You are here

ETHICAL BACKGROUND OF THE SUSTAINABLE ECONOMIC DEVELOPMENT AND THE ROLE OF THE MULTINATIONAL CORPORATIONS

Journal Name:

Publication Year:

Author NameUniversity of Author
Abstract (2. Language): 
In this theoretical paper, we have underlined the ethical roots of the sustainable economic development. In addition, we examined both the negative and the positive effects of the multinational corporations (MNCs) on the sustainable economic development process in terms of business ethics and corporate social responsibility. The relationship among business ethics, corporate social responsibility and sustainable development (SD) has recently become the focus of scholars concerned with the relationship between business and society. SD is an eclectic concept, as a wide array of views fall under its umbrella. It can be conceptually broken into four constituent parts: environmental sustainability, economic sustainability, cultural sustainability and sociopolitical sustainability. ―Sustainable economic development‖ is used to describe an economic development that concerns ethical and social effects of the development process. In other words, the term implies that without ethical background, it is not possible to gain sustainable economic development. One of the engines of the emerging countries‘ economic development is MNCs. Through globalization process MNCs have had access to many developing countries. Some MNCs have budgets that exceed some national GDPs. These MNCs can have a powerful influence in local economies as well as the world economy and play an important role in international relations and globalization.The MNCs have made great contributions to the developing countries. Nevertheless, they have created ethical, social, cultural, and political problems as well. Therefore, MNCs should assume ethical and social responsibilities more than their national counterparts. They should help to improve society by taking a proactive stance in their societal roles. The relationship between the MNCs and the governments of the developing countries are also important to foster the ethical values and cultures in these countries. In summary, all the parties (MNCs, local governments, NGOs etc.) should understand the importance of ethics and social responsibility in terms of sustainable economic development and act accordingly.

REFERENCES

References: 

