The effectiveness of industry-based codes in serving public interest: The case of the International Council on Mining and Metals

Transnational Corporations

Volumn 14, Issue 3, 2005, Pages 55-100

  Sethi, S Prakash ^a,b  

^a CITY UNIVERSITY OF NEW YORK   (United States)

^b International Center for Corporate Accountability Inc (ICCA)   (United States)

Author keywords

Accountability; Compliance verification; Extractive industries; ICMM; Independent external monitoring; Industry or group based codes of conduct; International Council on Mining and Metals; Mining and minerals; Principles or codes of conduct; Transparency

Indexed keywords

EID: 33645982869     PISSN: 10149562     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (96)

1. Abrash, A. (2001), "The Amungme, Kamoro & Freeport: how indigenous Papuans have resisted the world's largest gold and copper mine", Cultural Survival Quarterly, vol. 25, no. 1 (30 April), pp. 38-43.
2. Akerlof, G. A. (1970). "The market for 'lemons': quality uncertainty and the market mechanism", Quarterly Journal of Economics, vol. 84, pp. 488-500.
3. Alfaro, L. and A. Rodriguez-Clare (2004). "Multinationals and linkages: an empirical investigation", Economia (Washington) (Spring), pp. 113-169.
4. Andreoni, J. and M. C. McGuire (1993). "Identifying the free riders: a simple algorithm for determining who will contribute to a public good", Journal of Public Economics (Amsterdam), vol. 51, no 3 (July), pp. 447-455.
5. Annandale, D., A. Morrison-Saunders and G. Bouma (2004). "The impact of voluntary environmental protection instruments on company environmental performance", Business Strategy and the Environment, vol. 13, pp. 1-12.
6. Balls, A. (2004). "World Bank 'weakening' social safeguards: legal department attack", The Financial Times (3 September), p. 9.
7. Barnett, W. P., G. A. Mischke and W. Ocasio (2000). "The evolution of collective strategies among organizations", Organization Studies (Berlin), vol. 21, no. 2, pp. 325-354.
8. Baue, W. (2002). "Mining industry reports on its problems, but remains vague on solutions", Social Funds (8 May). From http://www.socialfunds.com/news/save.cgi?sfArticleId=837.
9. Becker, G. (1986). "The public interest hypothesis revised: a new test of Peltzman's theory of Regulation. 1. Introduction", Public Choice, vol. 49, no. 3 (June), pp. 223-234.
10. Bhat, M. G. and R. Bhatta (2004). "Considering aquacultural externality in coastal land allocation decisions in India", Environmental and Resource Economics (Dordrecht), vol. 29, no. 1 (September), pp. 1-20.
11. Boadway, R (1997). "Public economics and the theory of public policy", The Canadian Journal of Economics, vol. 30, no. 4a (November), pp. 753-772.
12. Boyan, J. (1982). "Truthful disclosure of information", Bell Journal of Economics, vol. 13, no. 1 (Spring), pp. 36-45.
13. Bream, R. and J. Reed (2005). "S Africa seeks to extract more value from its natural treasures: Mining companies face pressure to create more jobs", The Financial Times Limited (9 February), p. 10.
14. Bruhl, R. H. (2003). "A possible solution to the principal-agent problem posed by contemporary corporate CEOs", Journal of Business Ethics, vol. 48, no. 4 (December), pp. 401-402.
15. Chakrabarty, G. (2005). "Court delays case against Newmont", Rocky Mountain News (8 June), p. 6B.
16. Cho, S. (1992). "Agency costs, management stockholding, and research and development expenditures", Seoul Journal of Economics, vol. 5, no. 2 (Summer), pp. 127-152.
17. Clark, J. (1998). "Fairness in public good provision: An investigation of preferences for equality and proportionality", Canadian Journal of Economics, vol. 31, no. 3 (August), pp. 708-729.
18. Cockburn, P. (2003). "As much of Georgia falls apart, corruption stands firm", The Independent, (Online Edition), (24 November). From http://news.independent.co.uk/europe/article79730.ece.
19. Collingsworth, T. (2002), "Boundaries in the field of human rights: the key human rights challenge. Developing enforcement mechanisms", The Harvard Human Rights Journal, vol. 15 (Spring,), pp. 183-203.
20. Conlon, J. R. and P. Pecorino (2002). "Policy reform and the free-rider problem", Public Choice, vol. 120, no. 1-2 (July), pp. 123-142.
