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Isolation and autonomy as determinants of indigenous community

conflicts with MNCs: the moderating effect of company sustainability

focus and country poverty and development

Thesis Proposal Name: Pietro Negri

Student number: 10393110 Supervisor: Dr. Ilir Haxhi Second reader: …

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Statement of Originality

This document is written by Pietro Negri who declares to take full responsibility for the contents of this document. I declare that the text and the work presented in this document is original and that no sources other than those mentioned in the text and its references have been used in creating it. The Faculty of Economics and Business is responsible solely for the supervision of completion of the work, not for the contents.

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Abstract

Due to the globalizing nature of the modern business world, companies that were once constrained to their national home market are now capable of moving their business operations abroad. When Multinational corporations (MNCs) perform FDI abroad, in many cases they target poor areas due to their low costs and monetary benefits. Nonetheless, when operating in these geographical locations, they can obstruct the lives of indigenous communities that reside in those areas. Conflicts can arise between these MNCs that seek to operate abroad and the indigenous communities that live in those areas and, although previous research has identified governance structures and stakeholder inequalities as culprits for these conflicts, indigenous community characteristics were rarely analysed. The purpose of this study is twofold: first, to explore the effect of two indigenous community characteristics – namely isolation and autonomy – and its effect on the length and degree of violence in a conflict with MNCs, and second, to explore the moderating effect of country characteristics – namely poverty and development – and MNC characteristics – namely its sustainability focus – on the proposed direct relationship between indigenous community characteristics and conflict dynamics. This thesis uses over 700 worldwide cases of MNC-indigenous community conflicts and aimed to holistically analyse the proposed factors. The results support the direct effect of isolation – although it is the inverse of the proposed hypothesis – and the direct effect of autonomy. With respect to the moderating variables, the results only partially support the moderating effect of MNC sustainability focus and country poverty and development. This study contributes theoretically by combining indigenous community, MNC and country characteristics in one quantitative and global study. It also contributes practically by showing where MNCs should have business operations abroad and what characteristics benefit indigenous communities for peaceful interactions with MNCs.

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Table of Contents

1. Introduction………...………..……….…5

2. Literature Review……….….………...…10

2.1 Defining Indigenous Communities...…...10

2.2 Conflict………...……….………12

2.3 Causes of Conflicts………...………..…...14

2.4 Indigenous Community Isolation………...………..16

2.5 Indigenous Community Autonomy & Recognition………...…17

2.6 Poverty & Development………..……….………...18

2.7 Sustainability Focus & Corporate Social Responsibility……..………..19

3. Theoretical Framework………..………...…...21

3.1 Isolation………..………22

3.2 Autonomy………...……….24

3.3 Poverty & Development………..………....25

3.4 Sustainability Focus……….………...27

4. Conceptual Model………..………..30

5. Research Design………..……….…31

5.1 Sample & Data Collection……...……..……….31

5.2 Dependent Variables………...………31

5.3 Independent Variables………...………..33

5.4 Moderator Variables………...………34

5.5 Control Variables………...………...35

5.6 Method & Models………...……….35

6. Results & Analysis………...……….…………...36

6.1 Descriptive Statistics, Correlations & Multicollinearity…………..……….……….37

6.2 Regression Analyses…………...……….42 7. Discussion……..………...46 7.1 Findings…………..………46 7.2 Implications………...………...………...51 7.3 Limitations……..………55 7.4 Future Research………...……...………57 8. Conclusion….………59

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1. Introduction

The business world seems to be perpetually globalizing, especially since the arrival of the new millennium. Companies that were previously constrained to their home country’s market or to neighbouring nation’s markets now have almost full access to markets worldwide. Foreign direct investment (FDI) net inflow figures show that the activity of multinational corporations worldwide has dramatically increased in the last years (World Bank, 2014). Formerly, international business literature focused on the impact of country opposition to FDI performed by an MNC. In recent years companies have experienced a rise in mutually beneficial partnerships with countries in which they operate. The domain of opposition was has therefore shifted from the host country and its government towards the specific communities that reside in an area of foreign business activity (Calvano, 2008).

When a MNC operates in an area of an indigenous community, companies may act in their own interest with the aim of maximizing profits in line with their shareholder-oriented ideology. There are cases in which not much recognition is given to the wants and needs of the local community. Similarly, local communities feel like they should be considered when a MNC performs FDI in their area and that their rights and interests should be taken into account. It is therefore important to analyse the causes of these types of conflict and what really drives them for two reasons. Firstly, to cater to the rights of local communities. Secondly, since conflicts have been proven to cause a significant amount of costs for MNCs, which should of course be avoided for more profitable FDI (Davis & Franks, 2014).

Public opinion of foreign business activity of MNCs in areas in which indigenous peoples reside is predominantly negative. Although MNCs are blamed for their incorrect and immoral operations, the fault does not solely lie on them. Conflicts do not arise simply because companies disregard the rights of indigenous people, they can also arise because of a basic

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disagreement with respect to each party’s interests or due to significant differences in governance systems (Acuna, 2015). This thesis does not put the blame of conflicts arising between these two parties on the MNCs, and a neutral perspective is taken when analysing the features of these conflicts. Previous literature has analysed factors that lead to conflicts in indigenous areas but not much has been analysed with respect to the isolation and autonomy granted to the indigenous community by the host government. On an individual level, isolation is found to lead to aggressive behaviour and unfavourable views towards the party that causes the isolation (Harlow, Dodsworth & Harlow, 1965). Similarly, Cornell (2002) found that granting autonomy to minority populations can increase the likelihood of aggressive behaviour and thus a higher likelihood of conflicts arising. Since autonomy and isolation seem to affect dynamics between individuals or differing parties, it can also affect conflict occurrences between MNCs and indigenous communities – which has not yet been analysed in academic literature. Therefore, a crucial question arises:

RQ 1 – Do higher levels of isolation and autonomy of an indigenous community have a direct effect on the length and degree of violence of a conflict with an MNC?

