Advertisement

Emerging Market Multinationals and International Corporate Social Responsibility Standards: Bringing Animals to the Fore

  • Germano Glufke ReisEmail author
  • Carla Forte Maiolino Molento
Original Paper

Abstract

The literature presents a broad approach to Corporate Social Responsibility (CSR), which aggregates a diversity of issues, such as the environment, labor conditions, and human rights. We addressed the impact of increasing CSR demands during the internationalization of emerging market multinationals (EMNs) on one particular subject, animal welfare (AW). This subject raises important ethical concerns, especially as we understand that animals are sentient beings. Through content analysis of annual reports, we tracked the evolution of AW-CSR activities throughout the internationalization of two large Brazilian meat-processing multinationals as they accessed markets with complex AW regulations. We also synthetized findings on broiler chicken on-farm AW research in Brazil and conducted interviews to gauge the impact of CSR standards on animals. Our findings show that, although EMNs that enter developed markets engage with various standards, the impacts of standard enforcement on actual welfare are not straightforward and call for broader AW and animal ethics developments. Uneven results among AW criteria indicate that some aspects are prioritized over others. Furthermore, some actions of actors such as EMNs and low-tier suppliers seem to counterbalance the expected impact of normative pressures to change the lives of animals for the better. We conclude that AW standards may improve AW in emerging markets; but these standards do not appear to be sufficiently stringent, and require improvements to have a more significant positive impact. A major signal emerging from this research is the fundamental need to broaden the animal ethics debate regarding the use of animals to produce meat.

Keywords

Animal ethics Animal welfare Corporate social responsibility Emerging market multinationals 

Notes

Acknowledgements

The authors would like to thank the section editor Suhaib Riaz and three anonymous reviewers, who have made significant contributions to this paper.

Compliance with Ethical Standards

Conflict of interest

All authors declare that they have no conflict of interest.

Ethical Approval

All procedures performed in studies involving human participants were in accordance with the ethical standards of the institutional and national research committee and with the 1964 Helsinki declaration and its later amendments or comparable ethical standards. Certificate Number 2.963.757, October 16, 2018.

Informed Consent

Informed consent was obtained from all individual participants included in the study.

