In academic research, many attempts have been undertaken to legitimize corporate community involvement by showing a business case for it. However, much less attention has been devoted to building understanding about the actual dynamics and challenges of managing CCI in the business context. As an alternative to existing predominantly static and top-down approaches, this paper introduces a social movement framework for analyzing CCI management. Based on the analysis of qualitative case study data, we argue that the active (...) role of employees pressuring for CCI policies and practices, as well as the organization audience responses to their efforts, are at the core of the challenges involved in managing CCI. These challenges also pose limits to how far CCI can be extended to a “business as usual” activity. (shrink)

ABSTRACT:We examine whether religion influences company decisions related to corporate community involvement. Employing a large US sample, we show that the CCI initiatives of a company are positively associated with the level of Christian religiosity present in the region within which that company’s headquarters is located. This association persists even after we control for a wide range of firm characteristics and after we subject our results to several econometric tests. These results support our religious morality hypothesis which (...) holds that companies headquartered in regions with higher levels of Christian religiosity will engage in more CCI initiatives. We also find that while Catholic and mainline Protestant religiosity have a positive influence on firms’ CCI initiatives, evangelical Protestant religiosity does not. This supports our differentiated responses hypothesis which holds that institutional differences among religious groups will produce different effects on companies’ CCI. This hypothesis is based on institutional theory. (shrink)

In this paper we provide the first comprehensive insight into corporate community involvement activities of companies in Turkey. Drawing upon an extensive database compiled from corporate websites and archive documents in addition to a primary survey of 77 of Turkey’s largest companies, we examine the pattern of corporate community activities in Turkey and juxtapose these against existing evidence for other countries and distinctive elements of Turkey’s institutional environment. Our analysis highlights the historical role played (...) by leading philanthropists in stimulating corporate community involvement activities in Turkey and shows that overall giving is very heavily concentrated among the largest givers. We also highlight the concentration of giving among consumer good producers, suggesting a clear strategic rationale for the majority of CCI activity in Turkey, the very low levels of giving by foreign owned and controlled companies, and the strong orientation of CCI in Turkey to projects concerned with education, healthcare and the arts. (shrink)

This paper analyses the relationships between corporate community involvement activities, the organizational structures within which they are managed, the firm's industry and evolving stakeholder attitudes and preferences in a sample of 148 U.K. based firms who have demonstrated a clear desire to be socially responsible. The research highlights significant associations between the allocation of responsibility for community involvement within the firm, its industry and the extent of its community involvement activities. Consistent with the (...) view that managerial structures may play a significant role in the implementation of community initiatives, the results identify significant variations in community involvement policies across alternative organizational forms. However, important similarities in corporate community policies across alternative structures are also shown to exist suggesting that corporate community involvement activities may be influenced by the preferences of societal stakeholders. (shrink)

The central thesis of this paper is that Corporate Community Involvement (CCI) is not a neutral activity with positive and mutual benefits for all involved. Rather, it is a much more complex activity which may also have negative impacts. Using Donaldson and Preston’s (1995) explanatory model of the stakeholding concept as a framework, this paper explores: (1) the practice of CCI in the UK (with some reference to US experience from which UK firms have drawn extensively), (2) (...) the grounds on which it is justified, and (3) the material consequences of such activity for corporate governance. It concludes by arguing that there is a case for a review of the law on CCI to assess the need for fuller public disclosure so as to allow shareholders and other interested groups the opportunity to assess the impact and effectiveness of CCI more thoroughly. (shrink)

Previous research on corporate community involvement (CCI) initiatives indicates that such behaviour is critical for building neighbourhood relationships and extending corporate influence in the community, but there is little theoretical work that provides a clear picture of managing the nature of the initiatives from different stakeholder management approaches. Drawing from theoretical insights of stakeholder theory and the concept of social capital, this article proposes nine strategic directions for CCI initiatives, and concludes by discussing the management (...) implications of the proposed strategic directions. Our proposed approaches have the potential to improve current understanding and practice of corporations and their CCI initiatives. (shrink)

Corporate community involvement is attracting increasing interest in Britain, but what do shareholders feel about this use of company assets? This timely survey of top UK corporate donors provides interesting data on current practice and explores the degree to which shareholders are consulted. The author is a member of the Department of Business Studies in the Faculty of Management and Business of The Manchester Metropolitan University, Aytoun Building, Aytoun Street, Manchester M1 3GH; e–mail j.clarke@mmu.ac.uk.

