International Business and SDG 8

Sustainable Development Goal (SDG) 8 aims to promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all. The twelve associated targets call for action in several interconnected domains that are of great relevance for global governance, international business, and international entrepreneurship.

The world is facing a ‘perfect storm’—a combination of largely man-made crises that puts the governance of the global economic, political, social and health system as developed since the 1990s under increasing pressure. The perfect storm presents a number of fundamental questions for engaged International Business (IB) scholarship. How to assess the action of (multinational) corporations under these circumstances? How to measure the effectiveness of corporate strategies for sustainable development? Moreover, what could engaged IB scholarship focus on in their research and teaching? Why is SDG 8 (decent work and economic growth) thereby particularly relevant? Are we on course?

Decent work, part of Sustainable Development Goal (SDG) 8, remains a daunting challenge for international business (IB). This chapter takes an IB perspective on the role of labour standards provisions (often referred to as “social clauses”) in international trade policy. Such provisions aim to improve labour standards in trading partners through trade policy mechanisms. The chapter provides a brief overview of labour standards and discusses the so far failed attempts to include labour standards provisions in multilateral frameworks such as the World Trade Organization (WTO). It describes the ensuing trend of instead including such standards in regional and bilateral free trade agreements. Some theory and evidence from research literature on labour provisions is presented. The chapter concludes by outlining some promising research avenues for IB related to labour provisions in trade policy.

The 2030 Agenda for Sustainable Development ascribes specific roles to business organisations and has reinvigorated the discussions on the link between multinational corporations and international development. SDG 8 aims to promote economic growth and decent work, and thus establishes an explicit connection to the Decent Work Agenda of the ILO.

Despite its current relevance, international business research on the links between MNCs and sustainable development has largely ignored the topic of decent work. This chapter analyses the incidence and extent of corporate commitment to decent work and sustainable development, as measured through word frequency analysis and text-mining methods, drawing on annual reports and sustainability reports published in 2010 and 2020 of MNCs listed on the DAX-40 stock market index. The chapter seeks to explore the incidence and variation in decent work- and sustainability-related corporate reporting across companies, and the changes in decent work and sustainability reporting over time.

Modern slavery arises in global supply chains because MNEs do not exert their power in defence of labour. Current legislative innovations seek to compel MNEs to do so by imposing a duty to intercede between labour and exploitative third-party employers. This creates an apparent policy dissonance: on one hand modern slavery and business and human rights law insist that corporations exert their market power over third parties, while, on the other, competition law (antitrust) proscribes the use of market power over third parties. Although the aims of these bodies of law appear very different, they are united to the extent that both seek to protect labour from indignity. This suggests a hitherto unexplored inspiration for addressing modern slavery resides in principles underpinning antitrust. The problems confronted by antitrust arise from dysfunctional economic coordination, and in this chapter modern slavery is construed as the legal challenge of the same variety. Elaboration of the parallels between antitrust and modern slavery law suggests alternative global governance pathways to realise SDG 8.7.

This chapter contributes to understanding the institutional evolutions necessary to achieve SDG8, by investigating the extensive transparency databases which have recently emerged in the fashion sector and exploring the extent to which they can illuminate and improve the ethical performance of fashion global value chains (GVCs). We analyse whether, and how, data on the three key characteristics of transparency—factory lists, production conditions and purchasing practices—can illuminate the core aspects of ethical trade defined by civil society actors and the International Labour Organisation (ILO). We find that, while evolving transparency initiatives in fashion are important, they will not, in themselves significantly advance working conditions and wages. Our findings underline the need for a better combination of stronger regulation and transparency to secure the shifts required to support the achievement of SDG8.

Multinational Enterprises (MNEs) are facing growing pressures from stakeholders to address global challenges and to alleviate inequalities faced by disadvantaged communities in the regions where they operate. This thematic literature review seeks to uncover existing knowledge in the IB, wider management literature and closely related fields—economics and development studies—to understand how MNEs interact with disadvantaged communities in emerging markets. Since several of the United Nations’ Sustainable Development Goals (SDGs) are concerned with addressing the needs of disadvantaged communities, this study explores the potential for MNEs to contribute to the achievement of the SDGs, and in particular SDG8 (Decent work and economic development). Our main contribution is to present a thematic analysis of existing knowledge, with the aim of enhancing theoretical understanding of how MNEs interact with disadvantaged communities, and in turn how MNEs can contribute to SDG8.