References

  1. ABIEC - Associação Brasileira das Indústrias Exportadoras de Carne (Brazilian Meet Exporters Association). Relatório Anual (Annual Report). (2018). Retrieved October 10, 2018, from https://abiec.siteoficial.ws/images/upload/sumario-pt-010217.pdf.
  2. ABPA - Associação Brasileira de Proteína Animal (Brazilian Animal Protein Association). Relatório Annual (Annual Report). (2018) Retrieved October 10, 2018, from https://abpa-br.com.br/storage/files/relatorio-anual-2018.pdf. https://www.iatp.org/sites/default/files/2017-11/2017_11_30_RiseBigMeat_f.pdf.
  3. Arenas, D., & Ayuso, S. (2016). Unpacking transnational corporate responsibility: Coordination mechanisms and orientations. Business Ethics: A European Review, 25(3), 217–237.Google Scholar
  4. Bain, C. (2010). Governing the global value chain: GLOBALGAP and the Chilean fresh fruit industry. International Journal of Sociology of Agriculture & Food, 17(1), 1–13.Google Scholar
  5. Bain, C., Deaton, B., & Busch, L. (2005). Reshaping the agri-food system: The role of standards, standard makers and third-party certifiers. In Agricultural governance: Globalization and the new politics of regulation (pp. 71–83). Routledge: Taylor & Francis Group.Google Scholar
  6. Barrientos, S., & Smith, S. (2007). Do workers benefit from ethical trade? Assessing codes of labour practice in global production systems. Third World Quarterly, 28(4), 713–729.Google Scholar
  7. Bessei, W. (2006). Welfare of broilers: a review. World’s Poultry Science Journal, 62(3), 446–455.Google Scholar
  8. Blokhuis, H. J., Veissier, I., Miele, M., & Jones, B. (2010). The Welfare Quality® project and beyond: Safeguarding farm animal well-being. Acta Agriculturae Scand Section A, 60(3), 129–140.Google Scholar
  9. Blowfield, M., & Frynas, J. G. (2005). Setting new agendas: critical perspectives on Corporate Social Responsibility in the developing world. International Affairs, 81(3), 499–513.Google Scholar
  10. Bock, B., & De Jong, I. (2010). The assessment of animal welfare on broiler farms. In Welfare Quality Reports No. 18. Cardiff: Cardiff University Cardiff.Google Scholar
  11. Boissy, A., Manteuffel, G., Jensen, M. B., Moe, R. O., Spruijt, B., Keeling, L. J., & Bakken, M. (2007). Assessment of positive emotions in animals to improve their welfare. Physiology & Behavior, 92(3), 375–397.Google Scholar
  12. Botreau, R., Veissier, I., & Perny, P. (2009). Overall assessment of animal welfare: strategy adopted in Welfare Quality. Animal Welfare, 18(4), 363–370.Google Scholar
  13. Brammer, S., Jackson, G., & Matten, D. (2012). Corporate social responsibility and institutional theory: New perspectives on private governance. Socio-Economic Review, 10(1), 3–28.Google Scholar
  14. BRF. (2016). Annual report 2016. Retrieved September 08, 2017, from https://ri.brf-global.com/en/financial-information/annual-reports/.
  15. Broom, D. M. (1991). Animal welfare: concepts and measurement. Journal of Animal Science, 69(10), 4167–4175.Google Scholar
  16. Broom, D. M. (2014). Sentience and animal welfare. Wallingford: CABI.Google Scholar
  17. Broom, D. M. (2016). Considering animals’ feelings: Précis of Sentience and animal welfare (Broom 2014). Animal Sentience: An Interdisciplinary Journal on Animal Feeling, 1(5), 1.Google Scholar
  18. Burghardt, G. M. (2009). Ethics and animal consciousness: How rubber the ethical ruler? Journal of Social Issues, 65(3), 499–521.Google Scholar
  19. Campbell, J. L. (2007). Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility. Academy of Management Review, 32(3), 946–967.Google Scholar
  20. Currie, G., Davies, J., & Ferlie, E. (2016). A call for university-based business Schools to “Lower Their Walls:” collaborating with other academic departments in pursuit of social value. Academy of Management Learning & Education, 15(4), 742–755.Google Scholar
  21. Czycholl, I., Büttner, K., grosseBeilage, E., & Krieter, J. (2015). Review of the assessment of animal welfare with special emphasis on the Welfare Quality® animal welfare assessment protocol for growing pigs. ArchivfuerTierzucht, 58(2), 237.Google Scholar