Prior research has tended to focus on the influences upon how much organizations contribute to charitable or community cases paying relatively little attentionto the recipients of these donations or how firms develop preferences in respect of them. This study, in order to fill these gaps in the literature, focuses on two main aspects of CCI within 500 biggest companies situated in Turkey. Firstly, it aims to explore how companies manage their CCI activities. The type and level of the managers (...) who are the decision makers and the departments from which CCI decisions are taken will be examined. This helps to understand the potential objectives and strategic importance of giving. Also it shows whether a firm has a stable orientation to CCI, or a more ad hoc orientation. Secondly, it aims to analyze the preferences of companies in respect of the area of priorities and exclusions. We argue that institutional environments can shape the CCI activities. Exploring the local conditions of the countries can give reasons for investment in specific areas. (shrink)

Corporate community involvement is often regarded as means of development in developing countries. However, CCI is often criticised for patronage and insensitivity both to context and local priorities. A key concern is the extent of 'community participation' in corporate social decision-making. Community participation in CCI offers an opportunity for these criticisms to be addressed. This paper presents findings of research examining community participation in CCI governance undertaken by Magadi Soda Company in Kenya. We (...) draw on socio-political governance and interaction theories to examine the institutionalisation of participatory decision-making and its impact on changing governing roles and social action in CCI over time. (shrink)

This article draws on the results of an inductive qualitative study on the microdynamics of framing corporate community involvement. Insight is provided into these dynamics by using the metaphor of a social movement and drawing on that literature’s framing perspective. Based on accounts of diverse organizational members, we identify several double edges in framing CCI as a strategic issue, and we develop a model that helps to understand why and how strategizing CCI may be controversial.

This research note presents data concerning the community engagement activities of 2,096 Swiss companies as reported by a single company respondent in an online survey. Switzerland affords an interesting opportunity to compare engagement activities in a single country with multiple culture systems across companies varying in size from large to small and medium enterprises. Study results show that 78% of the surveyed firms pursue some community engagement activities. While engagement is mostly practiced in traditional forms, more active forms (...) are not uncommon. The main motivating factor is a concern for the communities in which the firms operate. Engagement activities are mostly employed independent of financial considerations and are conducted flexibly to serve personal interests of the firms’ decision makers. Swiss firms’ reported environmental assessment activities show no specific patterning. Perceiving engagement to be on the rise globally and in Switzerland is associated with a greater likelihood to be involved. Accordingly, knowing other engagement pursuing firms increases the individual firm engagement probability. The German speaking part of Switzerland is more active in engagement than the French and Italian speaking parts. Bigger companies pursue engagement activities more intensively and strategically than do SMEs. (shrink)

This paper aims to analyse how the discourse of CEO letters and other factors influence community involvement and Social Licence to Operate (SLO) in the mining industry. The analysis is based on qualitative information disclosed in sustainability reports and CEO letters from 32 mining firms. Content analysis was undertaken to obtain data for the study, and then a regression analysis and a multiple correspondence analysis were used to test the hypotheses defined in the study. The results indicate that (...) the CEO discourse influences how a firm expresses the importance of gaining its SLO, the philanthropic activities in which companies become involved and the destinations of the investments in the communities in which they operate. The results also show changes in the discourse between 2011 and 2015, which are, in part, explained by the difficult situation experienced by the sector during this period. The paper contributes to the Corporate Social Responsibility literature by integrating different theories from this field into the SLO framework. The analysis carried out and the results obtained are useful for both CEOs and Sustainability Managers, especially in managing their relationships with the communities where they operate or intend to operate. (shrink)

While it is generally agreed that companies need to manage their relationships with their stakeholders, the way in which they choose to do so varies considerably. In this paper, it is argued that when companies want to communicate with stakeholders about their CSR initiatives, they need to involve those stakeholders in a two-way communication process, defined as an ongoing iterative sense-giving and sense-making process. The paper also argues that companies need to communicate through carefully crafted and increasingly sophisticated processes. Three (...) CSR communication strategies are developed. Based on empirical illustrations and prior research, the authors argue that managers need to move from ‘informing’ and ‘responding’ to ‘involving’ stakeholders in CSR communication itself. They conclude that managers need to expand the role of stakeholders in corporate CSR communication processes if they want to improve their efforts to build legitimacy, a positive reputation and lasting stakeholder relationships. (shrink)

