Customary Law as a Pathway to Social Justice: A Comparative Analysis of Corporate Social Responsibility and Performance Requirements in Indonesian and Vietnamese Foreign Investment Frameworks

Three Models of Corporate Social Responsibility: Interrelationships between Theory, Research, and Practice

Nearly all developing countries actively seek capital and technology from the advanced countries. Although private direct foreign investment (mainly in the form of multinational enterprise) is viewed with ambivalence by many developing countries, it is nonetheless true that direct investment remains a substantial source of capital and is sometimes the only source of specific technologies. Indeed, given the slow growth in official external assistance, developing countries are becoming more, not less, dependent on direct foreign investment. While disbursements of official development assistance by the OECD countries rose 43% from 1961 through 1970, direct investment flows rose almost 90% over the same period. In the later year, the flow of direct investment was more than two-fifths of all official assistance, $3.2 billion compared to $7.8 billion.1 Furthermore, the United States and other major capital exporting countries would prefer, for economic as well as ideological reasons, to channel more of their capital outflows to developing countries through private investment. It is highly probable, therefore, that developing countries will continue to rely on direct foreign investment in the foreseeable future to carry out their development programs. It is against this background that the present study seeks to identify the empirical determinants of direct foreign-investment flows in the manufacturing sectors of developing countries. Our purpose is to select from the many economic, social, and political features of a developing country those features that are critical to making that country attractive or unattractive to private foreign investors. Available empirical studies are limited

L'A. s'efforce de mesurer l'impact economique de la penetration du capital et de l'investissement etranger sur l'economie des pays en voie de developpement. Il examine et critique le mode d'evaluation de la production propose par W. J. Dixon et T. Boswell. Il estime qu'il convient de distinguer investissement local et investissement etranger. Il presente les differents types d'interpretation et etudie un certain nombre de donnees collectees concernant le Panama, la Jamaique, le Liberia, la Guinee et enfin Trinidad et Tobago. Il se demande, d'une part, si l'investissement local et preferable a l'investissement etranger et, d'autre part, si ce dernier appauvrit les pays en voie de developpement. Il s'interroge sur le bien-fonde de la theorie de la dependance

Based on the fact that most of factories/manufacturers failed to comply with foreign customers’ requirements for Corporate Social Responsibility (CSR) practices from the first audits, the present study aims to explore SME exporters’ understanding of CSR requirements from foreign clients, motivations and obstacles for them to practice and implement CSR. In order to tackle the research objectives, qualitative approach is chosen and in-depth interview with owners, HR/CSR managers and production managers is employed to collect data. The research scope is firms/suppliers in hardlines (non-furniture and non-apparel) section. Thematic analysis is used to analyse and categorise data from interviews. The research findings show some crucial points. Firstly, CSR requirements from clients are not correctly understood. Secondly, there are seven drivers for CSR practices which match with previous studies. Lastly, six per ten obstacles to implement CSR are new findings in the present research context. From these findings, some recommendations are proposed to improve CSR practices in SMEs.
 Keywords
 Corporate social responsibility (CSR), motivations (motives), obstacles, SMEs
 References
 
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Purpose: This paper presents aspects of a Corporate Social Responsibility (CSR) Implementation Success Model to guide CSR engagements. Design/methodology/approach: A qualitative case methodology is used to investigate two CSR companies in Uganda. Semi-structured interviews with managers and stakeholders are conducted. Data triangulation includes reviewing CSR reports and documents, and visiting communities and CSR activities/projects mentioned in the case companies’ reports. Grounded theory guides the data analysis and aggregation. Findings: The findings culminate into a “CSR Implementation Success Model. ” Key aspects of CSR implementation success are identified as: (i) involvement of stakeholders and management (i.e., co-production) at the start and during every stage of CSR implementation; (ii) management of challenges and conflicts arising within/outside of the company itself; and (iii) feedback management or performance assessment—i.e., accountability via CSR communications and reporting. Stakeholder involvement and feedback management (accountability) are pivotal, though all three must be considered equally. Research limitations: The studied companies were large and well-established mature companies, so it is unclear whether newer companies and small and medium-sized enterprises would produce similar findings. Practical implications: Successful CSR implementation starts with a common but strategic understanding of what CSR means to the company. However, CSR implementation should (i) yield benefits that are tangible, and (ii) have a sustainable development impact because these two aspects form implementation benchmarks. Additionally, top management should be involved in CSR implementation, but with clear reasons and means. Originality/value: This paper unearths a CSR Implementation Success Model that amplifies views of “creating shared value” for sustainable development. It guides organizations towards strategic CSR, as opposed to the responsive CSR (returning profits to society) that largely dominates in developing countries. Additionally, it explains how to add value to the resource envelope lubricating the entire CSR implementation process