  22. DiMaggio, P., & Powell, W. (1983). The iron cage revisited: Collective rationality and institutional isomorphism in organizational fields. American Sociological Review, 48(2), 147–160.Google Scholar
  23. Doh, J. P., Littell, B., & Quigley, N. R. (2015). CSR and sustainability in emerging markets: Societal, institutional, and organizational influences. Organizational Dynamics, 44(2), 112–120.Google Scholar
  24. Donaldson, B., & Carter, C. (2016). The future of meat without animals (p. 336). Lanham: Rowmand & Littlefield International.Google Scholar
  25. Duarte, F. (2010). Working with corporate social responsibility in Brazilian companies: The role of managers’ values in the maintenance of CSR cultures. Journal of Business Ethics, 96(3), 355–368.Google Scholar
  26. FAO (Food and Agriculture Organization of the United Nations). (2017). Livestock production in Latin America and the Caribbean. Retrieved November 10, 2017, from https://www.fao.org/americas/perspectivas/produccion-pecuaria/en/.
  27. Federici, J. F., Vanderhasselt, R., Sans, E. C. O., Tuyttens, F. A. M., Souza, A. P. O., & Molento, C. F. M. (2016). Assessment of Broiler Chicken Welfare in Southern Brazil. Revista Brasileira de Ciência Avícola, 18(1), 133–140.Google Scholar
  28. Fiaschi, D., Giuliani, E., & Nieri, F. (2017). Overcoming the liability of origin by doing no-harm: Emerging country firms’ social irresponsibility as they go global. Journal of World Business, 52, 546–563.Google Scholar
  29. Fraser, D., Weary, D. M., Pajor, E. A., & Milligan, B. N. (1997). A scientific conception of animal welfare that reflects ethical concerns. Animal Welfare, 6, 187–205.Google Scholar
  30. Fundação, D. C. 2015. Brazilian multinationals ranking 2015. Retrieved December 06, 2016, from https://www.fdc.org.br/blogespacodialogo/Documents/2015/ranking_fdc_multinacionais_brasileiras2015.pdf.
  31. Gereffi, G., & Fernandez-Stark, K. (2011). Global value chain analysis: A primer. North Carolina, USA: Center on Globalization, Governance & Competitiveness (CGGC), Duke University.Google Scholar
  32. Gereffi, G., & Fernandez-Stark, K. (2016). Global value chain analysis: A primer. Duke University: Center on Globalization, Governance &. Competitiveness (CGGC). Retrieved June 06, 2018, from http://hdl.handle.net/10161/12488.
  33. Gereffi, G., Humphrey, J., & Sturgeon, T. (2005). The governance of global value chains. Review of International Political Economy, 12(1), 78–104.Google Scholar
  34. Gereffi, G., & Lee, J. (2009). A global value chain approach to food safety and quality standards. Global Health Diplomacy for Chronic Disease Prevention Working Paper Series, February. Retrieved October 11, 2017, from https://gvcc.duke.edu/pdfs/GlobalHealth/Gereffi_Lee_GVCFoodSafetyl_4Feb2009.pdf.
  35. Gereffi, G., & Lee, J. (2012). Why the world suddenly cares about global supply chains. Journal of Supply Chain Management, 48(3), 24–32.Google Scholar
  36. GlobalG.A.P. (2018a). GlobalG.A.P Retail & Food Service Members. Retrieved March 07, 2017, from https://www.globalgap.org/uk_en/who-we-are/members/retailers-food-service.
  37. GlobalG.A.P. (2018b). GlobalG.A.P: What we do. Retrieved March 07, 2017, from https://www.globalgap.org/uk_en/what-we-do/.
  38. Jamali, D. (2010). The CSR of MNC subsidiaries in developing countries: global, local, substantive or diluted? Journal of Business Ethics, 93, 181–200.Google Scholar
  39. JBS (2016). Annual report 2016. Retrieved September 09, 2017, from http://jbss.infoinvest.com.br/enu/s-7-enu.html?idioma=enu.
  40. Jones, R. (1996). Fear and adaptability in poultry: insights, implications and imperatives. World’s Poultry Science Journal, 52, 131–173.Google Scholar
  41. Klerkx, L., Villalobos, P., & Engler, A. (2012). Variation in implementation of corporate social responsibility practices in emerging economies’ firms: A survey of Chilean fruit exporters. In Natural Resources Forum (Vol. 36, 2, pp. 88–100). Oxford: Blackwell Publishing Ltd.Google Scholar
  42. Lee, J., & Gereffi, G. (2015). Global value chains, rising power firms and economic and social upgrading. Critical Perspectives on International Business, 11(3/4), 319–339.Google Scholar
