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.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Bird F. (1996a) The Muted Conscience: Moral Silence and the Practice of Ethics in Business. Quorum Books, Stamford, CT
Bird F. (1996b) Moral Universals as Cultural Realities. In: Brady N. (eds) Ethical Universals in International Business. Springer Verlag, Berlin, pp. 97–149
Bird, F.: 2003, ‘The Value-Added Approach to Business Ethics’, Zeitschrift für Wirtschafts und Untenehmensethik 4(2).
Bird, F.: 2005, ‘Dilemmas of Development’, in Bird et al. (eds), International Business and the Dilemmas of Development, ch. 1.
Bird, F.: 2006a, ‘Justice in International Business’, in F. Bird and M. Velasquez (eds.), Just Business Practices, ch. 2.
Bird, F.: 2006b, ‘Toward a Political Ethic for International Businesses’, in F. Bird and M. Velasquez (eds.), Just Business Practices, ch. 4.
Bird, F.: 2006c, ‘Global Perspectives on Poverty’, in F. Bird and M. Velasquez (eds.), Just Business Practices, ch. 8.
Bird F. and Gandz J. (1990) Good Management: Business Ethics in Practice. Prentice Hall of Canada, Scarborough, ON
Bird F. and Herman S. (eds) (2004) International Businesses and the Challenges of Poverty in the Developing World: Case Studies on Global Responsibilities and Practices. Palgrave Macmillan, London
Bird F., Raufflet E. and Smucker J. (eds) (2005) International Business and the Dilemmas of Development: Case Studies in South Africa, Madagascar, Pakistan, South Korea, Mexico, and Colombia. Palgrave Macmillan, London
Bird F. and Velasquez M. (eds) (2006) Just Business Practices in a Diverse and Developing World. Palgrave Macmillan, London
Bird F. and J. Waters: 1989, ‘Managers Moral Muteness’, California Management Review 32(1):73–88.
Blowfield M. (2005) Corporate Social Responsibility: Reinventing the Meaning of Development?. International Affairs 81:515–524
Chamberlain N.W. (1973) The Limits of Corporate Responsibility. Basic Books, New York
Dashwood, H.: 2006, ‘Global Initiatives to Promote Corporate Social Responsibility in the Mining Sector’, in F. Bird and M. Velasquez (eds.), Just Business Practices, ch. 5.
Daye, R.: 2005, ‘Toyota South Africa: Responsible Change After Apartheid’, in Bird et al. (eds.), International Business and the Dilemmas of Development, ch. 3.
De Soto H. (1989) The Other Path. Basic Books, New York
Drohan M. (2003) Making a Killing: How and Why Corporations Use Armed Force to Do Business. Random House Canada, Toronto
Heald M. (1970) The Social Responsibilities of Business: Company and Community, 1900–1960. The Press of Case Western Reserve University, Cleveland
Herman, S.: 2004a, ‘A Short Economic History of Vietnam, 1945–1986’, in F. Bird and S. W. Herman (eds.), International Businesses and the Challenges of Poverty, ch. 8.
Herman, S.: 2004b, ‘Forming Social Capital from the Bottom Up: The Emergent Private Sector in Vietnam, 1986–2002’, in F. Bird and S. W. Herman (eds.), International Businesses and the Challenges of Poverty, ch. 9.
Herman, S.: 2004c, ‘Developing Social Capital through Human Resources: “Vietsani” and the Future of Western Management’, in F. Bird and S. W. Herman (eds.), International Businesses and the Challenges of Poverty, ch. 10.
Jenkins, R.: 2005, ‘Globalization, Corporate Social Responsibility and Poverty’, International Affairs 81:525–540.
Kotze, E. 2005a, ‘Green Steel: A New South African Steel Company’s Response to Internal and External Challenges’, in Bird et al. (eds.), International Business and the Dilemmas of Development, ch. 4.
Kotze, E.: 2005b, ‘Old Wine in New Bottles: Exploring the Efforts of a Traditional South African Wine Company to Respond to the Challenges of a New South African Society’, in Bird et al. (eds.), International Business and the Dilemmas of Development, ch. 5.
