Perspectives on corporate social responsibility in the chemical sector: A comparative analysis of the Mexican and South African cases

In recent years, the debate on corporate responsibility has shifted from a focus on environmental management towards a broader concept of corporate social responsibility (CSR). This article examines the chemical industry's approach to CSR from the perspective of two emerging economies: Mexico and South Africa. The global chemical industry was one of the first to respond to public concerns about environmental pollution, toxic waste and human health by adopting an industry‐wide code of practice, known as Responsible Care. This article examines the extent to which the chemical industry has responded to the broader debate on CSR. On the basis of a comparative case study, this article argues that the response to social issues by Mexican and South African chemical companies has tended to be limited to the ‘community awareness and emergency response’ (CAER) or community dialogue component of the international voluntary management framework, Responsible Care. Similarities and differences in regulatory and institutional conditions, as well as different levels of civil society engagement, reveal additional limitations for CSR, beyond that of the Responsible Care framework. This article argues that the socio‐political context influences the extent to which companies embrace CSR, especially in emerging economies, and highlights several challenges for the chemical industry in moving forward on CSR: credibility, stakeholder engagement, value‐chain accountability, disclosure and transparency. Reflecting on these challenges, the authors conclude by recommending a renewed focus on: (1) developing a broader set of CSR management practices beyond Responsible Care; (2) institutionalizing stronger accountability measures, such as reporting and verification; and (3) developing multi‐stakeholder partnerships that complement regulation and build public sector regulatory and guidance capacity.     

Community relations and mining: Core to business but not “core business”

Over the past two decades the global mining industry has witnessed the necessity and emergence of community relations and development (CRD) functions, essentially under the rubric of sustainable development and corporate social responsibility (CSR). These functions provide companies with mechanisms through which to engage and manage their relationships with key stakeholder groups, share development benefits and protect business interests. Despite widespread claims by the industry that companies have adopted CSR as a ‘core competence’, we argue that the industry has yet to incorporate the CRD function as part of ‘core business’ at the level of practice. This article characterises a CRD function and related processes within the context of a large-scale mining operation in West Africa. Findings reflect a more universal trend relating to the function and organisational positioning of CRD practice in the resources sector. The authors argue that functional equity needs to be established if the sustainable development agenda is to have a genuine future within the mining industry.     

Improving corporate environmental performance through economic value added

These days, corporate annual reports are full of references to shareholder wealth creation. In today's highly competitive capital markets, most chief executives understand that unless they are seen as value creators, investors will place their scarce capital somewhere else. Clear evidence of the growing importance, even dominance, of shareholder wealth creation is the growing use of a performance measure known as economic value added (EVA®).¹ Within ten years, it is almost certain that most large, publicly traded companies in the United States will be using EVA or something like it as a primary performance evaluation tool. Recently, many non-American companies have also adopted it to better align the incentives of managers with shareholders and to signal their commitment to value creation. EVA is not widely known or understood among environmental specialists, and those who have heard about it often fear it. We find this attitude unfortunate. In this article, we discuss EVA and how its use can aid corporate environmental managers in promoting more proactive environmental investments, and in funding capital investments on environmental improvement, waste reduction, and pollution control in their companies. The use of EVA and other shareholder value measures can also improve general capital investment decisions by integrating environmental factors that affect the long-term interests of the corporation into the managerial decision-making process.     

Dilemmas and advances in corporate social responsibility in Brazil. The work of the Ethos Institute

This article discusses the development of corporate social responsibility (CSR) in Brazil from the perspective of the Ethos Institute of Business and Social Responsibility. The Institute is a not‐for‐profit, non‐governmental organization, that has played a leading role in the Brazilian CSR effort. In Brazil, CSR initiatives have a long tradition of philanthropy, a consequence of the country's great social inequalities. The increased attention to corporate social responsibility has paralleled growing concern about sustainable development and the intensifying activities of pressure groups (consumers, customers, investors, NGOs, labour unions, the media, among others) that have been increasing since the 1990s as natural resources are progressively becoming exhausted, social tensions rising and environmental conditions deteriorating worldwide. This article identifies problems and obstacles to the growth of corporate social responsibility in Brazil, as well as advances and alternatives for CSR and towards creating conditions for the country to be internationally competitive and sustainable in the financial, social and environmental areas.     

