Pollution Haven and Corruption Paradise

In this paper, we present a simple theoretical extension from the Economic Geography literature to characterize the main features of pollution havens (lax environmental regulation, good market access to high-income countries and corruption opportunities). Using structural and reduced-form estimations, we find that pollution havens are not a “popular myth” for European firms, laxer environmental standards significantly explain the location choice of polluting affiliates. We analyze in depth the role of trade costs (using various bilateral and multilateral measures), a 1% increase in access to the European market from a pollution haven fosters relocation there by 0.1%. We also find that corruption lowers environmental standards, which strongly attract polluting firms: a 1% increase of corruption fuels relocation by 0.28%. We test the economic significance of these empirical findings via simulations. The protection of the European market (e.g., a carbon tax on imports) to stop relocations to pollution havens must be high (a decrease of the European market for Morocco and Tunisia equivalent to 13%) not to say prohibitive (31% for China).     

Common and Conflicting Interests in the Engagements between Conservation Organizations and Corporations

The conservation community increasingly views the corporate sector as a positive force for conservation. Collaborations between corporations and nongovernmental conservation organizations (NGOs) seek to mitigate the negative effects of corporate activities and augment positive conservation outcomes. I reviewed the establishment of corporate social responsibility (CSR) policies by corporations; the emerging focus on environmental practices and sustainability; and the history of engagement between corporations and nongovernmental organizations. I considered the ethical and reputation vulnerabilities of these collaborations, which depend especially on the financial nature of the relationship and reviewed how CSR approaches have influenced corporate practices. I concluded that whereas CSR practices can act to mitigate negative environmental impact, to date they have had limited positive effect on biodiversity conservation. Intereses Comunes y Conflictivos en los Compromisos entre Organizaciones y Corporaciones de Conservación     

Strategies for competitiveness and sustainability: Adaptation of a Brazilian subsidiary of a Swedish multinational corporation

The competitiveness, in terms of macro and micro levels of an enterprise, is often dictated by its capacity to innovate, ability to respond to the needs of the market, and resilience to challenges from competition. This paper reviews the literature on the adaptation of research and development (R&D) units in subsidiaries of multinational corporations. It focuses mainly on the impact of the technological dynamic on sustainability performance of the Brazilian subsidiary of the Swedish multinational Ericsson. Through a conceptual framework, it explores information and communication technologies (ICT) towards a transversal and comprehensive vision of levels of innovation and sustainability.     

Combating environmental irresponsibility of transnational corporations in Africa: an empirical analysis

Environmental irresponsibility is one of the most prominent issues confronting host communities of transnational corporations (TNCs) engaged in the production of economic goods and, sometimes, services. Drawing mainly on stakeholder theory, combined with legitimacy theory, this article addresses how host communities in Africa combat the challenge of environmental irresponsibility of TNCs. To illustrate the dimensions and dynamics of the challenge, this paper examines the experience of despoliation of Ogoniland by the oil giant Shell in Nigeria. The analysis draws attention to the significance of the role of individuals and civil society groups in securing accountability of one of the most formidable fronts of economic globalisation. The analysis is particularly relevant to the experience of environmental irresponsibility in the context of weak governance structures.