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Sustainable Human Development: Corporate challenges and potentials. The case of Bayer CropScience's cotton seed production in rural Karnataka (India)

  • Volkert, Jürgen
  • Strotmann, Harald
  • Moczadlo, Regina

This paper aims to explore concepts, methods and empirical results of potential impacts of Transnational Corporations (TNC) on Sustainable Human Development (SHD) in emerging market countries. In doing so, a further major goal is to explain, illustrate and discuss how the theoretical CA framework used in the GeNECA project2 can be applied to corporate SHD impacts. Our findings are based on the case of Bayer CropScience's Model Village Project in rural Karnataka, India. To achieve our goals, we first establish a theoretical framework for assessing corporate impacts on SHD to capture SHD effects. Thereafter, we introduce the case of Bayer CropScience's seed production in rural India, for which a Model Village Project (MVP) has been established to explore ways, potentials and challenges of promoting SHD of the villagers and corporate goals in a win-win-strategy. Afterwards, we explain methodological requirements, our representative database for the quantitative analyses, and the qualitative methods that we use for project evaluation. Based on findings of the authors' external evaluation of the MVP, we discuss the baseline situation in the model villages with respect to corporate potentials, challenges and limitations to foster SHD impacts. Methodologically, we find the combination of quantitative representative methods and qualitative assessments to be most effective to capture corporate potentials and risks. Furthermore it turns out to be promising to extend the analyses beyond standardized benchmarks like the MDGs. We show that major determinants of SHD established in the paper result in a portfolio of corporate opportunities and risks. For instance, the reality of underemployment in the model villages provides specific corporate opportunities like an abundant pool of labor supply. However, it also produces corporate risks, e.g. lack of capital available for necessary investment by suppliers who frequently suffer from poverty, risk of over-indebtedness and a resulting inability to accumulate enough capital and to raise productivity. In the comprehensive opportunity and riskportfolio of this Bayer CropScience case, we find abundant potential business cases which we discuss further in the text. We conclude that corporate potentials as well as risks of corporate neglect and violations of people-centered SHD also depend on how much the villagers are enabled and empowered to make most of their agency as individuals and as groups. Furthermore, it depends on trust building as a prerequisite of awareness raising of the villagers themselves, so that they are willing and able to participate successfully in the undertaken procedures.

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Paper provided by Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS) in its series UFZ Discussion Papers with number 5/2014.

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Date of creation: 2014
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Handle: RePEc:zbw:ufzdps:52014
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  1. Frances Stewart, 2011. "Inequality in Political Power: A Fundamental (and Overlooked) Dimension of Inequality," The European Journal of Development Research, Palgrave Macmillan, vol. 23(4), pages 541-545, September.
  2. Raghav Gaiha & Raghbendra Jha & Vani S. Kulkarni, 2010. "Child Undernutrition in India," ASARC Working Papers 2010-11, The Australian National University, Australia South Asia Research Centre.
  3. Renfu Luo & Yaojiang Shi & Linxiu Zhang & Huiping Zhang & Grant Miller & Alexis Medina & Scott Rozelle, 2012. "The Limits of Health and Nutrition Education: Evidence from Three Randomized-Controlled Trials in Rural China," CESifo Economic Studies, CESifo, vol. 58(2), pages 385-404, June.
  4. Jér�me Pelenc & Minkieba Kevin Lompo & Jér�me Ballet & Jean-Luc Dubois, 2013. "Sustainable Human Development and the Capability Approach: Integrating Environment, Responsibility and Collective Agency," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 14(1), pages 77-94, February.
  5. Christian Arndt & Jurgen Volkert, 2011. "The Capability Approach: A Framework for Official German Poverty and Wealth Reports," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 12(3), pages 311-337.
  6. Polishchuk, Yuliana & Rauschmayer, Felix, 2012. "Beyond “benefits”? Looking at ecosystem services through the capability approach," Ecological Economics, Elsevier, vol. 81(C), pages 103-111.
  7. Ortrud Lessmann & Felix Rauschmayer, 2013. "Re-conceptualizing Sustainable Development on the Basis of the Capability Approach: A Model and Its Difficulties," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 14(1), pages 95-114, February.
  8. Esther Duflo & Rema Hanna & Stephen P. Ryan, 2012. "Incentives Work: Getting Teachers to Come to School," American Economic Review, American Economic Association, vol. 102(4), pages 1241-78, June.
  9. Lakshman, Narayan, 2011. "Patrons of the Poor: Caste Politics and Policymaking in India," OUP Catalogue, Oxford University Press, number 9780198069980, March.
  10. C. Simon Fan, 2011. "The Luxury Axiom, The Wealth Paradox, And Child Labor," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(3), pages 25-45, September.
  11. Solava Ibrahim, 2006. "From Individual to Collective Capabilities: The Capability Approach as a Conceptual Framework for Self-help," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 7(3), pages 397-416.
  12. Carpenter, Seth B & Jensen, Robert T, 2002. "Household Participation in Formal and Informal Savings Mechanisms: Evidence from Pakistan," Review of Development Economics, Wiley Blackwell, vol. 6(3), pages 314-28, October.
  13. Breena Holland, 2008. "Ecology and the Limits of Justice: Establishing Capability Ceilings in Nussbaum's Capabilities Approach," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 9(3), pages 401-425.
  14. Andrew Crabtree, 2013. "Sustainable Development: Does the Capability Approach have Anything to Offer? Outlining a Legitimate Freedom Approach," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 14(1), pages 40-57, February.
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