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2022 | Book

Corporate Approaches to Sustainable Development

International Experiences and Insights

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About this book

This book aims to answer the question: how can the industry action international approaches to corporate sustainability, ultimately achieving sustainable development and overall sustainability? With this question in mind, this manuscript examines how the industry, through existing approaches to corporate sustainability, contribute to addressing conflicting demands emerging from the achievement of sustainable development in a responsible, sustainable and innovative manner. It also reviews alternative models of corporate sustainability that contribute to achieving inclusive, sustainable development globally. Chapters 2 to 4 discuss emerging approaches to corporate sustainability. Chapters 5 to 11 examine the role that the extractive industry (mining and oil) could play in the delivery of sustainable solutions for the communities and environment in selected cases, in the Americas and Africa. Lastly, the manuscript showcases international corporate sustainability and climate change practices in the forestry, agriculture, tourism and manufacturing industries within the context of Asia and The Pacific region, particularly, Nepal and Bangladesh.

Table of Contents

Frontmatter
Chapter 1. Introduction
Abstract
Issues concerning corporate sustainability practices, procedures, motivations and effects are traditionally focussed at the global level. At this level, large-scale multinational corporations, states, NGOs and national businesses are the focus. This approach places local and regional stakeholders in relatively passive or indirect modes of interaction. In this way, sustainability measures are widely understood to be implemented from the top down through public or corporate policy. The general assumption is that businesses only pursue profit, whilst public policy contains business interests and acts as the sole drivers of social and environmental outcomes. The political and social power of large-scale corporations through their capacity to redirect enormous financial reserves, and to enable systemic changes, is cited as evidence to support this view (Potts, J Clean Prod 18:713–725, 2010). Such a position would further suggest that enforcement and reactive responses are characteristic of the current process towards sustainability practices (Strand, J Bus Ethics 123:687–706, 2014). This chapter provides an overview of such issues to introduce this manuscript.
Isabel B. Franco
Chapter 2. Policy Responses to COVID-19- Climate Finance and Carbon Markets
Abstract
This chapter explores the potential role of using climate finance and carbon markets to meet the targets of the United Nations (UN) regional agenda on climate change in the Asia-Pacific. This agenda includes obligations under the Kyoto Protocol and the Paris Agreement to reduce greenhouse gas emissions and limit global warming. Climate finance refers to local, national or transnational financing that seeks to support mitigation and adaptation actions to address climate change (UNFCCC 2020a). Carbon markets represent a market-based strategy, whereby a price is placed on greenhouse gas emissions allowing companies and governments to purchase carbon credits or offsets to meet greenhouse gas emissions reduction targets. The proposal to employ climate finance and carbon markets is informed by growing economic and environmental challenges in the region that have been further exacerbated by COVID-19. This chapter analyses carbon markets case studies across industry and the public sector in the region. This chapter identifies the opportunity to build climate finance infrastructure post-COVID-19 and makes policy recommendations for governments and corporations.
Isabel B. Franco, Masato Abe, Daniel Nieto, Gabriel Sunol, Summer Lamont
Chapter 3. Corporate Purpose: An Emerging Approach to Corporate Sustainability
Abstract
This chapter presents a literature review of an emerging research agenda, the ‘Corporate Purpose’, as a tool to solve today’s corporations and for-profit challenges to define the future of the corporation. The Corporate Purpose of a company is simply its reason for being. It defines why it exists and the impactful contribution it intends to make to society (Mayer, Principles for purposeful business: how to deliver the framework for the future of the corporation: an agenda for business in the 2020s and beyond. British Academy Future of the Corporation Programme, London, 2019a). It is an avenue to assist institutional transformation to transcend the flaws of capitalism and crisis to create more sustainable and regenerative businesses and economies. This review reveals four major antecedents of the Corporate Purpose phenomenon: inequality and distrust, technological challenges, intangible nature of companies and environmental degradation. It also distinguishes three types of drivers behind a corporation’s shift to adopt a Corporate Purpose: regulatory, business and leadership.