AARONSON, Susan Ariel, ―Minding Our Business: What the United States Government has done and can do to Ensure that U.S. Multinationals Act Responsibly in Foreign Markets‖, Journal of Business Ethics, 2005, 59: 175-198.
AMBA-RAOU, Sita C., ―Multinational Corporate Social Responsibility, Ethics, Interactions and Third World Governments: An Agenda for the 1990s‖, Journal of Business Ethics, 1993, 12: 553-572.
BARCLAY, Jean and SMITH, Kenneth, ―Business Ethics and the Transitional Economy: A Tale of Two Modernities‖, Journal of Business Ethics, 2003, 47: 315-325.
CARROLL, Archie B., ―Managing ethically with global stakeholders: A present and future challenge‖, Academy of Management Executive, 2004, Vol. 18, No. 2, pp.114-120.
CORDEIRO, William P., ―Should Business Ethics Be Different in Transitional Economies?‖, Journal of Business Ethics, 2003, 47: 327-334.
ELKINGTON, J., Cannibals with Forks: The Triple Bottom Line of 21st Century Business, Oxford: Capstone Publishing, 1997.
ELKINGTON, J.: 2001, The Chrysalis Economy: How Citizen CEOs and Corporations can Fuse Values and Value Creation (Capstone Publishing, Oxford).
ENGLE, Robert L., ―Corporate Social Responsibility in Host Countries: A Perspective from American Managers‖, Corporate Social Responsibility and Environmental Management, 2007, 14, 16-27.
EWEJE, Gabriel, ―Strategic Partnerships between MNEs and Civil Society: the Post-WSSD Perspectives‖, Sustainable Development, 2007, 15, 15-27.
FERGUS, Andrew H. T. and ROWNEY, Julie I. A., ―Sustainable Development: Epistemological Frameworks & an Ethic of Choice‖, Journal of Business Ethics, 2005, 57: 197-207.
FERGUS, Andrew H. T. and ROWNEY, Julie I. A., ―Sustainable Development: Lost Meaning and Opportunity?‖, Journal of Business Ethics, 2005, 60: 17-27.
GALLEGO, Isabel, ―The Use of Economic, Social and Environmental Indicators as a Measure of Sustainable Development in Spain‖, Corporate Social Responsibility and Environmental Management, 2006, 13, 78-97.
HAMANN, Ralph, ―Can business make decisive contributions to development? Towards a research agenda on corporate citizenship and beyond‖, Development Southern Africa, 2006, Vol. 23, No. 2, 175-195.
HESS, David, ―The Three Pillars of Corporate Social Reporting as New Governance Regulation: Disclosure, Dialogue, and Development‖, Business Ethics Quarterly, 2008, Volume 18, Issue 4, pp.447-482.
IDAHOSA, Pablo, ―Business Ethics and Development in Conflict (Zones): The Case of Talisman Oil‖, Journal of Business Ethics, 2002, 39: 227-246.
IDEMUDIA, Uwafiokun, ―Conceptualising the CSR and Development Debate‖, JCC, 2008, 29: 91-110.
ITE, Uwem E., ―Multinationals and Corporate Social Responsibility in Developing Countries: A Case Study of Nigeria‖, Corporate Social Responsibility and Environmental Management, 2004, 11, 1-11.
KONRAD, A; STEURER, R.; LANGER, M. E., and MARTINUZZI, Andre, ―Empirical Findings on Business-Society Relations in Europe―, Journal of Business Ethics, 2006, 63: 89-105.
LOZANO, J. Felix and BONI, Alejandra, ―The Impact of the Multinational in the Development: An Ethical Challenge‖, Journal of Business Ethics, 2002, 39: 169-178.
MOON, Jeremy, ―The Contribution of Corporate Social Responsibility to Sustainable Development‖, Sustainable Development, 2007, 15: 296-306.
PALACIOS, Juan Jose, ―Corporate Citizenship and Social Responsibility in a Globalized World‖, Citizenship Studies, December 2004, Vol. 8, No. 4, 383-402.
PAYNE, Dinah M. and RAIBORN, Cecily A., ―Sustainable Development: Ethics Support the Economics‖, Journal of Business Ethics, 2001, 32: 157-168.
RONDINELLI, Dennis A., ―Globalization of Sustainable Development: Principles and Practices in Transnational Corporations‖, The Multinational Business Review, Vol. 15, No. 1, Special Issue, 1-24.
SETHI, Prakash S., ―Globalization and the Good Corporation: A Need for Proactive Co-existence‖, Journal of Business Ethics, 2003, 43, 21-31.
SILLANPAA, Maria, ―A New Deal for Sustainable Development in Business: Taking the Social Dimension Seriously‖, GMI 23, Autumn 1998, 93-115.
SIMPSON, James R., ―Ethics and Multinational Corporations vis-a-vis Developing Nations, Journal of Business Ethics, 1998, 1, 227-237.
The Ethical Background of the Sustainable Economic Development … 47
SINGH, Jang B. and CARASCO, Emily F., ―Business Ethics, Economic Development and Protection of the Environment in the New World Order‖, Journal of Business Ethics, 1996, 15: 297-307.
STEURER, Reinhard; LANGER, Markus E.; KONRAD, Astrid, and MARTINUZZI, Andre, ―Corporations, Stakeholders and Sustainable Development I: A Theoretical Exploration of Business-Society Relations―, Journal of Business Ethics, 2005, 61: 263-281.
VELASQUEZ, Manuel, ―Globalization and the Failure of Ethics‖, Business Ethics Quarterly, 2000, Volume 10, Issue 1, pp.343-352.
WADDOCK, Sandra A.; BODWELL, Charles, & GRAVES, Samuel B., (2002), ―Responsibility: The New Business Imperative‖, Academy of Management Executive, Vol. 16, No. 2, 132-148.
ZYGLIDOPOULOS, Stelios C., ―The Social and Environmental Responsibilities of Multinationals: Evidence from the Brent Spar Case‖, Journal of Business Ethics, 2002, 36: 141-151.

Thank you for copying data from http://www.arastirmax.com