The ethics of outsourcing: when companies fail at responsibility

2018 ◽  
Vol 39 (5) ◽  
pp. 7-13 ◽  
Author(s):  
Nelson Oly Ndubisi ◽  
Arne Nygaard
Keyword(s):  
Social Responsibility ◽  
Management Control ◽  
Production Costs ◽  
Fashion Industry ◽  
Environmental Aspects ◽  
Global Business ◽  
Content Type ◽  
Business Context ◽  
Industrial Operations ◽  
Soft Spot

Purpose The purpose of this paper is to demonstrate that costs reduction is no longer a complete indication of performance and should not be attained at the expense of the firm’s sustainable social responsibility and environmental aspects. The question of whether outsourcing is a “blessing” or a “lesson” remains unresolved in the minds of practitioners and researchers alike. The literature is replete with the up- and down-sides of outsourcing, all going in different directions, making it very cumbersome particularly for practitioners to articulate when and what to outsource (if at all) and how to contain or mitigate outsourcing downsides. Design/methodology/approach Outsourcing as a two-edged sword can be value creating strategy or a firm’s soft spot. This paper focusses on the latter through a review of sourcing in two leading multinational companies: Benetton, in the fast fashion industry, and Nestlé, in the food industry. Findings Benetton experienced the biggest catastrophe in the garment industry, the Rana Plaza collapse. Nestlé went through the horse meat scandal, perhaps one of the most complex food crime cases in history. Both cases illustrated the strategic vulnerability that arises from the international outsourcing of production. Research limitations/implications Clearly, production costs are no longer a complete indication of performance as the two cases unveil. Management control systems should be especially vigilant when outsourcing transfers social and environmental responsibility from one contract to another in a global business context. Monitoring costs cannot be outsourced when it comes to sustainable social responsibility and environmental aspects. Practical implications Firms can leverage relationships with stakeholder groups, activists and NGOs to help them to monitor their international operations. Institution-based trust to protect brands, increased integration and control are necessary mechanisms. Originality/value Indeed, global outsourcing in any industry should transfer not only industrial operations but also credible and responsible social and environmental benchmarks.

Global leadership development, strategic alignment and CEOs commitment

2014 ◽  
Vol 33 (5) ◽  
pp. 487-502 ◽  
Author(s):  
Jordi Canals
Keyword(s):  
Leadership Development ◽  
Corporate Strategy ◽  
Empirical Work ◽  
Global Leadership ◽  
Leadership Programs ◽  
Global Business ◽  
Content Type ◽  
Business Context ◽  
Global Leadership Development ◽  
Global Companies

Purpose – Global corporate strategy has moved faster than global leadership development in many companies. This outcome has created some leadership problems: global companies may not have enough leaders in their growth markets or leaders with the required global competencies in their headquarters. The purpose of this paper is to offer some concepts that may help companies tackle those problems. Design/methodology/approach – This paper has a conceptual basis. It draws on previous theoretical knowledge on global leadership development and the experience of some leadership programs in global companies. Findings – The first is that global leadership competencies should be based on the functions that global leaders need to perform and their specific context, not on some theoretical notions isolated from the business context. The second is the need for alignment of global leadership development with the firm's purpose and strategy. The third is that CEOs’ commitment is a key factor in making global leadership initiatives successful. Research limitations/implications – This is a conceptual paper based on business experience. It needs to be complemented with additional empirical work. Practical implications – Global leadership development should be based on real global business functions. Global leadership development should be aligned with the firm's purpose and strategy and its success depends on CEOs’ commitment. Originality/value – The study of global capabilities needs to observe what happens in companies that have global leadership programs. Global leadership development takes place in specific organizations. This paper gets theory closer to the practice of global leadership development.

scholarly journals Modern mediators: intermediaries’ informational roles in sourcing from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yuan Virtanen ◽  
Asta Salmi ◽  
Xiao Qin
Keyword(s):  
Information Asymmetry ◽  
Qualitative Data ◽  
Global Sourcing ◽  
Global Business ◽  
Content Type ◽  
Business Context ◽  
Scientific Debate ◽  
Cross Border ◽  
Institutional Contexts ◽  
Supply Risks

Purpose Sourcing intermediaries, commonly known as agents or trading companies, represent a useful organisational solution for assisting companies to manage supply risks and to overcome the liability of foreignness. However, the landscape of global business is experiencing rapid and fundamental changes, which leads us to ask whether intermediaries will continue to play a role in global sourcing. This paper aims to understand how sourcing intermediaries ensure a lasting position in the changing setting of global sourcing and information sharing. Design/methodology/approach This paper investigates the operations of both Chinese and Nordic (Finnish and Swedish) intermediaries in sourcing from China by analysing qualitative data collected over a period of four years. Findings Through the lens of information asymmetry, this paper identifies four distinct informational roles that are used by intermediaries to reduce information asymmetry between suppliers and buyers located in different countries. The paper also examines intermediaries’ signalling activities under these roles in a cross-border triad. Originality/value The paper contributes to the scientific debate on the usefulness of intermediaries by underlining intermediaries’ informational advantage, which provides a new explanation for the survival of intermediaries in a rapidly changing business context. Additionally, this study contributes to research on intermediation strategies by empirically examining both Chinese and Western intermediaries, highlighting the importance of institutional contexts in affecting intermediaries’ informational roles.

