The UN Global Compact: Corporate Social Responsibility in India and Russia

2021 ◽  
pp. 175-212
Author(s):  
Laura A. Henry ◽  
Lisa McIntosh Sundstrom
Keyword(s):  
Decision Making ◽  
Corporate Social Responsibility ◽  
Global Governance ◽  
Government Policy ◽  
Corporate Philanthropy ◽  
Global Compact ◽  
Un Global Compact ◽  
Policy Measures ◽  
Governance Institutions ◽  
Corporate Social

This chapter compares participation of NGOs from India and Russia in the UN Global Compact (UNGC). It identifies a puzzling difference: Indian NGOs have joined the UNGC with equal enthusiasm to Indian companies, while Russian companies vastly outnumber NGOs. The UNGC is an example of a governance initiative that attracted robust NGO participation at first, but offers relatively low authority and lacks specific tools for NGOs to engage in domestic mediation and participate in decision-making, which may lead to stagnation. In addition, competing domestic CSR initiatives may provide alternative venues for NGOs and business actors that disperse their participation. However, domestic government policy measures may stimulate NGOs’ engagement with parallel global governance institutions. Indian NGO mediation efforts have been more effective than those of Russian NGOs due to different industrial profiles and export orientations, domestic government policies on CSR, and traditions of corporate philanthropy.

Corporate Social Responsibility and Theories of Global Governance

2009 ◽  
Author(s):  
David L. Levy ◽  
Rami Kaplan
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Multinational Corporations ◽  
Global Governance ◽  
Codes Of Conduct ◽  
New Governance ◽  
Contested Terrain ◽  
Corporate Social

This article develops a framework in which corporate social responsibility (CSR) represents the contested terrain of global governance. The rise of CSR is one of the more striking developments of recent decades in the global political economy. Calls for multinational corporations (MNCs) to demonstrate greater responsibility, transparency, and accountability are leading to the establishment of a variety of new governance structures—rules, norms, codes of conduct, and standards—that constrain and shape MNCs' behavior. CSR is thus not just a struggle over practices, but over the locus of governance authority, offering a potential path toward the transformation of stakeholders from external observers and petitioners into legitimate and organized participants in decision-making. This article points to two distinct perspectives on CSR; as a more socially embedded and democratic form of governance that emanates from civil society, or alternatively, as a privatized system of corporate governance that lacks public accountability.

Corporate social responsibility, stock salience, and the asymmetric market impact of consumer sentiment news on Spanish firms

2015 ◽  
Vol 7 (2) ◽  
pp. 98-115
Author(s):  
Barry Oliver ◽  
Blanca Pérez-Gladish ◽  
Paz Méndez-Rodríguez
Keyword(s):  
Corporate Social Responsibility ◽  
Stock Market ◽  
Social Responsibility ◽  
Consumer Sentiment ◽  
Global Compact ◽  
Un Global Compact ◽  
Content Type ◽  
Negativity Effect ◽  
Corporate Social

Purpose – The purpose of this paper is to identify whether the Spanish stock market experiences a negativity effect on the announcement of Spanish consumer sentiment information and if firms that are signatory to the UN Global Compact on corporate social responsibility are relatively more salient in the minds of investors. Design/methodology/approach – The authors use consumer sentiment announcements to show how the negativity effects on the Spanish stock market are significantly influenced by how salient the stock is in the minds of investors. If a firm’s stock exhibits negativity effects on the release of consumer sentiment information then this stock is salient to investors. If firms who are signatory to the UN Global Compact exhibit significant negativity effects, it could be concluded that these stocks are salient, particularly if firms that are not signatory to the Global Compact do not exhibit a similar negativity effect. Findings – The IBEX35 index experiences significant negativity effects upon the release of Spanish consumer sentiment announcements. This is similar to that reported in other countries, notably Australia and the USA. Using the constituent firms in the IBEX35 index, the authors find that those firms that are signatory to the UN Global Compact are significantly more likely to experience negativity effects upon the release of Spanish consumer sentiment information than if they are not signatory to the Global Compact. This indicates that firms that are part of the UN Global Compact are more salient to investors. Research limitations/implications – Available published Spanish data on consumer sentiment. Practical implications – Little is understood of the impact that consumer sentiment announcements have on stock prices. Studies in USA and Australia have identified significant negativity effects in stock markets when consumer sentiment information is released. This research has found that a psychological negativity bias occurs in firms that are salient to investors. Salience has been found to be important in asset pricing. Originality/value – This paper tries to find out which companies are more likely to sign the UN Global Compact. These companies are more sensitive to consumer sentiment, because they depend on the everyday decisions of the consumers. The more the companies depend on consumers, the more they care about them. And, when the consumer sentiment goes down, they are more affected by this sentiment. These firms are also more worried about the long term. They are not only thinking about the profits in the short term but also about maintaining the generation of profits in the long term.

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