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Assessing the Impacts of Multinational

Companies on Global Development Goals

Andr Martinuzzi and Adele Wiman


Institute for Managing Sustainability
Vienna University of Economics and Business

www.sustainability.eu
Global Social Policy Forum "New Directions for Social Policy
towardsMartinuzzi
socially
sustainable development", November 4th - 5th, Helsinki, Finland
& Wiman: Assessing the Impacts of Multinational Companies on Global Development Goals

Assessing the Impacts of Multinational


Companies on Global Development Goals
1. Corporate Impact Assessment and Management goes beyond financial return to
the company towards considering the social and environmental impacts the
company's activity carries.
2. GLOBAL VALUE project we will develop an innovative framework for assessing
impacts of Multinational Corporations (MNCs) on issues related to the Millennium
Declaration including sustainable development, human rights, transparency, and
anti-corruption.
3. The project will create a modular, user-friendly and customizable toolkit, including
a web-based assessment platform, indicator set, user guide, and training
materials.
4. The toolkit will be tested in with leading MNCs: BATA (garment, Bangladesh),
OLAM (food, Tanzania) and NOKIA (ICT, India). Research organizations and
CSOs from these countries are members of the consortium and ensure the
involvement of stakeholders and local actors.
Martinuzzi & Wiman: Assessing the Impacts of Multinational Companies on Global Development Goals

Corporate Social Responsibility:


confusion of the concepts is an empirical reality

corporate
sustainability
corporate
social
responsiveness

environmental
management

business
ethics

GRI

AA1000
Accountability

corporate
stewardship

industrial
ecology

sustainable
consumption
andproduction

corporate
citizenship

stakeholder
relations
management
corporate
governance

corporate
social
performance

OECD
guidelines

DowJones
Sustainability
Index

SA8000

Global
Compact
ISO26000
ILO
Standards

Increasing positive impact on society


and the environment

Philanthropic CSR

PR and Marketing

(doing good and talking about it)

easy to start, communicate


and evaluate; very common
Quality-oriented CSR

credibility gap; no real change;


not a lot of literature at hand
Quality Management

(using management systems to avoid doing bad)

Systemic; well established


standards and frameworks
Innovation-oriented CSR

difficult to communicate;
no strong stimulus for innovation
Innovation Management

(rethink your business and strive for innovation)

strong links to competitiveness,


and technological leadership
Impact-oriented CSR

innovation barriers and risks;


new business models required
Strategic Management

(consider impacts and create shared value)

Stimulates cooperations, organizational


learning and change; increases societal trust

Requires new assessment


and management methods

Martinuzzi & Wiman: Assessing the Impacts of Multinational Companies on Global Development Goals

Increasing positive impact on the company


and its competitiveness

Martinuzzi & Wiman: Assessing the Impacts of Multinational Companies on Global Development Goals

GLOBAL VALUE will

develop an innovative framework for assessing impacts of Multinational


Corporations (MNCs) on issues related to the Millennium Declaration
including sustainable development, human rights, transparency, and
anti-corruption.

shed light on institutional arrangements, analyze systems of governance


for responsible business practices, explore responsible competitiveness
and assess the complementarity of public and private sector activities

deliver a modular, user-friendly and customizable toolkit, including a


web-based assessment platform, indicator set, user guide, and training
materials

Jan. 2014 - Dec. 2016, 2,5 Mio Euro,


funded by the 7th EU framework programme

Martinuzzi & Wiman: Assessing the Impacts of Multinational Companies on Global Development Goals

5.

6.

2014

1.

Tasks and schedule


1. State of Play & Integration of Threads
Review of development related assessment frameworks and
tools: MDGs, Human Rights, Gender Issues, Anti-Corruption,
Transparency,

2.
3.

2015

a.

Review of systems of governance for responsible business


practices, competitiveness and complementarity with ODA

b.
2016

c.