The purpose of this question, which is the direct effect analysed in this study, is therefore to investigate whether the degree of isolation and autonomy of indigenous communities will directly affect conflict dynamics. More specifically, it is important to observe whether more isolated and autonomous indigenous communities will increases the occurrence, length and violence of a conflict due to their geographic and cultural distance from the home national government as well as the degree of recognition that is granted to the community. The direct effect of isolation and autonomy on conflict seems to be a novel and fundamental question, but there are more indirect effects to be considered that might shed even more light on conflict dynamics in indigenous communities. First and foremost, it is interesting to investigate whether specific company characteristics may moderate the effect of isolation and

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autonomy on conflict. Specifically, companies nowadays are being pushed to follow certain sustainability and social responsibility standards. The progressive degradation of our planet’s ecosystem, as well as the fauna and flora that live on it, has forced governments and companies alike to employ more humanitarian and sustainable business practices to develop and grow as a company whilst taking into account any environmental or social externalities. The fact that most companies now take an interest in these activities is principally due to isomorphic pressures that ‘force’ companies to act in the same manner and therefore accept the common practice that has become sustainability and social responsibility (DiMaggio & Powell, 1983). Although MNCs are assumed to take part in these practices, how much of an effect does a firm’s sustainability focus and corporate social responsibility (CSR) actually have on their operations? The idea of being socially and environmentally responsible would logically lead to more respect for indigenous communities as well as their culture and land – although it has never been researched as a moderator before in academic literature. Therefore, this questions is put forth:

RQ 2 – Does an MNC’s sustainability focus positively moderate the hypothesized effect of isolation and autonomy of indigenous communities on the length and violence of a conflict?

The second research question is fundamental to explain whether more socially responsible and sustainable MNCs positively affect their relationship with the host government and their consideration towards the indigenous community or whether this effect is not significant. Isolated and autonomous communities are hypothesized to engage in longer conflicts with MNCs, but a high degree of MNC sustainability should decrease this effect due to the company’s intention of maintaining the social and environmental integrity of the area where they own business operations. Higher degrees of MNCs’ sustainability focus should therefore negatively moderate the effect of isolation and autonomy on conflicts, meaning that they should lead to shorter and less violent conflicts.

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Finally, it is plausible that specific country characteristics will also have a moderating effect on the violence between MNCs and indigenous communities. When analysing conflicts between communities and companies, most occurrences seem to be located in relatively poor and underdeveloped areas of the world. This refers back to the idea of governance, in which weak governance systems is seen as the main culprit of conflict, a characteristic which is especially found in relatively poorer countries (Acuna, 2015). Furthermore, weak formal institutions, which are also a feature of poor and underdeveloped countries, decrease the legal position of indigenous communities (Kolk & Lenfant, 2013). Given these findings, the third and final research question refers to these factors as moderators for conflicts in indigenous areas:

RQ 3 – Does a country’s degree of, poverty and development negatively moderate the presumed effect of isolation and autonomy of indigenous communities on the length and violence of a conflict?

Although isolation and autonomy seem to have a negative effect on conflict length and violence, this effect is hypothesized to further worsen in relatively poor and underdeveloped countries – leading to even longer and more violent conflicts. This research question is essential since it sheds light on the moderating effect of poverty and development on conflict dynamics. It can be a useful tool for companies to use when choosing the appropriate country to perform foreign operations in. Furthermore, it is beneficial for indigenous community literature to identify whether poverty and development in a country affects conflict dynamics with MNCs. It is hypothesized that poorer and less developed countries will positively moderate the effect of isolation and autonomy on conflict due to weak governance systems and formal institutions, which means that they will lead to longer and more violent conflicts between MNCs and the indigenous community.

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This thesis will provide an empirical study on the impact of indigenous community autonomy and isolation on the violence and length of a conflict between MNCs and indigenous peoples. The topic of this study extends the previous research that has analysed the causes of conflicts between MNCs and indigenous communities by incorporating community characteristics of distance, namely isolation and autonomy, which is not seen in previous academic articles. This thesis is unique in academic literature since it analyses aspects of indigenous community, country and company characteristics that have not been previously analysed. By showing that the level of isolation and autonomy of indigenous communities directly affects conflicts with MNCs, and that host country poverty and MNC sustainability focus moderate this effect, the thesis would manage to fill a gap in the academic literature regarding the effects of country, MNC and community characteristics on conflicts. The aim is to investigate whether more isolated and autonomous communities will lead to longer and more violent conflicts between them and an MNC operating in their area.

The results of this thesis are useful for MNCs since it helps them identify the optimal country for FDI in relation to the isolation and autonomy of indigenous communities in that nation. The study will also analyse whether a more sustainably focussed company, with a higher degree of CSR, will lead to less violent and shorter conflicts, and whether the conflicts are more violent and of a longer duration in countries that are relatively poor and underdeveloped. The two indirect effects also benefit stakeholder literature since poverty, development, CSR and sustainability focus have never been measured as moderator for the relationship between isolated, autonomous indigenous communities and conflict dynamics. The results relating to the moderating effect of country characteristics can be used as a tool for MNCs to select the appropriate region in which to expand their operations. If our hypothesis is proven, meaning that poorer and less developed countries will lead to even longer and more violent conflicts, MNCs know to avoid those countries if they seek to avoid internal conflicts.

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This gives companies a potential tool to employ a trade-off between profits from FDI in a specific region and the likelihood of a lengthy, violent conflict arising between them and the local indigenous community. In contrary, the results relating to the moderating effect of MNC characteristics will shed light on the practical impact of social responsibility and CSR. Although high levels of these features should entail sustainable and socially responsible business practices, therefore leading to less conflicts with indigenous communities, it will be interesting to examine whether that is actually the case in practice.

This thesis will be structured as follows. Firstly, previous literature regarding conflicts between communities and MNCs will be analysed, in addition to literature on the isolation and autonomy of indigenous communities. This study will then present a theoretical framework with respect to the literature that has been analysed in the literature review. After the framework, the conceptual model will be presented visually followed by an explanation of the research design – which includes the studied variables, the sample and data collection. Subsequently, the hypothesized effects are studied and the results of these analyses are shown. Finally, this thesis ends with a discussion of the findings and a conclusion with respect to the overall topic of conflicts between indigenous communities and MNCs.