Sustainability efforts in the fast fashion industry: consumer perception, trust and purchase intention

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hannah L. Neumann ◽  
Luisa M. Martinez ◽  
Luis F. Martinez
Keyword(s):  
Social Responsibility ◽  
Environmental Sustainability ◽  
Purchase Intention ◽  
Structural Equation ◽  
Online Survey ◽  
Consumer Attitude ◽  
Fashion Industry ◽  
Fast Fashion ◽  
Content Type ◽  
Perceived Consumer Effectiveness

Purpose This study aims to test for factors affecting environmental sustainability and purchase intention in the fashion industry. Accordingly, the authors developed a framework that depicts the relationships between perceptions of social responsibility, consumer attitude, trust, purchase intention and perceived consumer effectiveness. Design/methodology/approach An online survey was conducted with an internationally diverse sample of 216 consumers. Data were analysed using partial least squares structural equation modelling. Findings The results indicated that perceptions of social responsibility directly affect consumers’ attitudes towards these fashion brands, as well as trust and perceived consumer effectiveness. Also, consumers need to perceive sustainability efforts of these brands as altruistic, and trust was found to be a direct predictor of purchase intention. However, both consumer attitude and perceived consumer effectiveness did not predict purchase intention. Research limitations/implications The survey was primarily distributed to young people. Therefore, a generalisation of the findings to other age groups might be limited. Practical implications Practicing managers should emphasise the fact that environmental sustainability and fast fashion brands could be sustainable to increase trust among consumers. Social implications When it comes to environmental issues, positive perceptions regarding the companies’ social responsibility efforts are vital to enhance both consumers’ trust towards the brands and their individual feeling of empowerment. Originality/value This study intends to shed light on the key elements that shape consumers’ attitudes and willingness to purchase green apparel.

Outsourcing mandated corporate social responsibility in India: risks and performance

2019 ◽  
Vol 15 (3) ◽  
pp. 453-472 ◽  
Author(s):  
Nava Subramaniam ◽  
Monika Kansal ◽  
Dessalegn Getie Mihret ◽  
Shekar Babu
Keyword(s):  
Social Capital ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Service Providers ◽  
Management Control ◽  
Principal Agent ◽  
Control Mechanisms ◽  
Content Type ◽  
Bridging Capital ◽  
Corporate Social

Purpose This paper aims to assess the risks and challenges of corporate social responsibility (CSR) management in the Indian-mandated CSR ecosystem from a service purchaser–supplier dualistic perspective and the role management control systems (MCS) and social capital play in managing such risks and challenges. Design/methodology/approach This study undertook a qualitative approach that involved in-depth interviews of 22 CSR directors, managers or chief executive officers from 13 central public sector enterprises (CPSEs) that had purchased CSR services and nine managers of non-government organisations (NGOs) serving as CSR suppliers. Data analysis was founded on the principal–agent and social capital theoretical perspectives. Findings A highly bureaucratic, time-pressured mandated environment poses several goal congruence and adverse selection threats to outsourced CSR project arrangements. A mix of formal and informal control mechanisms is critical for enhancing trust or bonding between service purchasers and service providers and enriching bridging capital or access to resources derived from interpersonal connections between NGOs and communities. Practical implications NGOs and CPSEs may benefit from understanding each other’s goals and culture and using appropriate formal and informal MCS for managing CSR expectations and outcomes. Originality/value Drawing on a unique mandatory CSR regime, this study offers principal–agent and social capital perspectives on CSR programme delivery, highlighting the importance of various formal and informal MCS in lowering agency costs in outsourced CSR relationships.

scholarly journals Educating global citizens in business schools

2014 ◽  
Vol 7 (1) ◽  
pp. 72-84 ◽  
Author(s):  
Kathleen Lilley ◽  
Michelle Barker ◽  
Neil Harris
Keyword(s):  
Higher Education ◽  
Social Responsibility ◽  
Moral Reasoning ◽  
Business Schools ◽  
Social Imaginary ◽  
Global Business ◽  
Global Citizen ◽  
Content Type ◽  
Global Citizens ◽  
Business Curricula