21. Connor, T. (2004). "Time to scale up cooperation? Trade unions, NGOs, and the international anti-sweatshop movement", Development in Practice, vol. 14, no. 1&2 (February), pp. 61-70.
22. Corpuz, V. T. and D. Kennedy (2001). "Native reluctance to join mining industry initiatives: activist perspective", The Cultural Survival Quarterly, no. 25.1 (30 April), pp. 48-49.
23. Crocker, K. J., and A. Snow (1992). "The social value of hidden information in adverse selection economies", Journal of Public Economics (Amsterdam), vol. 48, no. 3 (August), pp. 317-348.
24. Dybvig, P. H. and C. S. Spatt (1983). "Adoption externalities as public goods", Journal of Public Economics, vol. 20, no. 2 (March), pp. 231-347.
25. Eisenhardt, K. M. (1989). "Agency theory: an assessment and review", The Academy of Management Review, vol. 14, no. 1 (January), pp. 57-74.
26. Fabel, O. and E. E. Lehmann (2000). "Adverse selection and the economic limits of market substitution: an application to commerce and traditional trade in used cars", Diskussionbeiträge Series I, no. 301 (21 February). From http://ssrn.com/abstract=213088.
27. Fields, J. A. (1998). "Innovation, public choice and public control in the market for health insurance", Benefits Quarterly, vol. 14, no. 4, pp. 54-60.
28. Forsyth, T. (1999). "Environmental activism and the construction of risk: implications for NGO alliances", Journal of International Development, vol. 11, no. 5 (July/August), pp. 687-700.
29. Friends of the Earth (2002). 2002 World Summit: Greenwash Academy Awards Programme, Johannesburg, South Africa (23 August), mimeo...
30. Garner, M. R. (1996)."The theory of public enterprise reconsidered", Annals of Public and Cooperative Economics, vol. 67, no. 1 (March), pp. 85-115.
31. Gupta, D. K., R. C. Hofstetter and T. F. Buss (1997). "Group utility in the micro motivation of collective action: the case of membership in the AARP", Journal of Economic Behavior and Organization, vol. 32, no. 2 (February), pp. 301-320.
32. Hamann, R. (2003). "Mining companies' role in sustainable development: the 'why' and 'how' of corporate social responsibility from a business perspective", Development Southern Africa, vol. 20, no. 2 (June), pp. 237-254.
33. Harris, R. G. and J. M. Carmen (1983). "Public regulation of market activity: institutional typologies of market failures", Journal of Macromarketing, Part I (Spring), pp. 49-58.
34. Herrmann, K. K. (2004). "Corporate social responsibility and sustainable development: the European Union initiative as a case study", Indiana Journal of Global Legal Studies, vol. 11, no. 2 (Summer), pp. 204-216.
35. Herve, M. (1990). "Uniform externalities: two axioms for fair allocation", Journal of Public Economics, vol. 423, no. 3 (December), pp. 305-327.
36. Howard, J., J. Nash and J. Ehrenfeld (1999). "Industry codes as agents of change: responsible care adoption by US chemical companies", Business Strategy and the Environment, vol. 8, no. 5 (September/October), pp. 281-295.
37. International Council on Mining and Metals (ICMM) (2004). ICMM Annual Review. From http://www.icmm.com/publications/611icmm2004pp.pdf.
38. Inderst, R. (2005). "Matching markets with adverse selection", Journal of Economic Theory, vol. 121, no. 2 (April), p. 145-166.
39. Jaringan Advokasi Tambang (JATAM) (2005). "Jatam position regarding MMSD report," for Mines and Communities, retrieved on 4 March 2005 from http://www.minesandcommunities.org/Charter/mmsd2.htm.
40. Jenkins, H. W., Jr. (2005). "The liberation of life insurance", The Wall Street Journal (22 June), p. A11.
41. Jenkins, R. R., K. B. Maguire and C. L. Morgan (2004). "Host community compensation and municipal solid waste landfills", Land Economics (Madison), vol. 80, no. 4 (November), p. 513-528.
42. Jensen, M. C., and W. H. Meckling (1976). "Theory of the firm: managerial behavior, agency costs, and ownership structure", Journal of Financial Economics, vol. 3, no. 4 (October), pp. 305-360.
43. Johnson, J. P. and M. Waldman (2003). "Leasing, lemons, and buybacks", The Rand Journal of Economics, vol. 34, no. 2 (Summer), pp. 247-263.
44. Jones, M. (2002). "Industry digs deep to make friends", The Financial Times (23 August), p. O8.
45. Kapelus, P. (2002). "Mining, corporate social responsibility and the 'community': the case of Rio Tinto, Richard Bay Minerals and the Mbonambi", Journal of Business Ethics, vol. 39, no. 3 (September), pp. 275-296.
