Social Performance Standards Research Articles

Integrating CSR and Business Strategy into Social Innovation: Insights from Taiwan’s Cultural and Creative Industries

ABSTRACT Design/methodology/approach This study’s contributions lie in the use of multiple methods and data collected from developing industries from cultural and creative industries in Taiwan. Purpose This study aims not only to emphasize the importance of corporate social responsibility (CSR) for businesses but also to examine how CSR activities affect communities while ensuring that the firm meets its necessary social performance standards. Findings The results show the multiple mediation mechanism of business strategy, multiple moderation effects of marketing orientation in the initial stage, and the role of social entrepreneurial self-efficacy in the final stage of improving the social innovation. Practical implications This study considers how CSR could affect the results of business strategy, whereby cultural and creative firms should embrace social responsibility behavior altruistically rather than merely seeking economic benefits but focus on social innovation to improve their own competitive advantage. Originality/value This study argues that the relationship among CSR, business competitive strategy and firm innovation performance is more complex than previous business management studies have revealed.

Rethinking Cultural Heritage in the International Finance Corporation Performance Standards

AbstractIn 2006, the World Bank's private sector lending arm, the International Finance Corporation (IFC), introduced eight Environmental and Social Performance Standards (PSs) to define IFC clients’ responsibilities for managing their environmental and social risks, including those related to cultural heritage. Since their introduction, the PSs have evolved into a de facto global standard that other development banks and many private sector banks, insurers, and development proponents have voluntarily adopted to help manage their own risk exposure. Although the widespread adoption of such policies can be viewed positively as a reflection of good governance, the PSs were never designed with this purpose in mind. This article traces the development of cultural heritage policy within the World Bank Group, then critically examines the IFC PSs as they relate to cultural heritage, drawing attention to the elements in need of revision to better reflect internationally recognized good practice for the management of cultural heritage. Equally important, we recommend the development and implementation of a bespoke cultural heritage framework for the private sector.

IFC Environmental & Social Performance Standards: Soft Law Project & Company Financing Partnerships towards Good Environmental Governance, Business Sustainability and Sustainable Development in Developing Countries

This study is an outcome of a previous work by the author captioned ‘Sustainable Development: A Soft Law Concept Transforming SD-Oriented Initiatives of the UN System into Hard Law Instruments in UN Member-states and Promoting Partnerships around the Globe’. The previous work establishes that there are numerous examples of SD-oriented partnership mechanisms associated with business sustainability, environmental protection, good public sector governance (good governance: GG) and sustainable development (SD), of which the Sustainability Framework of the International Finance Corporation (IFC) is one. The aim of this study is to examine how the IFC’s environmental and social (E&S) performance standards, as key aspects of the corporation’s sustainability framework, are being implemented as soft law mechanisms in developing countries (also called developing markets) and emerging economies (also known as emerging markets), where the IFC is engaged in financing, managing developmental projects and corporate financing in various ways. The sustainability framework and its component E&S standards are international benchmarked standards that have the potential to boost business sustainability and overall SD in developing markets and economies in transition. The study arrives at the finding that the IFC’s sustainability framework and the E&S standards ingrained in it are engineering the E&S performances of IFC clients engaged in IFC project and corporate financing schemes in developing countries and emerging economies, as well as contributing to business sustainability. These standards are also boosting environmental protection, good environmental governance, corporate social responsibility, social responsibility of host governments and generating SD-oriented partnerships, such as Private Sector Partnerships and Public-Private Sector Partnerships, which contribute to betterment of the welfare of citizens, generic human wellbeing and environmentally-sound and socio-economically equitable growth, prosperity and SD in developing countries. This is particularly so in developing countries where domestic environmental laws, corporate responsibility systems and government social responsibility fall short of the stipulations of the IFC’s sustainability framework and its component E&S performance standards. Keywords: International Finance Corporation (IFC); Sustainability Framework; Project Financing; Corporate Financing; Developing Countries; Emerging Markets; Environmental and Social Performance (E&S) Standards; Sustainability Framework; Soft Law; Business Sustainability; Sustainable Development; Good Environmental Governance (GEG); Government Social Responsibility (GSR); Corporate Social Responsibility (CSR); SD-oriented Partnerships; Private Sector Partnerships; Public-Private Sector Partnerships (PPSPs); Impact-benefits; Human Wellbeing. DOI: 10.7176/IAGS/81-07 Publication date: April 30 th 2020