Purpose – Global citizenship, social responsibility and sustainability are constructs increasingly used in business schools. Yet, there is no widely accepted definition or conceptualization of the global citizen, nor is there strong evidence of how the global citizen is effectively translated into university ethos, culture and practice. This paper aims to conceptualize the global citizen in higher education broadly and more specifically in regard to business schools. Design/methodology/approach – International higher education, social science and business literature has been reviewed to present an integrated understanding of the global citizen; contextualized to higher education generally and business schools specifically. Findings – It is argued that the global citizen, viewed through a moral and transformative cosmopolitan lens, provides an alternative to the rhetoric frequently paid to the construct. This paper describes “global citizen learning” underpinned by the social imaginary, relationality and reflexivity. These virtues equip the students' global business mindset for complexity and ambiguity. Research limitations/implications – The interdisciplinary literature reviewed in this paper brings a focus to moral reasoning, sensitivity and values-based teaching. These aspects create new ways for the global citizen to be more explicitly integrated into business ethos and curricula. Practical implications – Global citizen learning provides the “conceptual glue”, needed to link social responsibility, sustainability and ethical principles to business curricula. Also, the paper outlines how “global citizen learning” can be utilized in existing curricula from a practical perspective. Originality/value – This paper discusses values and moral reasoning in business education. It is proposed that the global citizen conceptualized through moral and transformative cosmopolitanism provides a humanistic buffer to the neoliberal growth paradigm.

scholarly journals Corporate Social Responsibility and Sustainable Tourism

2009 ◽  
Vol 4 (1) ◽  
pp. 15-26
Author(s):  
Jyotirmoy Ghosh ◽  
G Anjaneyaswamy
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Sustainable Tourism ◽  
Tourism Industry ◽  
Future Generations ◽  
Global Business ◽  
Business Context ◽  
Mass Tourism ◽  
The Social ◽  
Corporate Social

Today in this world where corporations have assumed gigantic proportions in their use of all the resources for management, there is a clear threat of social exploitation. The social leaders as well as the business leaders are thus legally and morally obligated to sustain the society and also repay certain important ingredients which keep the society healthy and alive. This has given birth to the concept of corporate social responsibility (CSR). The corporations are trying to make profit and at the same time discharge their social responsibilities. As a contemporary coincidence the tourism industry also has undergone similar transformation. Mass tourism which is marked as the main economic developer in the global business has also assumed diabolic proportions. It is tending to consume and destroy the very attractions and infrastructures on which the edifice of tourism industry stands. This situation has given birth to sustainable tourism. Sustainable Tourism has its roots in the concept of sustainable development that meets the needs of the present without compromising the ability of future generations to meet their own needs. In this article an effort has been made to showcase the striking similarities of CSR and sustainable tourism. In the global business context the future generations should practice responsibility and a sustainable form of tourism to save their respective businesses and planet earth.

Is the global reporting initiative suitable to account for university social responsibility? Evidence from European institutions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Iratxe Amiano Bonatxea ◽  
Jorge Gutiérrez-Goiria ◽  
Maria Jose Vazquez-De Francisco ◽  
Antonio Sianes
Keyword(s):  
Higher Education ◽  
Social Responsibility ◽  
Comparative Study ◽  
Information Needs ◽  
Global Reporting Initiative ◽  
Environmental Aspects ◽  
Content Type ◽  
European Institutions ◽  
Practical Implications

Purpose Recognising the importance of universities in the achievement of social and global objectives, this paper aims to study the relevance of the global reporting initiative (GRI) methodology for reporting University Social Responsibility (USR) activities, taking into account the specificity of higher education institutions (HEI). Design/methodology/approach After a review of the literature and background, the European HEI reports prepared according to the latest version of GRI standards are selected and a comparative study is carried out. The analysis focusses on comparing to what extent the standards are responding to the information needs generated in the field of higher education. Findings General issues, common to all types of organisations, are adequately reported by HEIs, but difficulties are encountered in integrating a vision that incorporates the role of their missions in standards related to economic, social and environmental aspects. Research limitations/implications There are few GRI reports with this format and further research is encouraged as the number of reports increase. So far, major limitations have been found by HEIs to account for their societal missions when using the GRI. Practical implications The debates on USR are promoting an increase in the number of reports on sustainability. This paper provides some examples of the use of disclosures that can be adapted in this context, to move towards the systematisation of these practices. Originality/value This is, to the authors’ knowledge, the first comparative study on the application of GRI to sustainability reports at a European level, focussing on the adequacy between disclosures and missions.

