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CSR & Beyond: Multinationals, Non-governmental Organizations and International Development

CSR & Beyond: Multinationals, Non-governmental Organizations and International Development. Marketa D. Evans, PhD Executive Director, Munk Centre for International Studies, University of Toronto, and Adjunct Professor, Department of Political Science, University of Toronto, Toronto, Canada.

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CSR & Beyond: Multinationals, Non-governmental Organizations and International Development

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  1. CSR & Beyond: Multinationals, Non-governmental Organizations and International Development Marketa D. Evans, PhD Executive Director, Munk Centre for International Studies, University of Toronto, and Adjunct Professor, Department of Political Science, University of Toronto, Toronto, Canada Middlesex University / The University of Warwick, London 22 May 2006

  2. Most Frequent Starting Point… MNCs & NGOs • Long-term interests diametrically opposed • Do not need each other • Have little to learn from each other • Have little to add to the other

  3. CSR initiatives built as a “bridge” between the two worlds

  4. “SELF-Definition” Problem… • Purpose and meaning of CSR are constructed in much different ways on each side

  5. “… the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.”Lord Holme, former executive director of Rio Tinto, and Phil Watts, managing director of Shell • “…CSR is a wholly inadequate response to the sometimes devastating impact that multinational companies can have in an ever more globalised world - and that CSR is actually used to mask that impact”Christian Aid –“Behind the Mask” • “… the commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve their quality of life, in ways that are both good for business and good for development.”The World Bank Group. • “… companies on a voluntary basis integrate social and environmental concerns in their business operations and their interaction with their stakeholders, at company, local and global levels.”European Commission.

  6. Dialogue of the Deaf…? METHODS GOALS OF CSR Legislation Multi-stakeholder standards Industry wide standards Voluntary codes of conduct Public relations Philanthropy Integrate social concerns in business activities Improve quality of life Change the business / social relationship

  7. Contending Perspectives on Business and Society BankTrack Corporation 20/20 Catholic Aid Caux Roundtable WBCSD Shell/BP/Gap Global Compact The Economist Milton Friedman Steve Forbes © M.D. Evans, University of Toronto, April 2006

  8. Changing strategic realities on both sides • Status quo is not an option • Strategic interdependence is the new reality

  9. MNCs • To make a profit -> socially embedded in society • Social contract • Stakeholder webs • Transparency

  10. Perceptions of the MNC • Corporate wrongdoing is widespread -> 72% (Oct., 2005) • “Global companies … lowest positive ratings … highest negative ones” (source: Globescan, Jan., 2006) • worse than the IMF or the UN! • Global average - 41% positive, 26% negative - 38% negative in the U.S.

  11. Development Agenda • Economic growth as an engine of development – as vital as debt relief and ODA • Business – as a stakeholder in development • NGOs still most trusted, but…

  12. NGO Challenges… • Scale • Management & strategic planning • Role of business and economic growth

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