The primary research question animating this article revolves around understanding how multinational mining corporations (MMCs) are responding to the twin pressures of globalization and localization to develop Corporate Responsibility (CR) approaches that apply at a global level and to their subsidiaries in various different jurisdictions, with particular attention being paid to the role of home, host and international factors in shaping the CR approaches of MMCs. The focus of attention is on the experience of Canadian MMCs in Latin America, using as an illustration the particular CR response of one Canadian MMC at its subsidiary Guatemalan mining operation. Research suggests that home country factors play an important role in shaping corporate CR approaches in a manner which take into account the circumstances extant at subsidiary operations in developing countries, as do transnational advocacy networks and global normative instruments.

This paper explores the role of the state for an effective engagement of multinational corporations (MNCs) in corporate social responsibility (CSR). In the OECD context, the “shadow of hierarchy” cast by the state is considered an important incentive for MNCs to engage in CSR activities that contribute to governance. However, in areas of limited statehood, where state actors are too weak to effectively set and enforce collectively binding rules, profit-driven MNCs confront various dilemmas with respect to costly CSR standards. The lack of a credible regulatory threat by state agencies is therefore often associated with the exploitation of resources and people by MNCs, rather than with business’ social conduct. However, in this paper we argue that there are alternatives to the “shadow of hierarchy” that induce MNCs to adopt and implement CSR policies that contribute to governance in areas of limited statehood. We then discuss that in certain areas such functional equivalents still depend on some state intervention to be effective, in particular when firms are immune to reputational concerns and in complex-task areas that require the involvement of several actors in the provision of collective goods. Finally, we discuss the “dark side” of the state and show that the state can also have negative effects on the CSR engagement of MNCs. We illustrate the different ways in which statehood and the absence thereof affect CSR activities of MNCs in South Africa and conclude with some considerations on the conditions under which statehood exerts these effects.

This study uses club theory to describe the incentives of extractive industry MNCs to support the Extractive Industries Transparency Initiative (EITI), a multi-stakeholder promoted voluntary social program (VSP) aimed at creating national legislation to make the royalty payments received by governments from mining and oil and gas companies more transparent to the public. We characterize the EITI as a VSP that lacks stringent standards and that has a moderate to high level of enforcement through the national governments that have adopted its principles. According to club theory, VSPs with these characteristics produce only a low to medium level of club benefits, in this case “social branding,” for member firms. Noting that over 60 MNCs have signed on to the EITI as of April 2012, we argue that VSPs offering low to medium club benefits should be most attractive to MNCs from countries with long arm disclosure laws, to MNCs lacking relationships with NGOs seeking inexpensive CSR, to MNCs relying upon financing from institutional and social investors, to MNCs attempting to differentiate themselves from competitors on social criteria, and to MNCs with broad stakeholder-focused top managers. We also describe the implications for MNCs if the EITI were to include a more stringent set of social requirements.