Business and Human Rights: A Configurational View of the Antecedents of Human Rights Infringements by Emerging Market Firms

This study investigates the antecedents of human rights infringements (HRIs) by emerging market firms (EFs). We used fuzzy set qualitative comparative analysis (fsQCA) to examine HRIs in 245 firms based in eight emerging markets, between 2003 and 2012. Our findings disclose three equifinal configurations of high levels of HRIs, all involving EFs that have expanded to a high number of foreign markets: (i) large, old, low performing state-owned enterprises (SOEs) operating in high quality institutions’ home and host markets, (ii) small, young, over-performing EFs operating in low quality institutions’ home and host markets, and finally (iii) large, old, high performing SOEs, operating in low quality institutions’ home and host markets. We contribute to the literature by examining a novel dataset on HRIs by EFs, and by building a configurational explanation of HRIs that bridges the arguments of the institutional theory and strain theory literatures on corporate wrongdoing.

THE CRIMINAL RESPONSIBILITY BY CORPORATE

Corporation is the subject of a criminal act. In Indonesia, the statutory regulations that initiated the placement of corporations as subjects of criminal acts and which can be directly accounted for are Act No. 7 the Emergency of 1955 concerning Investigation, Prosecution and Economic Criminal Justice, as subjects of criminal law corporations do not have an inner attitude. Meanwhile, to be criminally accountable, a men's rea/schuld is required. Crimes committed by corporations are very detrimental to society and the state. Meanwhile, the conventional accountability system which is individual, direct, and based on schuld, is difficult to apply to corporations. The purpose of writing is to analyze the corporate liability system to impose crimes against corporations, and obstacles to imposing crimes against corporations. The method used is the statute approach (legal approach) and the case approach (case approach), the analysis method uses qualitative analysis with interpretation, and the data collection method uses library research. It can be concluded that corporations can be held accountable by using a system of absolute and substitute liability, and the obstacle is the application of a conventional criminal liability system and the difficulty of proving corporate wrongdoing. It is suggested that there is a common perception between law enforcers about the criminality of corporations.

The Opioid Crisis or Climate Change

Societal problems can occasionally have legal solutions, and several tools exist to implement change, including litigation and regulation. However, what elements make a societal problem more suitable for litigation or regulation? This Article examines four different societal issues (tobacco use, obesity, opioid addiction, and climate change) to determine whether litigation or regulation is the more appropriate route for success. The tobacco litigation serves as a successful example, while the fast food litigation serves as an unsuccessful example. Six signs of success are derived from the tobacco litigation: a large settlement agreement, evidence of corporate wrongdoing, change in public opinion, the litigation inspiring regulations, new courtroom avenues, and the ability to aggregate claims. The Article concludes that opioid litigation will be more successful under the tobacco litigation model than climate change litigation, because opioid litigation adapts the tobacco model to end the opioid epidemic. Novel solutions include utilizing Multi-District Litigation and the first-ever “negotiation class” that allows all 30,000 American cities to participate in a global settlement agreement with Big Pharma.

A fresh look at whistleblower rewards

Research on whistleblowing has increased significantly in the last decades, and so has the number of laws governing whistleblowing. Whereas the EU recently enacted a Directive (Directive 2019/1937) protecting whistleblowers, the US has gone one step further long ago, not only protecting them but also offering substantial monetary rewards for their information. More countries are now adopting reward programs, while numerous recent instances of corporate wrongdoing suggest that the central promise of these programs: increasing detection and deterrence of wrongdoing, is highly needed not only in the US. These developments warrant a review on the optimal design of these programs, based on experience and available evidence, to obtain optimal deterrence and avoid policy mistakes. In this paper, we review the evidence for the effectiveness of the US whistleblower reward programs and consider some recent novelties. We also consider objections against these programs and local factors in the US that likely contribute to their success. Finally, we voice some concerns over the EU Directive’s ability to achieve its policy objective of enhancing enforcement of Union law. We find that the evidence for the effectiveness of reward programs is significant, and that common concerns about these programs have not materialized. Whereas much of the prior literature has focused on their viability and effectiveness, further research would do well in focusing on how to effectively design these programs, what has driven their success, and what local national characteristics could hamper their effectiveness outside the US.

Corporate crime in Australia: the extent of the problem

Government and public concern about corporate wrongdoing in Australia is arguably at an all-time high. However, the extent and nature of corporate crime is largely unknown; it is concealed by regulatory agency reporting practices and the absence of a single data source which combines data across all regulators. This study addresses the problem by examining corporate offending by 33 of the country’s top companies, and their wholly owned subsidiaries, over a five-year period. The results indicate that corporate offending is patterned and unevenly distributed across the business community. Drawing on the findings and on their experience of conducting the research, the authors make recommendations for improving policy and practice, including the establishment of a national database of corporate offending.

Role of Human Resources in Building Ethical Organisational Culture

Business ethics has always been a primary determinant of organisational identity. With increasing instances of corporate wrongdoing and unethical behaviour, organisations do try to invest in corrective actions, but their emphasis tends to be on the ‘letter’, i.e. the legalities of operating a business within the law. However, there is a very strong influencer element that lies in the ‘spirit’, i.e. the values, thought and the practice embedded within the organisation culture that makes things right. This article deep dives into the enhanced role that the human resources (HR) function needs to play to nurture and develop an ethical organisation. This article is based on an interview with Dr Mukund Rajan, the Tata veteran who has held the office of the Chief Ethics Officer of the Tata Group. His views are supplemented with research findings on organisation practices supporting ethical culture.

Power distance culture and whistleblowing intentions: the moderating effect of gender

Purpose The purpose of this paper is to investigate the effect of power distance culture (PDC) on whistleblowing intentions (WI) by examining the moderating effect of gender on the causal relationships. Design/methodology/approach The study used descriptive and cross-sectional survey design. Data were obtained from 300 employees of the selected organizations in Ghana and analyzed by using descriptive statistics, correlational and hierarchical regression techniques. Findings The results indicate that there is a significant relationship between PDC and WI, and such relationship is moderated by gender. The study also revealed that high PDC is the prevailing culture in the organizations surveyed, indicating low tendency of reporting corporate wrongdoing. However, the result of the moderation analysis indicates being a female worker in a PDC has a stronger influence on WI than being a male. Additionally, whistleblowers are likely to report their coworkers than leaders in high PDC organizations, but they are rather likely to report their leaders than coworkers in low PDC organizations. Originality/value This paper makes a significant contribution to the existing whistleblowing literature by establishing how gender moderates the influence of organizational culture on whistleblowing and recommends how to improve organizational ethos to facilitate whistleblowing in high-power distance societies.