This paper addresses the extraterritorial dimension of transnational corporations, focusing on the corporate accountability-deficit that characterizes the current International legal framework. The analysis looks at parent companies’ civil liability for environmental harm caused abroad. By introducing a selected number of foreign direct liability cases brought before European national courts, the paper investigates whether the binding environmental and human rights reporting obligations contained in Directive 2014/95/EU contribute to the determination of a parent company’s duty of care towards its overseas subsidiaries, and consequently establish their potential liability.
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Alternative dispute resolution (ADR) is constantly gaining ground, both at domestic and international level. New forms of dispute settlement with a mix of public and private components are emerging in fields where this was not the case until recent times, as some contributions to this Zoom-out have attempted to demonstrate. In the field of investment law we have witnessed a somehow opposite trend. Traditionally, disputes in this field have been settled by means of arbitral tribunals established mostly on the basis of bilateral or multilateral investment agreements (IAs) under a variety of arbitration facilities, which are collectively referred to as investor-to-State dispute settlement (ISDS). Traditional ISDS presents many characteristics of ADR, starting from the strong role that private parties play in it (for example when it comes to the appointment of arbitrators). The practice has shown that the system has clear advantages but also undeniable disadvantages. The prevailing opinion in recent years has been that the latter considerably outweigh the former, resulting in what has been termed the backlash against investment arbitration in a volume appeared a few years ago. In this contribution, how-ever, I will not dwell on the details of the crisis that has affected investment arbitration, nor will I engage in a discussion of whether that backlash is entirely justified. My focus will be much more modest. One of the most tangible consequences of this growing dissatisfaction towards investment arbitration is the launch on the part of the EU of a court-like system to settle investment disputes –the now famous investment court system (ICS) –as a replacement to old-fashioned ISDS. The ICS now features in all EU IAs, and has become the standard position of the EU when it comes to dispute settlement in this field. Recently, the ICS has also received the green light of the European Court of Justice (ECJ),raising doubts as to whether traditional ISDS has conclusively been sent to oblivion, at least in the EU. From a political and policy perspective, it is undoubtful that there is a strong stance on the part of the EU and of its Member States against traditional ISDS. This article, however, will focus exclusively on the legal dimension, by examining whether the ECJ’s decision should be read as meaning that investment arbitration is incompatible with the EU legal system. While itis clear that Opinion 1/17 means that the ICS is compatible with EU law, it remains to be seen whether the Court’s finding allows an a contrario reading. Namely, whether it entails the incompatibility with EU law of traditional ISDS. The analysis will start with a brief summary of the events and developments that preceded the creation of the ICS and eventually led to the current situation (Section 2), followed by an examination of the relevant parts of Opinion 1/17 (Section 3). This part will be followed by an appraisal of the possible legal implications of the decision (Section 4). Some conclusions will be offered in the closing section (Section 5) in the attempt to look beyond the boundaries of EU law. Part of topic "The blurring distinction between public and private in international dispute resolution"
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In this handbook we would like to inform (future) social and public professionals about the results of our extensive comparative research on welfare state reforms in Finland, Germany, Greece, Hungary, Italy, Poland, Spain, Sweden, The Netherlands and UK. The research reveals how reforms take place in local practice and gives insights on the implications of social policies on people’s lives. Social policies are defined as social investment in human lives. We evaluated the implementation of social investment policies in practice and studied 20 innovative cases, 2 in each of the above-mentioned countries. Starting from these professional practices, we would like to give (future) professionals more insights in the realities of system change and the new perspectives that come out of it.
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This article provides an introduction to the topic of multinational management. Multinational management employs a set of principles, theories and models, forming a systematic framework for managing organizations in a global context. This introduction will provide an embarkation point so as to demystify the term "multinational management" and to show that, while there are management similarities with its domestic counterpart, significant differences and challenges exist. As a foundational step, a working definition of two key concepts will be provided: multinational management and the multinational corporation. Likewise, we'll identify the key drivers of multinational management activity and examine the location determinants of foreign direct investment (FDI) choices. Specifically, we'll highlight the two principal means of FDI: Mergers and acquisitions (M&A) and green-field investment. In conclusion, a close examination of the multinational strategic management process will be provided, with particular emphasis placed on environmental scanning and strategy formulation.
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Corporate Social Responsibility (CSR) in Malawi is becoming a significant issue not only because of the complexity of the social, economic and political environment in which companies operate, but also because of the social and environmental impacts which business operations have on the wider Malawian society. In this chapter, it is shown that the CSR agenda currently pursued by companies in Malawi takes both the normative and instrumental forms, and is largely shaped by the political and socio-economical factors at national and global levels. The chapter is structured as follows: the first section addresses the historical development of CSR and perceptions various actors hold about the forms of responsibilities companies can assume in Malawi; a discussion of the various antecedents of CSR in Malawi. This is followed by an intermediate section which provides CSR themes and priority issues. The final two sections explore the different approaches companies pursue in the implementation of CSR agendas—but also examine the perceived barriers to CSR in Malawi. The chapter concludes by mapping out the future prospects of CSR in Malawi.
