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1 – 10 of over 3000This study aims to investigate the effects of mineral rents, conflict and population growth on countries' growth, with a specific interest in 13 selected economies in Sub-Saharan…
Abstract
Purpose
This study aims to investigate the effects of mineral rents, conflict and population growth on countries' growth, with a specific interest in 13 selected economies in Sub-Saharan Africa.
Design/methodology/approach
This paper uses a combination of research methods: the pooled ordinary least squares (OLS), the fixed effect and the system generalized method of moment (GMM). The consistent estimator (system GMM), which provides the paper's empirical findings, remedies the inherent endogeneity bias in the model formulation. The utilized panel dataset for the study spans from 1980 to 2022.
Findings
The study suggests that mineral rents positively affect countries' growth by about 0.407 percentage points in the short run. The study further demonstrates the long-run negative impacts of population growth rates and prevalence of civil war on economic growth. The empirical work of the study reveals that an increase in the number of international borders within the group promotes mineral conflicts, which impedes economic growth. Evidence from the specification tests performed in the study confirmed the validity of the empirical results.
Social implications
Mineral rents, if well managed and conditioned on good institutions, are a blessing to an economy, contrary to the assumptions that mineral resources are a curse. The utilization of mineral rents in Sub-Saharan Africa for economic growth depends on several factors, notably the level of mineral conflicts, population growth rates, institutional factors and the ability to contain civil war, among others.
Originality/value
This study is the first attempt in the post-coronavirus disease 2019 (COVID-19) era to revisit the investigation of the impacts of mineral rents, conflict and population growth rates on the countries' growth while controlling for the potential implications of the qualities of institutions. One of the significant contributions of the study is the identification of high population growth rates as one of the primary drivers of mineral conflicts that impede economic growth in the states with enormous mineral deposits in Sub-Saharan Africa. The crucial inference drawn from the study is that mineral rents positively impact countries' growth, even with inherent institutional challenges, although the results could be better with good institutions.
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Samanthi Silva and Stefan Schaltegger
The necessity to assess and manage supply chains to be free from social problems such as human and labour rights abuses has become particularly apparent since the introduction of…
Abstract
Purpose
The necessity to assess and manage supply chains to be free from social problems such as human and labour rights abuses has become particularly apparent since the introduction of conflict minerals regulations in the United States (Dodd-Frank Act) and the European Union. Similarly, stakeholders demand that products are free from social problems. Ever more companies are therefore challenged to assess and manage social issues in their supply chains. At the same time, the increasing literature on assessment and management of social issues is disperse and an overview missing. This paper aims to provide an overview of the existing literature on social assessment and management approaches relating to conflict minerals and connected to social issues in supply chains.
Design/methodology/approach
A review of the academic literature on social assessment and management of conflict minerals to provide an overview is currently missing. This paper addresses this gap by systematically reviewing the existing research literature on approaches for the social assessment and management of conflict minerals from a supply chain perspective.
Findings
The systematic literature review found 21 social assessment and 30 social management approaches with reference to conflict minerals, with the most referenced approach being the OECD guidelines. Overall, the conflict mineral related literature discusses rather general social assessment and management approaches, such as codes of conduct, while the effectiveness of the approaches is not analysed in depth. The paper finds that an analysis of the effectiveness and interlinkages of different approaches is missing. The large variety of social and human rights issues addressed in the academic literature ranges from corruption to violence, going beyond the scope of regulations focused on conflict minerals. This indicates that regulations on conflict minerals and the consequences for management are seen as a specific case with wider implications for future regulations and the necessity for management to solve social problems in supply chains in an effective way.
Research limitations/implications
The review paper is conceptual and develops a framework to classify social assessment and management approaches for conflict minerals, drawing on the supply chain management literature.
Practical implications
The overview reveals that research refers to broader social assessment and management approaches indicating wider implications for assessing and managing social issues in supply chains in general, irrespective of whether they are conflict mineral related. Research has, however, so far not addressed the effectiveness and interlinkages between social assessment and management approaches. The aim of the emerging regulations, however, is to foster more effective management of social issues in supply chains. Management is therefore challenged to develop and implement innovative approaches to effectively reduce social problems in supply chains beyond conflict minerals. Conclusions are drawn for management and research.
