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The Social Responsibilities of International Business Firms in Developing Areas

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  • Frederick Bird
  • Joseph Smucker

Abstract

Three principles must be taken into account in assessing the social responsibilities of international business firms in developing areas. The first is an awareness of the historical and institutional dynamics of local communities. This influences the type and range of responsibilities the firm can be expected to assume; it also reveals the limitations of any universal codes of conduct. The second is the necessity of non-intimidating communication with local constituencies. This requires the firm to temper its power and influence by recognizing and responding to local concerns in the pursuit of its own objectives. The third is the degree to which the firm’s operations safeguard and indeed improve the social and economic assets of local communities. At issue is the question of adequate compensation for the inevitable disruptions that an international business brings to a local community. Beneficial returns must be shared and sustained over the long term in an equitable manner. The nine studies in this special edition illustrate in different ways the importance of these three principles. Copyright Springer Science+Business Media, Inc. 2007

Suggested Citation

  • Frederick Bird & Joseph Smucker, 2007. "The Social Responsibilities of International Business Firms in Developing Areas," Journal of Business Ethics, Springer, vol. 73(1), pages 1-9, June.
    • Handle: RePEc:kap:jbuset:v:73:y:2007:i:1:p:1-9
    DOI: 10.1007/s10551-006-9192-4
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    References listed on IDEAS

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    1. Gail Whiteman, 2004. "Forestry, Gold Mining and Amerindians: The Troubling Example of Samling in Guyana," Palgrave Macmillan Books, in: Frederick Bird & Stewart W. Herman (ed.), International Businesses and the Challenges of Poverty in the Developing World, chapter 11, pages 181-205, Palgrave Macmillan.
    2. Samuel Sejjaaka, 2004. "From Seed to Leaf: British American Tobacco and Supplier Relations in Uganda," Palgrave Macmillan Books, in: Frederick Bird & Stewart W. Herman (ed.), International Businesses and the Challenges of Poverty in the Developing World, chapter 6, pages 111-123, Palgrave Macmillan.
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    Citations

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    Cited by:

    1. Filipe Sobral & Gazi Islam, 2013. "Ethically Questionable Negotiating: The Interactive Effects of Trust, Competitiveness, and Situation Favorability on Ethical Decision Making," Journal of Business Ethics, Springer, vol. 117(2), pages 281-296, October.
    2. Cooper, Maggie & Nguyen, Quyen T.K., 2020. "Multinational enterprises and corporate tax planning: A review of literature and suggestions for a future research agenda," International Business Review, Elsevier, vol. 29(3).
    3. Anabella Davila & Carlos Rodriguez-Lluesma & Marta M. Elvira, 2018. "Engaging Stakeholders in Emerging Economies: The Case of Multilatinas," Journal of Business Ethics, Springer, vol. 152(4), pages 949-964, November.
    4. Uttam Shankar Pawaskar & Rakesh D Raut & Bhaskar B Gardas, 2018. "Assessment of Consumer Behavior Towards Environmental Responsibility: A Structural Equations Modeling Approach," Business Strategy and the Environment, Wiley Blackwell, vol. 27(4), pages 560-571, May.
    5. Lin, Kenny Z. & Cheng, Suwina & Zhang, Fang, 2017. "Corporate Social Responsibility, Institutional Environments, and Tax Avoidance: Evidence from a Subnational Comparison in China," The International Journal of Accounting, Elsevier, vol. 52(4), pages 303-318.
    6. Joan Fontrodona & Joan Enric Ricart & Pascual Berrone, 2018. "Ethical Challenges in Strategic Management: The 19th IESE International Symposium on Ethics, Business and Society," Journal of Business Ethics, Springer, vol. 152(4), pages 887-898, November.
    7. Mahfuja Malik, 2015. "Value-Enhancing Capabilities of CSR: A Brief Review of Contemporary Literature," Journal of Business Ethics, Springer, vol. 127(2), pages 419-438, March.
    8. Mariadoss, Babu John & Chi, Ting & Tansuhaj, Patriya & Pomirleanu, Nadia, 2016. "Influences of Firm Orientations on Sustainable Supply Chain Management," Journal of Business Research, Elsevier, vol. 69(9), pages 3406-3414.
    9. Ataur Belal & Robin Roberts, 2010. "Stakeholders’ Perceptions of Corporate Social Reporting in Bangladesh," Journal of Business Ethics, Springer, vol. 97(2), pages 311-324, December.
    10. Jose Lopez-De-Pedro & Eva Rimbau-Gilabert, 2012. "Stakeholder Approach: What Effects Should We Take into Account in Contemporary Societies?," Journal of Business Ethics, Springer, vol. 107(2), pages 147-158, May.
    11. Alberto Romolini & Silvia Fissi & Elena Gori, 2014. "Scoring CSR Reporting in Listed Companies – Evidence from Italian Best Practices," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 21(2), pages 65-81, March.
    12. Rüdiger Hahn, 2009. "The Ethical Rational of Business for the Poor – Integrating the Concepts Bottom of the Pyramid, Sustainable Development, and Corporate Citizenship," Journal of Business Ethics, Springer, vol. 84(3), pages 313-324, February.

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