1. Deciphering Corporate Governance and Environmental Commitments among Southeast Asian Transnationals: Uptake of Sustainability Certification
- Author
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Norfaryanti Kamaruddin, Jean-Marc Roda, Rafael Palhiarim Tobias, Centre d'Etudes en Sciences Sociales sur les Mondes Africains, Américains et Asiatiques (CESSMA), Institut de Recherche pour le Développement (IRD)-Institut de Recherche pour le Développement (IRD [France-Nord]), Institute of Tropical Forestry & Forest Products (INTROP), Universiti Putra Malaysia, Forest Research Institute of Malaysia (FRIM), FRIM, BioWooEB (UPR BioWooEB), Centre de Coopération Internationale en Recherche Agronomique pour le Développement (Cirad), CIFOR, member of the CGIAR 'Research Programme 6 Forests, Trees and Agroforestry', as well as CIRAD, Universiti Putra Malaysia (INTROP), and the ANR SPOP project co-funded the study, which leads to this paper., and Centre de Coopération Internationale en Recherche Agronomique pour le Développement (Cirad)-Université de Montpellier (UM)
- Subjects
jel:D85 ,certification des forêts ,forêt tropicale ,Économie forestière ,Développement agricole ,jel:F02 ,oil palm ,forest ,E14 - Économie et politique du développement ,investment strategy ,Sustainability organizations ,Elaeis guineensis ,jel:Q23 ,network analysis ,2. Zero hunger ,Transaction cost ,Utilisation des terres ,competitiveness ,Corporate governance ,Environmental resource management ,Marché ,Forestry ,E71 - Commerce international ,jel:L73 ,[SHS.ECO]Humanities and Social Sciences/Economics and Finance ,Southeast Asia,oil palm,forest,transnationals,investment strategy,emerging markets,competitiveness,network analysis,network metrics,ethnic business,ownership structure ,Southeast Asia ,protection de la forêt ,P01 - Conservation de la nature et ressources foncières ,jel:Q13 ,ethnic business ,Mondialisation ,Exploitation agricole familiale ,Southeast asian ,Petite exploitation agricole ,jel:F23 ,Bois ,Globalization ,jel:Q01 ,Emerging markets ,Durabilité ,Agribusiness ,emerging markets ,business.industry ,Southeast Asia, oil palm, forest, transnationals, investment strategy, emerging markets, competitiveness, network analysis, network metrics, ethnic business, ownership structure, family business. agribusiness ,transnationals ,Corporation transnationale ,network metrics ,Analyse économique ,lcsh:QK900-989 ,15. Life on land ,jel:G32 ,K10 - Production forestière ,Protection de l'environnement ,Sustainability ,lcsh:Plant ecology ,jel:L14 ,Economic system ,ownership structure ,business - Abstract
International audience; Promoting tropical forest sustainability among corporate players is a major challenge. Many tools have been developed, but without much success. Southeast Asia has become a laboratory of globalization processes, where the development and success of agribusiness transnationals raises questions about their commitment to environmental concerns. An abundance of literature discusses what determines the behavior of Asian corporations, with a particular emphasis on cultural factors. Our hypothesis is that financial factors, such as ownership structure, may also have a fundamental role. We analyzed the audited accounts of four major Asian agribusiness transnationals. Using network analysis, we deciphered how the 931 companies relate to each other and determine the behavior of the transnationals to which they belong. We compared various metrics with the environmental commitment of these transnationals. We found that ownership structures reflect differences in flexibility, control and transaction costs, but not in ethnicities. Capital and its control, ownership structure, and flexibility explain 97% of the environmental behavior. It means that existing market-based tools to promote environmental sustainability do not engage transnationals at the scale where most of their behavior is determined. For OPEN ACCESS Forests 2015, 6 1455 the first time, the inner mechanisms of corporate governance are unraveled in agricultural and forest sustainability. New implications such as the convergence of environmental sustainability with family business sustainability emerged.
- Published
- 2015
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