We examine whether, relative to their global peers, the financial performance of firms from developing countries leads to increases in human rights abuses. We also study the institutional conditions that qualify this relationship. Based on a combination of behavioral and neo-institutional theories, we suggest there is a positive relationship between financial performance and human rights misbehavior as home country liabilities motivate firms to misbehave to achieve their primary goal of economic leadership. We also suggest that strong regulatory and normative pressures (...) attenuate the abovementioned positive relationship, as failure to comply with norms endangers such firms’ secondary goal of achieving international legitimacy. Our analysis, based on a sample of 245 large companies from eight developing countries studied over a 20-year period, supports our hypotheses. Our empirical results suggest that such companies misbehave when they endeavor to strike a balance between maintaining their global economic leadership and sustaining their social legitimacy. (shrink)

This study investigates the antecedents of human rights infringements by emerging market firms. We used fuzzy set qualitative comparative analysis 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: large, old, low performing state-owned enterprises operating in high quality institutions’ home and host markets, small, young, over-performing EFs operating in low (...) quality institutions’ home and host markets, and finally 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. (shrink)

The neglect of marginalized stakeholders is a colossal problem in both stakeholder and entrepreneurship streams of literature. To address this problem, we offer a theory of marginalized stakeholder-centric entrepreneurship. We conceptualize how firms can utilize marginalized stakeholder input actualization through which firms should process a variety of ideas, resources, and interactions with marginalized stakeholders and then filter, internalize, and, finally, realize important elements that improve a variety of related socioeconomic, ethical, racial, contextual, political, and identity issues. This input actualization process (...) enables firms to innovate with marginalized stakeholders and develop marginalized stakeholder capabilities. To this end, firms fulfill both their moral and entrepreneurial claims to marginalized stakeholders. (shrink)

Controversies around large-scale development projects offer many cases and insights which may be analyzed through the lenses of corporate social (_ir_)responsibility (CS_I_R) and business ethics studies. In this paper, we confront the CSR narratives and strategies of _WeBuild_ (formerly known as _Salini Impregilo_), an Italian transnational construction company. Starting from the Global Atlas of Environmental Justice (EJAtlas), we collect evidence from NGOs, environmental justice organizations, journalists, scholars, and community leaders on socio-environmental injustices and controversies surrounding 38 large hydropower schemes built (...) by the corporation throughout the last century. As a counter-reporting exercise, we code (un)sustainability discourses from a plurality of sources, looking at their discrepancy under the critical lenses of post-normal science and political ecology, with environmental justice as a normative framework. Our results show how the mismatch of narratives can be interpreted by considering the voluntary, self-reporting, non-binding nature of CSR accounting performed by a corporation wishing to grow in a global competitive market. Contributing to critical perspectives on political CS(I)R, we question the reliability of current CSR mechanisms and instruments, calling for the inclusion of complexity dimensions in and a re-politicization of CS(I)R accounting and ethics. We argue that the fields of post-normal science and political ecology can contribute to these goals. (shrink)

Controversies around large-scale development projects offer many cases and insights which may be analyzed through the lenses of corporate social (_ir_)responsibility (CS_I_R) and business ethics studies. In this paper, we confront the CSR narratives and strategies of _WeBuild_ (formerly known as _Salini Impregilo_), an Italian transnational construction company. Starting from the Global Atlas of Environmental Justice (EJAtlas), we collect evidence from NGOs, environmental justice organizations, journalists, scholars, and community leaders on socio-environmental injustices and controversies surrounding 38 large hydropower schemes built (...) by the corporation throughout the last century. As a counter-reporting exercise, we code (un)sustainability discourses from a plurality of sources, looking at their discrepancy under the critical lenses of post-normal science and political ecology, with environmental justice as a normative framework. Our results show how the mismatch of narratives can be interpreted by considering the voluntary, self-reporting, non-binding nature of CSR accounting performed by a corporation wishing to grow in a global competitive market. Contributing to critical perspectives on political CS(I)R, we question the reliability of current CSR mechanisms and instruments, calling for the inclusion of complexity dimensions in and a re-politicization of CS(I)R accounting and ethics. We argue that the fields of post-normal science and political ecology can contribute to these goals. (shrink)