Overview of Argument Concerned with what accountability means in practice and how corporations can operationalise it
Situates this discussion within the context of current debates around corporate accountability
The current emphasis on enforceable regulation is important, as it creates the legal and financial incentives for accountability
However alone enforceable regulation will not realize accountability
The GAP framework provides an approach to operationalising accountability at the c
Overview of Argument
Concerned with what accountability means in practice and how corporations can operationalise it
Situates this discussion within the context of current debates around corporate accountability
The current emphasis on enforceable regulation is important, as it creates the legal and financial incentives for accountability
However alone enforceable regulation will not realize accountability
The GAP framework provides an approach to operationalising accountability at the corporation level
Corporate Accountability Agenda
Stakeholder approach to accountability
Stakeholders need to be able to hold corporations to account
the “ability of those affected by corporations to control that corporation’s operations” (FoEI 2005)
“the ability of people affected by a corporation to regulate the activities of the corporation” (Bendell 2004)
Concerned with issues of power and empowerment
Emphasis is on enforcement through sanctions
The operating environment for TNCs is changing as expectations about TNCs change
The notion of stakeholder is being defined more broadly
And it is worth noting in passing that this is true for NGOs too and we shouldn’t look at corporations without thinking about our own house too
Information technology is increasing visibility of corporate activity and helping activists to co-ordinate their anti-corporate activity
Global organisations like the OECD and UN are taking more of an active role too.
For the One World Trust, corporate accountability is more than just an add on
More than just a set of standards to comply with
It is about integrating through-out the business an understanding of how the business impacts on its stakeholders
And how it takes those impacts into account
When planning and operating
All of this means that corporations are increasingly signing accountability type frameworks which I will talk more about in a minute.
What is GAP?
Stakeholder approach to accountability
High level principles of accountability
How to operationalise accountability
Cross sectoral learning
the processes through which an organisation makes a commitment to respond to and balance the needs of stakeholders in its decision-making processes and activities, and delivers against this commitment
Limits to what regulation can achieve
It is essential, however:
In isolation promotes a limited form of accountability – reactive and disciplinary
A blunt instrument because accountability reform complex process
Current proposals relate to specific procedures and issues – needs a holistic approach
Discussion Questions
Can enforceable regulation alone make corporations accountable to their stakeholders?
What else is needed?
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