regulation and accounting have played a prominent role in business failure for the past decade resulting in a growing lack of public confidence in our markets. We present a new model that contributes to improving the quality of corporate information by providing not more, but better information through increased intelligibility of overall information, benefiting both the firm and its broad array of stakeholders. It has become apparent that boards, management and regulators have been unable to cope with the rise of business failures by adding increasing layers of regulation that have often served only to exacerbate the complexity and further cloud the transparency of needed information. We have identified a growing number of forward-thinking firms that have found alternative means to provide betterinformation and strengthen their companies. We offer a stakeholder-centric model for improving information intelligibility based upon the extensive scope and variety of external input derived from the growing social movement organizations. With the added focus on intelligibility, these groups can help foster greater corporate responsibility, meaningful transparency, increased stakeholder benefits, and improved overall performance of the firm.

United Nations Global Compact: An Assessment of Ten Years of Progress, Achievements, and Shortfalls

In June 2010, the United Nations Global Compact (GC) celebrated its tenth anniversary. In summarizing the growth and success of the GC, Georg Kell, its founding director, stated: “W hat started as a ‘small Global Compact Initiative’ in 2000, ten years later, the GC stands as the world’s largest global corporate responsibility initiative. As of June 1, 2010, over 8,000 signatories—6,000 from business and 2,000 from civil society and other nonbusiness groups— based in more than 135 countries, were committed to implementing the Global Compact principles into business practices and taking actions to advance UN goals, such as the Millennium Development Goals (MDGs).”1

The impact of corporate philanthropy on reputation for corporate social performance

This study seeks to examine the mechanisms by which a corporation’s use of philanthropy affects its reputation for corporate social performance (CSP), which the authors conceive of as consisting of two dimensions: CSP awareness and CSP perception. Using signal detection theory (SDT), the authors model signal amplitude (the amount contributed), dispersion (number of areas supported), and consistency (presence of a corporate foundation) on CSP awareness and perception. Overall, this study finds that characteristics of firms’ portfolio of philanthropic activities are a greater predictor of CSP awareness than of CSP perception. Awareness increases with signal amplitude, dispersion, and consistency. CSP perception is driven by awareness and corporate reputation. The authors’ contention that corporate philanthropy is a complex variable is upheld, as we find that CSP signal characteristics influence CSP awareness and perception independently and asymmetrically. The authors conclude by proposing avenues for future research.

Book Review: Globalization and NGOs: Transforming Business, Government, and Society

Jonathan Doh and Hildy Teegen set forth a large agenda for this edited volume of essays on the role of nongovernmental organizations (NGOs) as the third sector influencing the activities of business and government. The agenda includes both presenting theoretical frameworks for understanding the role and action of NGOs in the intersection of business, government, and society as well as explicating specific instances of intervention by NGOs, including the evaluation of such intervention. Crosscutting this agenda for understanding NGOs is an examination of the environment in which such intervention occurs: the impact of globalization, in particular, industrial or national settings; the impact of regulatory threats; and the opportunities created by business-NGO cooperation. Taken in its entirety, the book covers an enormous amount of territory and rewards the reader (whether tackling a single chapter or the whole text cover to cover) with insights regarding the place of NGOs in the business and government landscape. The book can roughly be split into two sections: The first five chapters comprise what might be termed a theoretical approach to NGOs supported by specific illustrative examples, and the next four chapters concentrate on particular cases of NGO intervention. A concluding chapter ties the various elements presented into something of a whole with a discussion of “where to from here” questions. For those looking to understand the role of NGOs, as well as develop some theoretical background into how NGOs actually intervene, the first five chapters are a must read. The first chapter (Doh) discusses the direct effect of NGO activity on business and government policy and behavior as well as indirect effects (NGO as both mediator and moderator) on these same elements. He incorporates the entirety into a framework of actions and interactions between NGOs, business, and government. The second chapter (Keim) introduces the institutional framework in which these interactions occur. Keim advances the notion of NGOs as