This paper aims to analyse how the discourse of CEO letters and other factors influence community involvement and Social Licence to Operate (SLO) in the mining industry. The analysis is based on qualitative information disclosed in sustainability reports and CEO letters from 32 mining firms. Content analysis was undertaken to obtain data for the study, and then a regression analysis and a multiple correspondence analysis were used to test the hypotheses defined in the study. The results indicate that (...) the CEO discourse influences how a firm expresses the importance of gaining its SLO, the philanthropic activities in which companies become involved and the destinations of the investments in the communities in which they operate. The results also show changes in the discourse between 2011 and 2015, which are, in part, explained by the difficult situation experienced by the sector during this period. The paper contributes to the Corporate Social Responsibility literature by integrating different theories from this field into the SLO framework. The analysis carried out and the results obtained are useful for both CEOs and Sustainability Managers, especially in managing their relationships with the communities where they operate or intend to operate. (shrink)

This article reports a study of how leading U.S. business schools incorporate one important dimension of corporate citizenship—corporate involvement in community economic development (CI/CED)—in their curricula and programs. Corporate citizenship, or social responsibility, is shown to have several important and unexpected locations in business education. In addition, the authors develop a rationale forwhy and howspecific topics such as CI/CED as well as the general topic of corporate citizenship are appropriate for business school attention.

Assessing the impact of CSR initiatives can be a complex task for marketers given the variety of methods of communicating about CSR as well as the broad range of stakeholders that CSR initiatives might interest. Social media helps increase the visibility and credibility of CSR communication and provides new ways of reaching and involving stakeholders in CSR initiatives. Using data collected and coded from Facebook pages of the Top 100 Global Brands, the authors introduce a new measure of effectiveness for (...) CSR communication; CSR communication productivity (CCP). The findings indicate that CCP has a positive impact on firm performance (Tobin’s Q). The authors also investigate the impact of External Stakeholder Involvement in CSR initiatives. The results suggest that when external stakeholders are involved in an organization’s CSR initiatives, both CCP and firm performance (Tobin’s Q) improve. In addition, third-party evaluations of CSR performance positively moderate the impact of External Stakeholder Involvement on CCP. These findings offer contributions to CSR communication and social media marketing theories. They also have implications for marketing managers regarding how to measure and benchmark CCP, and how to maximize returns by involving external stakeholders in CSR efforts. (shrink)

This paper examines the different mechanisms used by multinational corporations (MNCs) in Nigeria seeking to make long-term social investments by meeting the critical challenge of improving water provision. Community enterprise – an increasingly common form of social enterprise, which pursues charitable objectives through business activities – may be the most effective mechanism for building local capacity in a sustainable and accountable way. Traditionally, social investments by MNCs have involved either donations to a charity, which then assumes responsibility for delivering (...) social outcomes, or direct management of social investment in-house. These approaches have been criticized, however, for their limited contribution to local capacity building, their focus on short-term outcomes, and the restricted role that they afford to communities. Partnering with community enterprise, provided there is sufficient local capacity to support it, is the most effective mode of governance through which MNCs can manage social investments in developing countries. (shrink)

Modern society is challenged by a loss of efficiency in national governance systems values, and lifestyles. Corporate social responsibility (CSR) discourse builds upon a conception of organizational legitimacy that does not appropriately reflect these changes. The problems arise from the a-political role of the corporation in the concepts of cognitive and pragmatic legitimacy, which are based on compliance to national law and on relatively homogeneous and stable societal expectations on the one hand and widely accepted rhetoric assuming that all (...) members of society benefit from capitalist production on the other. We therefore propose a fundamental shift to moral legitimacy, from an output and power oriented approach to an input related and discursive concept of legitimacy. This shift creates a new basis of legitimacy and involves organizations in processes of active justification vis-à-vis society rather than simply responding to the demands of powerful groups. We consider this a step towards the politicization of the corporation and attempt to re-embed the debate on corporate legitimacy into its broader context of political theory, while reflecting the recent turn from a liberal to a deliberative concept of democracy. (shrink)