Objective - A Corporate Social Responsibility (CSR) implementation has been implemented since over 50 years ago. All of the CSR implementation divided into two categories, namely Strategic CSR and Non-Strategic CSR. A Strategic CSR implementation should consider the firm strategy based on the CSR concept and firm strategy. Some empirical studies have tested the influence of CSR on Corporate Financial Performance. The results of those studies are still inconclusive. Methodology/Technique - The purpose of this study is to analyze firm strategy as intervening variable between Corporate Social Performance and Corporate Financial Performance. This study used capital intensity and product differentiation to measure the firm strategy. The samples were 33 companies of LQ-45, listed in Indonesian Stock Exchange. Findings - The results did not indicate that firm strategy intervenes the influence of Corporate Social Performance on Corporate Financial Performance, both directly and indirectly. Novelty - The research suggests future studies to employ the other ratios representing Firm Strategy that will strengthen the literature. Type of Paper - Empirical Keywords: Corporate Financial Performance; Corporate Social Performance; Firm Strategy; Non-Strategic CSR; Strategic CSR. JEL Classification: L25, M14, M41

The paper aims to determine the Corporate Social Responsibility (CSR) effect on company performance. Condition of companies in Indonesia nowadays that implementing CSR, contributes business to sustainable development, and corporate behaviour must not only ensure returns to shareholders, wages to employees, and products and services to consumers but also respond to social and environmental concerns and values. CSR based on the life philosophy of Indonesian people, namely mutual cooperation. With this system, the company does not implement it by itself, but with the support of all parties. Given the philosophy of life in Indonesia, the implementation of CSR is an excellent program and helps the company, especially its relationship with the communities around the company. The data was collected using a questionnaire and analysed using simple linear regression. The results of this study indicate that the value of Y = 5.833 + 0.686 x shows that if there is a change in the dimensions of social responsibility of 0.05, it will cause a difference in corporate performance of 68.6%. The significant t point (sig = 0.00 <a = 0.05) indicates influences of CSR for the company performance on simple regression analysis. The R-value of the correlation coefficient of 0.809 means that the correlation between the independent variables of Corporate Social Accountability (X) and Performance (Y) is positive. It shows that the better the implementation of CSR by the company, the better the performance of the company.

Unraveling an Intricate Legal System: A Strategic Review of the Duality of Customary and Statutory Laws in South Sudan

Previous studies on corporate social responsibility (CSR) in the construction and property-development domain have mainly focused on countries in the Global North with very few studies in the Global South. These prior studies have defined the pyramid elements (economic, legal, ethical, and philanthropic) that make up overall CSR, but none of them have assessed how well corporations performed in relation to each pyramid element, particularly in the property-development industry. Consequently, reflecting on the limited CSR studies in the Global South, this study examines the performance of property-development companies regarding the CSR pyramid elements. The study also assesses the barriers and strategic drivers of CSR among property-development companies. The study employed a descriptive survey research, and questionnaires were administered to 43 property-development companies. Descriptive data analysis was done to rank the relative importance of items from the questionnaire. Results showed that, although companies performed ‘well’ in their legal CSR, and ‘average’ in their economic and ethical CSR, companies performed ‘poorly’ in the area of philanthropic CSR. Lack of support by top management, corruption/lack of transparency, lack of knowledge and awareness by professionals, and lack of regulatory framework were identified as significant barriers to CSR implementation among property-development companies. Vision of founders/support by top management, regulatory framework, stakeholder activism, and good relationship-building are potential key strategic drivers of CSR implementation programmes among property-development companies. Given the findings, it is recommended that property-development companies should integrate CSR principles into their vision and mission statement and consider it to be a business function. This can be done by mitigating the barriers identified through the adoption of strategic drivers as postulated by this study.