46. Kapstein, E. B. (2001). "The corporate ethics crusade", Foreign Affairs, vol. 80, no. 5 (September/October), pp. 105-120.
47. Kaptein, M. (2004). "Business codes of multinational firms: what do they say?", Journal of Business Ethics, vol. 50, no. 1 (March), pp. 13-31.
48. Kim, J.-C. (1985). "The market for 'lemons' reconsidered: a model of the used car market with asymmetric information", The American Economic Review, vol. 75, no. 4 (September), pp. 836-843.
49. Kolk, A. (2003). "Trends in sustainability reporting by the Fortune Global 250", Business Strategy and the Environment, vol. 12, pp. 279-291.
50. _ (1999). "Evaluating corporate environmental reporting", Business Strategy and the Environment, vol. 8, no. 4 (July/August), pp. 225-237.
51. Levin, J. (2001). "Information and the market of lemons", The Rand Journal of Economics, vol. 32, no. 4 (Winter), pp. 657-667.
52. Marshall, R. S. and D. Brown (2003). "Corporate environmental reporting: what's in a metric?", Business Strategy and the Environment, vol. 12, no. 2 (March/April), pp. 87-106.
53. Matlack, C., G. Smith and G. Edmondson (2004). "Cracking down on corporate bribery", Business Week, no. 3911 (6 December), p.30.
54. Melrose, R. (2004). "Big business is usually seen as being interested only in making money. But more and more companies are realizing that it pays to put something back into the community", The Guardian (London) (22 March), p. 2.
55. Moh'd, M. A., L. G. Perry and J. N. Rimbey (1995). "An investigation of the dynamic relationship between agency theory and dividend policy", Financial Review, vol. 30, no. 2 (May), pp. 367-385.
56. Murty, S. and R. R. Russell (2005). "Externality policy reform: a general equilibrium analysis", Journal of Public Economic Theory, vol. 7, no. 1 (February), pp. 117-150.
57. Nason, R. W. (1989). "The social consequences of marketing: macromarketing and public policy," Journal of Public Policy and Marketing, vol. 8, pp. 242-251.
58. Nostromo Research (2002). "Sustainable development unsustained: a critique of the MMSD project", prepared for the Society of St Columban, London, 17 April, retrieved from http://www.minesandcommunities.org/Charter/ mmsdl.htm.
59. Oil & Gas Journal (2000). "Myanmar's upstream sector hobbled", vol. 98, no. 26 (26 June), pp. 24-27.
60. O'Rourke, D. (2003). "Outsourcing regulation: analyzing nongovernmental systems of labor standards and monitoring", Policy Studies Journal, vol. 31, no.1, pp. 1-30.
61. Oxfam America (2005). "Unrest shuts down Tintaya copper mine", available on http://www.oxfamamerica.org/newsandpublications/news_updates/ news_update.2005-05-26.0942967979/ (26 May 26).
62. Paton, B. (2000). "Voluntary environmental initiatives and sustainable industry", Business Strategy and the Environment, vol. 9, no. 5 (September/October), pp. 328-338.
63. Peck, P. and K. Sinding (2003). "Environmental and social disclosure and data richness in the mining industry", Business Strategy and Environment, vol. 12, no. 3 (May/June), pp. 131-146.
64. Posner, R. A. (1974). "Theories of economic regulation", Bell Journal of Economics, vol. 5, no. 2 (Autumn), pp. 335-359.
65. Project Underground (2005). "Sustainability means less mining, not more", statement to the United Nations Environment Programme Regarding the Mining, Minerals and Sustainable Development Initiative. Retrieved on 17 March 2005 from_http://www.moles.org/ProjectUnderground/campaigns/csq0104.html
66. Quiggin, J. and R. G. Chambers (1998). "A state-contingent production approach to principal-agent problems with an application to point-source pollution control", Journal of Public Economics, vol. 70, no. 3 (December), pp. 441-472.
67. Quirk, P. J. (1981). Industry Influence in Federal Regulatory Agencies (Princeton: Princeton University Press).
68. Raja, K. (2002). "NGOs assail "greenwash" of corporate-led globalization", Third World Network, no. 280 (May).
69. Salinero, M. (2005). "Phosphate bill would make mining wetlands cheaper", The Tampa Tribune (17 March), p. 4.
70. Sethi, S. P. (2005). "Investing in socially responsible companies is a must for public pension funds - because there is no better alternative", Journal of Business Ethics, vol. 56, no. 2 (January II), pp. 99-129.