This paper briefly reviews the theories that seek to explain the phenomenon of corporate charitable donations and then provides a review of the empirical issues that have arisen in previous studies in this area. The findings of an analysis of charitable donations data from the entire U.K. FTSE index for the years 1985–2000 are then reported. These findings include the observation of a time-related increase in charitable donations, which is compared with an earlier study to give a 24 year (...) history of charitable donations in the U.K. The findings note little responsiveness of the monetary value of charitable donations to the economic performance of firms. An international comparison over time against U.S. trends is also reported and shows how U.S. corporations have traditionally been more generous than U.K. firms, but that the trend in the U.S. is downwards. Membership of a U.K.-based "tithing" club (the PerCent Club) is shown to be associated with higher profit performance against non-members. Members' charitable contributions against profit are shown to be higher than the FTSE mean although short of the 0.5% target figure in "cash" terms. The paper concludes with a brief discussion of these findings in relation to the theoretical positions advanced for corporate philanthropy. (shrink)

In this article we argue that the emergence of a new form of organization – community enterprise – provides an alternative mechanism for corporations to behave in socially responsible ways. Community enterprises are distinguished from other third sector organisations by their generation of income through trading, rather than philanthropy and/or government subsidy, to finance their social goals. They also include democratic governance structures which allow members of the community or constituency they serve to participate in the management (...) of the organisation. Partnerships between corporations and community enterprises therefore raise the possibility of corporations moving beyond philanthropic donations toward a more sustainable form of intervention involving long-term commitments to communities. At the same time they change substantively the nature of any collaboration by allowing relationships to proceed on the basis of mutual advantage, thereby broadening their appeal and scope. In doing so, partnerships build capacity and enfranchise communities in a way that avoids the paternalism that has traditionally characterised relationships between corporations and voluntary sector organisations. Power relations are transformed because partners are seen as sources of valuable assets, knowledge and expertise, rather than recipients of patronage or charity. (shrink)

Five different Latin American experiences help us to understand the impacts of corporate social responsibility on communities. We focus on communities composed of low-income populations to compare types of interventions, their main characteristics, spaces for community participation, and some results and impacts. Some of the findings indicate that (a) a company’s enlightened self-interest in its CSR program ensures its commitment to the program and the program’s sustainability; (b) community involvement from the outset in defining a project (...) increases the probability of success, since corporations cannot assume they understand the needs of a community by taking them at face value; (c) projects do not create untenable expectations in local communities when they consider the whole life cycle and the sustainability of the investment after an appropriate exit strategy is executed; and (d) financial resources are only part of the equation because corporations can have enormous impacts with limited financing if programs are well defined and supported. (shrink)

According to the Dutch Ministry of Economic Affairs (2001), transparency by means of Sustainability Reporting should lead to better Corporate Social Responsibility (CSR) performance of companies. Sustainability Reporting should also give consumers the information they need to purchase the most sustainable products available (Dutch Ministry of Economic Affairs, 2004). This article analyses the driving factors influencing CSR and Sustainability Reporting at seven breweries in the Netherlands. It also gives a better understanding of organizational behaviour with reference to CSR and (...) the reasons breweries have for Sustainability Reporting. The Dutch government has no intention of forcing organizations to publish a sustainability report, since it is trying to diminish the volume of legislation. Rather, the government prefers to rely on the willingness and initiatives of organizations to make CSR a success. In 2006, the Dutch Ministry of Economic Affairs will evaluate the effect of its CSR policy. But is it a success already? During our research, breweries appeared to find CSR more important than Sustainability Reporting. Sustainability reporting is, for most breweries, not the way to reach stakeholders. Most stakeholders have their own means for receiving information e.g. annual reports, meetings, public statements and press releases. Although small breweries think CSR is very important, they feel no pressure from outside to publish a sustainability report. For them it is very complex and expensive to publish a sustainability report. Large breweries feel pressure from many stakeholders to be transparent, but not on a regular basis. We conclude from this research that CSR does not stimulate Sustainability Reporting, but neither does Sustainability Reporting stimulate CSR. (shrink)

Ally-building can be an ethical pursuit in developing sources of power for the business manager. The commitment to social responsibility is a source of power, as well as an ethical practice for corporate endeavors. Pfeffer promotes a business manager's ability to develop effectiveness with ties to powerful others in an intra-organizational environment. This paper advances an analysis about how individuals in corporations may use an inter-organizational approach to developing sources of power through a notion of corporate social responsibility. (...) As such, a more meaningful qualitative reciprocity between corporations and the communities in which they operate can be developed. And, this relationship develops a source of power for the individual involved in this effort. In other words, relationships with powerful others in the community could develop by revisiting CSR based on reciprocity and exchange of sustainability in a community, rather than on a notion of paternal responsibility to some particular construct in society. (shrink)