The role of state policy in the industrialization of Third World nations has become the subject of increasing interest in recent years. In the past, the debate over economic development has either focused on the traditional modernization approach' or the dependency theory of underdevelopment.2 Dependency theorists base their model of development on the belief that foreign investment from core countries is harmful to developing nations' long-term economic growth. Economic relationships between the core and the periphery are structurally detrimental for the latter because of the inherent dynamics of international capitalism. Yet, despite the claims of dependency theory, the recent experience of the East Asian newly industrialized countries suggests a wider range of development possibilities which include government policies specifically designed to attract foreign investment. These countries appear to have structured their domestic economies in order to mitigate the pernicious effects of dependent relationships with core countries. This raises new questions about the development process and the role of policy and foreign investment in the economic transactions between core and peripheral countries. Dependency theory, a neo-Marxist predecessor of world-systems research, claims that First World nations become wealthy by extracting surplus labor and resources from the Third World. Capitalism perpetuates a global division of labor which causes the distortion of developing countries' domestic economies, declining growth, and increased income inequality.3 Those countries on the periphery cannot become fully modernized as long as they remain in the capitalist world

South Africa’s legal system is pluralist in nature. It is embedded in two components, namely, customary law and the common law, which converge to form one national legal system through legislation and case law. However, the distinct development of these two components of the legal system has a significant impact on how their respective frameworks are perceived and subsequently applied in given cases. Traditional African family systems were regulated under the “banner” of customary law, but the validity of the system was ultimately decided in terms of the common law, subject to the repugnancy clause. The repugnancy clause was introduced during the colonial era and was used as a measure discarding certain indigenous African values as contrary to public policy and natural justice (see Juma “From ‘Repugnancy to Bill of Rights’: African Customary Law and Human Rights in Lesotho and South Africa” 2007 21 Speculum Juris 88). Hence, the common law was generally preferred to customary law. This state of affairs influenced the manner in which the two components of the legal system developed, entrenched an outlook of a subservient position towards African customary law particularly in relation to parental responsibilities and rights as asserted below. This position, in turn, rattles the traditional family value system of the indigenous African people.This state of affairs persists regardless of the fact that in the new constitutional dispensation, customary law has been afforded legitimate recognition. Section 211 (3) of the Constitution provides that the courts must apply customary law when that law is applicable, subject to the Constitution and any legislation that specifically deals with customary law. Furthermore, section 39(3) recognises the rights and freedoms “that are recognised or conferred by common law, customary law or legislation, to the extent that they are consistent with the Bill of Rights”.The official recognition of customary law necessitated that the application of the customary law and the common law within the same legal system be harmonised. Issues pertinent to the harmonisation of the common law and customary law were discussed in the South African Law Commission Report of 1999 (South African Law Commission Report “Harmonisation of the Common Law and the Indigenous Law: Report on Conflicts of Laws” Project 90 of 1999). One of the issues raised in the report was how to determine when the customary law is applicable (Himonga and Bosch “The Application of African Customary Law under the Constitution of South Africa: Problems Solved or Just Beginning? 2000 117 South African LJ 314). It was found that generally, the judiciary exercises its own discretion to decide when to apply the customary law (South African Law Commission Report of 1999). A constant challenge that the judiciary faces is to ascertain the customary law position in a given case. This exercise generally requires probing of both the “official” and “living” versions of the customary law. Needless to say, an investigation of this nature is complex. Normally the traditional customary law position, that is, the living customary law of the pre-colonial is considered in light of its significance in the contemporary society. The diverse plethora of customs and cultures has further compounded the process of ascertaining a customary law position of the various indigenous African groups. Finally, it is essential that the judiciary consider the manner in which a group interprets and applies a particular custom. Due to the said complexities that prevail when attempting to ascertain the African customary law position, the attitude, then is generally to adopt the apparent African customary law position.In light of the said entrenched tensions between customary law and common law in terms of application, this note seeks to explore the dichotomy of the acquisition of parental responsibilities and rights as portrayed in legislation and in terms of customary law. Specific reference will be made to the legal position of unmarried fathers in this regard. This note investigates how parental responsibilities and rights are acquired as provided for in legislation. It further examines whether, in terms of customary law, unmarried fathers can acquire parental responsibilities and rights as stipulated in the legislation.

