New Academy Review

THE International Journal of Corporate Social Responsibility, Sustainability, Leadership and Ethics

 

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New York
Spirit has entered the corporate world. In New York, corporate executives from 30 countries and a multitude of faiths have created the Spirit in Business World Institute. Its aim is to build bridges between business practices and personal and spiritual values as well as to help companies find meaning behind the bottom line.
When the business of business was to maximize profits, the World Trade Center was reaching for the sky, and companies like Enron and Anderson were powerful and respected. Today, fear of terror, corporate scandals, anti-globalization sentiments, cutbacks, and layoffs all have lead to insecurity and fear of the future among employees and management. Nobody has a secure job any more.

Before creating the Spirit in Business World Institute, 500 corporate leaders and religious scholars spent three days in New York, exploring how ethics and spiritual values can help build healthy, meaning-creating, empowering corporate cultures that permeate the organization and provide the spiritual contexts for corporate identity strategy and success.

Kirsten Pruzan Mikkelsen

Santa Fe, New Mexico
True Self-Esteem is the product of Self Realization.  It is the birthright of every human being...each of us is a spark of the divine being in whom we live and move and have our nature only when the God within is realized can we as human beings advance to our highest spiritual purpose. .The nature and meaning of work is undergoing a profound evolution.  Two forces are helping to catalyze the momentum of this evolution—fear as a motivator and the emergence of both a more personal and widespread spirituality.
The emergence of spirituality points to the desire that there be more to work than just survival.  It's the yearning for work to be a place in which we both experience and express our deep soul and spirit. ...
People have genuinely gotten the message, "You don't have a secure job anymore."  And that causes insecurity, it causes anxiety and it causes fear.
It also leads to a sense of "dis-spiritedness" in individuals and in the overall workplace.  The spirit has been shut down.  It can't express itself fully.  There is a sense of dis-engagement.  It may not be quantifiable, but people can feel the lack of spirit in a workplace.  They do know when it's diminished. I don't mean to paint a completely bleak landscape here.  We can look at these very same factors from another more useful perspective—the spiritual.  The security we thought we got from the corporation is a myth.  Real security comes from a connection to that which is truly secure—the spirit.  We are in the process of moving from dependent "children" at work, with the parental company looking after us, to really coming into our full, responsible Selfhood.  From this new reality we will begin exploring and expressing more of our true spiritual selves.
Martin Rutte
President of Livelihood, A Management Consulting Organization

 

New Academy Review: Volume 1 Number 3 
Autumn 2002

We are all part of a worldwide experiment in the intimate effects of surveillance technology, one that can be expected to expand as terrorism concerns increase.
Jo Ann Oravec

A company is a living entity, not a machine.
Mark Goyder

NGAOs are increasingly influential actors on the political-economic landscape.
Jonathan Doh

Creativity is a cornerstone of business.
Martin Rutte

Not for nothing are the Free Trade Companies called ‘swallows’ in Central America.
Anita Roddick

In a time more moralistic than ours, the intimate linking of social and economic interests so valorized by social capital thinking had a special, albeit now unfashionable name: corruption.
Steve Fuller

Successful CSR chimes in with a company’s overall strategy and reflects its attitudes and its strengths.
Lucy Neville-Rolfe

Contents:
A View from the Chair – Anita Roddick
Notes from the Edge - Tom Cannon
Debating Points
Spirituality in the Workplace – Martin Rutte
Spirituality Moves into the Workplace – Kirsten Pruzan Mikkelsen
Perspective on Social Capital
Social Capital: What’s in a Name – Steve Fuller
Nongovernmental Advocacy Organisations and Corporate Social Responsibility: Ownership Activism and Issues Advocacy – Jonathan P.Doh
Research Insights into Corporate Social Responsibility (Part 2.) - Ken Peattie, Jill Solomon, Aris Solomon and Jo Hunt
1984 and September 11: Corporate Social Responsibility, Surveillance, and Response to Terrorism – Jo Ann Oravec
Who Influences debates in Business Ethics?: An Examination of UK Corporate Governance since 1990 – Ian W Jones and Michael G Pollitt

The Problem of Agency: Governmental Partnership, Industrial Self-discipline and Competitive Ideal in the Cluster Economy – Piero Formica
New Academy of Business
Enhancing Business-Community Relations: Perspectives from an international action research project – David.F.Murphy & Rupesh A.Shah
Good Corporation
The Business Case for CSR: the angel is in the detail – Michael Littlechild
Respect Europe
Johannesburg Outcome Demands More from the Business Sector - Mei Li Han   
Case Study
Tesco –Social Responsibility: Finding a New Legitimacy – Lucy Neville-Rolfe
Parting Shots
Enron et al: prevention and cure in Anglo-American capitalism - Mark Goyder
Book Reviews
What’s On
About the Author
Notes for Writers
Technical Information


Dame Anita Roddick
Life couldn’t be simpler if you’re a free-ranging company looking for a manufacturing base with no ties or commitments, complete with compliant workforce.   Just click onto ‘Free Trade’ on your computer and up comes a tempting menu of global fare for the profit-hungry.  Nicaragua’s Zona Franca site offers up some particularly tasty morsels to whet corporate appetites,