A major wave of innovation FDI has been taking place as a result of the reconfiguration of global innovation strategy by multinational enterprises. Published data shows that core subnational regions (high global and local connectedness and performance) are the main recipients compared to peripheral regions. This uneven distribution has significant strategic implications for peripheral regional development. This study evaluates exemplar literature that offers valuable insights into the links among MNE FDI, subnational peripheries, and local upgrading. It provides a literature-informed framework which conceptualizes key antecedents, mechanisms, consequences, and their relationships. The study makes three contributions: First, it scrutinises early evidence concerning MNEs and host subnational peripheries and unfolds the current state of knowledge. Second, it introduces a conceptual framework that maps out the nexus of MNE FDI, subnational peripheries, and local innovation upgrading. Third, it highlights how this line of inquiry helps to evaluate the current progress on achieving UN’s Sustainable Development Goal 8, particularly targets 8.2 and 8.3.

A significant technological advancement in recent years is the emergence of blockchain technology. The implementation of blockchain technology in supply chains has had drastic impacts on economic, social, and environmental outcomes. In this conceptual paper, we aim to provide a reflective perspective on the current literature to understand the role of blockchain technology adoption on economic and social upgrading in global value chains. This work focuses on the trade-offs between economic and social upgrading for suppliers in developing economies and on the conditions under which this trade-off can be minimized. We argue that blockchain technology adoption can lead to process upgrading and social upgrading for suppliers in developing economies. However, the adoption of blockchain technology is likely to increase lead firms’ power and will moderate the outcomes from process and social upgrading.

This chapter presents a novel analytical framework that explores the potential role of Circular Economy (CE) strategies in promoting social upgrading within global value chains (GVCs), primarily situated in the global South. The framework is grounded in the affordance perspective, which recognizes that the adoption of the CE paradigm does not guarantee improvements in the working environments of participating firms. This is because the CE often prioritizes environmental goals and may overlook social considerations in its strategies focused on industry and products. The framework emphasizes the need to bridge the gap between CE and GVC domains to enhance working conditions in participating firms. The framework integrates the affordances of the CE model, based on the 9R CE strategies, with the five key themes for decent work identified by the International Labour Organization, while considering the influence of institutional enablers and barriers. To support its propositions, the study includes several examples. This research contributes to the literature on CE and GVCs by providing a fresh perspective on the intersection between the CE and social upgrading within GVCs. It highlights the challenges in realizing social improvements when the CE paradigm primarily focuses on environmental goals. Additionally, the study sheds light on the influence of the institutional context on delivering social upgrading in CE implementation.

The entrepreneurial ecosystem literature increasingly includes the concept of sustainability. In this chapter, we explore the mechanism by which the pursuit of sustainable opportunities within entrepreneurial ecosystems is becoming increasingly internationally connected. Specifically, we argue that structural factors that connect local ecosystems to international networks impact the capacity of entrepreneurial ecosystems for more inclusive growth opportunities, supporting SDG8. Furthermore, we identify globally connected entrepreneurs, including, returnee entrepreneurs, immigrant entrepreneurs, and global argonauts as key contributors to the dissemination of sustainable ideas between entrepreneurial ecosystems and across national borders. The chapter offers insights into new research opportunities related to entrepreneurial ecosystems, sustainability, and international business.

We use the multiple agency theory to explain the governance issues in cross-sector partnerships. In doing so, we identify five typologies of cross-sector partnerships, each distinct from one another in terms of the governance structure. We also discuss three problems that occur in these relationships, mainly differences in institutional logic, temporal differences, and free-riding and opportunistic behaviour, as well as how these problems affect each type of cross-sector partnership. These findings make several contributions to the literature. First, this is one of the few studies to use agency theory to examine the governance structures in cross-sector partnerships. Second, our study further contributes to solidifying our understanding of the agency problems arising in such partnerships. Lastly, our study explains that these problems do not affect each type in the same way, leading us to offer more nuanced implications.

Institutions play an important role in trade and knowledge transfer; they constrain human interactions while also providing a framework for efficient social and economic interactions, as reflected in the United Nation’s SGD goals. In emerging economies, the microfoundations of institutions need to be better understood by considering the micro, meso, and macro levels of institutional players. This is especially critical for knowledge transfer in the context of traditional, craft-based industries. In this chapter, we address the SDG 8 focus on sustained and inclusive economic growth, considering the institutional and cultural diversity present in emerging economies. We present a conceptual framework of the microfoundations of institutions for knowledge transfer in an industry that provides employment for large numbers of people at the base of the economic pyramid. We highlight institutions’ multilevel nature, and the importance of the micro and macro levels in the traditional arts and crafts industry of an emerging economy.