2. Literature Review

2.1 Defining Indigenous Communities

Communities have become an essential factor in analysing foreign activity of multinational corporations (MNCs). Due to the exponential increase of globalization, in the 1990s the business world experienced an era of increased cooperation between MNCs and national governments of countries in which they operated. Due to these increasingly evident partnerships, the domain of opposition for MNC activities shifted from the host government

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and country to the local community of the area (Calvano, 2008). Throughout the history of communities in academia there have been debates regarding the accuracy and diversity of its definition. Lee (1992) defines a community simply as a group of people who have something particular in common. A community can also be defined as a collection of people connected by relations that extend past immediate genealogical ties and who consider this relationship significantly important to their identity (James et al, 2012). Although there are commonly used meanings of the word, a concrete and agreed upon definition of community seems almost impossible to conceive. The vast amount of definitions attributed to ‘community’ is mostly due to the diversity of academic fields that study this concept. Branches of community theory range from psychology, in which academics study the individual’s’ contexts within communities and their relationship to the society (Orford, 2008), to archaeology, in which a community is defined as a group of individuals living close to each other who interact in a social manner (Hegmon, 2002). Notwithstanding the fact that there are numerous meanings of this term, most definitions, as with Calvano’s (2008), explain that a community is established through shared dimensions of geographical location, identity and social interaction.

Stakeholder literature also distinguishes between various types of communities: Dunham, Freeman & Liedtka (2006) separate communities into four specific categories: communities of place and communities of interest - which are academically well recognized - and virtual advocacy groups and communities of practice, which are introduced by the authors. Communities of place are defined by a physical proximity to other individuals. Communities of interest are groups of people that share a particular interest or passion with each other. Virtual advocacy groups are described as citizen action groups, with distinction that they are marked with a more ‘oppositional’ rather than an ‘agenda-driven’ sense of identity. Finally, communities of practice are professional work groups that are united by shared interests, values and purposes (Dunham, Freeman & Liedtka, 2006).

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Compared to the accepted definitions of community, the term ‘indigenous community’ does not specifically fit within its groups nor does it share the same features. No formal definition has been adopted in international law to respect the right of indigenous people to give their own meaning to the term. Nonetheless, the widely accepted characterization states that indigenous communities share a historical continuity with societies that developed on their territories and that they consider themselves separate from those societies (Cope, 2012). They aim to preserve their ancestral territories, ethnic identity, cultural patterns, social institutions and legal system and pass it on to future generations (Cope, 2012). Indigenous peoples are characterized by the presence of five specific degrees of varying features. These characteristics include a close attachment to ancestral territories and to its natural resources, identification as a member of a cultural group, an indigenous language, presence of social and political institutions and primarily subsistence-oriented production (Sanders, 1999).

Furthermore, it is important to state that indigenous communities are treated as a special case, which is different compared to cultural or racial minorities (Sanders, 1999). In fact, the United Nations regards indigenous communities as unique cases, with the distinction being recognized in most American and Australasian countries (Sanders, 1999). Stating this discrepancy is essential in properly analyzing indigenous communities as separate entities and in not resorting to the common definition of a community.

2.2 Conflict

The term conflict, similarly to the definition of a community, can refer to various ideas such as cultural, environmental, social, ethnic or organizational conflict. Rahim (2010) believes that, disregarding the specific type of conflict, they all share common similarities. According to him, conflicts involve people with opposing interests, a belief that the other person is acting

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against their point of view and the ongoing process of the conflict that developed from past events (Rahim, 2010). When an MNC decides to operate or invest in a foreign country in which an indigenous community resides, there is a possibility that their interests or goals will conflict with those of the indigenous communities of that area. Stakeholder literature has observed the varying factors that principally lead to conflict within a given area – especially areas rich in natural resources -, namely the inequitable distribution of risks, impacts and benefits of a certain foreign business practice (Kemp, Owen, Gotzmann & Bond, 2010).

In the past, interactions between companies and local communities, especially indigenous communities, have tended to be antagonistic (Lertzman & Vredenburg, 2005). Firms have often disregarded the interests, opinions and voices of indigenous peoples and have started their foreign operations without any concern for the consequences that these actions would have on these communities (Lertzman & Vredenburg, 2005). This phenomenon is aptly characterized by the following quote on the rights of indigenous peoples:

‘’How can responsible companies pursue profitable activities that have an inherently significant physical, social or cultural impact, ensure that their operations are not undermining the rights of indigenous peoples particularly when working in geographical areas that may have land right conflicts or complex histories or that are in or contiguous to protected areas or their margins?’’ – (Human Rights and Business Dilemmas Forum, 2015)

Foreign MNC activity in the Brazilian Amazon forest has led to the exponential deforestation of the region which, in addition to threatening the extinction of various species of animals and plants, has disrupted the lives of otherwise peaceful and isolated hunter-gatherer tribes of the Amazon (van Solinge, 2010). In Peru, in the Baguazo and Awajun territories, the quantity of conflicts – both social and environmental – linked to extractive activities of MNCs has also

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significantly increased since the start of the millennium (Acuna, 2015). These are just a few examples of the effect of an increasingly globalized business world on the historically indigenous societies that remain established to this day. Nonetheless, academics have experienced a shift to a more ethical approach to foreign direct investment. It has become unethical to sacrifice the rights and interests of indigenous communities to serve the profit-seeking behaviour of shareholder-oriented western firms, and it is rather more respected to engage with these communities to take into account their opinions and needs (Lertzman & Vredenburg, 2005). Although it has become evident that conflicts easily arise in indigenous areas where MNCs set up their operations, why do these conflicts arise?

2.3 Causes of Conflicts

Conflicts between companies and communities have increased, if not at least persisted, in the last few decades, with environmental and economic grievances being the dominant feature of these types of incidents (Acuna, 2015). Given these persistent events, and the fact that these conflicts inflict serious costs on both the company and the indigenous community, it seems appropriate to analyze what exactly causes these occurrences.

Stakeholder literature has often identified governance as a major source of conflict in indigenous areas (Damonte & Glave, 2012; Arellano, 2011). Governance is referred to as processes, relationships and structures by which a group of individuals organize themselves collectively to achieve certain specific objectives that are of importance to them (Tsey, McCalman, Bainbridge & Brown, 2012). Governance, which is tied together with the concept of institutions, can be separated into two distinct categories: formal and informal. Formal governance is defined as the constitutions, laws and property rights that make up the structure of a society (North, 1991), such as specific rules referring to indigenous peoples and business

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operations on their terrain. Informal institutions refer to the sanctions, taboos, customs, traditions and codes of conduct that are present in a society (North, 1991), like the historical culture that has been passed through generations within the indigenous community. With respect to governance, it is thought that an inadequate degree of governance is the main culprit of conflict between MNCs and indigenous communities, specifically related to the distribution of rents, transparency, dispute resolution and/or political systems (Damonte & Glave, 2012).

