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Corporate responsibility cluster potential in a rainforest region [Elektronische Ressource] : autoparts made of natural fibers in Brazil / vorgelegt von Kátia Cilene Rodrigues Madruga

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Published 01 January 2005
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Language English


Fachbereich Wirtschaftswissenschaft


Corporate Responsibility Cluster Potential in a Rainforest Region
- Autoparts Made of Natural Fibers in Brazil -




Dissertation

zur Erlangung der Doktorwürde
durch den
Promotionsausschuss Dr. rer. pol.
der Universität Bremen


vorgelegt von

Kátia Cilene Rodrigues Madruga




Erstgutachter: Prof. Dr. H.-D. Haasis
Zweitgutachterin: Prof. Dr. Adelheid Biesecker

Bremen, 10.01.2005


Forschung gefördert durch den
Katholischen Akademischen Ausländer-Dienst (KAAD)
















To Alex, Norma and Rubens

I























Acknowledgements
I would like to thank the evaluators of this thesis, especially my supervisor, Prof.
Dr. Haasis, for his comments and suggestions. They are not responsible,
however, for any of its conclusions. I also would like to thank the contact
persons from the researched organisations. Last, but not least, I want to thank
the Katholischer Akademischer Ausländer-Dienst (KAAD) for the financial
support to the research project.
II
Contents

Contents
List of Figures and Tables .........................................................................................................................V
List of Annexes ..........................................................................................................................................VI
Introduction ................................................................................................................................................7
1 Investigation Problem .............................................................................................................................9
1.1 Problem........................................................................................................................................9
1.2 Motivation...................................................................................................................................11
1.3 Methodology...............................................................................................................................12
2 Literature Review...................................................................................................................................15
2.1 Corporate Social Responsibility: an Overview............................................................................15
2.1.1 Corporate Social Responsibility and Competitiveness of Emerging Markets. .............25
2.1.2 Corporate Responsibility Clusters and Regional Competitiveness..............................28
2.2 Automobile Industry in Emerging Markets..................................................................................33
2.2.1 The Brazilian Automobile Industry...............................................................................38
2.2.2 Environmental Management in the Brazilian Automobile Industry...............................43
2.3 The North of Brazil: the Amazon Region....................................................................................45
2.4 Concluding Remarks..................................................................................................................50
3 Case Study Description and Pilot Interview ........................................................................................53
3.1 The State of Pará .......................................................................................................................53
3.2 Federal University of Pará: Sustainable Development Programme/POEMA..............................55
3.3 Co-operation between Federal University of Pará and Automaker ............................................58
3.4 Pilot Interview with Automaker ...................................................................................................61
3.5 First Theoretical Framework for Verifying Potential of Grouping................................................67
4 Results and Analysis.............................................................................................................................70
4.1 Method and Description of the Groups Interviewed ...................................................................70
4.1.1 Automakers .................................................................................................................70
4.1.2 First Tier Suppliers – ABC/São Paulo Region .............................................................71
4.1.3 Suppliers of Refined and Processed Fibers – Non-Industrialised Tropical Region......72
4.1.4 Sustainable Development Programme – Federal University of Pará...........................72
4.1.5 Sectorial Associations .................................................................................................73
4.2 Results .......................................................................................................................................73
4.3 Analysis......................................................................................................................................87
4.3.1 Main Stakeholders.......................................................................................................88
4.3.2 Possible Difficulties......................................................................................................89
4.3.3 Burdens .......................................................................................................................90
4.3.4. Co-operation and Problem-Solving.............................................................................90
4.3.5 Competencies and Needs ...........................................................................................91
4.3.6 Main Drivers ................................................................................................................91
4.3.7 Possible Arrangements ...............................................................................................92
4.3.8 Supplier Development .................................................................................................92
4.3.9 Policies ........................................................................................................................93
4.3.10 Perspectives..............................................................................................................94
III
Contents

4.4 Key-Factors................................................................................................................................94
4.4.1 Productivity...................................................................................................................95
4.4.2 Legitimacy ....................................................................................................................95
4.4.3 Development of Appropriate Technology .....................................................................95
4.4.4 Jobs and Income Generation........................................................................................96
4.4.5 Logistics Cost Reduction ..............................................................................................96
4.4.6 Trend to Use More Natural Fibers ................................................................................97
4.5 Concluding Remarks.................................................................................................................99
5 Final Results and Conclusions...........................................................................................................101
5.1 Research Concluding Summary and Main Results ..................................................................101
5.2 Limitations and Proposal for Further Investigations .................................................................105
Bibliography............................................................................................................................................125


IV
List of Figures and Tables

List of Figures and Tables
Figure 1 - Stages of the Investigation ....................................................................................................14
Figure 2 - Requirements to Suppliers ....................................................................................................44
Figure 3 - Sustainable Development Programme: Framework of Action ...............................................57
Figure 4 - Fiber Supply to Automaker Plants in São Bernardo and Juiz de Fora .................................66
Figure 5 - Fibers from Pará Region Used for Autoparts Manufacturing.................................................98

Table 1 - Automotive Plants in Brazil....................................................................................................39
Table 2 - New Companies and Factories for Light Vehicle Production in Brazil,......................................
Late 90’s................................................................................................................................40
Table 3 - Mercedes A Car Sourcing in Brazil.......................................................................................43
Table 4 - Components and Sort of Fibers.............................................................................................63


