State-driven Corporate Social Responsibility (CSR)?: mediating offshore outsourcing and CSR in Malaysia

Offshore outsourcing of business activities from the Global North to the Global South does not only relocate investments and jobs, but has also brought about new business demands on suppliers activities and their social and environmental impact. The article explores whether, how and why offshore outsourcing transactions between foreign firms and Malaysian firms affect the upgrading of the CSR activities of Malaysia incorporated firms, taking the particular institutional context of Malaysia into consideration. The focus is on recipient country vendors, contract manufacturers or subcontractors and their reception of and strategising about corporate social responsibility. The findings of the study indicate, firstly, that the amount of foreign (sub)contracting influences the CSR strategising of domestic firms while the global value chain position is only conditioning the offshore outsourcing portfolio. Secondly, both the corporate governance of Malaysian affiliate and the Malaysian government play an important role shaping the perception, rhetoric and organisation of CSR activities by firms in Malaysia with a domestic value chain position. Hence, firms in Malaysia are squeezed by international business linkages and the local institutional context

South Korea's automotive labour regime, Hyundai Motors’ global production network and trade‐based integration with the European Union

This article explores the interrelationship between global production networks(GPNs) and free trade agreements (FTAs) in the South Korean auto industry and its employment relations. It focuses on the production network of the Hyundai Motor Group (HMG) — the third biggest automobile manufacturer in the world — and the FTA between the EU and South Korea. This was the first of the EU’s ‘new generation’ FTAs, which among other things contained provisions designed to protect and promote labour standards. The article’s argument is twofold. First, that HMG’s production network and Korea’s political economy (of which HMG is a crucial part) limited the possibilities for the FTA’s labour provisions to take effect. Second, that the commercial provisions in this same FTA simultaneously eroded HMG’s domestic market and corporate profitability, leading to adverse consequences for auto workers in the more insecure and low-paid jobs. In making this argument, the article advances a multiscalar conceptualization of the labour regime as an analytical intermediary between GPNs and FTAs. It also provides one of the first empirical studies of the EU–South Korea FTA in terms of employment relations, drawing on 105 interviews with trade unions, employer associations, automobile companies and state officials across both parties

The historical origins of corruption in the developing world: a comparative analysis of East Asia

A new approach has emerged in the literature on corruption in the developing world that breaks with the assumption that corruption is driven by individualistic self-interest and, instead, conceptualizes corruption as an informal system of norms and practices. While this emerging neo-institutionalist approach has done much to further our understanding of corruption in the developing world, one key question has received relatively little attention: how do we explain differences in the institutionalization of corruption between developing countries? The paper here addresses this question through a systematic comparison of seven developing and newly industrialized countries in East Asia. The argument that emerges through this analysis is that historical sequencing mattered: countries in which the "political marketplace" had gone through a process of concentration before universal suffrage was introduced are now marked by less harmful types of corruption than countries where mass voting rights where rolled out in a context of fragmented political marketplaces. The paper concludes by demonstrating that this argument can be generalized to the developing world as a whole

Corporate social responsibility and offshore outsourcing: electrical and electronics firms in Malaysia

Abstract. Offshore outsourcing (OO) of business activities from North to South does not only relocate investments and jobs, it has also brought about new business demands on suppliers activities and their social and environmental impact. The objectives of the study are firstly, to explore whether offshore outsourcing (OO) activities of Malaysian firms (herein refers to as contracting firms) matter in corporate social responsibility practices, and secondly, to examine whether government policy and support matters in the CSR practices of the contracting firms. The focus is on Malaysian based local or foreign vendors, contract manufacturers or subcontractors in the electrical and electronics industry. The findings of the study indicate, firstly, that the level of CSR practices is positively influenced by the degree of OO activities. In addition, the study also concludes that other firms’ attributes, namely the size of the company’s workforce and degree of foreign ownership have a significant impact on the firms’ CSR practices, while no apparent relationship is found with firms’ profitability and leverage. Secondly, that the government plays an important role shaping the perception, rhetoric and organisation of CSR activities by firms; nevertheless, most contracting firms do not recognize any support for CSR upgrading from the government or local institutions

State-driven Corporate Social Responsibility (CSR)?: mediating offshore outsourcing and CSR in Malaysia

Offshore outsourcing of business activities from the Global North to the Global South does not only relocate investments and jobs, but has also brought about new business demands on suppliers activities and their social and environmental impact. The article explores whether, how and why offshore outsourcing transactions between foreign firms and Malaysian firms affect the upgrading of the CSR activities of Malaysia incorporated firms, taking the particular institutional context of Malaysia into consideration. The focus is on recipient country vendors, contract manufacturers or subcontractors and their reception of and strategising about corporate social responsibility. The findings of the study indicate, firstly, that the amount of foreign (sub)contracting influences the CSR strategising of domestic firms while the global value chain position is only conditioning the offshore outsourcing portfolio. Secondly, both the corporate governance of Malaysian affiliate and the Malaysian government play an important role shaping the perception, rhetoric and organisation of CSR activities by firms in Malaysia with a domestic value chain position. Hence, firms in Malaysia are squeezed by international business linkages and the local institutional context