Acuna (2015) argues against the common conclusion that governance is the main cause of community-MNC conflict. In fact, he believes that occurrences of conflict arise due to the permanence of a colonial patterns of domination that has, and continues to, deny indigenous ontologies (Acuna, 2015). On the other hand, Calvano (2008) takes a new approach to studying the root causes of conflict. Given the relatively small amount of past literature on the phenomena of conflict between MNCs and communities in general, he referred to literature on group conflict within organizations. He found that the two most frequently studied causes of conflicts are power and perception/communication, and therefore included them in his study relating them to stakeholders in a conflict situation between a company and a community. He therefore concluded that there were three culprits of conflict: stakeholder power inequality and stakeholder perception gaps – which he identified in group conflict literature – and cultural context, which he felt was an essential component that was fundamental in FDI analysis (Calvano, 2008).

Although literature seems to have focussed on governance as the main factor for community-MNC conflict, not much has been researched regarding the effect of isolation and autonomy on the occurrence of conflict. Specifically, to what degree will the level of isolation and autonomy granted by the national government influence the length and amount of violence in a specific conflict?

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2.4 Indigenous Community Isolation

First and foremost, a distinction must be made between two different types of indigenous community isolation. When an indigenous community is voluntarily isolated they do not maintain sustained contacts with the majority non-indigenous population and who will normally reject contact with individuals that are not part of their people (IACHR, 2013). This definition of voluntary isolation of indigenous communities includes cases in which communities have had contact with non-indigenous individuals and who have returned to a situation of isolation and break relations of contact they had previously made with those societies (IAHCR, 2013). These types of indigenous communities are also often referred to as ‘uncontacted peoples’, since they often have never had previous contact with people outside their tribe. One example of such a community can be found in the Pirahã tribe that is located deep in the Brazilian Amazon. Up until certain anthropologists, including linguist Daniel Everett, decided to observe and study the Pirahã people for academic purposes related to the uniqueness of their language, the tribe remained in peaceful isolation from all other societies (Everett, 2005).

The other type of isolation in indigenous communities refers to involuntary isolation. In this case, the indigenous peoples actually seek to be somewhat included in the national society and do not specifically try to exclude or distance themselves from that society. An example can be found within the Native American peoples. On this topic, Thomas Morgan, former Commissioner of Indian Affairs in the United States from 1889 to 1893, even stated that: ‘’Indians must conform to the ‘white man’s ways,’ peaceably if they will, forcibly if they must. They must adjust themselves to their environment, and conform their mode of living substantially to our civilization.’’ (Morgan, 1889). Due to social isolation and cultural suppression, they have be alienated and isolated from the standard American society

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(Anderson, 2008). Although this is just one example, there are many other communities worldwide that suffer from the same type of government- or society-forced isolation.

With respect to isolation, Harlow, Dodsworth and Harlow (1965) find that social isolation in primates leads to significant problems of personal adjustment, natural development and issues in aggressive control and behaviour. In addition to leading to violent behaviour, social isolation can also create feelings of perceived loneliness and negative self-esteem as well as fear of others (Harlow, Dodsworth & Harlow, 1965). Furthermore, social isolation has also been linked to depressive cognition, a heightened sensitivity to social threat and contagion that threatens social cohesion (Cacioppo & Hawkley, 2009). Although there is some literature on the isolation of indigenous communities, no previous study has measured the effect of isolation of the occurrence of conflict – both with the national government or with MNCs operating in those areas. Nonetheless, given the available literature, it seems highly plausible that degrees of isolation might have an impact on the length and violence of conflicts both with national governments and with MNCs, and it is therefore an extremely relevant factor to analyze.

2.5 Indigenous Community Autonomy & Recognition

Similarly to the isolation of indigenous peoples, the autonomy of their communities is not a topic that has been analysed in previous literature. When referring to autonomy, there is a link to the community’s relationship with the government regarding the degree of community autonomy that national institutions grant them. Therefore, it is helpful to look at autonomy in terms of the recognition of the indigenous community. With respect to human rights issues, it is believed that indigenous populations have a specific identity rooted in historical factors and that, by virtue of their very existence, they have a natural right to live freely on their own lands (Turpel, 1992). The year 2007 saw the adoption of the United Nations Declaration on the Rights

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of Indigenous Peoples, which was a culmination of 25 years of negotiation between nation states and representatives of specific indigenous communities (Bellier & Preaud, 2012). This finally allowed indigenous peoples to oppose state policies and to have a say in certain actions that affect that community. This declaration allowed for the protection of indigenous peoples’ human rights, namely their right to self-determination, to language and culture and to sovereignty over their land and resources (Bellier & Preaud, 2012).

To look further than just the UN Declaration on the Rights of Indigenous Peoples, Macklem (2008) believes that the criteria by which indigenous peoples exist in international law relate to their historic exclusion from the distribution of sovereignty initiated by colonization that lies at the heart of the international legal system. Although the Declaration on the Rights of Indigenous Peoples has brought along significant progress for the correct respect that should be given to these communities, some issues still remain. In fact, the definition of indigenous communities is still vague and might therefore not apply to all communities. Furthermore, in certain countries indigenous peoples are still treated as though they do not have a say in local business activities, specifically when referring to transnational expansion of MNCs (Bellier & Preaud, 2012). Therefore, it seems relevant to study exactly how the autonomy and recognition of indigenous communities might have an impact on conflicts with national governments and with MNCs.

2.6 Poverty & Development

Indigenous communities have always been thought to be extremely poor, and not only in public opinion - even in academia (Eversole, McNeish & Cimadamore, 2005). In fact, they often do not have access to the same legal representation, resources, technology and other concepts that govern the modern day world (Eversole, McNeish & Cimadamore, 2005). To

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exemplify this notion, a report by the World Bank shows that poverty among Latin America’s indigenous population is pervasive and severe (Psacharopoulos & Patrinos, 1994).

An issue for indigenous communities is not only that they are poor, but that they are often located in nation states that are themselves also relatively poor and underdeveloped (Psacharopoulos & Patrinos, 1994). From a general perspective, literature has found that poverty and conflict are not only correlated, but that they are causally related. A study by Blomberg, Hess and Thacker (2000), that analyzes the so-called poverty-trap, explains that in poor countries, consumption and investment decisions are made in presence of governments that create conflicts to increase their chances of remaining the reigning entity of the state. In economies with lower gains from capital formation, governments may succumb to engaging in avoidable conflict which lead to lower investment and a reduction in future growth (Blomberg, Hess & Thacker). Similarly to poverty, a low degree of development also seems to lead to a higher degree of conflict. When countries are underdeveloped, their social and legal structure is weak (North, 1991). Furthermore, from an institutional point of view, when MNCs operate in poor and underdeveloped countries characterized by weak laws and regulations, the chance of conflicts due to constraints increases (North, 1991).