Recent years have witnessed an escalation in corporate social reporting (CSR) by UK companies (Gray, Kouhy and Lavers 1995). Whilst some elements of CSR reporting are required by law, much of it represents voluntary reporting. By investigating the non‐mandatory reporting of two aspects of social responsibility, corporate community involvement (CCI) and environmental impact, this paper seeks to explore why companies choose to make such disclosures. It specifically asks whether companies are primarily motivated by the strategic need (...) to manage their reputation and legitimacy rather than by the recognition of their ethical accountability, which is the stated purpose of reports produced by cutting edge companies (Clarke 1998). (shrink)

This paper uses social network analysis to examine the interaction between corporate blogs devoted to sustainability issues and the blogosphere, a clustered online network of collaborative actors. By analyzing the structural embeddedness of a prototypical blog in a virtual community, we show the potential of online platforms to document corporate social responsibility (CSR) activities and to engage with an increasingly socially and ecologically aware stakeholder base. The results of this study show that stakeholder involvement via sustainability (...) blogs is a valuable new practice for CSR communications and stakeholder engagement. It also opens new horizons for communicating CSR issues to key constituencies online. (shrink)

Corporate social responsibility research has mainly focused on understanding the antecedents and outcomes of CSR adoption. Yet, little is known about the organisational process of ‘CSR engagement’ and how this would affect organisational identity. We mobilise Basu and Palazzo’s cognitive and linguistic notions of sense-making and Brickson’s organisational identity orientation to frame how rural community banks in Ghana engage with CSR. Drawing from semi-structured interviews with RCB directors, managers and other stakeholders, we conceive of the CSR engagement process (...) as one that allows for the communication and orientation of organisational identity through an ‘informal co-creation’ involving organisational actors and stakeholders. Our findings also emphasise the ‘cultural/political’ modes of justification put forward by RCBs in their CSR engagement. Lastly, we tentatively propose the notion of an ‘opaque context’ to highlight settings that are less concerned about public visibility, and where the focus is instead on the direct interactions between organisations and stakeholders in a given social context. (shrink)

Recent research suggests that philanthropy’s value to the firm is largely mediated by contextual factors such as managers’ assumed motives for charity. Our article extends this contingency perspective using a “sensegiving” lens, by which external actors’ interpretations of organizational actions may be influenced by the way in which the organization communicates about those actions. We consider how sensegiving features in philanthropy-related press releases affect whether investors value those donation decisions. For the empirical investigation in this study, we analyze abnormal returns (...) to announcements by U.S. Fortune 500 firms documenting their donations to Hurricane Katrina disaster relief in 2005. We expect that in general, donation decisions would be controversial given the uncertainty surrounding the hurricane’s economic effects at the time. However, we also propose that announcements emphasizing employee involvement in the donation send investors positive signals about the firm’s ability to bounce back from the disaster’s adverse effects. We find empirical support for the proposed hypotheses, and discuss the implications for theory and practice. (shrink)

Using a sample of 21,030 US firm-year observations that represents more than 3000 individual firms over the 1998–2012 period, we investigate the relationship between Corporate Social Responsibility (CSR) and investment efficiency. We provide strong and robust evidence that high CSR involvement decreases investment inefficiency and consequently increases investment efficiency. This result is consistent with our expectations that high CSR firms enjoy low information asymmetry and high stakeholder solidarity (stakeholder theory). Moreover, our findings suggest that CSR components that are (...) directly related to firms’ primary stakeholders (e.g. employee relations, product characteristics, environment, and diversity) are more relevant in reducing investment inefficiency compared with those related to secondary stakeholders (e.g. human rights and community involvement). Finally, additional results show that the effect of CSR on investment efficiency is more pronounced during the subprime crisis. Taken together, our results highlight the important role that CSR plays in shaping firms’ investment behaviour and efficiency. (shrink)