V
List of Annexes

List of Annexes
Annex 1 - Map of Brazil.............................................................................................................................106
Annex 2 - Brazilian Regions......................................................................................................................107
Annex 3 - Main CSR Documents - Part I ..................................................................................................108
Annex 3 - Main CSR Documents - Part II .................................................................................................109
Annex 4 - List of Organisations Investigated.............................................................................................110
Annex 5 - Questions – Pilot Interview - (Translated into English)....... ......................................................111
Annex 6 - Questions – Pilot Interview - (Original in Portuguese)... ...........................................................112
Annex 7 - Letter + Questionnaire Sent to Organisations (Translated into English)...................................113
Annex 8 - Letter + Questionnaire Sent to Organisations (Original in Portuguese)....................................119


VI
Introduction

Introduction
Emerging global problems, such as the high increase of inequalities and the
fast-growing shortage of natural resources, represent a challenge to the
economic, social and environmental sustainability. An instance of these
inequalities is the fact that the top 200 international corporations have had sales
1that are equivalent to one quarter of the world’s total economic activity.

These companies have a big influence on our society, once they have huge
financial, technological and economic resources. This raises questions
2concerning the role business plays in moulding tomorrow’s society. Investors,
consumers, workers, labour unions, among other groups, expect that
companies, especially multinational corporations, will assume their co-
3 responsibility in the process of looking for a long-term business model.

These growing concerns have led to a political debate on responsible business
4practices and sustainable development. Thus, several international principles
have been formulated, such as those proposed by the Organisation for
Economic Co-operation and Development Guidelines for Multinational Enter-
5prises and the European Commission Framework for Promoting Corporate
6Social Responsibility.

Therefore, the theme Corporate Social Responsibility has become a significant
7issue, which affects Business Administration theories and practices. Innovative
companies are interested in strategically implementing social responsibility,
since responsible business practices may positively affect aspects, such as
worker’s motivation and retaining, efficiency and productivity, process and
8logistics management, company’s brand and image, among others.

1 Cp. Zadek, S. (1999), p. 27-53.
2 Cp. UNEP DTIE, (2002), a.
3 Cp. Jakob, G. and Toyoka-Seid, C. (2003).
4 Cp. Collier, J. (1995).
5 Cp. OECD (2002).
6 Cp. Green Paper (2001).
7 Cp. Koslowski, P. (1999).
8 Cp. Ulrich, P. (1999).
7
Introduction

However, a critical gap still remains between responsible management and
9macroeffects on sustainable development. Corporate responsibility (CR)
management is mostly treated as a microaffair. CR has been reduced to
10voluntary initiatives of firms, low level compliance or an extra alternative to
11preserve the competitive advantages of a few multinational market leaders.

Some researchers on cluster development have demonstrated that this might
be a mechanism to generate linkages between responsible business practices
and regional sustainability. Thus, cluster arrangements may be an alternative to
12scale up corporate responsibility from micro to macro level.

Nevertheless, discussions about Corporate Responsibility Clusters (CRC) have
been normally limited to regions where there is already an industrial structure.
This investigation proposes the potential of CRC to be verified in a non-
industrialised region, more specifically, in a rainforest region.

In order to investigate the chances of cluster development in a rainforest area, a
case study was developed. A set of organisations were chosen to provide
information about the theme autoparts made of natural fibers coming from Pará,
Amazon region, in Brazil.

The investigation was divided into five chapters. These are: 1) Discussion of the
Investigation Problem; 2) Literature Review; 3) Case Study Description and
Pilot Interview, 4) Results of Questionnaires and Analysis, 5) Final Results and
Conclusions.

9 Cp. Swift, T. and Zadek, S. (2002).
10 Cp. Beyond Voluntarism (2002).
11 Cp. Swift, T. and Zadek, S. (2002).
12 Cp. ibid.
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Chapter 1 – Investigation Problem

1 Investigation Problem
This chapter presents the investigation problem (1.1), the research motivation
(1.2), and the methodology (1.3).
1.1 Problem
A considerable amount of researches have discussed the phenomenon of
clusters and its impacts on regional economy. Clusters or industrial districts are
mostly defined as a geographic concentration of interconnected organisations in
13a given sector. This set of organisations may include companies, suppliers,
universities, and research centres, which strategically co-operate. These
14interconnections lead to a higher level of innovation and productivity growth.
Typical examples of cluster agglomeration are the Silicon Valley in the USA and
15the automotive industry in Germany.

Scholars approach the phenomenon of cluster by addressing different issues.
Studies have analysed, among other questions: preconditions for the
emergence of a network (e.g.: a critical mass of small and medium sized
enterprises in a predetermined geographical area, strong co-operative relations
among member companies as well as firms and universities/research centres),
16 and common problems that might affect co-operative arrangements (e.g.: co-
17ordination, size, hierarchy, timing).

These analyses are important to understand the cluster dynamics. They help to
identify how a cluster evolves, factors that can guarantee its continuous
18
development and the long-term competitiveness of sectors and regions.
Recent investigations have also pointed out that the phenomenon of clusters
may be a suitable alternative to answer the question of sustainable
19
development.


13 Cp. Porter, M. (1990).
14 Cp. Van der Meer, A. (2003).
15 Cp. Porter, M. (1990).
16 Cp. Meyer, S. (2001).
17 Cp. Kriwald, T. and Schuth, S. (1999).
18 Cp. Elsner, W. (1999), p. 61-75.
19 Cp. Swift, T. and Zadek, S. (2002).
9