 * Production costs are the lowest in the region.
 * No government income, sales or corporate taxes or fees.
 *  Unrestricted repatriation of profits and capital at any time.
 * Low cost skilled and unskilled labor.
 * Ample supply of trainable and productive labor.
Of primary concern to Nicaraguan lawmakers is the 60% rate of unemployment.  Because of this, free zone operators enjoy laws that provide them with maximum freedom and benefits. For ease of operation and profitability, Nicaragua is your best alternative.
To some corporates, Nicaragua’s Las Mercedes Free Trade Zone must seem like heaven on Earth, but when I visited it early one morning in February it looked more like hell as an amorphous mass of over 20,000 souls (mostly young women) poured into its featureless, prefabricated  factories.  6 days a week, 10 hours a day, the workers of the Free Trade Zone are making jeans, shorts and shirts in the vast Taiwanese, Korean, and US owned 'Maquilla' (from the spanish, ‘To assemble’)  factories for sale through US retailers like Kohls, Kmart, Wal-Mart, and J C Penney.  The US military also sources jeans from the Maquillas, sold through its Army and Airforce Exchange Service, one of the largest retailers in the world.  A bizarre thought occurred to me, had Reagan’s Contra-supplying sidekick Colonel Oliver North ever worn a pair of Sandinista-sewn jeans?

1984 and September 11:
Corporate Social Responsibility, Surveillance,
and Response to Terrorism

Abstract

            Increased threats of terrorism are triggering the implementation of new waves of electronic surveillance innovations as well as expanding old-style security measures on a number of domestic fronts in many Western nations. Shifts in public policy concerning a number of basic civil liberties issues have occurred in the aftermath of the September 11, 2001 tragedies (Hope et al., 2002). In particular, the US is providing object examples of how a society copes with unexpected terrorist incidents and involves technologies in these efforts. This article addresses the corporate response to these matters; it analyzes modes through which corporations are infusing technologically-assisted surveillance practices into many aspects of their operations, along with the manners in which they have come to defend them, with an emphasis on post-September 11th activities and rhetoric. It addresses the broad question of how corporations can relate in less opportunistic ways to the fear inspired by terrorist attacks, and promotes the development of approaches to surveillance that more effectively balance concern for security with civil liberties. The long-term security of a society is rooted in building relationships and trust, a process that can be undermined through some varieties of surveillance practices.
Jo Ann Oravec, Associate Professor, University of Wisconsin-Whitewater, College of Business and Economics

NONGOVERNMENTAL ADVOCACY ORGANIZATIONS AND CORPORATE SOCIAL RESPONSIBILITY: OWNERSHIP ACTIVISM AND ISSUES ADVOCACY
Abstract

The emergence of nongovernmental advocacy organizations (NGAOs) has influenced many aspects of corporate strategy and organization, including corporate governance.  Drawing from stakeholder and agency theory, and research on corporate public affairs and issues management, I identify characteristics of the particular policy in question, and the focus of the specific campaign or program, to suggest when ownership-based initiatives versus broader public advocacy interventions will be most effective.  I conclude that the ability of NGAOs to leverage their influence as both shareholders and stakeholders makes them uniquely positioned to influence management toward more socially responsible practices, even when only a minority of shareholders support their initiatives. Jonathan P. Doh, Department of Management, College of Commerce and Finance, Villanova University

Research Insights into Corporate Social Responsibility (Part 2.)
Abstract.
Interest in Corporate Social Responsibility (CSR) is increasing among a range of audiences with an interest in business. It has also been a growing focus for academic research and writing over recent years. Unfortunately, interesting knowledge and insight about CSR generated by academic researchers can often circulate within the academic community, but without getting the attention from business practitioners and public policy makers that it deserves. This article is the second in a two-part review, which aims to encourage some of the most recent academic wisdom about CSR to escape out into the wider world. This article has a focus on corporate governance and accountability, socially responsible investment, accountancy and law. It aims to complement the first article, which looked at general CSR issues; at its relevance to specific management functions; and at the challenge of integrating CSR initiatives across a company. Professor Ken Peattie; Dr. Jill Solmon; Dr. Aris Solomon; Dr. Joanne Hunt

 

 

 

 

The Problem of Agency - Government Partnership industrial self-discipline and Competitive Ideals in the Cluster Economy
Abstract

Across the world there are local communities that are in better shape today – economically and socially- than they have been for generations. This unprecedented economic development has not been inspired by governments, but is the result of organic growth. Where the state is involved, better corporate governance of its Agencies is essential to retain the vigour of spontaneous development while avoiding capture by the bureaucracy, loss of purpose and corruption of initial aspirations.
Organic growth is the spontaneous, self-organised, self-sustaining and self-reinforcing formation of interconnected businesses. The seed is a catalyser without which the ‘business reaction’ would proceed only with great difficulty. High quality local resources such as skilled individuals and locally-rooted business heroes usually act as the catalysers. Success comes about almost by accident. Piero Formica, International University of Entrepreneurship