Social implications
The paper highlights the need for collaboration with NGOs, industry associations and suppliers, recommending to engage in supplier development.
Originality/value
The paper conducts the first systematic review of academic literature on conflict mineral related social assessment and management approaches. A framework is proposed to classify social assessment and management approaches based on supply chain management literature. While conflict minerals often represent a small fraction of components in a product, they can have huge and costly implications for companies, which require (potentially) large changes for the sourcing and supply strategy of a company. Conflict mineral regulations represent the first attempt to regulate social and human rights abuses in supply chains holding companies responsible for misconduct caused by suppliers abroad.
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Cristina Sancha, Josep F. Mària S.J. and Cristina Gimenez
The purpose of this paper is to illustrate how a focal firm can manage sustainability in its lower-tier suppliers which lie beyond the firm’s visible horizon.
Abstract
Purpose
The purpose of this paper is to illustrate how a focal firm can manage sustainability in its lower-tier suppliers which lie beyond the firm’s visible horizon.
Design/methodology/approach
This paper presents a new approach to managing sustainability in multi-tier supply chains with an illustrative case study that analyzes how electronic equipment firms make efforts to verify that they are not using conflict minerals.
Findings
The nexus supplier (smelters in the electronics supply chain) plays a relevant role in increasing visibility and tracing the source of minerals, thus guaranteeing sustainability upstream in the supply chain.
Research limitations/implications
The paper is based on a specific supply chain (i.e. electronics supply chain) and therefore its conclusions might be only partially generalized to other sectors.
Practical implications
Firms in complex supply chains need to make efforts to identify and manage nexus suppliers to extend sustainability upstream in the supply chain, especially beyond their visible horizon.
Originality/value
The paper focuses on management of sustainability in the invisible zone of the supply chain, which has been neglected in previous literature and is increasingly important to the managerial world in an economy with a growing number of global supply chains.
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This paper seeks to explicate issues of harm to humanity caused by the mining in the Democratic Republic of Congo (DRC) of coltan, a conflict mineral used in the manufacture of…
Abstract
Purpose
This paper seeks to explicate issues of harm to humanity caused by the mining in the Democratic Republic of Congo (DRC) of coltan, a conflict mineral used in the manufacture of mobile phones and other devices. It seeks to develop remedies and draw an end to a particularized form of human suffering in the DRC (a significant supplier of the mineral) where in its easternmost regions coltan fuels a long‐standing war and unremitting atrocities.
Design/methodology/approach
The paper is presented in six sections: Introduction, Background and regional parties, The scramble, Resource curse, Approaches and alternatives, and Conclusion. It is based on primary sources accruing from more than a decade in which the author worked and resided in the Great Lakes region of Africa, initially as a UN Attorney in Rwanda (1994‐1995), and subsequently as Director/Attorney of an international human rights and humanitarian non‐profit organization (1996‐2005). Further work has been undertaken in Europe between 2005 and the present. The paper additionally employs secondary materials and explores the regional, historical, political and economic contexts necessary for effective understanding of the relevant issues.
Findings
The central issue is whether remedies are available to halt the negative consequences procurement of minerals in developing regions has on local and regional populations. The specific concern is whether the cell phone industry can ensure that it is not using a mineral that causes vast bloodshed including war and violations of human rights, and how a conflict that has already caused suffering of historical dimension can be brought to a halt. Manufacturers to date cannot provide assurances. Several key issues, insights, approaches and solutions could change the status quo and conceivably end long‐standing conditions of war. This paper sets them forth.
Practical implications
An entire industry could change the way it does business if the problems that are the subject of this paper are dealt with effectively, whether by the means suggested here or additional measures. Millions of people bearing the brunt of a deadly trade could find relief, ending large‐scale human suffering in a forsaken region. A substantial reduction in crimes against humanity and war crimes can be realized. Working conditions, substandard in the extreme, can improve for miners. A precedent can be set without imposing undue hardships on the industry – a benefit to the industry and consumers.