Review on potentials for integrating development issues in


corporate management approaches: Supply Chain
Management, Life Cycle Assessment, Base of the Pyramid

Review of corporate and societal indicator-sets, compound


indicators, footprint approaches, sectoral and regional
multipliers

4.
7.
Martinuzzi & Wiman: Assessing the Impacts of Multinational Companies on Global Development Goals

5.

6.

2014

1.

Tasks and schedule


2. Responsible Business Conduct,
Competitiveness & Complementarity

2.
3.

2015

Multi-Case-Study on Systems of Governance for


Responsible Business Conduct, Competitiveness and
Complimentarity (9 cases)
Policy paper Processes for coordinating business activities,
ODA and civil society operations: the status quo and options
for improvement

a.

Gap-Analysis
b.
2016

Recommendations for decision makers in policy,


business and CSOs

c.

4.
7.
Martinuzzi & Wiman: Assessing the Impacts of Multinational Companies on Global Development Goals

5.

6.

2014

1.

Tasks and schedule


3. Development of the Assessment
Framework & Toolkit

2.

Expanding SCOR and LCA for development


impact assessment

3.

2015

Developing and refining indicators and regional multipliers


Processing of existing but widespread sector and country
specific data on MNC impacts

a.

Design, programming and maintenance of a web-based tool


for MNCs assessment, stakeholder involvement and expert
crowd (incl. user handbook)

b.
2016

c.

4.
7.
Martinuzzi & Wiman: Assessing the Impacts of Multinational Companies on Global Development Goals

5.

6.

2014

1.

Tasks and schedule


4. Corporate Cases & Reflexive Learning
a. Bangladesh - Bata (garment sector) BRAC

2.

b. Tanzania Olam (food wholesaler) Sokoine University

3.

2015

c. India Nokia (ICT) Tata Institute for Social Sciences &


Indian CSR Hub

a.
b.
2016

c.

4.
7.
Martinuzzi & Wiman: Assessing the Impacts of Multinational Companies on Global Development Goals

5.

6.

2014

1.

Tasks and schedule


5. Stakeholder Involvement & Crowd Intelligence
Participatory Stock-Taking of assessment methods, tools and
approaches (parallel to task 1)

2.
3.

2015

Stakeholder Involvement and Crowd Intelligence in Analyzing


Systems of Governance (parallel to task 2)
Involving an Expert Crowd in Toolkit-Design
(parallel to task 3)

a.

Stakeholder Involvement and Crowd Intelligence in the three


corporate case studies (parallel to task 4)

b.
2016

c.

4.
7.
Martinuzzi & Wiman: Assessing the Impacts of Multinational Companies on Global Development Goals

5.

6.

2014

1.

Tasks and schedule


6. MDG-Progress- & SDG-Monitoring
Developing a catalogue of development related goals

2.

Policy monitoring and participation at relevant events

3.

2015

Regular short reports on MDG-Progress- & SDG-Monitoring

a.
b.
2016

c.

4.
7.
Martinuzzi & Wiman: Assessing the Impacts of Multinational Companies on Global Development Goals

5.

6.

2014

1.

Tasks and schedule


7. Roll-out, dissemination & deliverables
Policy Roadmap and PR strategy for diffusion

2.
3.

Training toolkit for consultants, ODA agencies, MNCs


and other actors
2015

Website and newsletters


Peer reviewed publication "Systems of Governance in a
Development Context, Complementarity and
Competitiveness"

a.
b.
2016

c.

Peer reviewed publication "Assessing MNCs Impacts on


Global Development - a Conceptual Framework"
Peer reviewed publication "Stakeholder Involvement and
Crowd Intelligence in Global Development Issues"

4.
7.
Martinuzzi & Wiman: Assessing the Impacts of Multinational Companies on Global Development Goals

Complexity

Assessing different pathways of impact


Societal impacts:
e.g. for systemic effects, practices and values
Qualitative
Shared impacts:
Appraisal
e.g. along supply chains, through products and in regional networks
Multi-dimensional impacts:
e.g. on the environment, society and the economy at the same time
Professional
Discourse