Research in Russia reveals lack of transferable cross-cultural management (CCM) skills in young graduates

2020 ◽  
Vol 28 (5) ◽  
pp. 35-37
Keyword(s):  
Cross Cultural ◽  
Job Seekers ◽  
Global Business ◽  
Soft Skill ◽  
Content Type ◽  
Cultural Management ◽  
Business Context ◽  
Process Stage ◽  
Wide Range ◽  
Cross Cultural Management

Purpose Researchers in Russia wanted to find out if education-job mismatches affect recruitment in the international employment market. Design/methodology/approach There was a three-stage process. Stage One involved organizing interviewer-led focus groups with 18 Russian recruiters. In Stage Two the authors carried out face-to-face interviews with 17 CCM research-informed teachers and 11 recruiters. Finally, the third part of the study was an interactive seminar with 297 graduate job seekers in Russia. Findings The main issue was the overwhelming lack of transferable cross-cultural management (CCM) skills, especially among young graduates. The authors interviewed university teachers who felt that graduate job seekers lacked a wide range of basic skills and knowledge. Meanwhile, they interviewed recruiters who were concerned about the inability of graduates to apply their knowledge in a global business context. The recruiters were also critical of the teachers for not supplying graduates with the right soft skill set. Originality/value Research in the field has been rare, especially in Russia. The results point the way forward for academic researchers, but also practicing teachers

“Walking the talk” in times of recession: the case of corporate social responsibility in Greece

2019 ◽  
Vol 10 (2) ◽  
pp. 102-118 ◽  
Author(s):  
Nikolaos Papacharalampous ◽  
Dimitra Papadimitriou ◽  
Christos Anagnostopoulos
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Services ◽  
Business Environment ◽  
Strategic Orientation ◽  
Content Type ◽  
Thematic Content ◽  
Business Context ◽  
Descriptive Account ◽  
Corporate Social

Purpose This study aims to examine the actions of corporate social responsibility (CSR) at a national business context that is firmly defined by prolonged financial crisis. It does so by using a critical view on CSR disclosures in an attempt to get to the heart of the real matter of CSR, from both a thematic content and strategic orientation perspective. Design/methodology/approach This study is based on a sample of 50 firms that operate in the Greek market and belong to the most significant sectors of the national economy. Their CSR disclosures are content-analyzed, providing a body of 836 pragmatic CSR actions. Findings The key findings of the study denote differences among the examined sectors, with banks and financial services being the most active in terms of CSR actions. Regarding the thematic content, firms choose mainly to implement actions with a societal character, while in terms of strategic orientation, they opt for CSR actions that serve existing cause-related programs without any brand presence. Moreover, profound interest appears for the external business environment, whereas the number of CSR actions with employees’ participation is limited. Practical implications The study offers a descriptive account of the actual CSR engagement in Greece amid a prolonged downturn, thus shedding light on the current CSR trends and deficits and helping decision makers embed CSR as an integral part of their business operation. Originality/value During adverse economic conditions, this study captures potential discrepancies between the “walk” (doing) and the “talk” (self-reporting) of CSR. In so doing, it contributes to CSR literature by exploring both the “what” and the “how” these actions are implemented.

Internalising and internationalising country specific CSR practices of a Japanese multinational company

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chamila R. Perera ◽  
Chandana R. Hewege
Keyword(s):  
Multinational Firms ◽  
Single Case ◽  
Real Life ◽  
Theory And Practice ◽  
Multinational Firm ◽  
Global Business ◽  
Content Type ◽  
Business Context ◽  
Study Approach ◽  
Country Specific

Purpose Applying mainstream, Western-centric corporate social responsibility (CSR) theory to make sense of CSR practices of multinational firms of non-Western origin seems to be problematic for CSR theory and practice. The purpose of this study is to critically analyse the CSR integration journey of a Japanese multinational firm with a view to understanding CSR integration in a global business context. Design/methodology/approach This study used a qualitative research method using a single case study approach to investigate a contemporary phenomenon within its real-life context. A theoretical lens of seven patterns of CSR integration interwoven with Japanese and mainstream CSR discourses is used to make sense of internalisation and internationalisation process. Findings Main findings are presented under four themes: product harm crisis as a call for CSR, CSR governance and bottom up initiatives, recycling oriented CSR and product designing, co-existing Japanese CSR in the global marketplace. An external misfit of a firm’s practice in the domestic market can lead to internalising country-specific CSR through CSR integration resulting in successful internationalisation of country-specific CSR practices. Research limitations/implications Country-specific CSR integration follows context-specific routines and practices; this process can be shaped and reshaped by the prevailing international CSR discourse due to internationalisation of a firm’s operation. Originality/value Although CSR is viewed as a fundamental strategic priority driving firms to focus on shared value-creating products and services, how best a firm can integrate CSR into an existing business model is unclear. This gap is addressed in this current study.

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