Originality/value
The paper relies foremost on direct experience in the relevant regions covering a period of 17 years. It presents several novel approaches to solving the core problem. It suggests solutions for governing bodies and industry and actions an individual may personally adopt to effectively address a problem of global dimension.
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Jamal El Baz, Fedwa Jebli, Akenroye Temidayo and Anass Cherrafi
Literature on conflict minerals supply chain management issues has witnessed a significant surge during the last decade. The authors review how CM research addressed supply chain…
Abstract
Purpose
Literature on conflict minerals supply chain management issues has witnessed a significant surge during the last decade. The authors review how CM research addressed supply chain issues over the last decades and present a critical assessment of such literature based on supply chain governance theory.
Design/methodology/approach
A systematic literature review approach was adopted, and a sample of 122 papers were identified in relevant journals. A descriptive, thematic and content analysis of the papers is presented to delineate the structure and the main research clusters of the literature.
Findings
The authors provide a comprehensive assessment of CMSC literature and identify four main research clusters. Most research has focussed on operational practices and adopted a fragmented approach to CMSC issues. Accordingly, the authors provide research propositions related to under-explored aspects in extant literature.
Research limitations/implications
This study has a number of implications. Practitioners and researchers will gain a greater understanding of specific CMSC issues which have been addressed in current literature and of how responsible CMSC actions can be implemented.
Originality/value
This study is one of the first literature reviews of publications on CMSC from a supply chain governance perspective. This review presents an overarching map of CMSC literature and a series of propositions to inform future research.
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Paul A. Griffin, David H. Lont and Yuan Sun
This study aims to examine the economic cost imposed by capital markets of section 1502 of the Dodd-Frank Act of 2010 on conflict minerals (CM). The authors analyse a sample of…
Abstract
Purpose
This study aims to examine the economic cost imposed by capital markets of section 1502 of the Dodd-Frank Act of 2010 on conflict minerals (CM). The authors analyse a sample of first-time CM disclosures made by US companies in 2010-2012.
Design/methodology/approach
The authors measure the market response to these disclosures and compare it to the response of a matched control sample of non-disclosers. An overall negative response could arise from regulatory costs, changes in management decision making, or customers' social concerns about CM. An overall positive response could reflect the benefits of disclosure transparency.
Findings
The authors find that the negative effects of the disclosures outweigh any positive effects. The authors also find more limited negative effects for the control sample, since they are likely to be future CM disclosers.
Research limitations/implications
Because companies' balance sheets do not report these negative effects, the results imply that investors price supply chain activities related to CM as an off-balance sheet liability.
Practical implications
The results agree with companies' assertions of a substantial cost to implement the CM provision. The authors estimate an aggregate loss of shareholder value for the sample of $6.5 to $13.1 billion.
Social implications
These results show that regulators' and stakeholders' demands for increased transparency can be costly to shareholders when the disclosures induce changes in management decision making and raise customers' social concerns about supply chain sustainability.
Originality/value
The study is the first to examine the economic effects of companies' initial disclosures about CM under the Dodd-Frank Act of 2010.
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Stephane Timmer and Lutz Kaufmann
The purpose of this paper is to investigate legal effects on social sustainability practices at buying firms. The US Dodd-Frank Act has forced listed companies to determine the…
Abstract
Purpose
The purpose of this paper is to investigate legal effects on social sustainability practices at buying firms. The US Dodd-Frank Act has forced listed companies to determine the degree to which their products contain conflict minerals (CM). The research question this study seeks to answer is the following: which factors influence a company’s ability to determine the provenance of its inputs?
Design/methodology/approach
The study examines secondary data in the form of CM reports of 50 US listed firms for two consecutive years using a fuzzy set qualitative comparative analysis (fsQCA) approach.
Findings
This study identifies different configurations of stakeholder salience and firm resources that lead individual companies to achieve high levels of traceability. Findings show that firms’ CM governance mechanisms are a key determinant in the firms’ capacity to meet regulatory traceability requirements. Further, the authors find that both the presence and absence of specific stakeholder pressures and firm resources can lead to traceability. Findings also suggest that firms can achieve traceability without any pressure from stakeholders.
