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Journal of Business Ethics

Erschienen in:

19.09.2014

Human Rights and Corporate Social Responsibility in Developing Countries’ Industrial Clusters

verfasst von: Elisa Giuliani

Erschienen in: Journal of Business Ethics | Ausgabe 1/2016

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Abstract

A recent preoccupation in scholarly research is the capacity of firms in developing country industrial clusters to comply with international corporate social responsibility (CSR) policies and codes of conducts. This research is at an early stage and draws on several—often quite distinct—scholarly traditions. In this paper, we argue that future work in this area would benefit from a more explicit examination of the connection between cluster firms and human rights defined according to the 1948 Universal Declaration of Human Rights and subsequent covenants and treaties. We argue that cluster firms’ adoption of CSR policies, often indiscriminately imposed by global buyers, should be differentiated from firms’ actual human rights practices. Based on this distinction, we elaborate a typology of industrial clusters (low-road, window-dressing, rights-oriented) and identify a set of factors likely to influence their practice. Against this background, we discuss an agenda for future research and elaborate on the potential methodological intricacies related to research on the interface between industrial clusters and human rights.

Vorheriger Artikel Economic and Social Upgrading in Global Value Chains and Industrial Clusters: Why Governance Matters

Nächster Artikel Rising Power Clusters and the Challenges of Local and Global Standards

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The cluster concept is derived from the original concept of industrial district developed by Alfred Marshall, who defined it as a concentration of ‘large numbers of small businesses of a similar kind in the same locality’ (Marshall 1920, p. 277). An industrial cluster is defined here as a geographical agglomeration of firms operating in the same industry, in line with the definition in Humphrey and Schmitz (1996).

Many classic and early definitions of social responsibility can be found in Crane et al. (2008). Among the landmark contributions, Jones (1980, pp. 59–60) defines social responsibility as ‘an obligation to constituent groups in society other than stockholders and beyond that prescribed by law and union contract’.

We use CSR policy as an umbrella term to refer to all those activities formally and explicitly undertaken by business firms in order to contribute to society and the environment. Therefore, in this paper, CSR policy includes activities ranging from the formal adoption of firm or industry-level codes of conduct, adherence to principle-based initiatives, such as e.g. the UN Global Compact, and sustainable reporting e.g. the Global Reporting Initiative (GRI), to certification initiatives such as the Forest Stewardship Council (FSC), ISO 26000 and SA8000.

Research on business and human rights began in the 1970s (e.g. Asante 1979; Horn 1981) with the first international codes of conduct for corporations (i.e. OECD Guidelines for Multinational Enterprises 1976; ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy 1977; UN Draft International Code of Conduct on Transnational Corporations 1984) and intensified in the mid-1990s (e.g. Muchlinski 1995; Meyer 1996; Chandler 1998, Addo 1999), spurred by the emergence of considerable evidence of corporate scandals and the growing economic and political power of non-state actors such as large corporations, connected to the global spread of liberalization policies during that period (e.g. Frynas and Pegg 2003; Campbell and Miller 2004). There were simultaneous business and human rights debates revolving around the definition of the human rights responsibilities of private corporations (e.g. Paust 2002; Reinisch 2005; Clapham 2006) and identification of normative solutions to the negative repercussions for human rights of business (e.g. Muchlinsky 2001; Ramasastry 2002; Kinley and Tadaki 2004; De Schutter 2006, 2010).

Use of the word responsibility rather than obligation reflects the fact that states continue to be the sole bearers of human rights obligations under international law, but also constitutes authoritative acknowledgement of the existence of corporate responsibilities that are grounded in internationally sanctioned values.

The human rights approach to business poses a number of challenges with respect to the trade-offs in the enjoyments of rights—i.e. improvements to some rights may come at the expense of others. These trade-offs are clearly problematic, and there is presently no agreement among human rights scholars on the possibility and desirability of establishing a ‘hierarchy’ of human rights (Klein 2008; Quane 2012).

As Wettstein (2012b, p. 750) puts it: ‘whilst CSR has traditionally focused on the domain of virtue and beneficence and thus may have tended to put the emphasis predominantly on what is desirable (and thus optional) rather than imperative, human rights claims deal with the indispensable and thus with what is owed to human beings; they are, in other words, located squarely in the realm of justice’.

A case in point may be women’s rights whose violation under UDHR standards is allowed by the local law in certain countries (see Sharia law in Islamic countries).

This typology is coherent with and improves on the distinction in the AccountAbility-UNIDO (2006) report on a set of developing country clusters’ responses to the responsibility agenda (i.e. evasion; silent CSR; compliance with standards; market access through cluster responsibility).

We borrow the term low-road from Pyke and Sengenberger (1992), although we attribute to it a broader meaning than that originally implied by Pyke and Sengenberger.

An EIP is generally described as a “community of manufacturing and service businesses located together on a common property, [which] seek enhanced environmental, economic, and social performance through collaboration in managing environmental and resource issues” (Lowe 2001, p. 1).

It seems appropriate to add here that rights-oriented joint actions might be more likely to occur in those clusters where the firm’s owners and his/her family tend to pursue non-economic utility, implying frequent engagement in altruistic activities to project and perpetuate a positive family image and reputation, and to receive recognition of their generosity from the local community (Russo and Tencati, 2009; Berrone et al. 2010) when their altruism and values are aligned to respect for universal human rights. In this context, rights-oriented decisions may be encouraged by the immediate community’s societal judgements and easy sanctioning for misbehaviour of local SMEs (Berrone et al. 2010). Hence, it is possible that the effect of rights-oriented entrepreneurs and local social monitoring processes will further boost firms to make societal well-being a core of their decision making.

CSR policies display a ‘positive’ side to corporations, which they are keen to communicate. Information on adherence to certain standards may be available from secondary sources (e.g. the UN Global Compact website, which reports on all the firms that participate in that programme, the GRI and other sources which provide similar, although less comprehensive information on firms).

This is because large firms tend to be monitored more closely by the press and watchdog organizations (e.g. NGOs) whilst smaller firms attract less media attention and their wrongdoings are less likely to be tracked and included in these databases.

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Titel: Human Rights and Corporate Social Responsibility in Developing Countries’ Industrial Clusters
verfasst von: Elisa Giuliani
Publikationsdatum: 19.09.2014
Verlag: Springer Netherlands
Erschienen in: Journal of Business Ethics / Ausgabe 1/2016
Print ISSN: 0167-4544
Elektronische ISSN: 1573-0697
DOI: https://doi.org/10.1007/s10551-014-2375-5

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Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 1/2016

The Influence of Board Diversity, Board Diversity Policies and Practices, and Board Inclusion Behaviors on Nonprofit Governance Practices

Socio-Cognitive Determinants of Consumers’ Support for the Fair Trade Movement

Exploring the Security of Information Sharing on Social Networking Sites: The Role of Perceived Control of Information

Are Authentic Leaders Always Moral? The Role of Machiavellianism in the Relationship Between Authentic Leadership and Morality

Special Issue on Industrial Clusters and Corporate Social Responsibility in Developing Countries

Economic and Social Upgrading in Global Value Chains and Industrial Clusters: Why Governance Matters