This ATDF Journal discusses embeddedness and assessing the quality and extent of «local embeddedness» as a sustainability indicator that captures the positive externalities generated by multinational companies for the local economy the local environment, and the local community and its transformation.
The term ‘embeddedness’ has been shaped and re-shaped by the research of economic sociologists in the 20th century.
Karl Polanyi initiated the academic debate on embeddedness with the publication of ‘The Great Transformation’ in 1944. His basic argument was that the institutions of embedded traditional economies are being destroyed by a self-regulating market economy in which the market no more serves the needs of the people but rather reversed, that people would have to meet the needs of the market. As a consequence, the expansion of the formal market economy would lead to the disembedding of local economies with ‘catastrophic consequences’ for local communities.
Download the full PDF version of the ATDF Journal Version 9, Issue 1, 2017 on the Sustainability effects from embeddedness of multinational enterprises (MNEs) in developing countries.
Inside this edition
‘Principled embeddedness’: How Multinational Enterprises contribute to sustainable change by pursuing their long-term self-interest (PDF)
Sustainable and Future Oriented Cocoa Production in Ghana: Analysis of the Initiatives of two Swiss Chocolate Manufacturers (PDF)
Embeddedness of Chiquita’s Banana Production in Panama: The potential to mitigate social and ecological problems (PDF)
Constantine Bartel and Veronica Soldati
From Philanthropy to Business: When Transformation Is The Only Way to Stay True to Your Mission (PDF)
Ulrich Frei and Isabelle Schluep
Positive Sustainability Effects Resulting from Embeddedness: Evidence from Syngenta’s potato business in Kenya and Colombia (PDF)
Beyond Corporate Social Responsibility – A Human-Centred Approach to Business Ethics in the 21st Century (PDF)
Marianthe Stavridou and Sumon Vangchuay
See the Chiquita “Embeddedness” CSR Report 2016_2017 which is based on the CCRS research Here and 2019 Sustainability report Here