Considering the increased focus on sustainable development, cooperatives have attracted renewed interest as a viable organizational form that can help to address a range of socio-economic and environmental issues in regions underserved by traditional organizational forms and at a global scale. In this chapter, we review the contributions of worker and producer cooperatives toward achieving Sustainable Development Goal 8 (SDG8) in both developing and developed economies. We outline how cooperative principles align with sustainable and inclusive economic growth and their potential to address social and environmental challenges. We offer illustrative examples of worker and producer cooperatives contributing to SDG8 by providing employment opportunities, improving work conditions, and fostering local economic development. We address and discuss criticisms and challenges cooperatives face, particularly those that emerge from contradictory economic and social goals. Finally, we emphasize a need for further research to better understand the potential of cooperatives, an organizational form that has received limited attention from international business scholars.

Addressing the disconnect between the rhetoric and implementation of diversity, equity, inclusion (DEI), and belonging within business education, this chapter delves into integrating DEI principles within international business (IB) education. Inspired by an OECD framework advocating inclusive education within diverse societies, we analyse DEI- and belongingness-enabling actions at institutional, study programme, course, and individual levels tailored to business schools. While our recommendations hold relevance for broader business education, we posit that IB, given its inherent appreciation for geographical, cultural, and institutional diversity, stands as a vanguard for instigating the requisite transformation embedding DEI in business education. Our proposals inherently bolster the pursuit of Sustainable Development Goal 8 (Decent Work and Economic Growth) as business schools educate future leaders who can lead the change and role-model organisational work environments.

International business (IB) educators are increasingly adopting experiential learning approaches. This is found to support long-term student learning outcomes. Therefore, using innovative experiential learning approaches in IB education offers a useful vehicle to support long-term progress towards the Sustainability Development Goal (SDG) 8—economic growth and decent work. This chapter focuses on the importance of the learning context, drawing on small and medium-sized enterprises (SMEs) in New Zealand (NZ), suggesting this context offers beneficial learning outcomes. By embedding in this context students can gain a deep understanding of SME opportunities and challenges, learning how to navigate these to support growth, and subsequently supporting SDG8. This chapter outlines practical examples of experiential learning activities and assessments, designed to support hands-on knowledge development for IB students.

This chapter offers insights for international business educators on applying design thinking principles to examine modern slavery in the international business (IB) classroom. While design thinking is often used as a pedagogical tool, applying this concept to explore the nature and the extent of modern slavery in the IB classroom is limited. Informed by the United Nations Sustainable Development Goal (SDG) - Decent Work and Economic Growth and Eradicating Modern Slavery (SDG8 and target 8.7), the chapter outlines how design thinking can be employed to examine the nature and extent of exploitation in cocoa farming and the chocolate industry. The activities outlined in the chapter focus on instruction for social sustainability education purposes. The chapter concludes with a set of actionable pedagogical insights.

The global food system provides us with a lens to view some of the grand challenges facing societies today. Roughly 63% of the world’s poorest are involved in agricultural value chains (World Bank Group in Expanding Market Opportunities and Inclusive Private Sector Engagement in Agribusiness.https://​www.​worldbank.​org/​content/​dam/​Worldbank/​document/​Trade/​CompSector_​Agribusiness.​pdf, 2023) and approximately 30% of global greenhouse gases (Crippa et al. in Nature Food 2(3):198–209, 2021) can be attributed to agricultural activity. Efforts to reduce poverty and halt climate change can be intrinsically linked to the production, distribution and consumption of food. In 2019, 884 million people were said to be employed within the agricultural industry, that is approximately 20% of the global workforce.

Over the past ten years, record-breaking numbers of migrants have entered Europe. It is being labelled “unwanted migration”. While governments are considering sending migrants to Central Africa, keep them in Turkey, or North Africa, there is an enormous shortage of labourers in the European industries; in Britain, Germany and elsewhere. It is becoming evident that the lack of workforce will significantly affect future economic growth in Europe. In order to keep economies growing next to increasing the efforts for the selective migration of talents, the professionalisation of integrating “unwanted migrations” will assume central importance.

This paper considers the implications of Brexit, particularly for Scottish businesses. Incorporating evidence from academic papers, UK and Scottish data sources, and various business surveys, this paper reflects on the impact Brexit has had on exporting, importing and investment—key drivers of economic growth.

Exporting levels fell in the immediate aftermath of ‘Brexit Day’ and then appeared to recover within 6 months. However, evidence suggests that sales to the EU remain lower than that if the UK was still a member and the variety of goods exported has fallen. It is likely that Brexit did have an initial effect on importing, and although having now returned to a more normal situation, the composition has changed with more imports now coming from the rest of the world relative to the EU. As for inward investment, evidence shows little impact for Scotland as it remains a desirable investment destination.

This reflection focuses on the effectiveness of various schemes and programmes launched by the central government of India and the state government of Odisha in response to SDG 8. As an employer of the beneficiaries of some of these schemes, I reflect on the gaps in the system which, if plugged at the planning, design and implementation stage, can yield better outcomes.