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Global Stakeholder Influence Examined in New Boston College Report

Global Education Research Network study explores impact of global stakeholders in nine countries

Nov. 18, 2009

Global Education Research Network today released a timely review of the influence of stakeholders and pressure groups in nine countries. The research reflects dynamics such as the spread of market capitalism, increasing wealth and power of business, the mounting pressure for companies to take on greater social and environmental responsibilities and the growing public distrust of business.

The report "Mapping Stakeholder Landscapes" describes how stakeholder groups differ around the world and the need to balance the variation at the local level with interests shared globally. The report is the result of a one-year research project by the Global Education Research Network (GERN), a network of 12 global institutions, focused on responsible business working together. Funded by the UPS Foundation, this is the second report on global corporate citizenship produced by the GERN. ALTIS is one of them.

While many business practices are shared universally, social and political realities that can affect the way business is managed can vary greatly among countries. The new report helps corporate social responsibility (CSR) leaders understand differences such as:

• The U.K. government appears to be the most supportive of CSR, while the U.S. government is much less involved.
• Developing countries such as Chile and South Africa are deeply influenced by international organizations such as the U.N. Global Compact, while these organizations hold less influence in the United States and Italy.
• Business associations play a large supportive role in South Africa, but hold little power or credibility in Mexico.
• The influence of the socially responsible investment (SRI) market is growing in developed countries such as the United States and United Kingdom, but remains almost non-existent in countries such as Chile and the Philippines.
• Italian media seems to have the greatest appetite for CSR news, while the role of media is rather minimal in Chile, the Philippines and South Africa

Key findings include:

• Government is the most powerful and positive force for corporate citizenship globally.
• Mainstream investors do not yet appreciate or understand the financial value of corporate citizenship.
• Many stakeholders - especially employees and consumers - are "on the fence" due to a lack of awareness about corporate citizenship and weak social movements advancing these issues.
• Developing countries differ from developed countries in the influence of certain stakeholder groups such as socially responsible investors and ethical consumers.

The report also provides details, analysis and charts for each country regarding how stakeholders influence issues ranging from market entry to production practices, advertising, community relations and employment. The nine countries examined are: Chile, China, Germany, Italy, Mexico, the Philippines, South Africa, United Kingdom and United States.  It also provides country-specific analysis of the levers of influence used by groups as diverse as government, investors, nongovernmental organizations, labor, media and consumers.

The authors of this report are Sylvia Kinnicutt, Philip Mirvis, Ph.D. and Rene Carapinha. Bradley K. Googins, Ph.D. is the principal investigator for the project.

The Global Education Research Network (GERN) is a network of 12 global institutions focused on responsible business working together to advance research and education that will build the capacity of businesses worldwide to maximize their benefit to society. It connects academics and researchers who take specific interest in application of corporate citizenship principles, and can offer perspectives from developing and developed economies on issues related to responsible business practice. Its goal is to deconstruct and unpack everyday questions on the role of business in society in a manner that can result in practical application. GERN members who participated in this report are: AIM-Ramon V. del Rosario Sr. Center for Corporate Responsibility at the Asian Institute for Management; the American Chamber of Commerce in Shanghai, the Boston College Center for Corporate Citizenship; the Doughty Centre for Corporate Responsibility, Cranfield University School of Management; IDEARSE Center for Corporate Sustainability and Responsibility at Anahuac University; the Center for Corporate Citizenship Deutschland (CCCD); the Center for Responsible Leadership, University of Pretoria; ALTIS, Catholic University of Milan; and Vincular, Center for Corporate Social Responsibility at Catholic University of Valparaiso.

Download the Report (1.52 MB)