List of panels

(P154)

Multinational enterprises in Africa: corporate governance, social responsibility and risk management

Location C5.08
Date and Start Time 29 June, 2013 at 14:30

Convenor

Virginie Tallio (ISCTE-Instituto Universitário de Lisboa) email
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Short Abstract

The panel aims at analyzing the different aspects of the multinationals activities and their impact on African social and economic life. The papers will have to present empirical experiences. Papers proposed by non-scholar entities are encouraged.

Long Abstract

Nowadays, multinationals take more and more importance not only in the economy but also in the political and social life in Africa. Nevertheless, enterprises are asked to act in a specific context. The weakness of public institutions on the one hand, and the richness in natural resources whose exploitation benefits poorly the population on the other hand, constitute the framework where their governance takes place.

Politics of social responsibility are one of the means used to correct these distortions, voluntarily or not (i.e. because of the scrutiny of public opinion or by law). Situations they have to encompass are variable, from Nigeria to South Africa, from Zambia to Angola, from Zimbabwe to Mozambique. Nevertheless, two common points subsist: they are requested to substitute the State on some of its prerogatives and their activities are mainly directed towards the international market with few or not benefit for the local population.

Another dimension can be added to this feature, the importance of the risk that more and more taken into account within the economic calculation of the enterprise' profit, and this on three aspects: environmental - the negative impact of industrial processing; social - the disrespect of human rights; political - the reduction of the public power without being replaced by any other consistent solution.

In this panel we will aim at analyzing these different aspects of multinationals activities. We are especially interested in local and empirical-based examples.

Discussant: Luca Bussotti

This panel is closed to new paper proposals.

Papers

Torn between local and global? How multinationals respond to CSR issues in Cameroon

Author: Julius Che Tita (University of Buea)  email
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Short Abstract

This paper aims at analyzing the relationship between local and global CSR and the international business strategies of multinational corporations in Cameroon.

Long Abstract

Corporate social responsibility (CSR) provides an opportunity for multinational corporations to establish and maintain beneficial relationships with their host and home publics. The interdependence of the global community resulting from globalization has put the public relations of transnational corporations on the spot to cater for the different expectations of their host and home publics. As a result, the public relations of multinationals have the balancing task of aspiring to global standards that demand more global CSR as well as considering the demands of local situations that prescribes more local CSR. Their duty of managing diverse external publics as well as supervising operations among the various branches even becomes more demanding in the area of CSR because of the increased and contrasting demands of their global and local audiences. International business strategies are accompanied by structural arrangements, complimentary organizational cultures, and specific and distinct headquarters orientations towards subsidiaries that facilitate the maximization of business opportunities available to them. The various strategies were developed to accommodate the need for integration or local responsiveness as regards the product market. Using both qualitative and quantitative research methods, this paper examines how the international business strategies used in the product market respond to local and global CSR issues.

Investment in Africa: divergent realities

Author: Echi Christina Gabbert (Max Planck Institute for Social Anthropology Halle/Saale)  email
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Short Abstract

This presentation visualizes the recent radical shift towards Africa’s representation as continent of lucrative investment on the one hand and the asymmetrical relations and realities between multinational investors and local communities on the other.

Long Abstract

Embedded in the larger contexts of the globally emerging narrative of new markets and entrepreneurship in Africa, I take a look on Ethiopia, a country which for decades had been associated with poverty and famine. When looking at the changes of medial representation of Ethiopia in the past years, recent aesthetics evoke glossy images of the country's economic potential to attract international investors. Likewise critical voices to these idealized representations use sometimes similar forms and even caricature of visual language to portray the flipside of these aspirations. They show that if investments, e.g., large scale land investments, are not being undertaken in a manner that safeguards the social, environmental, and food need of local populations, the results will not match the stories of new prosperity. While some investors, already apply corporate responsibility programmes, one cannot underestimate the asymmetric power relations and the lack of cultural and economic understanding between investors and their "host communities". Empirical examples from Ethiopia will show how rhetorical aesthetics produce the "legitimate theater for practical actions" (Certeau 1984:125) which with its illusionary quality creates divergence between global policies and local realities which cannot possibly be a coherent story at this point in time.

Social responsibility of multinationals in sub-Saharan Africa: facts and controversies. Case of AREVA in Niger

Author: Youssoufou Hamadou Daouda (University of Tahoua)  email
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Short Abstract

Realities and controversies of the Corporate Social Responsibility in Sub-Saharan Africa. Case of Frenh nuclear group (Areva) in Niger.

