Responsibility for Poverty: Sustainable Management by Mining Multinational Corporations in the Mekong Countries

Abstract

To what extent can multinational corporations (MNCs) alleviate poverty in host countries? This paper explores this important question by examining managerial perspectives from MNCs and stakeholders in international business in Lao PDR and Thailand. In developing countries in Mekong region, such as Lao PDR and Thailand, the legitimacy of MNCs has been increasingly questioned in recent years. The rise of MNCs in the region has been evident since the end of the cold war. This has persisted during the era of trade liberalisation in Mekong area. When it comes to strategy for MNCs to promote sustainable management that promote long-term benefits to the citizens of the host countries, there has been little attention to understand how MNCs engage with other stakeholders to achieve their sustainable management strategies. In order to comprehend this complex issue, the researcher interviewed 18 professional personnel; 12 of them were managers and team members responsible for the development and implementation of sustainable management and strategies within their organizations (six participants from each country). The remainder were four participants from IGOs in Laos and two participants from a local labour association in Thailand. Participants were asked to discuss four broad topics: motivation for engaging CSR, major CSR activities in the local area, poverty alleviation and CSR activities, and relationships with all stakeholders in their projects. These broad topics were used to direct the conversation on critical aspects of internal and external influences, tools involved in developing CSR within their organizations, conflicts and opportunities around CSR and how they were addressed, and how this informed their understanding of CSR as organizations. The results confirm that contributions by MNCs in the form of economic and social development (public health promotion and educational development) require support from regulatory and community stakeholders in the host countries. Mining MNCs will need to work closely with formal and informal institutions in the community in order to practice and achieve their developmental objectives. Several other factors, such as cultural insensitivity and lack of social initiatives can promote unsustainable and disengagement practices among stakeholders. This study suggests that MNCs and stakeholders in international business should focus on preventive strategies to mitigate chronic poverty in the host countries. The critical perspectives of MNCs and poverty alleviation in developing nations require further discussions. This study has confirmed that MNCs can improve the condition of poverty in the host countries, if they fully understand the condition of the host countries, be flexible and can engage with local stakeholders in various circumstances.