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Corporate responsibility and emerging markets
Edited by Gilbert Lenssen, Yury Blagov, and David Bevan
Introduction
On 20 April 2010 an explosion on the Gulf of Mexico Deepwater Horizon oil rig exposed the US to an historic ecological disaster. Taking more than three months to contain ([35] Guardian , 2011), the US government initially estimated spillage at 5,000 barrels per day; however, a Democrat Representative in Congress, Edward Markey, estimated these levels at around 100,000 barrels per day.
US administrators and lawmakers did not stay silent. Following a hearing by the US Congress, President Obama expressed his anger and frustration, calling the behavior of the three companies involved - BP, Transocean and Halliburton - a "ridiculous spectacle" and then calling for a "top-to-bottom" review of the Minerals Management Service, the federal agency that oversees offshore drilling and was accused of having a "cosy relationship" with oil companies ([65] Reuters, 2010).
According to President Obama, the "cosy relationship" manifested itself because regulators were relying on companies' promises about the safety and security of their drilling activities and he vowed to make these mechanisms more accountable.
This episode illustrates the limits of CSR programs currently undertaken by global businesses. The logical rules and regulations which business and government leaders created did not work to exemplify the broadly shared social values that US society deemed to be important. Representing our deeply held values and the metaphorical expressions of our beliefs, these accountability structures must change over time to continue to align with prevailing beliefs and core values. This global CSR failure also reflects the dynamic process that CSR programs must undergo over time.
Emerging markets can also learn a valuable lesson from this case study as they continue on their path of economic development. Their CSR programs should also reflect their own cultures' unique social norms and be dynamic enough to respond to unprecedented threats due to increased stakeholder scrutiny and constraints on environmental and other resources.
The Deepwater Horizon oil spill disaster calls into question whether any voluntary arrangement made by corporations in the developed or developing worlds are, in fact, viable in the long term. The specific CSR issues addressed in this case study, such as corruption, transparency, health and safety, environmental impact, resource depletion or ecological...