This study analyzes how the board’s characteristics could be associated with globally corporate social responsibility CSR and specific areas of CSR. It is drawn on all listed firms, in 2016, on the SBF120 between 2003 and 2016. Our results provide strong evidence that diversity in boards and diversity of boards globally are positively associated with corporate social performance. However, they influence differently specific dimensions of CSR performance. First, we show that large boards are positively associated with all areas (...) of CSR performance, while specific and overall CSR scores are negatively associated with CEO-chair structures. Second, board gender diversity is positively associated with human rights and corporate governance dimensions. Third, age diversity is positively associated with corporate governance, human resources, human rights, and environmental activities. Also, our results provide evidence that outside directors care about CSR performance. Specifically, the presence of foreign directors is positively associated with environmental performance and community involvement, whereas CSR-Governance dimension is positively associated with the presence of independent directors. Regarding the director’s educational level, post-graduated directors are positively and significantly associated with overall CSR score and all CSR sub-scores, except the corporate governance one. When directors have multiple directorships, they are more concerned about human resources, environmental performance, and business ethics. Finally, our findings are robust only in non-family firms. In fact, family boards are less diverse than non-family ones; specifically, they have a lower number of independent, foreign, and high-educated directors. (shrink)

Conventional management strategies for anti-corporate anger involve its negative construal as an inappropriate irrationality in need of containment. An alternative account is offered in which such anger comprises a healthy and health-sustaining component of care-based moral agency directed not only toward the affiliative advancement of connection among community members, but also toward the (political) resistance to violation, injustice, and carelessness through which disconnection from responsive community relationships occurs. The role of anger in care-based moral agency is demonstrated (...) through discussion of the classic case of environmental and human health crisis at Love Canal, New York. (shrink)

This research involves a review of the submissions to a 2005/06 Australian Government Inquiry into Corporate Social Responsibility. The Inquiry was established to investigate whether corporate social responsibilities and accountabilities should be regulated, or left to be determined by market forces. Our results show that the business community overwhelming favour an anti-regulation approach whereby corporations should be left with the flexibility to determine their social responsibilities and associated accountabilities and ‘enlightened self-interest’ should be retained as the guiding (...) mechanism for social responsibility initiatives. In stark contrast, the submissions from social and environmental organisations and individuals provided counter-arguments in favour of a pro-regulation view. Ultimately Government embraced the ‘free market perspective’ promoted by the business community and decided against the introduction of national legislation pertaining to corporate social responsibilities. (shrink)

Reputation management refers to all the practices employed by corporations aimed at improving the public perception of the corporation. This article outlines the main features of some of the most common points of discussion pertaining to the ethics of reputation management. It introduces the debate on classical forms of corporate communication, or ‘spin-doctoring,’ but also some issues related to more contemporary forms of ‘corporate social responsibility’ management. Finally, it introduces the involvement by stakeholder activists in the battle (...) over corporate reputations and some of the discussion this has given rise to. (shrink)

Corporate Social Responsibility amongst Small and Medium Enterprises is often characterised in the literature as unstructured, informal and ad hoc discretionary philanthropic activities. Drawing insights from recent theoretical/analytical frameworks :52–78, 2010), and on empirical data collected from both Nigeria and Tanzania, we found that CSR practices in SMEs are much more nuanced than previously presented. In addition, SMEs undertake their CSR practices to varying degrees in multiple spaces—i.e. the workplace, marketplace, community and the ecological environment. These CSR practices (...) go beyond philanthropy and in some instances involve institutional works aimed at addressing some of the institutional gaps in the environments where these SMEs operate. The paper makes a contribution by drawing attention to the multiple spaces of CSR practices amongst SMEs, and the institutional works they do, which are often taken for granted in the extant literature. We provide a unique perspective—by arguing that what is frequently conceptualised as philanthropic CSR in Africa is ‘institutional works’. (shrink)

This paper examines the strategic use of corporate philanthropy in the 1990s by UK building societies faced with an intensification of societal pressure to change legal form from mutual to corporate status. While the economic case for mutuality has been made elsewhere, this paper examines the observation that community relationships were thought by management to be capable of assisting in the strategic positioning of mutual societies with regard to their legal form. By increasing charitable giving to respond (...) to the level of societal scrutiny and discussion on the issue of mutuality, this paper argues that charitable giving, as one proxy for community involvement, was used as a strategic tool to deflect calls for demutualisation, thereby preserving the existing mutual status of building societies. (shrink)