Danielle Duell, Isabel B. Franco, Dayana Jimenez, Summer Lamont
Chapter 4. An Overview of Sustainable Finance: Linkages with the Sustainable Development Goals
Abstract
The purpose of this chapter is to bring together current literature on sustainable finance in order to inform our model on the topic. In this section, we explore the scholastic understanding of sustainable finance as well as how the concept of sustainable investing fits into the framework of the UN Sustainable Development Goals (SDGs). This chapter is divided into four sections: introduction, a review of sustainable finance and a snapshot of numbers, a review of sustainable finance in relation to the SDGs, theoretical models and framework for sustainable finance, and, finally, a portion dedicated to presenting the insufficiencies in current data, methodologies, and metrics.
Isabel B. Franco, Nanicha Sethpornpong
Chapter 5. The Role of Corporate Social Responsibility in Sustainable Mining: Exploring Mining Impacts of the Kansanshi Mine in Zambia
Abstract
Mining activities may bring about technology which promotes rural-urban connections, employment opportunities for the host community and improvements in education facilities, among others. The aim of the study was to assess the socio-economic impacts of mining on people’s livelihoods in communities surrounding the Kansanshi mine and the role of corporate social responsibility (CSR) in mitigating the effects. The objectives were to establish how mining activities impact (socially and economically) on people’s livelihoods, to examine the (CSR) strategies used by the mining firm to improve local people’s welfare and to establish the extent to which CSR strategies are contributing towards the improvement of people’s livelihoods. The results of the study revealed that the Kansanshi mine, through its CSR initiatives, has built and renovated some schools, clinics, the main district hospital and some township roads. Despite this, health and educational facilities were far apart resulting in pregnant women and school going children walking long distances to access these services. Some roads were in very bad condition rendering them impassable during the rainy season. As a result of this, the communities surrounding the mine felt neglected by both the mine and the government. As a result of this, there is need for a law which can distinctively stipulate the roles of the government and those of the investor in community project implementations. Additionally, governments need not abandon social provisioning to mining companies but, rather, pursue a programme of being partners with mining companies. This can be done by involving mining companies and host communities so as to establish responsibilities, costs and benefits and also to sign tripartite (the investor, the government and the host community) community development agreements.
Peter Mhone, Isabel B. Franco, Summer Lamont
Chapter 6. Zambia’s Mining Industry: A Closer Look at the Corporate Approaches to Sustainable Development of Konkola and Mopani Copper Mines
Abstract
Transnational Corporations (TNCs) are considered to be one of the most important actors in the global economy and now occupy a position that is more influential than ever before. In their pursuit to make profits, most TNCs have ended up expanding their business to developing countries. Developing countries have increasingly ended up providing a “haven” for TNCs, with incentives such as reduced regulation of corporate activity, lower tax rates and reduced restrictions on labour and environmental protection in exchange for access to foreign direct investment (FDI).
There are over 65,000 TNCs operating in developing countries, accounting for approximately two-thirds of international trade. It is argued that TNCs, through FDI, are able to open up entrepreneurial opportunities, provide cleaner technology and better management practices as well as create employment opportunities. It is therefore contended by some developmental international organisations that TNCs are better suited to foster sustainable development in resource-rich but poverty-stricken developing countries.
Mining is the world’s fifth largest industry and by its nature one of the most environmentally destructive activities. In Zambia, mining is the largest sector of the economy accounting for close to 80% of the country’s export earnings. The efficacy of the mining industry in contributing to economic growth and sustainable development forms part of the debate about the role of business in development. It is therefore important to understand the corporate approaches employed by various mining TNCs in fostering sustainable development.