KINERJA SOSIAL LEMBAGA KEUANGAN MIKRO AGRIBISNIS (LKM-A) DI KECAMATAN DAWE, KABUPATEN KUDUS

Agriculture Ministry through the Rural Agribusiness Development (PUAP) program was expected to reduce poverty and unemployment in rural areas by developing Microfinances Agribusiness Institution (LKM-A). LKM-A has a purpose to help farmers in rural areas to obtain capital resource for their agribusiness. However, the implementasion of LKM-A still not developed optimally. The research on the social performance of LKM-A were aims to analyze social performance, to analyze revenue generating of LKM-A and to analyze the relationship between social performance and revenue generating of LKM-A in Dawe District, Kudus Regency. This research was conducted in February 12th – April 5th, 2018 in Dawe District, Kudus Regency. Survey method was used in this research. 18 LKM-A was choosen as population in this research. The data was analyzed by Spearman correlation. Social performance was analyzed using MIX Market Social Performance Standards with 16 indicators. The result shows that only 3 indicators were in medium category (0 – 50%), namely capital resources, the ratio of female debtors and the ratio low income debtors. The revenue generating was not in developed category. Based on statistical analysis, there was not significant influence between social performance and revenue generating

DISCLOSURE OF ISLAMIC SOCIAL REPORTING A COMPARATIVE STUDY OF INDONESIA AND MALAYSIA

This study aims to describe and determine the differences in the disclosure of Islamic Social Reporting (ISR) in Islamic Banks in Indonesia and Malaysia. Islamic Social Reporting (ISR) is an extension of the reporting standards of social performance as a reflection of the company's role in a spiritual perspective. The method used in the research is descriptive comparative method using cross-sectional data types. The population in this study is Islamic Banks in Indonesia, which are as many as 13 banks and in Malaysia which are as many as 15 banks, the sampling technique used in this study uses census sampling techniques. The data analysis technique used is the Independent t-test. Based on the results of the study there are not differences in the disclosure of Islamic Social Reporting (ISR) in Islamic Banks in Indonesia and Malaysia, but the level of disclosure of Islamic Social Reporting (ISR) in Islamic Banks in Malaysia is better than Islamic Banks in Indonesia.

Social performance rating in Co-operatives

Social performance is a management process capable of making corporate performance more inclusive, effective and fair. For almost two centuries, co-operatives are perceived as instruments of social change that are well positioned to lead in social performance through their internationally accepted values and principles. However, due to the potential importance of economic objectives to stakeholders’ welfare, like in most firms, financial parameters often overshadow social performance standards in co-operatives. Social performance research in co-operatives is also scanty since most studies relate to financial performance. This study surveyed managers from 100 Savings and credit co-operatives societies in Kenya on the extent operations in co-operatives reflect social performance dimensions. Extant literature revealed social performance management as a catalyst for economic performance of a firm. In particular, the study identified social performance as a key value driver to superior performance and social performance management an essential key performance indicator to any enterprise desiring to “doing good” to the community. Data analysis found co-operatives low in social performance as they do not meet the indicators by 45%, partially meets the indicators by 22% and only meets the indicators by 33%. The finding reveals that co-operatives should not claim as exemplary in social performance based merely on social and community orientation. Thus, the expose is an exhibit that many organizations may not be practicing the social ideals they claim to uphold or represent. The study is expected to help co-operatives to improve on ‘what good the organizations are doing with their profit to people and the planet’ which consequently would improve sustainable performance and competitiveness.

Financing a mega LNG project and ‘raising the bar' in securing a social licence to operate

A significant part of the development funds for the INPEX-operated Ichthys liquefied natural gas (LNG) Project comes from a record-breaking US$20 billion project financing package, which involves commitments from eight export credit agencies and over 24 global banks. Due to the scale and complexity of the project and the size of the investment, there is a high level of ongoing scrutiny by the project’s lenders with a particular focus on social and environmental performance. Financing from lenders demanded extra requirements to obtain and maintain the project’s social licence. This included a commitment to ensure the project’s plans for managing environmental and social issues met additional obligations, including International Finance Corporation’s Environmental and Social Performance Standards. While these extra commitments posed some challenges, they have also supported INPEX and the project to improve its approach in engaging and working with local communities, including Aboriginal and Torres Strait Islander peoples, in the areas in which the project operates. The auditing of these requirements also provided independent and objective performance reviews that have supported INPEX and the project to continuously improve performance. The requirements have also encouraged INPEX to engage effectively and more openly with stakeholders to further develop and deepen positive and trusted relationships with key stakeholders. Through delivering on commitments to lenders, INPEX has raised the bar, to deliver higher standards of social performance. This has reaffirmed the Company’s commitment to community and social engagement and strengthened our performance within Australia, by adopting best practice approaches.