Is corporate social responsibility possible in the mining sector? Evidence from Catalan companies

This paper examines the role and diffusion of corporate social responsibility (CSR) management, especially in relation with the adoption of other management systems, in small and medium sized companies in the surface mining industry in Catalonia (Spain). Specifically, it identifies the most salient CSR practices, procedures and metrics and the profiles of companies more prone to adopt them. To fulfill this aim, a survey has been conducted. Results show that mining companies are familiar with CSR practices, but there is not much formalization of procedures and measurement systems of CSR yet. Results show that the majority of socially responsible practices are related to environmental issues and therefore there is a relation between CSR and the application of environmental management systems. The analysis reveals that the management of CSR activities improves with the diffusion of knowledge on CSR practices. A second survey collected the opinion of professional associations in the sector. Respondents indicate that an improvement in CSR management will lead to a better global competitive position.     

SMEs and voluntary environmental initiatives: a study of stakeholders' perspectives in Hong Kong

The environmental performance of Hong Kong's businesses is currently perceived as rather poor. Small and medium-sized enterprises (SMEs) in particular are mostly unaware of the environmental impact of their business. Government and professional bodies have recently started to develop various initiatives to improve the SME sector's awareness of environmental and social issues, and external factors such as supply chain requirements, consumer preferences and energy prices are also exerting a growing influence. Based on extensive interviews with representatives of seven key stakeholder groups, this paper explores the effectiveness of such drivers to engage SMEs with environmental change and corporate social responsibility (CSR). It finds that most existing efforts, such as environmental support programmes and award schemes, do not have a great impact on the environmental and social performance of Hong Kong's SMEs.     

Corporate social responsibility, partnerships, and institutional change: The case of mining companies in South Africa

Internationally and in South Africa, mining companies are increasingly referring to corporate social responsibility (CSR) and partnerships in terms of the business case, or the expectation that being responsible and collaborating with stakeholders is good for profits. Based on a case study of platinum and chrome mining in South Africa, this article argues that the business case is circumscribed by companies’ institutional context. In the past, mining companies’ dominant interpretation of CSR has been in terms of charitable donations and support to good causes. These efforts have not alleviated the contribution of mining companies to growing social problems around the mines, primarily because they have not impacted on core business practices and have not contributed to necessary cross‐sectoral collaboration. Recently, however, there has been an important transition involving the broadening of the interpretation of CSR and increasing commitment to these issues amongst corporate leadership. Though market‐based incentives have contributed to this, the key driver has been the State's legislated transformation programme premised on State sovereignty over mineral resources. Hence, while the interrelationship between companies and their institutional context has, in the past, brought about a vicious cycle of irresponsibility and minimal collaboration, this cycle may be reversed into a virtuous one, driven in particular by the State. The broader implication is that references to a business case for CSR and partnerships cannot be relied upon independently of continued efforts at shaping the public sector context of companies.     

A framework for assessing discretionary corporate performance towards the environment

This article reviews the existing models of corporate social responsiveness and develops a theoretical framework with which to examine corporations' discretionary performance with respect to one social issue, that of the environment. Discretionary indicators of corporate response to environmental issues are developed and tested within this framework. Twelve companies from five different sectors were selected for the survey, based on prior knowledge of their commitment to environmental concerns. Primary data was collected from personal interviews, and secondary data was obtained from company documents, annual reports, and other forms of publically disclosed information. Empirical results varied, but certain voluntary indicators, such as composition of the board of directors, the environmental affairs function, community support, and the annual report are considered to provide strong indications of discretionary corporate performance. Philanthropy and company products proved to be less satisfactory indicators of corporate commitment to the environment. The aggregated results revealed a correlation between the final rankings of firms' discretionary environmental performance and whether those companies are process or product oriented. Linkages between discretionary elements and those of economic and legal requirements were not explored.     

Variation in implementation of corporate social responsibility practices in emerging economies' firms: A survey of Chilean fruit exporters

As in many sectors in emerging economies, the concept of corporate social responsibility (CSR) has become important for exporting agri‐food firms in view of their integration in global supply chains. The purpose of this research was to assess the implementation by Chilean fruit exporters of CSR practices that go beyond minimum legal requirements. The principal results are that, although socio‐economic components of CSR such as poverty reduction and socially just working conditions receive much attention, firms consider comprehensive environmental practices as less important. The results also indicate a slightly higher implementation of comprehensive CSR practices by large firms as compared to small and medium sized enterprises (SMEs). The main conclusion is that, although CSR is increasingly considered by Chilean firms, among SMEs in particular, more attention needs to be paid to raising awareness among managers about CSR practices and to providing assistance in their implementation. This supports findings on CSR implementation in other emerging economies that an active role of civil society and industry organizations is key and that targeted support strategies are needed to install a holistic awareness of CSR and help firms to improve on those aspects of CSR that are relatively underdeveloped.     