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We empirically investigate the factors that drive the uneven regional distribution of foreign direct investment (FDI) across Chinese provinces from 1995 to 2006. We first perform a factor analysis to summarize information embodied in around 40 variables and derive four FDI determinants: ‘institutional quality’, ‘labour costs’, ‘market size’, and ‘geography’. Applying these estimated factors, we then employ instrumental variable (IV) estimation to account for endogeneity. In line with theoretical predictions, we find that foreign firms invest in provinces with good institutions, low labour costs, and large market size. The Arellano-Bond dynamic panel generalised method of moments (GMM) results show strong agglomeration effects that multinationals tend to invest in provinces which attract other foreign firms, consistent with the economic geography literature. Several robustness tests indicate that low labour costs combined with improvements in institutions are the key for attracting FDI in China.
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Internationalisation is the expansion of a firms operations to foreign markets and includes not only import and export but also foreign direct investments and international cooperation. Today’s globalising economy has resulted in a growing number of small and medium enterprises (SMEs) undertaking international activities. Internationalisation has been shown to be very beneficial for firms. Cross-border activities are an important means through which SMEs are able to create value, generate growth and access new knowledge and technologies. A strong relation has also been found between innovation and internationalisation: innovation may both be necessary to enter foreign markets as well as be a consequence of a firm’s foreign market activities. In addition to value creation at the firmlevel, crossborder entrepreneurship is assumed to create wealth at an economy wide level. With so many evident benefits to internationalisation, why don’t more SMEs internationalise? In her inaugural lecture Anne van Delft will illustrate the importance of “cooperation within networks” in international business. In today’s “network economy” it is important for firms to leverage their networks. Managing the interplay between networks and knowledge will be one of the key challenges for the 21st century. Cooperation with other firms is especially important for SMEs because it allows firms to utilise their limited resources in the most efficient way. Some of the sectors in the Rotterdam region are world leaders but nevertheless their main competitor might soon come from an emerging market rather than form within the regional cluster. The benefits of cooperation and knowledge sharing should therefore be exploited fully by SMEs in the Rotterdam region as global competition increases.
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Drawing on a multiple case study of acquisitions of UK biopharmaceutical firms, we develop an analytical framework that elucidates how key determinants of the knowledge base of science-based firms and their combinations through M&As interact and affect post-acquisition investment in the target's R&D projects. We show that two factors - the complementarity/similarity of the technology, and the complementarity/similarity of the discovery and development capabilities of the target and acquiring firm - interact to produce different outcomes in terms of investment in the acquired firm's R&D assets and for the local science and technology system.
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In 1978 under the leadership of Deng Xiaoping, China decided to gradually open up its economy to achieve more economic development. Three and a half decades later, China has become an economic force to be reckoned with, surpassing Japan as the second largest economy in the world in 2010. China’s economic success is no longer purely based on lowcost manufacturing, inward foreign direct investment and export. It has evolved into a diversified economy with a seemingly inexhaustible pool of low-skilled labour and highlyeducated talent, a large number of up-and-coming enterprises with a competitive spirit and refreshing business ideas.
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The government of Ukraine has adopted the Renewable Energy Directive (RED) with clear goals and a roadmap to facilitate its energy transition towards renewable sources. This is done because of both climate concerns as well as reasons related to Ukraine’s foreign policy which led the government to decide that Ukraine should work more on its own energy independence. Currently the percentage of renewable energy sources in Ukraine is among the lowest of the entire Europe and there is only slow development in terms of the growth of the sector, even though there is a lot of available biomass, given the large and flat surface of the country with a well-developed agricultural sector. As in most countries in the world, there is a quite intensive and well-developed debate in Ukraine about the energy sector, energy usage and the necessary transition towards more renewable types of energy. One of the consequences of it is that Ukraine is one of the partner countries in the Paris agreement and committed itself to reducing the amount of greenhouse gas emissions in the future. That means that a transformation towards renewable energy is needed, even though currently in Ukraine only a low percentage of energy is generated by sustainable sources. The general picture is that in Ukraine the development of the renewable energy sector is going not as fast as could have been. In other words, there are several barriers present that hinder the energy transition. One of the issues behind such a barrier may be a limited access to technology, or problems with legislation or other issues which may be unknown so far, but certainly relevant for foreign investors. The Ukrainian government adopted the so-called Renewable Energy Directive (RED), set goals for the energy transition and support the transition itself. In some areas progress was made, for example in the growing number of biomass fired boilers, but still Ukraine remains one of the European countries with the lowest percentage of renewable energy production. Therefore, in order to identify currently existing barriers and help to find possible applications of new technologies in Ukraine, the Dutch Enterprise Agency (Rijksdienst voor Ondernemerschap) commissioned this study. It was done within the framework of the Partners in Business on Bioenergy program. The focus of this study is on analysing the renewable energy sector, with special attention for biomass, in the form of biomass-based heating and biomass for biofuels. Of course, other parts of the renewable energy sector such as solar and wind energy are also taken into consideration. The second part consists of a case study to determine the business case for direct processing of sugar beets with Betaprocess as a possible application of biomass to biofuel production in Ukraine. The third study is aiming at determining the amount of biomass that can safely be taken from the fields, without negatively affecting the fertility of the soil. These sub-studies mentioned in the previous paragraph offer a better understanding of the renewable energy market in general and biomass/biofuel applications in particular. This study sheds light on several important questions that entrepreneurs and/or other foreign investors may have about investing in Ukraine. Even though it is well-known that doing business in Ukraine is challenging, it is also very important to have a clear picture of the opportunities that this country offers, within the limits that nature sets, in order to avoid negative consequences like soil degradation. The objective of this report is to find out about which opportunities and barriers exist in the Ukrainian transition towards renewable energy generation, to calculate the profitability of new biomass-processing technologies as well as finding out limitations of biomass usage.
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