Given the effect of poverty on both business and the occurrence of conflict, it seems interesting to observe whether a country’s level of poverty and development will act as a moderator on the effect of isolation and autonomy of indigenous communities on conflict dynamics.

2.6 Sustainability Focus and Corporate Social Responsibility

Sustainability, more precisely sustainable development, is defined as including the four domains of ecology, economics, politics and culture. Sustainable development should meet the needs of the society in the present whilst not compromising the state of the world for future

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generations (Lertzman & Vredenburg, 2005). Sustainable development has increasingly become a crucial topic in recent years due to the effects of global economic growth and development on the degradation of our ecosystem (OECD, 2012). Given the exponential economic growth, it is inevitable that some environmental deterioration follows due to rising CO2 emissions from factories, the increasing levels of resource extraction and the need for land for production (Panayotou, 1993). Nonetheless, Panayotou (1993) also believes that developing countries can help in slowing down this deterioration by eliminating policy distortions, internalizing environmental costs to the activities that generate them and enforcing property rights over natural resources.

Similarly to countries, companies now also play a part in sustainable development. In fact, a firm’s focus on sustainable development and its social responsibility are increasingly forced aspects that firms seem to adopt. Although this is caused by an increasing need for the preservation of our planet, it is also due to isomorphic pressures that lead to firms behaving like each other and adopting certain features that are expected, due to professionalization, in their industry (DiMaggio & Powell, 1983). MNCs now feel somewhat obliged to be socially responsible and sustainable due to increasingly negative public opinion regarding foreign business activities in underdeveloped countries. Van Solinge (2010) states that the progressive deforestation of the Amazonian forest is thought to be partly caused by MNC activity in that area. Van Solinge (2010) also states that foreign MNC activity in the Brazilian Amazon, which is the largest portion of the forest, led to the deforestation of the region that caused the extinction of various fauna and flora as well as the disruption of peaceful, isolated tribes. MNCs have to employ sustainable practices when operating in natural areas otherwise the degradation of the ecosystem can’t be halted – which can already be seen in aspects such as global warming and loss of biodiversity (Ambec & Lanoie, 2008).

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As with environmental concerns, there is also a social dimension of sustainable development. The social aspect of sustainability is thought to be linked to the maintenance and building of social capital, which is defined by Lertzman (1999) as organizational resources of relations and institutions which all communities are based on (Coleman, 1990). When performing FDI in a foreign country that contains an indigenous community, MNCs should also take into account, recognize and respect the institutions of these people. By institutions we mainly refer to the values, traditions and general culture of the indigenous peoples, as well as significant differences in formal legal and regulatory structures between the MNC’s host country and the community (North, 1991).

A study found that incorporating a sustainable model in a company’s business strategy can lead to the ethical and violence-free relationships with indigenous communities which is especially helpful in reducing the probability of a conflict (Crawley & Sinclair, 2003). Since it seems beneficial for both the indigenous community and the MNC to be more sustainably focused and employ a high degree of CSR, it seems interesting to analyze whether these factors will moderate the effect of autonomy and isolation on conflict dynamics.

3. Theoretical Framework

Conflict literature has seen a rise in the analysis and understanding of conflicts, with many experts giving their conclusions regarding the causes of such conflicts (Acuna, 2015; Calvano, 2008; Damonte & Glave, 2012; Arellano, 2011). Academic literature has firmly identified community characteristics to influence conflict dynamics between the indigenous community and a MNC (Damonte & Glave, 2012; Arellano, 2011). Differing intra-community aspects will affect conflict characteristics and can potentially lead to more intense conflicts with MNCs (Onuoha & Barendrecht, 2012). Some academics believe that governance is the principal source of conflicts between communities and businesses (Damonte & Glave, 2012;

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Arellano, 2011). Acuna (2015) contrarily believes that conflicts arise due to the colonial history of domination that ties the nation state to the indigenous community. Calvano (2008) finds that the culprits of conflict are rather mainly signs of stakeholder power inequality, stakeholder perception gaps and the cultural context. By analysing the current literature available on this issue, it becomes evident that certain aspects of the indigenous communities will cause or contribute to conflict aspects when in a conflict with a MNC. There are, however, no mentions with respect to the effect of specific community characteristics - namely the degree of isolation and autonomy of an indigenous community - on conflicts with MNCs in the literature. In the literature, autonomy and isolation in individuals and communities alike can lead to more aggressive behaviours and violent acts. Country poverty and a MNC’s sustainability focus also affect conflicts since country poverty signifies weak institutions and sustainability focus shows the level of environmental and societal care of a business. Isolation and autonomy of an indigenous community will affect conflicts whilst country poverty and MNC sustainability focus will have a significant impact on this direct effect. Thus, some hypotheses can be made through the help of literature that purely discusses isolation and autonomy.

3.1 Isolation

In the academic literature scholars have pointed towards community characteristics as indicators of conflict characteristics between indigenous communities and MNCs. The governance of a community as well as the size of their territory or population logically all have an effect on interactions with MNCs. Although community characteristics have been analysed, indigenous community isolation has not been investigated yet in academic literature and it can have a significant impact on conflict dynamics with MNCs. First and foremost, it is important to define indigenous community isolation. Indigenous communities can be both voluntarily or involuntarily isolated. When they are voluntarily isolated – also known as uncontacted peoples

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– they do not seek contact with the nation-wide commonly-embraced society or have had contact but do not intend to further their relations with those individuals (IACHR, 2013). When indigenous communities are involuntarily isolated, they do not seek to be distanced from the country’s society but end up being nonetheless. This also means that positive relations with the home government tend to be scarce since they are being alienated from that very government, as Anderson (2008) explains about the Native American’s present-day situation.

A distinction should also be made between social and geographic isolation. Geographic isolation is described as a population of people that are separated in terms of the location in which they reside (Ashraf & Galor, 2012). When indigenous communities are geographically isolated, they are either highly isolated, living within the community with little contact with the outside world, like certain tribes in the Amazon (van Solinge, 2010), or the members of that indigenous community live in broader municipalities with a mixed population. In the case of indigenous communities, social isolation can be described as the lack of contact between individuals of their community and the society which they live in.

