Institute for Business in the Global Context

Where the World of Business Meets the World

Month: August 2017

Beware the Trump Effect

This is a tale of two septuagenarians; I hope they never meet. One is the country of India as an independent democratic nation. The other is the American president, a reminder that independent democracy provides no guarantee for its product. When Prime Minister Narendra Modi visited Washington DC, he extended an invitation to the Trump parivaar to visit India. Ivanka Trump accepted right away and recently the details of her visit have been re-confirmed by the official medium of this White House — over a tweet. While Ivanka’s appearance would be harmless enough, it would be best if Daddy chooses to stay away.

Read the full piece from Dean Chakravorti at Brookings

New Research from Jette Steen Knudsen: Government Regulation and International CSR

Government Regulation of International Corporate Social Responsibility in the US and the UK: How Domestic Institutions Shape Mandatory and Supportive Initiatives
by Jette Steen Knudsen

Abstract

While most scholarship on corporate social responsibility (CSR) focuses on company-level CSR initiatives, it increasingly also examines government programs for CSR. However, research on how governments contribute to CSR has mainly focused on domestic and not international CSR challenges. This literature also does not specify whether governments shape CSR through mandatory regulation or supportive initiatives. This article adopts a processtracing approach to determine how governments regulate international CSR. It demonstrates that the legal and political systems in the liberal market economies of theUK and theUS lead to different forms of public CSR regulation—notably in the areas of labour standards in apparel and tax transparency in extractives. The UK government has been more likely to support bottom-up collaborative multi-stakeholder initiatives, whereas the US government has favoured top-down mandatory regulation.

Download and read the full paper from the British Journal of Industrial Relations