Research limitations/implications
The study investigates the practices of individual firms that are subject to the Dodd-Frank Act, rather than adopting a supply chain-wide perspective. Further, proxies had to be used to measure several constructs because of reliance on firms’ reporting, which implies that the study did not account for certain behavioral factors that influence traceability.
Practical implications
This study provides managers of both resource-rich and less resource-rich firms with possible pathways for achieving CM traceability.
Originality/value
The study contributes to the field of sustainability by providing exploratory insights into the antecedents of traceability and deriving theoretical propositions to guide further research. The authors apply fsQCA to investigate secondary data over multiple years, thus using a novel configurational methodology.
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Jennifer Oetzel and Jason Miklian
The purpose of this paper is to reconceptualize how managers of multinational enterprises (MNEs) manage risk, particularly in fragile and/or conflict-affected areas of operation…
Abstract
Purpose
The purpose of this paper is to reconceptualize how managers of multinational enterprises (MNEs) manage risk, particularly in fragile and/or conflict-affected areas of operation. The authors suggest that MNEs consider reducing risk at its source rather than trying to avoid or react to risks as they occur. By incorporating peacebuilding strategies, managers may not only reduce investment risk but also contribute to stability and prosperity in the communities where they operate, and gain a competitive advantage in doing so.
Design/methodology/approach
The authors show how firms can take a more holistic approach to working in conflict-affected areas. They do so by overlaying conceptualizations of risk with those of peacebuilding and then use case examples to illustrate how such actions work in practice.
Findings
Using a series of examples, the authors find that MNEs that incorporate peacebuilding frameworks in their risk calculations in complex settings tend to have a better understanding of local environments and how they affect firm operations and profitability. These same MNEs may hold a long-term advantage over international competitors that do not share the same understanding.
Originality/value
The authors argue that the study of relationships between international businesses and society in conflict-affected or fragile areas of operation is under-developed and tends to focus on negative (risk-aversion) aspects as opposed to positive (value-added) opportunities. This paper offers new ways in which these relationships can be reconceptualized. The authors’ main takeaway is that a peacebuilding approach does not require corporations to be arbitrators of peace at the expense of profit. Rather, it is instead a broader way to conceptualize and weigh risk when working in the world’s most challenging regions. This approach is more likely to be in the long-term interest of both the firm and the local society where the firm operates.
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Claire Methven O'Brien and Sumithra Dhanarajan
The purpose of this paper is to discuss a wide range of significant developments that have emerged in the wake of the UNs endorsement of the Guiding Principles on Business and…
Abstract
Purpose
The purpose of this paper is to discuss a wide range of significant developments that have emerged in the wake of the UNs endorsement of the Guiding Principles on Business and Human Rights (GPs) in June 2011. In particular, the paper offers a preliminary assessment of how the GPs’ corporate responsibility to respect human rights has been interpreted and to what extent it has been operationalised through government action, business behaviour and the praxis of other social actors.
Design/methodology/approach
The paper provides a comprehensive assessment of a number of key developments related to Pillar 2 of the GPs – concerned with the corporate responsibility to respect human rights. More specifically, the paper considers a range of elements relating to corporate human rights due diligence, including: establishing a corporate human rights policy; the undertaking of human rights impact assessment; integrating findings of impact assessment, and; corporate human rights reporting.
Findings
Based on the assessment of recent developments and initiatives, the paper suggests that the corporate responsibility to respect human rights, as expressed in Pillar 2 of the GPs, embodies the culmination of significant progress in the sphere of corporate accountability. In doing so, the paper documents a plethora of innovations in regulation and praxis, led by actors in government and the corporate sector, civil society organisations, labour unions and others, in the areas of human rights due diligence, impact assessment and reporting. Yet overall, change is slow and partial and the results achieved are still unsatisfactory. Severe business-related human rights abuses remain endemic in many industry sectors and in many countries.
Research limitations/implications
The implementation of the GPs is at a key stage of development, with a multitude of initiatives and actors attempting to develop and influence new forms of corporate governance. This paper provides an overview and assessment of these key developments.
Originality/value
This paper provides an important assessment and synthesis of key developments related to corporate responsibility for human rights.
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