In a seminal academic article, Harlow, Dodsworth and Harlow (1965) found that social isolation in primates leads to problems of personal adjustment, natural development and, most importantly to this thesis, issues in aggressive control and violent behaviour. In addition, social isolation can also lead to feelings of loneliness and fear of others (Harlow, Dodsworth & Harlow, 1965). Cacioppo and Hawkley (2009) also state that social isolation can lead to a heightened sensitivity to social threat and contagion that threatens social cohesion. Given these results, previous literature points to the fact that socially isolated individuals lead to more conflict-driven behaviour compared to socially integrated individuals. Therefore, this aspect of indigenous community characteristics can be hypothesized to influence conflicts with MNCs.

With respect to MNC activity in indigenous areas, it seems that the voluntary or involuntary isolation of the community signifies negative relations with the government.

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Therefore, this points to the consequence that the likeliness of a conflict happening when indigenous communities are isolated is higher, and that these conflicts will be more violent and persist for a longer amount of time given the colonial history of their relationship with the government.

H1a: The higher the degree of isolation of an indigenous community, the longer the conflict between a MNC and the community will persist

H1b: The higher the degree of isolation of an indigenous community, the more violent the conflict between a MNC and the community will be

3.2 Autonomy

The second community characteristic that is hypothesized to affect conflicts with MNCS is the degree of autonomy. The autonomy of indigenous communities refers to the relationship with the home government and the degree of individuality that is granted to them. Turpel (1992) states that indigenous communities should be allowed to be fully autonomous since they have a natural right to live freely and as they please on their land. The 2007 United Nations Declaration on the Rights of Indigenous Peoples, which was a highly anticipated piece of legislature, gave indigenous communities the right to oppose specific policies that would affect to them (Bellier & Preaud, 2012). It also protects the human rights, natural language and culture of the indigenous communities worldwide as well as their right to their land and resources (Bellier & Preaud, 2012).

The autonomy of indigenous communities can be split into varying degrees of recognition. On a scale, indigenous communities can have no autonomy at all, basic recognition of their culture, limited recognition of their rules, partial recognition of their rules or right of consultation and, lastly, almost full recognition of community rules by the home government with autonomy or right of consent.

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If, before, the main issue concerned the rights of indigenous peoples, it has now shifted to dynamics between their community and MNCs that aim to engage in FDI in their area (Bellier & Preaud). In fact, although the United Nations Declaration on the Rights of Indigenous Peoples means that indigenous communities are now recognized as entities with rights, there are still persistent cases of MNCs that operate on foreign indigenous territory with no consideration for their rights. The example that is brought up is the deforestation of the majority of the Brazilian Amazon that lead to interference with the peaceful lives of many indigenous and tribal societies that lived there (van Solinge, 2010). Therefore, it seems that the less recognition and autonomy is granted to indigenous communities by the home government, the more likely their relationship will be antagonistic. Furthermore, if indigenous communities are not fully recognized or granted autonomy, MNCs won’t necessarily feel a legal obligation to respect the interests and needs of indigenous peoples, which leads to increased chances of longer and drastic conflicts. If indigenous communities experience a high degree of autonomy, it is more likely that their relationship with the government will be of a positive nature, and that they will therefore be respected. On the other hand, communities with low levels of autonomy will not be fully recognized which leads to more violent behaviours once a foreign MNC enters their land to operate as they wish.

H2a: The lower the degree of autonomy of an indigenous community, the longer the conflict between an MNC and the community will persist

H2b: The lower the degree of autonomy of an indigenous community, the more violent the conflict between an MNC and the community will be

3.3 Poverty & Development

Indigenous community isolation and autonomy are hypothesized to have an effect on conflict dynamics, and country characteristics may potentially moderate this effect. Just as with

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indigenous community characteristics, country features have an effect on conflicts between communities and businesses. The governance structure, cultural variety, historical relationship with communities or the varying degrees of institutional strength can all have an impact on the indigenous communities that live in that country as well as the MNCs that seek to operate in it. With respect to country characteristics, the variable hypothesized as the moderator is the poverty and level of development of a state. Poverty is a recurring characteristics of a lot of countries in which indigenous communities reside (Psacharopoulos & Patrinos, 1994). In stakeholder literature, academics have found that conflict and poverty are often related for a variety of reasons. Poor countries are stuck in a vicious cycle in which governments make decisions to create conflict in order to stay in power, which then in turn causes lower investments and reduced future economic growth and development (Blomberg, Hess & Thacker, 2000). If countries are poor and underdeveloped, they suffer from lower levels of education as well as significantly weaker institutions. When MNCs decide to invest abroad in poor and underdeveloped countries that are governed by weak laws and regulations, conflicts have a much higher chance of occurring (North, 1991). In relatively richer countries, isolated communities can at least benefit from a more rigid and robust institutional and governance structure, which facilitates the interaction with MNCs. Furthermore, if an isolated indigenous community is located in a relatively poor country, the risk of MNCs interfering with them increases due to the overwhelming majority of interfering FDI being performed in less developed countries worldwide (Arnett, 2014). Given this effect of poverty and development on conflicts between MNCs and local communities, we hypothesize that these factors might affect the relationship between isolation of indigenous communities and the violence and length of a conflict.

H3a: The poorer and less developed a country is, the more negatively it will moderate the effect of isolation on the length of a conflict between an MNC and an indigenous community

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H3b: The poorer and less developed a country is, the more negatively it will moderate the effect of isolation on the degree of violence of a conflict between an MNC and an indigenous community

Poverty and development as the moderating variable for country characteristics can also hypothetically influence the relationship between indigenous community autonomy and conflict length and violence with MNCs. As also explained above, the majority of FDI performed by MNCs seems to be located in poorer areas of the world due to cheap costs or companies being able to negotiate extremely beneficial deals (Arnett, 2014). A country’s level of poverty and development can therefore cause more autonomous communities to have longer and more violent conflicts since the MNC operates in that country simply to gain a monetary advantage and rarely takes the community into account due to its separation from the host nation’s government.

Furthermore, since, as North (1991) states, poorer and less developed countries experience less vigorous formal institutions, this will affect more autonomous indigenous communities since governments in these countries can be corrupt or simply because a hierarchical system exists in which the nation state is prioritized. Therefore, since the indigenous community is autonomous, this might actually lead to the inverse effect: more recognition from the host nation, but less recognition from MNCs.

