Friday, February 22, 2008

[IWS] IILS: CSR in MULTINATIONAL COMPANIES: MANAGEMENT INITIATIVES or NEGOTIATED AGREEMENTS? [2007]

IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations
-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor
---------------------- Stuart Basefsky
New York, NY 10016
-------------------------------Director, IWS News Bureau
________________________________________________________________________

International Institute for Labour Studies (IILS) at the ILO
Discussion Paper 185/2007

Corporate social responsibility in multinational companies: Management initiatives or negotiated agreements?
by Tony Edwards, Paul; Marginson, Paul; Edwards, Anthony; Ferner, Olga Tregaskis
http://www.ilo.org/public/english/bureau/inst/download/dp18507.pdf
[full-text, 27 pages]

[excerpt]
Using new data from a 2005 telephone survey of 665 senior respondents (Human Resources
(HR) Personnel Directors, Senior Managers or Senior Officers) in foreign-owned, UK-owned
and joint-owned multinational companies operating in the UK, the paper assesses: i) the
incidence of corporate social responsibility (CSR) among the respondents, and ii) whether these
codes have been the outcome of negotiations with international union federations or European
Works Councils ­or else whether the codes were imposed by management, with employee
representatives having little influence.

The authors' findings indicate that most MNCs in the UK are covered by a corporate code
which includes CSR provisions. Most of these codes (80 percent) are international in scope,
covering both UK and non-UK operations. Among them about 20 percent have been negotiated
with an international trade union organisation and/or a European Works Council. USheadquartered
MNCs are the most likely to have a code but are the least likely to have negotiated
it with workers, whereas German and Nordic firms are the most likely to have negotiated a code
but are among the least likely to have a code in the first place. The paper also underlines other
determinants of the existence of a code and its nature, such as i) the visibility of codes vis-à-vis
consumers and other stakeholders; ii) the extent to which they trade on a brand name; and iii) the
extent to which their supply networks encompass operations in developing countries. Finally, the
findings suggest that, when trade unions are relatively weak, there is less pressure to negotiate
codes with workers' representatives and a greater likelihood that they will be developed
unilaterally.


TABLE OF CONTENTS
Preface.........................................................................................................................................................v
Introduction .................................................................................................................................................1
1. Literature review .....................................................................................................................................1
2. Method and data ......................................................................................................................................4
3. Findings...................................................................................................................................................5
The existence and nature of CSR codes....................................................................................................5
Estimation ................................................................................................................................................6
Results .....................................................................................................................................................7
4. Discussion and conclusion .......................................................................................................................8
Bibliography..............................................................................................................................................14
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Stuart Basefsky                   
Director, IWS News Bureau                
Institute for Workplace Studies 
Cornell/ILR School                        
16 E. 34th Street, 4th Floor             
New York, NY 10016                        
                                   
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Fax: (607) 255-9641                       
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