  43. Lipsey, M. W., & Wilson, D. B. (2001). Practical meta-analysis. Thousand Oaks: Sage Publications, Inc.Google Scholar
  44. Lowe, M., & Gereffi, G. (2009). A value chain analysis of the US beef and dairy industries. Duke University: Center on Globalization, Governance & Competitiveness.Google Scholar
  45. Lund-Thomsen, P., & Lindgreen, A. (2014). Corporate social responsibility in global value chains: Where are we now and where are we going? Journal of Business Ethics, 123(1), 11–22.Google Scholar
  46. Maciel, C. T., & Bock, B. B. (2013). Modern politics in animal welfare: The changing character of governance of animal welfare and the role of private standards. International Journal of Sociology of Agriculture and Food, 20(2), 219–235.Google Scholar
  47. Maloni, M. J., & Brown, M. E. (2006). Corporate social responsibility in the supply chain: an application in the food industry. Journal of Business Ethics, 68(1), 35–52.Google Scholar
  48. Mamic, I. (2005). Managing global supply chain: the sports footwear, apparel and retail sectors. Journal Of business Ethics, 59(1–2), 81–100.Google Scholar
  49. Marano, V., Tashman, P., & Kostova, T. (2017). Escaping the iron cage: Liabilities of origin and CSR reporting of emerging market multinational enterprises. Journal of International Business Studies, 48(3), 386–408.Google Scholar
  50. MarketLine (2016a). Company Profile: BRF S.A—extracted from Thompson One.Google Scholar
  51. MarketLine (2016b). Company Profile: JBS S.A—extracted from Thompson One.Google Scholar
  52. Martínez-Ferrero, J., & García-Sánchez, I. M. (2017). Coercive, normative and mimetic isomorphism as determinants of the voluntary assurance of sustainability reports. International Business Review, 26(1), 102–118.Google Scholar
  53. Miele, M., & Lever, J. (2013). Civilizing the market for welfare friendly products in Europe? The techno-ethics of the Welfare Quality® assessment. Geoforum, 48, 63–72.Google Scholar
  54. Muller, A. (2006). Global versus local CSR strategies. European Management Journal, 24(2– 3), 189–198.Google Scholar
  55. Nadvi, K. (2008). Global standards, global governance and the organization of global value chains. Journal of Economic Geography, 8(3), 323–343.Google Scholar
  56. Notteboom, T., Parola, F., Satta, G., & Penco, L. (2015). Disclosure as a tool in stakeholder relations management: a longitudinal study on the Port of Rotterdam. International Journal of Logistics Research and Applications, 18(3), 228–250.Google Scholar
  57. Ponte, S. (2007). Governance in the value chain for South African Wine. Danish Institute for International Studies – TRALAC Working Paper, 9. Retrieved August 07, 2017, from https://www.tralac.org.
  58. Ponte, S., & Gibbon, P. (2005). Quality standards, convention and the governance of global value chains. Economy and Society, 34(1), 1–31.Google Scholar
  59. Poulsen, R. T., Ponte, S., & Lister, J. (2016). Buyer-driven greening? Cargo-owners and environmental upgrading in maritime shipping. Geoforum, 68, 57–68.Google Scholar
  60. Ransom, E. (2007). The rise of agricultural animal welfare standards as understood through a neo-institutional lens. International Journal of Sociology of Agriculture and Food, 15(3), 26.Google Scholar
  61. Sans, E. C. O., Federici, J. F., Dahlke, F., & Molento, C. F. M. (2014). Evaluation of free-range broilers using the Welfare Quality® protocol. Revista Brasileira de Ciência Avícola, 16(3), 297–306.Google Scholar
  62. Schmidt, F. L., & Hunter, J. E. (2014). Methods of meta-analysis: Correcting error and bias in research findings. Thousand Oaks: Sage Publications.Google Scholar
  63. Sharma, S., & Schlesinger, S. (2017). The Rise of Big Meat: Brazil’s Extractive Industry. Institute for Agriculture and Trade Policy. Retrieved 2017, from https://www.iatp.org/sites/default/files/2017-11/2017_11_30_RiseBigMeat_f.pdf.
  64. Shaw, J. D., & Ertug, G. (2017). The suitability of simulations and meta-analyses for submissions to academy of management journal. Academy of Management Journal, 60(6), 2045–2049.Google Scholar