Inonge Mutale, Isabel B. Franco, Summer Lamont
Chapter 7. Legislating Corporate Sustainable Development Agreements as a Corporate Social Responsibility Response for Mining Communities in Zambia: A Case Study of Kabwe Lead-Zinc Mine, Zambia
Abstract
The mining legacy in Zambia has seen the rise and fall of towns and cities built around the mines which flourish when the mine is in its operational phase but perish once the mine closes. Sustainable development initiatives through corporate social responsibility frameworks have been formulated for community development requirements in mining laws for resource-rich countries to implement in their countries. A research study was established to investigate the effects of the closure of Kabwe lead-zinc in Zambia, on the local community in the context of sustainable development, and examine the laws and policies that affect the mining sector in the country. This was to ascertain the impact that these have on communities adjacent to mining operations, across the mine life cycle, and propose what legal reforms can be enacted to actualize the concept of sustainable development through corporate social responsibility initiatives in the mining communities. A mixed research approach was adopted using both the quantitative and qualitative methods. Purposive and snowballing sampling techniques were used to select respondents. A total of 100 questionnaires were administered and the study received a response rate of 79%. Closed and open questionnaires, focus group discussions and interview guides were used to collect data from respondents. The study revealed that due to lack of laws on the sustainable development of the mining community at the time of the closure of the mine in Kabwe, economic activities dwindled and most former mine workers have ended up being engaged in other activities, mostly agriculture, to earn a living. The study also revealed the need to have laws in place to regulate the mine closure in terms of benefits but revealed a general lack of understanding on the concept of sustainable development amongst the local community. The study recommended the need for developing an advocacy strategy on the concept of sustainable development, as well as detailed examination of the enforcement mechanism and laws related to sustainable development in mining from which appropriate regulatory amendments can be promulgated and enforced.
Ruth Hachitapika Chibbabbuka, Jewtte Masinja, Isabel B. Franco
Chapter 8. A Corporate Roadmap to Sustainable Resource Governance in Africa: Insights from the Mining and Oil Industries in Angola
Abstract
This chapter presents a roadmap towards the implementation of a corporate approach to sustainable resource development. The piece argues that such an approach cannot be undertaken by a government or other institution in isolation but must be addressed as a pervasive concern which every stakeholder and institution in the African extractive industry needs to engage with. With a particular focus on Angola, this piece makes an important contribution while defining the roadmap for corporations operating in African resource-based economies. Angola has undergone major transformations in this area over the past years. Yet, there are capacity-building gaps, particularly at the government level, which need to be addressed in order to assist corporations in meeting the requirements of sustainable resource development.
Isabel B. Franco, Peter Mhone
Chapter 9. Study of Conflicts for Water in the Sustainable Livelihoods Framework: The Role of the Mining Industry in Cajamarca, Colombia: A Case Study
Abstract
In recent years, there has been an increase in socio-environmental conflicts in the mining industry. The conflicts over water (CA) are the most booming in the mining sector. One of the most controversial mining projects in Colombia in the last decade is the La Colosa mining project due to the water conflict generated by the project between the Cajamarca community (Tolima) and the mining company AngloGold Ashanti. This research provides a greater understanding of the case study conflict and introduces the 2030 Agenda for Sustainable Development Goals (SDGs), and, in turn, provides information on the influence of CAs on the scope of these objectives. This research contributes to the literature by highlighting that conflict in the Cajamarca area results from the broader socioeconomic impacts of mining operation rather than water as a resource.
Karen De la Hoz Pertuz, Isabel B. Franco, Ellen Derbyshire
Chapter 10. Sustainable Communities in Resource Regions: Exploring the Case of the Mining Industry Resettlement in Colombia
Abstract
In recent times, the world has experienced major challenges in achieving the Sustainable Development Goals (hereinafter SDGs). In the Colombian case, academics, educators, and practitioners in this area have embarked on activities aimed at integrating the SDGs into the industrial sector, particularly those sectors that involve the sustainability of mining regions and those where natural resources are extracted (Cano et al. 2019). A recurring problem in theory and practice is the limited applicability of existing methodologies for the study of issues that comprise the sustainable development of mining regions (Buitrago-Franco 2014). In this context, this chapter presents the implementation of the Sustainable Livelihoods Framework (SL), as a methodological tool used in sustainability science for the study of issues related to sustainable development and applied to the case of a mining operation in La Guajira, Colombia, and its relationship with communities impacted by resettlement processes. This chapter therefore explores the connections with the components that make up the Sustainable Livelihood Framework. This chapter also explores the use of both approaches as analytical frameworks to examine the impact of the mining industry on the sustainability of communities adjacent to mining projects, particularly during resettlement processes.