Long Abstract

In Africa, the concept of social responsibility is new and quite simplistic. For multinationals, the practice of social responsibility is limited to the supply subsidiaries of certain goods and social services to the communities of their settlement area. It is the case for example of Bouygues in Côte d'Ivoire, Total in Nigeria and Areva in Niger. The problem is that it does not exist, in Africa, a legislative environment favorable to a social responsibility model. This weakness of legislative laws gives rise to adaptations of the role and commitment of the company towards society. Multinationals ignore issues related to compliance with environmental standards, the fight against corruption and social dialogue. For some, the multinational's social responsibility is "the tree that hides the forest." It is neither more nor less than a publicity tool to appear in line with societal aspirations (Renouard, 2008; Coutrot, 2003).

The case of French nuclear group (AREVA) is a good example. His social responsibility contrast with stakeholders critics against him (pollution, degradation environment, groundwater contamination, etc.) and certain realities observed in the field (armed conflict, poverty, social inequalities, disintegration of the local economy). This paper proposes to shed light on the issues and controversies related to the practice of Areva social responsibility and the need to go to public regulation. Because of conflicts between Areva and its stakeholders, public regulation could help enroll more actions of the group in the process of industrial development socially responsible.

Social responsibility of oil companies and the cooperation board in Mozambique

Author: Sara Ferreira (CEA ISCTE)  email
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Short Abstract

The private sector as actor in the new cooperation board, trough actions of social responsibility from the oil companies in Mozambique. Trough field investigation and data cross between the various actors, it will demonstrate the embodiment which the concept acquires to the intervenient.

Long Abstract

The intervention of the private sector in sphere of the development is not a new fact, never the less, the mechanics which them introduce in the countries has a new actor of cooperation are recent, leading to the creation of a new cooperation board. Based on the field investigation, which occurred in Mozambique, this paper wants to demonstrate the lathing between the actors in a unique space of cooperation and the meanings that each element gives to the social responsibility concept. It will comprehend changes and agitations that occurred in the country surrounding the recent discovery of natural gas and oil, as well as the show up of multinational enterprises and the new directives of the government.

The importance of the analysis of this problematic has it's context in a country that the state's budget depends greatly of foreign help, with one of the lowest human development index in the world, in which the structures of social support lack of efficiency , the social responsibility reach a crucial importance.

The way the enterprises use their ethical speech in the country is intrinsically connected, minor some exceptions, to the politics of the state and the contract clauses, making the concept permeable to various meanings and flexible trough the framework of its application. So, minding this, it's made a multidimensional analysis of the phenomena, in the application of the concept in the social collective in which it inserts itself.

The social benefits of oil industry activities in Angola

Author: Aida Pegado (ISCTE)  email
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Short Abstract

This communication is about the social responsibilities of oil companies carried out through projects that fulfill the community needs and are in accordance with the aims of the Government.

Long Abstract

The oil companies working in Angola have, through Sonangol, a commitment with the Angolan State to collaborate in order to improve the social conditions of local community and the society in general. In this context, the fields normally benefited are: heath, education, woman promotion, agriculture, environment and also malaria. The aim is to complement the Government efforts in these fields. Thus, the social priorities are identified in the capital or in other towns through joint efforts of the oil companies with local authorities. The implementation of the project needs to be approved by the higher entity responsible for the sector. In addition, the authorities should budget for the maintenance and continuity of the project once the social responsibility of the oil companies is over.

This introduction leads us to two questions: The 1st. In which level and extend have the hosted communities benefiting from oil industry social activities in Angola; The 2nd What is or are the underlying reasons for the oil industry to provide social services to the Angolans communities.

Corporate social responsibility and Chinese oil multinationals in the oil and gas industry of Nigeria: a reappraisal

Author: Eghosa Osa Ekhator (University of Hull)  email
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Short Abstract

An overview of the CSR practices by Chinese oil companies operation in the oil and gas sector of Nigeria.

Long Abstract

This paper will focus on the extant Corporate Social Responsibility practices in the oil and gas industry in Nigeria. The oil and gas sector of Nigeria has been beset by a lot of problems not limited to violence, kidnappings, eco-terrorism, and maladministration amongst others. One way of curing the inherent problems is the use of CSR by many oil Multinational Corporations (MNCs) operating in Nigeria. This paper will focus on the Chinese oil firms operating in the oil and gas industry in Nigeria and investigate if they operate on the same basis as the western firms. This paper will seek to investigate if the variants of CSR practised by non-western firms in Nigeria have had negative or positive impacts in the oil and gas industry especially with China's contribution to Nigerian economy. For example, from about $2 billion in 2000, trade between China and Nigeria rose to around $18 billion in 2010 and between 2003 and 2009, Nigeria was second largest recipient in Africa (second to South Africa) of foreign direct investment from China.

Also is Nigeria better suited for CSR practices from companies China or the West? This paper will seek to answer this connundrum.

This panel is closed to new paper proposals.