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Reputation Risk and Globalisation

Terry O’Callaghan

Recently, multinational corporations have begun to reinvent themselves as socially responsible actors. This is largely in response to activist pressure. These activists have perceptively understood the link between corporate success and corporate behaviour. Corporate self-regulation has emerged as an important mechanism to counter this activist pressure. The author argues that corporations have a capacity for self-regulation because their reputation is critical to their success. As such, reputation is beginning to discipline corporate behaviour. The book first explores the link between corporate reputation, corporate behaviour and self-regulation. The author then compares and contrasts various studies of multinational corporations that have sought to self-regulate.
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Terry O’Callaghan

AIDS          Acquired Immune Deficiency Syndrome

ASA           Advertising Standards Authority

BHP            Broken Hill Proprietary Company Limited

BoE             Barrel of Oil Equivalent

BP                British Petroleum

CAFE          Corporate Average Fuel Economy

CARE          Carpet America Recovery Effort

CEO             Chief Executive Officer

CIA              Central Intelligence Agency

CMA            Chemical Manufacturers Association

CNOOC       Chinese National Offshore Oil Corporation

COSA          Coalition on South Africa

CSG              Coal Seam Gas

CSR              Corporate Social Responsibility

DAN            Direct Action Network

EITI              Extractive Industries Transparency Initiative

EP                 Equator Principles

EPD              Environmental Product Declaration

FOEI             Friends of the Earth International

FRA             Financial Reporting Authority

GATT           General Agreement on Tariffs and Trade

GDP              Gross Domestic Product

GFC              Global Financial Crisis

GHG              Greenhouse Gas

GM                Genetically Modified

GNI               Gross National Income

HSE               Health, Safety and Environment

ICCA             International Council of Chemical Associations

ICMM           International Council on Mining and Metals

IIED              International Institute for Environment and Development

IMF               International Monetary Fund

IOC               International Oil Company

IPCC             Intergovernmental Panel on Climate Change

IR                  International Relations

IWT              International Water Tribunal

ITT                International Telephone and Telegraph

LCA               Life-Cycle Assessment

LEED             Leadership in Energy and Environmental Design

LSE                London Stock Exchange

LTO               Licence to Operate

MDG              Millennium Development Goal

MIGA            Multilateral Investment Guarantee Agency

MIT               Massachusetts Institute of Technology

MMS             Minerals Management Service

MMSD          Mining, Minerals and Sustainable Development

MNC             Multinational Corporation

MNE             Multinational Enterprise

MOSOP        Movement for the Survival of the Ogoni People

NASDAQ     National Association of Securities Dealers Automated Quotations

NGO              Non-Governmental Organisation

NHTSA         National Highway Traffic Safety Administration

OB                  Obsolescing Bargain

OECD            Organisation for Economic Co-operation and Development

OICA             Organization of Motor Vehicle Manufacturers

OPIC              Overseas Private Investment Corporation

OSPAR         The Convention for the Protection of the Marine Environment of the North-East Atlantic

OTML           Ok Tedi Mining Limited

OWS              Occupy Wall Street

PCB               Polychlorinated Biphenyl

PETA             People for the Ethical Treatment of Animals

PNG               Papua New Guinea

PRI                 Political Risk Insurance

PR                  Public Relations

PVC               Polyvinyl Chloride

QUEST         Quality Utilizing Employees’ Suggestions and Teamwork

RDSL            Royal Dutch Shell Limited

RQ                 Reputation Quotient

SARF            Social Amplification of Risk Framework

SDG               Sustainable Development Goals

SG                  Secretary-General

SME              Small to Medium Enterprise

SRO              Self-Regulatory Organisation

SUV              Sport Utility Vehicle

TNC              Transnational Corporation

TPS              Toyota Production System

TRIPS          Trade Related Aspects of Intellectual Property Rights

UN                United Nations

UNCTC        United Nations Centre on Transnational Corporations

UniSA          University of South Australia

UNESCO      United Nations Educational, Scientific and Cultural Organization

UNGC           United Nations Global Compact

UNICEF        United Nations International Children’s Emergency Fund

Unocal         Union Oil Company of California

US                 United States

VOC              Volatile Organic Compound

WBCSD        World Business Council on Sustainable Development

WBG             World Bank Group

WEF             World Economic Forum

WHO            World Health Organization

WSF             World Social Forum

WTO             World Trade Organization

WWW           World Wide Web

ZSL                 Zoological Society of London