H4a: The poorer and less developed a country is, the more negatively it will moderate the effect of autonomy on the length of a conflict between an MNC and an indigenous community

H4b: The poorer and less developed a country is, the more negatively it will moderate the effect of autonomy on the degree of violence of a conflict between an MNC and an indigenous community

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3.4 Sustainability Focus

The second moderating variable for the effect of indigenous community isolation and autonomy on conflicts with MNCs is community characteristics – more precisely a company’s sustainability focus. Due to the effects of global economic growth and the staggering industrial development of our society on the degradation of the globe, sustainable development become an increasingly discussed topic in academic studies (OECD, 2012). Panayotou (1993) states that countries should play a part in the sustainable development of our planet by destroying policy distortions, internalizing costs related to the environment and enforcing property rights over natural resources. Nonetheless, the responsibility of such a development also lies in the hands of businesses, MNCs in particular. The detrimental effects of exponential CO2 emissions and resource extraction has thankfully forced companies to consider a more socially responsible and morally correct approach to business. Institutional isomorphic pressures also played a part in this revolutionary strategic change by forcing companies to behave like each other in morally ethnic manners (DiMaggio & Powell, 1983). Therefore, once large and well respected MNCs started employing more socially responsible and sustainable foreign investment strategies, other firms mirrored their structure.

In addition to the environmental dimension of sustainability and responsibility, there is also a social aspect that is linked to the maintenance of social capital (Coleman, 1990). Furthermore, when MNCs operate in foreign countries they should always take into account the significant differences in institutions, both formal and informal, that they might encounter (Berry, Guillen & Zhou, 2010). In particular, the cultural aspect of distance between the MNC and the indigenous community should be recognized and respected to minimize the conflicts with that community (Hofstede, 1994).

Crawley and Sinclair (2003) found that a sustainable business model that adopted socially responsible activities lead to ethical and amicable relationships with indigenous

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communities. Therefore, we expect the sustainability focus of a firm to positively moderate the effect of isolation and autonomy on the violence and length of a conflict between that firm and the indigenous community. More isolated indigenous communities will be shown the respect, in terms of their culture and their land, that they deserve and the likelihood of a conflict with MNCs will therefore decrease, If a conflict does arise, given a MNC’s high degree of sustainability focus, those conflicts will be resolved faster and will likely not involve any violence (notwithstanding the reaction from the indigenous community, which can vary). A MNC’s sustainability focus is therefore hypothesized to positively moderate the effect of isolation on conflict between the community and the MNC.

H5a: The more sustainably focussed a MNC is, the more positively it will moderate the effect of indigenous community isolation on the length of a conflict between an MNC and the community

H5b: The more sustainably focussed a MNC is, the more positively it will moderate the effect of indigenous community isolation on the degree of violence of a conflict between an MNC and the community

If a MNC’s sustainability focus hypothetically positively moderates the effect of isolation on conflicts with indigenous communities, the effect might be even more pronounced with respect to indigenous community autonomy. When indigenous communities experience a higher degree of autonomy it signifies that they are being recognized on a national and international level. Since MNCs that employ sustainable solutions are found to have harmonious relationships with indigenous communities (Crawley & Sinclair, 2003), this relationship should impact the more autonomous indigenous communities as they will be fully respected. These communities are already legally represented and recognized, and it is therefore more likely that MNCs with a high sustainability focus will work together with these communities (as well as the nation state) to have peaceful business relations and maintain the

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integrity of the community. This takes into account that MNCs that state their focus on sustainability are not solely stating this for marketing or image purposes, but that they are actually socially and environmentally driven in their business activities.

If a MNC’s sustainability focus is not found to be a positive moderator for the effect of community autonomy on conflicts with MNCs, it might indicate that some companies use is as a label rather than actually employ these practices. Nonetheless, if MNCs are truthful in their focus on sustainability, this variable is hypothesized to be a positive moderator for the effect of autonomy, as well as isolation, on conflicts between indigenous communities and MNCs.

H6a: The more sustainably focussed a MNC is, the more positively it will moderate the effect of indigenous community autonomy on the length of a conflict between an MNC and the community

H6b: The more sustainably focussed a MNC is, the more positively it will moderate the effect of indigenous community autonomy on the degree of violence of a conflict between an MNC and the community

4. Conceptual Model

The figure below shows the conceptual model containing the relationship between all the selected variables in this study. It presents a visualization of the hypothesized direct effect of indigenous community isolation and autonomy on the violence and length of a conflict, and the moderating effects of firm characteristics – namely sustainability focus – and country characteristics – namely poverty and development – on this relationship.

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5. Research Design

5.1 Sample & Data Collection

This thesis will use a cross-sectional research design to study the effect of isolation and autonomy of indigenous communities on the length and violence of a conflict between a MNC and the community, as well as the moderating effect of country and MNC characteristics. In this research, empirical data will be used to analyze the effects of various community, company and country characteristics on the length and violence of a conflict between MNCs and indigenous communities. To test the hypotheses, the statistical software SPSS will be used to

Indigenous Community Isolation Indigenous Community Autonomy Violence of Conflict Length of Conflict Poverty & Development Sustainability Focus Violence of Conflict Length of Conflict

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perform regression analyses on the relationship between isolation and autonomy and the length and violence of a conflict, including using country and MNC characteristics as moderators.

The study will not be focused on a specific geographic location, but it will rather analyze worldwide cases of conflict between MNCs and communities. By not concentrating on a set of countries or a particular area in the world, this study will provide increased validity in the analysis of conflict dynamics due to its global focus. The variables used in this study are obtained through a database of conflict situations that has been codified by 7 students who wrote their master theses in topics related to MNC-indigenous community conflict. This resulted in a total of 74 different variables from over 800 individual cases in 42 countries.

5.2 Dependent Variables

This thesis will use conflict as the dependent variable. As Getz & Oetzel (2009) state, conflicts vary meaningfully in terms of the type of violence as well as their intensity. This dependent variable is therefore split into two separate dependent variables that refer to two features of conflict, namely the degree of violence and length of a conflict.

The first feature of conflict is the degree of violence that an MNC and an indigenous community experience in a conflict. The degree of violence is calculated by measuring the number of deaths, injuries, kidnappings, road blocks, occupations of firm-owned property or property in general, and destruction or damage to public and private property. As shown in a report by Davis & Franks (2014), the degree of violence of a conflict changes dramatically from cases to case. Although some conflicts involve no violence and are mostly peaceful, others include numerous deaths, injuries and destruction of property (David & Frank, 2014). Thus, each case is assigned a degree of violence rating, ranging from 0 (no violence) to 5 (extreme violence).