71. _ (2003a). "Globalization and the good corporation: a need for proactive co-existence", Journal of Business Ethics, vol. 43, no. 1-2, pp. 21-31.
72. _ (2003b). Setting Global Standards: Guidelines for Creating Codes of Conduct in Multinational Corporations (Hoboken, NJ: John Wiley & Sons).
73. _ (2002). "Standards for corporate conduct in the international arena: challenges and opportunities for multinational corporations", Business and Society Review, vol. 1007, no. 1, pp. 20-40.
74. _ (1994). Multinational Corporations and the Impact of Public Advocacy on Corporate Strategy: Nestle and the Infant Formula Controversy (The Hague: Kluwer Academic Publishers).
75. _ (1979). "A conceptual framework for environment analysis of social issues and evaluation of corporate response patterns", Academy of Management Review, vol.4, no. 1, pp. 63-74.
76. _ and L. Sama (1998). "Ethical behavior as a strategic choice by large corporations: the potential impact of industry structure and market place competition", Business Ethics Quarterly, vol. 8, no. 1 (January), pp. 85-104.
77. _ and O. F. Williams (2000). Economic Imperatives and Ethical Values in Global Business: The South African Experience and International Codes Today (The Hague: Kluwer Academic Publishers).
78. Simpson, G. R. (2005). "Multinational companies unite to fight bribery", The Wall Street Journal (Eastern Edition) (27 January), p. A2.
79. Spulber, D. F. (2002). Famous Fables of Economics: Myths of Market failures (Oxford: Blackwell).
80. Steeman, M. (2004). "A burning question", The Press (Christchurch, New Zealand) (11 December), pp. 8;
81. Tam, P-W and M. Lifsher (2003). "Change of venue: Columbian killings land U.S. company in American court - mining concern faces suit over right-wing attack: new life for a 1789 act - shootings on a lonely road", The Wall Street Journal (6 October), p. A1.
82. Tapper, R. (1997). "Voluntary agreements for environmental performance improvement: perspectives on the chemical industry's responsible care programme", Business Strategy and the Environment, vol. 6, pp. 287-292.
83. The Economist (2005). "The Americas: halting the rush against gold; mining in Peru" (London) (5 February), p. 48,
84. _ (2002). "Business: sociologists before geologists? BP in Indonesia", (London), p. 66.
85. Thomassin, P. J. and M. Cloutier (2004). "The evolution of environmental legislation: a strategic transaction approach", Journal of Economic Issues, vol. 38, no. 2 (June), pp. 493-503.
86. Thompson, D. R. (2003). "The no-punch-back theory of regulation", Journal of Financial Planning, vol. 16, no. 12 (December), pp. 22-24.
87. Treadgold, T. (2005). "Stop worrying and love uranium", The Courier Mail (Queensland, Australia) (3 June), p. 39.
88. Treanor, J. (2003). "Banks agree to ethical checks: campaign groups wary as 10 big lenders promise to consider socioeconomic impact of projects they back", The Guardian (London) (5 June), p. 20.
89. Van Marrewijk, M. (2003). "Concepts and definitions of CSR and corporate sustainability: between agency and communion", Journal of Business Ethics, vol. 44, no. 2, 3 (May), pp. 95-105.
90. Walker, J. and S. Howard (2003). "Finding the way forward: how could voluntary action move mining towards sustainable development", MMSD Working Paper (London: International Institute for Environment and Development and WBCSD), mimco..
91. Webley, S. and M. Le Jeune (2005). Corporate Use of Codes of Ethics: 2004 Survey (February) (London: The Institute of Business Ethics).
92. Williamson, O. E. (1985). The Economic Institutions of Capitalism (New York: The Free Press).
93. Wilson, C. (1980). "The nature of equilibrium in markets with adverse selection", Bell Journal of Economics, vol. 11, pp. 108-130.
94. Wolf, C. Jr. (1979). "A theory of nonmarket failure: framework for implementation analysis", The Journal of Law and Economics, vol. 22, no. 1 (April), pp. 107-139;
95. Wright, P. and A. Mukherji (1999). "Inside the firm: socioeconomic versus agency perspectives on firm competitiveness", Journal of Socio-Economics, vol. 28, no. 3, pp. 295-307.
96. _, A. Mukherji and M. J. Kroll (2001). "A reexamination of agency theory assumptions: extensions and extrapolations", Journal of Socio-Economics, vol. 30, no. 5, pp. 413-429.