Extracting conflict

U.S. Multinationals and Human Rights: A Theoretical and Empirical Assessment of Extractive Versus Nonextractive Sectors

“…These issues have led to protests, sabotage, and subsequent security challenges across extractive sectors in the past (Dashwood, 2014;Mutti et al, 2012). A prominent example is the Niger Delta, where government security forces used violence against activists and local protesters (Frynas, 1998;Idemudia, 2009;MacDonald & McLaughlin, 2003). Indeed, a detailed list of cases on human rights violations registered under The Alien Tort Claims Act (ATCA) of 1789 of the U.S. government against U.S. firms operating in various developing countries reports that the majority of the cases are associated with extractive investments (see our summary in the Appendix A).…”

“…We ask, therefore, what is the impact of FDI on human rights across different industry sectors, and what differences exist if any between extractive (oil and mining) versus nonextractive industries (manufacturing and services)? We focus on this distinction because among qualitative case studies, there is a great deal of attention paid to the negative impacts in extractive sectors, which has amounted to the theory of the so called "resource curse" that drives autocratic and corrupt politics in resource-wealthy states (Eweje, 2006a(Eweje, , 2006b(Eweje, , 2009Idemudia, 2009;MacDonald & McLaughlin, 2003;Ross, 2001). Many local communities and social activists are willing to give up on potential economic benefits from FDI and oppose new extractive investment because they fear that extraction leads to human rights abuses in local communities, where foreign companies run rough shod over the interests and demands of people (Dashwood, 2014;Mutti et al, 2012).…”

MNC Reporting on CSR and Conflict in Central Africa

“…Visser et al, 2006) and their attitude vis-à-vis ongoing conflicts (Banfield, 2003;Handelsman, 2003;MacDonald and McLaughlin, 2003;Oetzel et al, 2007). In the more generic, emergent literature on MNCs and conflict, several questions have been raised (Bais and Huijser, 2005;Banfield et al, 2005;Bennett, 2002;Haufler, 2004;Nelson, 2000;Oetzel et al, 2007;Sullivan, 2003), also 5 as input for further research (Oetzel et al, 2007;UNCTAD, 2007).…”

A Sectoral Analysis of Human Rights and FDI: Does Industry Type Matter?

“…Yet, not all companies place a priority on the development of social license. Instead, prevailing corporate culture may support a “silo mentality” (MacDonald and McLaughlin 2003, 235) where corporations view the host in purely instrumental terms and tensions with the host society as seen as outside of corporate purview. For instance, a company might respond to demonstrations and protests by simply hiring more guards or requesting additional support from police or local security forces rather than taking efforts to develop social license to operate within the country.…”

“…Resource‐seeking FDI tends to require lower‐skilled labor to perform extractive work. Moreover, resource‐seeking firms often maintain a “silo mentality” and have no natural inclination to seek broader integration within their host country beyond ensuring the security of their site (MacDonald and McLaughlin 2003). The physical constraints of this type of FDI can exacerbate these issues.…”