Resources

Research by Luis Dau and his colleagues at Northeastern University and Villanova University shows how international trade and sustainability agreements facilitate the adoption of corporate social responsibility (CSR) standards by state-owned enterprises (SOEs) in emerging market countries. By exploring how SOEs respond to increasing pressure from global institutions, the authors reveal the social and political factors affecting national-level decision-making and subsequent company behavior. Overall, the findings provide valuable insights for both academics and practitioners regarding the intricate relationships between trade policies, business practices, and ownership structures.

Read the fourth issue of Insights @ Center for Emerging Markets, bringing together researchers from Northeastern University and the broader global academic community to explore the topic of sustainability and Corporate Social Responsibility in emerging markets. Understanding these concepts enables managers and policymakers to make ethical decisions, safeguard long-term business success, and effectively handle the unique socio-environmental contexts of these key growth areas.

Global brands increasingly set sustainability standards for their first-tier suppliers in emerging market countries and expect them to ensure that similar standards are met by their lower-tier suppliers. This cascading approach encourages sustainability practices to be adopted throughout the supply chain.

In China, NGOs often collaborate with multinational companies to promote sustainability among their suppliers. This “two-step influence model” allows NGOs to indirectly influence local firms. The success of these collaborations depends on alignment with government priorities, with stronger impacts where the environment is a lower priority. Multinationals benefit from local knowledge and networks through these partnerships but must carefully manage trust and expectations. Moreover, collaboration with NGOs can help achieve sustainability goals but also invites scrutiny.

Multinational corporations (MNCs) often have less power over their emerging market suppliers than is commonly believed. New research suggests that MNCs can use various strategies to influence their suppliers' behavior, but these strategies have complex and paradoxical effects on their performance and reputation. MNCs should consider the goals and interests of their suppliers when creating sustainability strategies for their global value chains.

Sand is a vital material for construction, but it is being depleted faster than nature can replenish it. This poses serious environmental and social problems, such as habitat loss, water pollution, and conflicts over resources. To address this issue, researchers have explored sustainable alternatives to sand, but there are no easy solutions because of availability, performance, price, and demand-related considerations, particularly in emerging markets where population growth and economic priorities will place increasing pressure on this limited resource.

How do leaders of global companies face Corporate Social Responsibility (CSR) challenges in their supply chains? Recent research by Sheila Puffer and colleagues at Northeastern University presents a typology of four archetypes of CSR responses and analyzes the benefits and drawbacks of each archetype using real-world examples.

Managers operating in emerging markets face a delicate balance between risks and opportunities. Corporate Social Responsibility (CSR) holds the key to navigating these complexities, and recent research shows its significance in securing competitiveness and credibility. Managers are advised to embrace global CSR standards, engage with local stakeholders, adapt flexible strategies, monitor suppliers, and seek collective action to leverage the opportunities of these fast-growing markets.

Multinational companies often misbehave, deviating from the expected rules of conduct in different countries. Some exploit the gaps and inconsistencies in regulations, laws, and customs, causing harm to various parties. This misbehavior requires more attention and responsibility from multinational companies to reduce the negative consequences of their actions, especially in emerging markets.

Read the third issue of Insights @ Center for Emerging Markets, bringing together researchers from across Northeastern University to examine topics such as innovation in Chinese management, cultural agility, the challenges of informal entrepreneurship, shifts in global supply chain management, the future of healthcare in Sub-Saharan Africa, reverse innovation, and the locational effects of the United Nations Environment Programme in Kenya.