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The second feature of conflict is the length of a conflict between an MNC and an indigenous community. These type of conflicts tend to be long due to the nature of the majority of FDI performed by MNCs, which tend to be of the extractive nature. Given the boundedness of the resources and operations of these projects, it is complicated to relocate once a conflict arises – hence the long duration of these conflicts (Kolk & Lenfant, 2013). Nonetheless, since the duration of conflicts can change significantly from one case to another (Getz & Oetzel, 2009), the length of the violence is measured in months, given the data on the beginning and end of conflicts that is available. For ongoing conflicts which have not been resolved yet, December 2016 will be taken as the final date since it is the date this thesis will be submitted. It is important to note that a dummy variable, indicating only short or long conflicts, will not be used since it minimizes the outcome of the results. By keeping length of conflict on a scale of 1-10 the results obtained will be more significant and precise.

5.3 Independent Variables

This study will use community characteristics as the independent variable. Two characteristics of indigenous communities are used, namely indigenous community isolation and autonomy.

The first independent variable is the level of cultural and geographic isolation of indigenous communities. Although isolation could be split up into voluntary and involuntary isolation (IACHR, 2013), this study analyzes indigenous peoples isolation as one variable not separated into these two categories. Nonetheless, isolation is split into geographic isolation and social isolation. Since solation can lead to violent behaviour and antagonistic views of others (Harlow, Dodsworth & Harlow, 1965), different levels of geographic and cultural isolation will be assigned to our cases to properly measure its effect on conflicts. Geographic isolation is

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measured by the assignment of one of two digits, where 1 is highly isolated, which means that community members live within communities with little contact to the outside world, and 2 refers to situations when most community members live within broader municipalities with mixed populations. Cultural isolation is measured on a scale from 1-3, where 1 is highly isolated, meaning that the community is from an isolated culture with a different language and not connected to a broader ethnic group, 2 refers to communities that are connected to a broader ethnic group but isolated within that group and 3 refers to communities that are embedded within a broader mainstream ethnic group.

The second independent variable is the level of autonomy granted to the indigenous community by the host nation’s government and its institutions. Indigenous community autonomy refers to the level of recognition and decision-making autonomy that is granted to the community by the government, which saw a revolutionary change after the UN Declaration on the Rights of Indigenous Peoples (Bellier & Preaud, 2012). Indigenous community autonomy is measured on a scale from 1-5, where 1 is no autonomy, 2 is cultural recognition, 3 is limited recognition of rules, 4 is partial recognition of rules or right of consultation and 5 is almost full recognition of community rules by government with autonomy or right of consent. Indigenous community isolation is divided into geographic and cultural isolation.

5.4 Moderator Variables

The moderator variables that have been chosen to analyse with respect to the effect of isolation and autonomy on conflict dynamics are MNC and country characteristics. The country characteristics refer to the degree of poverty and development whereas the MNC characteristics refer to a company’s sustainability focus.

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A country’s degree of poverty and development are directly related to the strength of formal institutions and governance structures, which can become a burden when performing FDI in that country (North, 1991). Although indigenous communities are often located in relatively poor and underdeveloped countries (Psacharopoulos & Patrinos, 1994), these countries still vary significantly between each other in terms of these variables. A country’s degree of poverty and development are calculated through the HDI score.

A MNC’s level of sustainability focus and corporate social responsibility are related to the care for the state of the world for future generations (Lertzman & Vredenburg, 2005). Since the start of the millennium, sustainable development and social responsibility have gained popularity. Although most companies now feel institutional isomorphic pressures that lead them to behaving the same way and employ these practices for the good of the world (DiMaggio & Powell, 1983), MNCs still vary in the level of these variables as well as the

commitment to these practices. The sustainability focus of MNCs is calculated through two renowned and widely-used measures: the KLD score and FTSE4good index.

5.5 Control Variables

As control variables this study will use MNC relations with indigenous communities and MNC experience in indigenous communities. Relations with the indigenous community will mean that the MNC has a positive attitude towards the local community which entails shorter and less violent conflicts between the two entities. Experience with the indigenous community can indicate that MNCs might have a more amicable relationship with the community as well as having more knowledge of their culture. More experience with the indigenous community and better relations would logically lead to conflicts between MNCs and indigenous communities being shorter and of a less violent nature. These factors were

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chosen since they can be said to decrease the violence and duration of a conflict regardless of the level of isolation and autonomy of an indigenous community.

5.6 Method & Models

To analyse the hypotheses, the statistical software SPSS will be used. In SPSS, several regression analyses will be performed to test the effect of the independent variables and of the moderating variables on the dependent variables. Several models are therefore created to test each of our hypotheses, and linear regressions were performed for each of these models. Logistic regressions were not used since the dependent variables are both ordinal. Field (2009) states that a logistic regression should be used when a dependent variable is of the categorical nature, and therefore it was not applicable to the proposed models of this thesis. According to the hypotheses that were stated in this thesis, 14 models consisting of different allocations of the proposed variables have been created. The models, as well as all the variables that are included in the model, are shown in Table 1. Following this table, the data will be analysed according to these models and this thesis will arrive at conclusions with respect to the acceptance of each proposed hypothesis.

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The data from over 700 cases that was gathered was transferred to SPSS and analysed according to the presented hypotheses. Before discussing the results that were obtained, it is worth mentioning that there were some alterations made to the variables in order to arrive at more solid and significant conclusions.

With respect to the dependent variables, the length of a conflict – which was initially coded in terms of duration in months - was recoded into two distinct ways of measuring length. The first involves taking the length of conflict of a case as a ratio of the total months of conflict in all cases, therefore dividing the one case’s length by the total length of all cases. The second one simply categorized the length of conflict of a case on a scale from 1-5, where 1 represents a ratio of case length to total length ranging from 0 (0 months) to 0.0005 (39 months/2 years,

Control Variables Dependent Variables Independent Variables Moderating Variables

Policy towards comm. Experience w/ comm. Length of conflict Degree of

violence Autonomy Isolation

Sustainability focus Poverty & development Model 1 X X X Model 2 X X X X Model 3 X X X X Model 4 X X X X X Model 5 X X X X X Model 6 X X X X X Model 7 X X X X X Model 8 X X X Model 9 X X X X Model 10 X X X X Model 11 X X X X X Model 12 X X X X X Model 13 X X X X X Model 14 X X X X X

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