推动环境信息披露能改善投资效率吗？

落实企业环境责任，推动环境信息披露，有利于推动结构调整和高质量发展。本文根据《环境信息公开办法（试行）》，对发布企业社会责任报告的上市公司环境信息披露进行刻画，基于Richardson投资期望模型对投资效率进行测度，分析环境信息披露对上市公司投资效率的影响。研究发现，环境信息披露能在一定程度上缓解投资不足，但对过度投资的影响并不显著，而且环境信息披露对投资不足的缓解作用在国有企业、两权分离度高等代理成本较高的企业中表现更为显著。本文因此提出推动环境信息披露的建议，一方面发挥政府作用，加大监管压力，确保企业环境责任的落实，健全环境治理企业责任体系；另一方面发挥市场的决定性作用，强化诱致企业披露环境信息的动力，让市场形成对环境信息披露的强需求，促使企业提升环境信息披露水平。     

Improving environmental management with full environmental cost accounting

Based on the most comprehensive field research ever conducted in corporate environmental management, this article reports on the integration of environmental impacts into product costing and cost management practices in organizations. It examines approaches for identifying and tracking current environmental costs related to both current and past production. It also develops the need and prospects for a complete analysis of future environmental impacts, including both costs and benefits, and the integration of these elements into a life-cycle costing or full environmental cost accounting model. The prospects for full environmental cost accounting and the related accounting issues are analyzed. Finally, the importance of full environmental cost accounting for improving corporate environmental performance, reducing corporate environmental impacts, and increasing long-term corporate profitability is discussed.     

Corporations and the environment: A new perspective

Summary The author presents the results of a pilot study which explored the voluntary support given by seven Pittsburgh multinationals to environmental goals and objectives through their foundations and operations. While much of the information is national in scope, the findings have international significance. Fundamental common key factors and patterns were identified which already have and will continue to guide most corporate international environmental activities. As interest grows in developing cooperative undertakings with the corporate community, it is important for environmental organizations, government, and academia to understand these patterns. Based on the findings and on suggestions by corporate representatives, recommendations are given as to how support of the goal of creating sustainable societies by the corporate and environmental communities can be improved and increased. Dr Langord's interest in urban and environmental policies range from issues dealing with coastal zone and floodplain management to urban waterfront re-vitalization and environmental aesthetics. Most recently she is studying the role of industry in helping to meet critical resource and environmental needs. She is exploring new patterns of cooperation with government, industry and environmental organizations. Currently Director of the International Environment Program, Center for International Studies, University of Pittsburgh, Dr Langord has held a number of academic positions, served as a resource policy analyst for the US Department of Interior, and has acted as a consultant to government and industry.     

Do environmental management programs improve environmental performance trends? a study of standard & poors 500 companies

In this article, environmental management programs of Standard & Poors (S&P) 500 companies were evaluated using a series of industry and size-adjusted environmental trend indicators. The statistical analysis shows that a handful of corporate policy, governance, human resources, auditing, and financial parameters are highly relevant to improving corporate environmental performance. The results have implications for corporate environmental efforts as well as future government policies to foster environmental improvement.     

Public Hearing or ‘Hearing Public’? An Evaluation of the Participation of Local Stakeholders in Environmental Impact Assessment of Ghana’s Jubilee Oil Fields

This article investigates the involvement of local stakeholders in the environmental impact assessment (EIA) processes of Ghana’s first off-shore oil fields (the Jubilee fields). Adopting key informants interviews and documentary reviews, the article argues that the public hearings and the other stakeholder engagement processes were cosmetic and rhetoric with the view to meeting legal requirements rather than a purposeful interest in eliciting inputs from local stakeholders. It further argues that the operators appear to lack the social legitimacy and social license that will make them acceptable in the project communities. A rigorous community engagement along with a commitment to actively involving local stakeholders in the corporate social responsibility (CSR) programmes of the partners may enhance the image of the partners and improve their social legitimacy. Local government agencies should be capacitated to actively engage project organisers; and government must mitigate the impact of the oil projects through well-structured social support programmes.     

Corporate social responsibility in the mining industry: Perspectives from stakeholder groups in Argentina

Since the liberalisation of its investment regime in the 1990s, Argentina has seen a rise in foreign direct investment into large-scale exploration and exploitation of mineral resources. However, many social groups (local communities, grassroots movement and the church) often strongly oppose new mining projects on the grounds of environmental, ethical and economic concerns. In a situation marked by widespread conflict, mining companies continue operating and develop Corporate Social Responsibility (CSR) initiatives which are often promoted as a means of contributing to the sustainability and development of the nation. The paper develops a framework to highlight how the principles of stakeholder theory could be used as conceptual and practical guidance for conflict-resolution oriented CSR policies. The framework is further used to analyse two case studies of conflictive mining projects in Argentina. The paper explores how key stakeholders perceive contribution of CSR to welfare and the socio-economic development of mining communities and sustainable development of the nation. It demonstrates that institutional and social stakeholder networks often strongly oppose the idea of voluntary self-regulation implied by CSR in situations characterised by weak governance. Even though the CSR of companies could be improved in areas of corporate communication, transparency, stakeholder engagement and dialogue, it is not seen as a panacea for the social conflicts in the sector.     