Multiple unit impacts:


e.g. raw materials -> resource use
Single unit impacts:
e.g. CO2-emissions -> climate change

Quantitative
Indicators

Martinuzzi & Wiman: Assessing the Impacts of Multinational Companies on Global Development Goals

Get involved in GLOBAL VALUE


The GLOBAL VALUE project will integrate stakeholders and experts by an innovative expert
crowd representing all issue areas of the project.
More than 100 experts have submitted letters of intent, representing policy, CSO, business,
and research perspectives (e.g. Xerox; OMV; NovoNordisk; Lidl; Elan; Bank Sarasin; GRI;
SIDA; GIZ; Independent Evaluation Group Private Sector Evaluation of World Bank; CSR
Europe; Global2000; Global Policy Forum Europe; European Parliament).
The expert crowd will:
1.

support the project team in stock-taking and reviewing existing assessment


frameworks and tools;

2.

provide a platform for including the views of different stakeholders in the development of
the GLOBAL VALUE assessment framework and toolkit;

3.

assist in validating the preliminary findings from the case studies in WP2 and WP4;

4.

give scientific feedback and thus contribute to ensuring high-quality;

5.

provide a discourse element, particularly regarding indirect effects, causality and


attribution issues, contingencies, and counterfactuals.

For becoming a member of the GLOBAL VALUE Expert Crowd please visit
www.global-value.eu
Martinuzzi & Wiman: Assessing the Impacts of Multinational Companies on Global Development Goals

Literature
Martinuzzi, A., Krumay, B. (forthcoming Dec 2013): The good, the bad and the successful - how CSR leads to
competitive advantage and organizational transformation, in: Journal of Organizational Change Management
Schmitzer, H.; Martinuzzi, A. (2013): "Methods and Tools for Impact Measurement of the Millennium Development
Goals (MDGs) and Sustainable Development", ESDN Case Study No. 14, European Sustainable Development
Network, April 2013, www.SD-NETWORK.eu
Prammer, E.; Martinuzzi, A. (2013): "The Millennium Development Goals (MDGs) and the Post-2015 Debate",
ESDN Case Study No. 13, European Sustainable Development Network, December 2012, www.SDNETWORK.eu
Pintr, L., P. Hardi, A. Martinuzzi, J. Hall (2011): Bellagio STAMP: Principles for Sustainability Assessment and
Measurement, in: Ecological Indicators, Volume 17, June 2012, pp. 2028
Martinuzzi, A. (2011): Responsible Competitiveness Linking CSR and Competitive Advantage in three European
Industrial Sectors, in: Zeitschrift fr Umweltpolitik und Umweltrecht/Journal of Environmental Policy and Law,
Vol. 3/2011, pp. 297-337
Steurer, R.; Martinuzzi, A., Margula, S. (2011): Public policies on CSR in Europe: Themes, instruments, and
regional differences, in: Corporate Social Responsibility and Environmental Management, Vol 19, pp. 206-227
Martinuzzi, A.; Gisch-Boie, S.; Wiman, A. (2010): Does Corporate Responsibility Pay Off? Exploring the links
between CSR and competitiveness in Europes industrial sectors, Final Report of the project No
ENTR/2008/031, Responsible Competitiveness on behalf of the European Commission, Directorate-General
for Enterprise and Industry, published in the scientific series of the Research Institute for Managing
Sustainability, Vienna University of Economics and Business, Vienna, Nov. 2010
Konrad, A.; Steurer, R., Langer, M. E., Martinuzzi, A. (2006): Empirical Findings on Business-Society Relations in
Europe, in: Journal of Business Ethics; Volume 63, Number 1, Jan. 2006, pp. 89-105
Steurer, R., Langer, M. E., Konrad, A., Martinuzzi, A. (2005): Corporations, Stakeholders and Sustainable
Development: A Theoretical Exploration of Business-Society Relations, in: Journal of Business Ethics; Volume
61, Number 3, October 2005, pp. 263 - 281
Martinuzzi & Wiman: Assessing the Impacts of Multinational Companies on Global Development Goals