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Building local legitimacy into corporate social responsibility: Gold mining firms in developing nations

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  • Gifford, Blair
  • Kestler, Andrew
  • Anand, Sharmila
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    Abstract

    A transnational model of global strategy suggests that multi-national enterprises generally rely on proven global capabilities to adapt existing business models. Alternatively, this paper argues that the transnational model needs to be amended to allow for a hybrid approach that balances local and global strategies for multi-national gold (MNGs) firms working in developing nations. This is illustrated by Newmont Mining's efforts to develop local legitimacy through contributions to community development around its gold mining operations in Peru. We then compare the Newmont case with corporate social responsibility (CSR) at other MNGs. We have found that there appears to be an industry-wide institutional environment developing which includes local CSR projects in an attempt to balance the effects of capitalism between global markets and developing nations.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 45 (2010)
    Issue (Month): 3 (July)
    Pages: 304-311

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    Handle: RePEc:eee:worbus:v:45:y:2010:i:3:p:304-311

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    Related research

    Keywords: Corporate social responsibility Developing nations Institutional theory Local legitimacy Gold mining corporations;

    References

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    1. Linda Longfellow Blodgett, 1991. "Partner Contributions as Predictors of Equity Share in International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan, vol. 22(1), pages 63-78, March.
    2. Gifford, Blair & Kestler, Andrew, 2008. "Toward a theory of local legitimacy by MNEs in developing nations: Newmont mining and health sustainable development in Peru," Journal of International Management, Elsevier, vol. 14(4), pages 340-352, December.
    3. Caplan, Arthur J. & Silva, Emilson C.D., 2005. "An efficient mechanism to control correlated externalities: redistributive transfers and the coexistence of regional and global pollution permit markets," Journal of Environmental Economics and Management, Elsevier, vol. 49(1), pages 68-82, January.
    4. Hildy Teegen & Jonathan P Doh & Sushil Vachani, 2004. "The importance of nongovernmental organizations (NGOs) in global governance and value creation: an international business research agenda," Journal of International Business Studies, Palgrave Macmillan, vol. 35(6), pages 463-483, November.
    5. Klaus E Meyer, 2004. "Perspectives on multinational enterprises in emerging economies," Journal of International Business Studies, Palgrave Macmillan, vol. 35(4), pages 259-276, July.
    6. World Bank, 2001. "World Development Report 2000/2001 : Attacking Poverty," World Bank Publications, The World Bank, number 11856, October.
    7. Ted London & Stuart L Hart, 2004. "Reinventing strategies for emerging markets: beyond the transnational model," Journal of International Business Studies, Palgrave Macmillan, vol. 35(5), pages 350-370, September.
    8. Rob van Tulder & Ans Kolk, 2001. "Multinationality and Corporate Ethics: Codes of Conduct in the Sporting Goods Industry," Journal of International Business Studies, Palgrave Macmillan, vol. 32(2), pages 267-283, June.
    9. Glen Dowell & Stuart Hart & Bernard Yeung, 2000. "Do Corporate Global Environmental Standards Create or Destroy Market Value?," Management Science, INFORMS, vol. 46(8), pages 1059-1074, August.
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    Citations

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    Cited by:
    1. Michael Dougherty & Tricia Olsen, 2014. "Taking Terrain Literally: Grounding Local Adaptation to Corporate Social Responsibility in the Extractive Industries," Journal of Business Ethics, Springer, vol. 119(3), pages 423-434, February.
    2. Gómez-Márquez, Iván & Alejano, Leandro R. & García Bastante, Fernando, 2011. "Mining compatibility with other projects in Spain: Solutions and benefits," Resources Policy, Elsevier, vol. 36(1), pages 22-29, March.
    3. Gold, Stefan & Hahn, Rüdiger & Seuring, Stefan, 2013. "Sustainable supply chain management in “Base of the Pyramid” food projects—A path to triple bottom line approaches for multinationals?," International Business Review, Elsevier, vol. 22(5), pages 784-799.

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