book review

Corporate Accountability and Sustainable Development edited by Peter Utting and Jennifer Clapp

(New Delhi: Oxford University Press), 2008; pp xiii + 259, Rs 650 (HB).

past record in this regard? What governing mechanism would ensure a socially responsible behaviour on their part? The underlying theme of this volume is to examine whether voluntarism works better than enforcement among corporations in maintaining socially responsible behaviour. The nine contributions succeed in bringing to the reader a comprehensive account of corporate engagement with social and environmental issues. This collection of essays is part of the Oxford University Press’ series on “Ecological Economics and Human Well-Being”. It has a foreword by the series editors Juan Martinez-Alier and Pushpam Kumar.

The volume begins with an overview paper by Clapp and Utting on the interface between the legal framework, corporate accountability and responsibility. They define corporate social responsibility (CSR) as a set of actions by not only the large multinational corporations but also the smaller firms that form part of the globalised production system. Corporations made a set of commitments at the World Summit in 1992 to voluntarily undertake action that was “green” and “ethical”. However, there were widespread suspicions about the viability of voluntary “acceptable” behaviour on the part of the corporations. Consequently, three things have happened to control corporate behaviour: active government intervention, market driven certification and community resistance.

In the chapter that follows, Stefano Pugtz highlights the dichotomy between the needs of macro sustainability (of human development) and micro sustainability of firms. He examines the concept of sustainability in management studies, and the

disjuncture between sustainable development, corporate sustainability and corporate social responsibility (CSR).

Aril Vatn provides a wide-ranging discussion on sustainable development that

encompasses not only the environmental issues but also the social dimensions. The author offers two choices for corporates to engage with “social rationality”: embed capital within the socio-political paradigm or take away its independence as an economic entity and institute social rationality within the firm itself. The author argues that while the latter would be difficult (but not inconceivable) to achieve, the former is realisable with a re-arrangement of existing systems.

Human Rights

Peter Utting in his paper widens the scope of corporate responsibility to include human rights. Companies operating at the global level often try to circumvent high cost of production and strict legal frameworks in developed countries by locating in developing countries with lower wages and lax scrutiny.

One such example is the agro-food industry. Clapp records numerous cases of illegal or unapproved release of genetically modified seeds into the production and consumption markets by seed manufacturing companies. The role played by the manufacturers in legitimising sales but minimising legal liability underlines the non-viability of voluntarism and the need for regulation especially when risks are large.

The same holds true for the global oil industry and its response to oil-spills which have an impact on marine life. The most recent British Petroleum pipeline leak in the Gulf of Mexico in April 2010 was also the largest accidental marine spill in history. Loureiro records how different countries have dealt with it in the voluntary framework of international conventions under the UN agency International Marine Organisation. The study reveals the pitfalls in global conservation efforts due to differing stringency in national legal systems dealing with the environment.

Those interested in the Indian economy will find two chapters of relevance.

vol xlvI no 37

EPW