  65. Silva, R. B. T. R., Nääs, I. A., Broom, D. M., & O’Driscoll, K. (2011). Poultry welfare scenario in South America: norms and regulations. Revista Brasileira de Ciência Avícola, 13(2), 83–89.Google Scholar
  66. Sinkovics, N., Hoque, S. F., & Sinkovics, R. R. (2016). Rana Plaza collapse aftermath: Are CSR compliance and auditing pressures effective? Accounting, Auditing & Accountability Journal, 29(4), 617–649.Google Scholar
  67. Souza, A. P. O., & Molento, C. F. M. (2015). The contribution of broiler chicken welfare certification at farm level to enhancing overall animal welfare: The case of Brazil. Journal of Agricultural and Environmental Ethics, 28(6), 1033–1051.Google Scholar
  68. Souza, A. P. O., Sans, E. C., Müller, B. R., & Molento, C. F. M. (2015). Broiler chicken welfare assessment in GLOBALGAP® certified and non-certified farms in Brazil. Animal Welfare, 24(1), 45–54.Google Scholar
  69. Souza, A. P. et al (2018). Bien-être animal en Amérique du Sud: état des lieux. In S. Hild & L. Schweitzer (Eds.), Le bien-être animal: de la science au droit (pp. 135–167). Paris: L'Harmattan.Google Scholar
  70. Stephens, N., Dunsford, I., Di Silvio, L., Ellis, M., Glencross, A., & Sexton, A. (2018). Bringing cultured meat to market: Technical, socio-political, and regulatory challenges in cellular agriculture. Trends in Food Science & Technology, 78, 155–166.Google Scholar
  71. Thite, M., Wilkinson, A., Budhwar, P., & Mathews, J. A. (2014). Internationalization of emerging Indian multinationals: Linkage, leverage and learning (LLL) perspective. International Business Review, 25(1), 435–443.Google Scholar
  72. Tennent, R., & Lockie, S. (2012). Production relations under GLOBALG. A.P.: The relative influence of standards and retail market structure. Sociologia ruralis, 52(1), 31–47.Google Scholar
  73. Tuyttens, F., Federici, J. F., Vanderhasselt, R. F., Goethals, K., Duchateau, L., Sans, E. C. O., & Molento, C. F. M. (2015). Assessment of welfare of Brazilian and Belgian broiler flocks using the Welfare Quality protocol. Poultry Science, 94(8), 1758–1766.Google Scholar
  74. Valentine, J. C., Pigott, T. D., & Rothstein, H. R. (2010). How many studies do you need? A primer on statistical power for meta-analysis. Journal of Educational and Behavioral Statistics, 35(2), 215–247.Google Scholar
  75. Van Horne, P. L. M., & Achterbosch, T. J. (2008). Animal welfare in poultry production systems: Impact of EU standards on world trade. World’s Poultry Science Journal, 64(1), 40–52.Google Scholar
  76. Veissier, I., Butterworth, A., Bock, B., & Roe, E. (2008). European approaches to ensure good animal welfare. Applied Animal Behaviour Science, 113(4), 279–297.Google Scholar
  77. Vesterinen, H. M., Sena, E. S., Egan, K. J., Hirst, T. C., Churolov, L., Currie, G. L., & Macleod, M. R. (2014). Meta-analysis of data from animal studies: a practical guide. Journal of Neuroscience Methods, 221, 92–102.Google Scholar
  78. Von Keyserlingk, M. A., & Hötzel, M. J. (2015). The ticking clock: Addressing farm animal welfare in emerging countries. Journal of Agricultural and Environmental ethics, 28(1), 179–195.Google Scholar
  79. Welfare Quality (2009). Welfare Quality® assessment protocol for poultry (broilers, laying hens). Welfare Quality ® Consortium, Lelystad, the Netherlands, 113.Google Scholar
  80. Yin, J., & Zhang, Y. (2012). Institutional dynamics and corporate social responsibility (CSR) in an emerging country context: Evidence from China. Journal of Business Ethics, 111(2), 301–316.Google Scholar
  81. Zyglidopoulos, S., Williamson, P., & Symeou, P. (2016). The corporate social performance of developing country multinationals. Business Ethics Quarterly, 26(3), 379–406.Google Scholar

Copyright information

© Springer Nature B.V. 2019

Authors and Affiliations

  • Germano Glufke Reis
    • 1
    Email author
  • Carla Forte Maiolino Molento
    • 2
  1. 1.Management SchoolUFPR Federal University of ParanaCuritibaBrazil
  2. 2.Animal Welfare LaboratoryUFPR Federal University of ParanaCuritibaBrazil

Personalised recommendations