Isabel B. Franco, Natalia Cano, Yeisón Yesid Díaz Soraca, Rafael Ignacio Machado Serrano, Leonel García Martínez, Summer Lamont
Chapter 11. Mining and Sustainable Development in Colombia
Abstract
This chapter addresses mining and sustainable development in Colombia. It is intended to be used as a tool to serve governing bodies, business, and other interested stakeholders. This manuscript also forms part of the global sustainability dialogue and tackles key issues associated with the sustainable development agenda. This includes assessing the responsibilities of various interest groups and the core issues in the mining industry, specifically within the context of Colombia.
Isabel B. Franco, Natalia Cano, Wilson Guillermo Marin Lopez, Karen De La Hoz Pertuz, Estefania Velez Jaramillo
Chapter 12. Sustainable Forest Management: Community Forestry’s Contribution to Build Climate-Resilient Communities in Nepal
Abstract
Community forestry user groups (CFUGs) in Nepal, created multiple livelihood options for the local community while building financial and technical local capacity to cope with climate change impacts. The research reported in this study explored the multiple roles played by community members on different activities aimed to minimize climate vulnerability and building climate-resilient communities equipped with adaptation and mitigation coping mechanisms. This study aims to explore the impacts of climate change on forest and livelihoods while discussing on existing adaptations and mitigations methods on climate change. The methodological approach of this research involved the use of social-ecological production landscapes (SEPLS) resilience indicators applied to measure climate resilience through activities conducted by CFUGs. Additional data were collected through participatory rural appraisal (PRA) tools, household survey, field survey with key informants, focused group discussion, systematic literature review, policy, and document analysis. The research was undertaken at four (4) CFUGs in Chitwan district of Nepal selected due to their economic and management status, infrastructural development, and management committee composition. Findings showed that climate change had negative impacts on forest resources, water resources, agricultural crops and people’s daily life through drought, higher temperature, changing crop characteristics, etc. Activities such as control in wildlife hunting, forest fire, encroachment, and control grazing help to increase biodiversity inside the forest. CFUGs had attracted funding, i.e., revolving fund or subsidy, to enhance livelihood of poor and pro-poor households. Applied research was conducted to explore the connections between forest and climate change policy and opportunities to integrate the international development agenda into sustainable forest management.
Jyoti Sedhain, Isabel B. Franco, Summer Lamont
Chapter 13. Ensuring Sustainable Post-Pandemic Tourism in Nepal: The Role of Corporate Agencies
Abstract
Nepal is one of the world’s top tourist destinations, with millions of people visiting each year. Tourism contributes nearly 8% to Nepal’s GDP, making it one of the largest economic sectors. The global COVID-19 pandemic has severely impacted this industry due to the suspension of foreign tourist arrivals. This has resulted in widespread unemployment in many Nepalese tourism industries including trekking, aviation, mountaineering, and hospitality, resulting in a loss of over 10,000 jobs. Nepal was set to launch a nationwide Visit Nepal 2020 campaign with aspirations of attracting two million tourists, but which was later cancelled due to the pandemic. This impact on tourism is only one of the many sectors that is being hit hard by the pandemic, which has caused a major setback to the economy of the country.
For this tourism-dependent country, a strong mechanism is required to recover and sustain this industry. The actions taken by authorities, airlines, hospitality businesses, hoteliers, trekking agencies, and mountaineering agencies will determine how Nepal recovers and what pathway it takes to repair its tourism industry.
Anuska Joshi, Isabel B. Franco, Ross Thorley
Chapter 14. Adaptation Strategies Adopted by Indigenous Community for Sustainable Livelihood in Response to the Changing Climate: The Role of the Local Authorities and the Corporate Sector in a Case Study of Sherpa Community from Lukla, Nepal
Abstract
Nepal’s vulnerability to climate change is high, due to its geographical conditions, which is further exacerbated by its low human development index. Under this context, indigenous people are especially vulnerable due to their close dependence on natural resources and their often weak socioeconomic condition. One such highly vulnerability community in the Himalayan region of Nepal is the Sherpa community who have long been the face of mountaineering guides and have established their livelihood around the harsh topography of the mountain. These mountain communities are at risk of melting glaciers and changing monsoons, which impact their agricultural and tourism activities that they are dependent on.