Foreign investment refers to investments made by the residents of a country in the financial assets and production processes of another country. The effect of foreign investment, however, varies from country to country. It can affect the factor productivity of the recipient country and can also affect the balance of payments. Foreign investment provides a channel through which countries can gain access to foreign capital. It can come in two forms: foreign direct investment (FDI) and foreign institutional investment (FII). Foreign direct investment involves in direct production activities and is also of a medium- to long-term nature. But foreign institutional investment is a short-term investment, mostly in the financial markets. FII, given its short-term nature, can have bidirectional causation with the returns of other domestic financial markets such as money markets, stock markets, and foreign exchange markets. Hence, understanding the determinants of FII is very important for any emerging economy as FII exerts a larger impact on the domestic financial markets in the short run and a real impact in the long run. India, being a capital scarce country, has taken many measures to attract foreign investment since the beginning of reforms in 1991. India is the second largest country in the world, with a population of over 1 billion people. As a developing country, India's economy is characterized by wage rates that are significantly lower than those in most developed countries. These two traits combine to make India a natural destination for foreign direct investment (FDI) and foreign institutional investment (FII). Until recently, however, India has attracted only a small share of global foreign direct investment (FDI) and foreign institutional investment (FII), primarily due to government restrictions on foreign involvement in the economy. But beginning in 1991 and accelerating rapidly since 2000, India has liberalized its investment regulations and actively encouraged new foreign investment, a sharp reversal from decades of discouraging economic integration with the global economy.

Research question: Understanding corporate social responsibility (CSR) implementation requires identifying factors that contribute to the ability of a sport organisation to develop CSR. This paper examines the complex combination of organisational factors associated with CSR implementation in a sport federation (SF) setting. Thus, this study identifies organisational factors of professionalisation for CSR implementation and different configurations associated with CSR implementation. Research methods: The study adopted a comparative approach combining a survey, interviews, and organisational documents in a sample of 19 Belgian SFs. A crisp-set Qualitative Comparative Analysis (csQCA) was carried out to identify the combination of organisational factors associated with CSR implementation. Results and Findings: This study identifies four configurations associated with high CSR implementation and three configurations with low CSR implementation. Innovation capacity is a necessary organisational factor for CSR implementation that should be combined with financial autonomy, knowledge and human resources. The study reveals that organisational size is not a key condition associated with CSR implementation. The latter does not necessarily require a significant number of professional staff as long as the organisation is innovative and financially autonomous. Implications: This study contributes to the emergent research in the sport management literature and CSR literature on factors shaping CSR implementation by highlighting that it requires a combination of key organisational factors. The multiple configurations that emerged reveal the complex nature of CSR implementation, and reinforce the view that there is no ‘one size fits all’ solution to implement CSR.

This article explores the influence of environmental legislation on corporate social responsibility in Indonesia. It aims to clarify the regulatory framework surrounding corporate social responsibility, assess how failure to adhere to environmental laws affects corporate reputation and performance, and identify the difficulties companies encounter while implementing corporate social responsibility. The research adopts a normative legal perspective, involving a thorough examination of pertinent laws and regulations, including the 1945 Constitution, Law Number 40 of 2007 concerning Limited Liability Companies, and Government Regulation Number 47 of 2012. Data gathered through desk research and descriptive legal analysis provides a detailed understanding of the relationship between legal frameworks and corporate social responsibility practices in Indonesia. The findings indicate that the corporate social responsibility regulatory framework encourages companies to meet environmental legal requirements, positively impacting corporate reputation. Conversely, non-compliance can damage reputation and public perception, consequently affecting financial outcomes. Companies also face various obstacles in implementing corporate social responsibility, such as insufficient regulatory support and limited resources. Recommendations for companies include enhancing education on corporate social responsibility and fostering collaboration with stakeholders to develop sustainable business practices. These insights are valuable not only for Indonesia but also for other nations examining the link between environmental legislation and corporate social responsibility.

International Law and Legal Regimes of Foreign Direct Investment in Selected African Countries