Impact of the FTSE4Good Index on firm price: an event study

This paper examines whether corporate financial performance is affected by public endorsement of environmental and social performance. Event study methodology, which relies on the notion of market efficiency, is used to examine the relationship between positive and negative announcements and changes in share prices or daily returns. Inclusion in and deletion from the FTSE4Good UK Index is used as a proxy measure for good (poor) corporate social responsibility. The abnormal or unexpected daily returns associated with an event are calculated and their significance tested. The results show a trend towards positive and negative announcements having the expected effects on daily returns. But these movements are not significant and the data do not suggest that a firm's presence on the index brings it any significant financial return for signalling its corporate social responsibility.     

Multilevel Water Governance and Problems of Scale: Setting the Stage for a Broader Debate

Environmental governance and management are facing a multiplicity of challenges related to spatial scales and multiple levels of governance. Water management is a field particularly sensitive to issues of scale because the hydrological system with its different scalar levels from small catchments to large river basins plays such a prominent role. It thus exemplifies fundamental issues and dilemmas of scale in modern environmental management and governance. In this introductory article to an Environmental Management special feature on “Multilevel Water Governance: Coping with Problems of Scale,” we delineate our understanding of problems of scale and the dimensions of scalar politics that are central to water resource management. We provide an overview of the contributions to this special feature, concluding with a discussion of how scalar research can usefully challenge conventional wisdom on water resource management. We hope that this discussion of water governance stimulates a broader debate and inquiry relating to the scalar dimensions of environmental governance and management in general.     

大数据时代政府环境治理路径创新

本文针对政府环境治理面临政府失灵、市场失灵和社会低效三个困境,提出运用大数据方法创新治理路径。政府应用大数据提高环境治理过程中的事前、事中和事后监管效能,创新监管模式提升环境治理能力,改善政府失灵困境;依托大数据完善市场化调节机制,激励企业环境行为市场化,构建企业环境信用评价体系,改变企业环境信息披露模式,弥补市场失灵;利用大数据增进公众环境意识,建设公开、透明、平权化的环境信息交互体系,重视环境信息的舆情引导,促进环保价值理念传播,改变公众参与低效现状。进而提出完善大数据治理平台、技术和体系,构建政府、企业、公众共同参与的立体化环境治理模式,提高环境治理的精准化、精细化和智能化水平。     

Corporate social responsibility and petroleum development in sub-Saharan Africa: The case of Chad

This paper contributes to the debate on governance, transparency and Corporate Social Responsibility (CSR) in oil-rich sub-Saharan Africa, focusing on the case of Chad. Over the past decade, Chad has gained international standing as an oil-producer on the back of the World Bank-catalyzed Chad–Cameroon pipeline project, which aims to develop the country's oil-rich Doba region. The analysis begins by examining at greater length the challenges to implementing a CSR agenda in fragile states such as Chad, highlighting, specifically, the barriers to facilitating development in environments exhibiting Dutch Disease-like symptoms. It subsequently critiques CSR programs in resource-rich developing countries, questioning the role of corporate intervention in such settings. The paper concludes by examining how CSR has been “operationalized” in Chad itself, where to ensure that the finances generated from the oil project are properly managed, the Bank instituted a comprehensive revenue management plan.     

Environmental cleanup: The challenge at the Hanford Site,Washington, USA

Numerous challenges face those involved with developing a coordinated and consistent approach to cleaning up the US Department of Energy’s (DOE) Hanford Site in southeastern Washington. These challenges are much greater than those encountered when the site was selected and the world’s first nuclear complex was developed almost 50 years ago. This article reviews Hanford’s history, operations, waste storage/disposal activities, environmental monitoring, and today’s approach to characterize and clean up Hanford under a Federal Facility Agreement and Consent Order, signed by DOE, the Environmental Protection Agency, and the Washington Sate Department of Ecology. Although cleanup of defense-related waste at Hanford holds many positive benefits, negative features include high costs to the US taxpayer, numerous uncertainties concerning the technologies to be employed and the risks involved, and the high probability that special interest groups and activists at large will never be completely satisfied. Issues concerning future use of the site, whether to protect and preserve its natural features or open it to public exploitation, remain to be resolved.