The adaptation strategies adopted by the indigenous community is very important in building their resilience against increasing impact of climate change and depends on their perception of climatic changes. In the case of Sherpa people in Lukla, this perception study shows that their awareness about present climate change scenario is almost null, and therefore they do not perceive potential threat in the future as well. This differs drastically from literatures and reports that point to the increasing climate change threat in the Himalayan regions. Therefore, the role of local authorities and corporate sectors is strong in bringing climate change sensitization program in the area and to work for robust adaptation strategies.
Anuska Joshi, Riyanti Djalante
Chapter 15. CSR Disclosure through the Principles of UN Global Compact in the Manufacturing Industry in Bangladesh: Evidence from Emerging Markets
Abstract
The chapter aims to examine the extent and determinants of corporate social responsibility (CSR) disclosure with the stance of both legitimacy and stakeholder theory. The study used annual reports of 100 sample manufacturing corporations selected based on the market capitalization method. The extent of CSR disclosure was evaluated through the ten principles of the United Nations Global Compact. Ordinary least square regression was conducted to analyze data. The study findings indicate that only 11% of sample corporations disclose more than eight principles through the lens of both legitimacy and stakeholder theory. The study also finds that board size, corporate size, and operating risk management have a significant, positive association with CSR disclosure. Findings are only based on manufacturing corporations and the principles of the United Nations Global Compact, so the generalization of findings on financial corporations and comparison with other voluntary standards should not be prudent. Findings also support policymakers and industry practitioners to develop a methodological guideline along with improving the instruments of social value system for enhancing CSR disclosure. The study empirically tested the positions of both legitimacy and stakeholder theory for CSR disclosure in the emerging economies like Bangladesh for which the findings provide new insight into the literature. In addition, the findings regarding the role of independent directors and operating risk management for CSR disclosure in the emerging economies will keep a significant appeal to policymakers.
Sohel Mehedi, Shajahan Mondol, Isabel B. Franco
Chapter 16. The Role of Managerial Efficiency, Human Capital, and Research and Development in Corporate Environmental Disclosure in the Manufacturing Industry: Insights from Bangladesh
Abstract
The chapter aims to examine the level of corporate environmental disclosures (CED) and the influence of managerial efficiency, human capital, and research and development (R&D) to the increased level of CED through the multilevel theoretical framework. Following market capitalization method, the study takes 100 sample manufacturing corporations listed into consideration and finally utilizes 96 annual reports in the year 2017. The study conducts an ordinary least square regression analysis to reach the conclusions for the proposed hypotheses. The study explores CED with the view of the agent efficiency, organizational power, and resources in terms of organizational capacity. The study findings indicate that human capital and R&D have positive, significant association with CED. The role of managerial efficiency is also positive in growing CED. Researchers’ personal decisions are utilized in the content analysis and data collection from the annual reports in addition to one firm-year observation. Policy-makers’ attention and industry practitioners’ rationality are tensed how eco-management practice is incorporated in the business operations. In addition, the study attracts policy-makers’ vision on how corporations can invest more in R&D. The study attempts to explore CED with the multilevel theoretical framework in which operationalization capacities of different levels of resources are highlighted as the pivotal players in achieving organizational environment-friendly operations and disclosures.
Sohel Mehedi, Ashraf Uzzaman, Shakil Hossain, Isabel B. Franco
Chapter 17. Conclusions
Abstract
This book explored emerging corporate approaches to sustainable development and sustainability solutions for communities and the environment. This manuscript contributes to the literature by building knowledge regarding the role of the private sector and corporate-led initiatives in the design and application of approaches to foster inclusive, sustainable development. The research focused largely on corporate sustainability within the context of the developing world. However, further research is needed to explore the potential contribution of developed countries in helping developing countries overcome sustainability challenges through corporate approaches that plan for sustainable development. Similarly, empirical research needs to be undertaken on the role of industry in developing sustainable solutions for locals in vulnerable locations.
Isabel B. Franco
Metadata
Title
Corporate Approaches to Sustainable Development
Editor
Dr. Isabel B. Franco
Copyright Year
2022
Publisher
Springer Nature Singapore
Electronic ISBN
978-981-16-6421-2
Print ISBN
978-981-16-6420-5
DOI
https://doi.org/10.1007/978-981-16-6421-2