Leader S. (2005) Two Ways of Linking Economic Activity to Human Rights. International Social Science Journal 57:541–550
Litvin D. (2002) Empires of Profit: Commerce, Conquest, and Corporate Responsibility. Texere, New York
Margolis J.D. and Walsh J.P. (2003) Misery Loves Companies: Rethinking Social Initiatives by Business. Administrative Science Quarterly 48:268–305
Moser, T.: 1998, Transnational Corporations and Sustainable Development: The Case of Colombian and Peruvian Petroleum Industries. Ph.D. dissertation, Cambridge University.
Newell P. (2005) Citizenship, Accountability and Community: The Limits of the CSR Agenda. International Affairs 81:541–557
Nussbaum, M.: 1999, Women and Development: The Capabilities Approach (Cambridge University Press)
Palacios J. (2005) Corporate Citizenship and Social Responsibility in a Globalized World. Citizenship Studies 10:572–596
Pearson R. and G. Seyfang: 2001, ‘New Hope or False Dawn? Voluntary Codes of Conduct, Labor Regulation and Social Policy in a Globalizing World’, Global Social Policy 1, 49–78.
Raufflet, E.: 2005, ‘Beyond Cash: A Brief Account of Corporate Social Responsibility in South Africa’, in F. Bird et al. (eds.), International Business and the Dilemmas of Development, ch. 2.
Sachs J. (2005) The End of Poverty: Economic Possibilities for Our Time. Penguin Press, New York
Santoro M.A. (2000) Profits and Principles: Global Capitalism and Human Rights in China. Cornell University Press, Ithaca NY and London
Schwartz P. and Gibb B. (1999) When Good Companies Do Bad Things. John Wiley, New York
Sejjaaka, S.: 2004, ‘From Seed to Leaf: British American Tobacco and Supplier Relations in Uganda’, in F. Bird and S. W. Herman (eds.), International Businesses and the Challenges of Poverty, ch. 6.
Sen A. (1999) Development as Freedom. Random House, New York
Smucker, J.: 2005a, ‘The Formation of Business Practices in South Korea’, in Bird et al. (eds.), International Business and the Dilemmas of Development, ch.8.
Smucker, J.: 2005b, ‘Managing for Whom? Foreign Ownership and Management of Korea First Bank’, in Bird et al. (eds.), International Business and the Dilemmas of Development, ch. 9.
Smucker, J.: 2006a, ‘Pursuing Corporate Responsibility in Changing Institutional Fields’, in F. Bird and M. Velasquez (eds.), Just Business Practices, ch. 3.
Smucker, J.: 2006b, ‘Markets, Development and Equity: Lessons from South Korea’, in F. Bird and M. Velasquez (eds.), Just Business Practices, ch. 10.
Sternberg E.: 2000, Just Business: Business Ethics in Action (Oxford University Press)
Utting P. (2005) Corporate Responsibility and the Movement of Business. Development in Practice 15:375–388
Velasquez, M.: 2006, ‘Natural Law in International Business Ethics’, in F. Bird and M. Velasquez (eds.), Just Business Practices, ch. 1.
Vogel D. (2005) The Market for Virtue: The Potential and Limits of Corporate Social Responsibility. Brookings Institution Press, Washington
Webb K. (ed.) (2004) Voluntary Codes: Private Governance, the Public Interest, and Innovation. Carleton University Research Unit for Innovation, Science, and Environment, Ottawa
Whiteman, G.: 2004, ‘Forestry, Gold-Mining and Amerindians: The Troubling Example of Samling in Guyana’, in F. Bird and S. W. Herman (eds.), International Businesses and the Challenges of Poverty, ch. 11.
Author information
Authors and Affiliations
Corresponding author
Additional information
Joseph Smucker is Professor Emeritus, Department of Sociology and Anthropology, Concordia University, Montreal. His research publications are in the areas of industrialization, labor markets, labor market policies, and models of economic development.
Frederick Bird holds a Research Chair in Comparative Ethics at Concordia University, Montreal. He is the author of The Muted Conscience: Moral Silence and the Practice of Ethics in Business (1996), and has co-edited three volumes of essays on international business ethics: International Businesses and the Challenges of Poverty in the Developing World (2004), International Business and the Dilemmas of Development (2005), and Just Business Practices in a Diverse and Developing World 2006).
Rights and permissions
About this article
Cite this article
Bird, F., Smucker, J. The Social Responsibilities of International Business Firms in Developing Areas. J Bus Ethics 73, 1–9 (2007). https://doi.org/10.1007/s10551-006-9192-4
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10551-006-9192-4