The Social Framework for Projects: a conceptual but practical model to assist in assessing, planning and managing the social impacts of projects

The Social Framework for Projects assists in understanding, assessing, planning and managing the social issues associated with big projects, such as those leading to the resettlement or displacement of people. The Framework was iteratively developed by assessing existing models (e.g. Sustainable Livelihoods Approach of the UK Department for International Development; the Impoverishment Risks and Reconstruction model of Michael Cernea; the Capability Approach of Amartya Sen; Asset Based Community Development and other capitals-based approaches), reflecting on our practical experience in large projects, and on the basis of input and feedback from a wide range of stakeholders. It was designed to be compatible with the International Finance Corporation’s environmental and social performance standards and international best practice. It consists of 8 key social and environmental categories which address all the issues that contribute to people’s well-being and the social sustainability of projects, namely: people’s capacities, abilities and freedoms to achieve their goals; community/social supports and political context; livelihood assets and activities; culture and religion; infrastructure and services; housing and business structures; land and natural resources; and the living environment. The Framework is a conceptual model, a practical methodology and a communications tool to ensure that the process of mitigating negative social impacts and enhancing the benefits of large projects is effective and accessible to all stakeholders.

From neighbors to future generations: we are all together! On integration in impact assessment practice

Impact assessment (IA) practice unfolded into several branches. Concerns that the proliferation of assessment types may impair effectiveness and nurture arguments detracting its qualities are voiced and result in calls for integration. This paper responds to the argument that integration could be achieved through better scoping. Additional evidence of specialization is provided while the Environmental and Social Performance Standards adopted by the International Finance Corporation are commented as an integrative approach to IA. Obstacles to better scoping are discussed.

Social impact assessment: the state of the art

Social impact assessment (SIA) is now conceived as being the process of managing the social issues of development. There is consensus on what ‘good’ SIA practice is – it is participatory; it supports affected peoples, proponents and regulatory agencies; it increases understanding of change and capacities to respond to change; it seeks to avoid and mitigate negative impacts and to enhance positive benefits across the life cycle of developments; and it emphasizes enhancing the lives of vulnerable and disadvantaged people. We analyse the strengths, weaknesses, opportunities and threats facing SIA. We assert that the SIA community needs to revisit core concepts, such as culture, community, power, human rights, gender, justice, place, resilience and sustainable livelihoods. It is incumbent on SIA practitioners to educate proponents, regulators and colleagues about these concepts, and to embed them into practice norms. Stronger engagement with the emerging trends of free, prior and informed consent (FPIC); human rights impact assessment; social performance standards; supply chain management; governance; local content and economic development will improve the relevance and demonstrable value of SIA to all stakeholders.

Overlapping Public and Private Governance: Can Forest Certification Fill the Gaps in the Global Forest Regime?

This article investigates whether forest certification (eco-labeling) is likely to rectify certain omissions in the current global forest regime. Following an examination of the achievements and shortcomings of the forest regime to date, I argue that gaps could be filled by including a broad range of stakeholders in certification standards development; promoting strong environmental and social performance standards in forestry; providing effective control mechanisms; securing producer participation; and penetrating markets. Although the Forest Stewardship Council (FSC) was considered initially to have the greatest potential to fill these gaps, the emergence and widespread proliferation of industry-dominated schemes have marginalized the FSC in many countries. The study shows that while forest certification would probably promote more sustainable forestry in the temperate and boreal zones than it would in the tropical zone, the ability of this tool to actually do so remains to be seen.

Sequential rationality, implementation and pre-play communication

The following questions are addressed: what are the bounds on a mechanism designer's ability to implement social objectives when the agents indulge in (possibly mediated) communication prior to participation in the mechanism? Moreover, how do these bounds compare with those obtained in the absence of communication opportunities? The paper (i) shows that a sequential structure is essential to the study of communication and identifies an appropriate equilibrium concept – sequential mediated equilibrium; (ii) defines the problem of implementation of social performance standards in environments with communication and provides necessary and sufficient conditions for implementability; and (iii) examines the normative implications of these conditions. It is shown that, in general, no interim individually rational and Pareto-efficient performance standard is implementable. However, when there is complete information among economic agents, pre-play communication does not pose any additional constraints on the designer; any standard that is implementable in the absence of communication remains implementable even in the presence of communication opportunities.

Point of View: Corporate Social Responsibility in the Reagan Era and beyond

No significant gains in corporate social performance are to be expected during the Reagan era. Mandated social performance standards have been relaxed, and voluntary private initiatives cannot match social needs. One way to move beyond present levels of corporate social responsiveness is to form social partnerships or coalitions of business, government, labor unions, universities, and various community groups. These coalitions might be able to address social needs that are beyond the economic and technological reach of corporations acting alone.