The term “corporate transparency” is frequently used in scholarly discussions of business ethics and corporate social responsibility (CSR); however, it remains a volatile and imprecise term, often defined incompletely as “information disclosure” accomplished through standardized reporting. Based on the results of empirical studies of organizational behaviors, this paper identifies a new set of managerial practices based on the use of information and communication technologies (ICT) and particularly Internet-based tools. These practices are resulting in what can be termed “dynamic (...) transparency.” ICT allows for an informational environment characterized by two-way exchange between corporations and their stakeholders, which fosters a more collaborative marketplace. It is proposed that such dynamic information sharing, conducted by means of ICT, drives organizations to display greater openness and accountability, and more transparent operations, which benefit both the corporations and their constituents. One of the most important outcomes that will accrue to consumers and other individuals is the “right to know,” especially about corporate strategies and activities that might directly affect their quality of life. This paper demonstrates that dynamic transparency is more desirable and more effective than the more common “static transparency” where firms’ information disclosure is one-way, usually in response to government regulation. We present three ethical arguments to justify the implementation by business firms of dynamic transparency and demonstrate that their doing so is related to CSR and to augment and complement stakeholder engagement and dialogue. The paper concludes with a summary of the possible limits to and the problems involved in the implementation of dynamic transparency for corporations, and suggests some strategies to counter them. (shrink)

Facing increased competition, universities are driven to project a positive image to their internal and external stakeholders. Therefore some of these institutions have begun to develop and implement corporate identity programs as part of their corporate strategies. This study describes a Turkish higher education institution’s social responsibility initiatives. Along with this example, the study also analyzes a specific case using concepts from the Corporate Identity and Corporate Social Responsibility literature. The motives leading the university to manage (...) its corporate identity, the social responsibility initiatives in the local and national communities, and the possible benefits of these initiatives for the parties involved are all identified. The major finding is that philanthropy is one of the main elements of Istanbul Bilgi University’s corporate identity program and that the university has altruistic motives for its social responsibility initiatives. (shrink)

Unlike innovation based on a strong professional culture involving close collaboration between professionals in academia and/or corporations, the current Free/Libre Open Source Software (FLOSS) development entails a global knowledge network, which consists of 1) a heterogeneous community of individuals and organizations who do not necessarily have professional backgrounds in computer science but have developed the competency to understand programming and working in a public domain; 2) corporations. This paper describes the operation of the hybrid form of developing and implementing (...) software, and also identifies several key factors shaping the collaboration between FLOSS firms and the community. (shrink)

This article explores how corporate governance processes and structures are being used in large Australian companies to develop, lead and implement corporate responsibility strategies. It presents an empirical analysis of the governance of sustainability in fifty large listed companies based on each company’s disclosures in annual and sustainability reports. We find that significant progress is being made by large listed Australian companies towards integrating sustainability into core business operations. There is evidence of leadership structures being put in place (...) to ensure that board and senior management are involved in sustainability strategy development and are then incentivised to monitor and ensure implementation of that strategy through financial rewards. There is evidence of a willingness to engage and communicate clearly the results of these strategies to interested stakeholders. Overall, there appears to be a developing acceptance amongst large corporations that efforts towards improved corporate sustainability are not only expected but are of value to the business. We suggest that this is evidence of a managerial shift away from an orthodox shareholder primacy understanding of the corporation towards a more enlightened shareholder value approach, often encompassing a stakeholder-orientated view of business strategy. However, strong underlying tensions remain due to the insistent market emphasis on shareholder value. (shrink)

Corporate social responsibility involvement and disclosure has been becoming increasingly popular among US public firms, including those that qualify as real estate investment trusts. This paper aims to discover the relationship between CSR involvement and potential determinants such as growth opportunities, profitability, visibility, and agency costs. Types of CSR involvement are assessed in terms of environmental, community, and governance disclosures and are quantified using word count from the company’s voluntary disclosure. Our results support the hypothesis (...) that CSR has a strategic element and that REITs have greater CSR involvement when they have greater growth and investment opportunities. When the type of disclosure is broken into subcategories, the results show that not all dimensions of CSR are alike: environmental, community, and governance CSR disclosures appear to be motivated by different sets of incentives and reasons. (shrink)

The intention of this paper is to examine the impact of corporate social responsibility disclosure on financial performance in a case study of listed Pharmaceutical firms in Pakistan. For this case study, the panel data of 10 years from 2005 to 2014 are obtained through content analysis of annual reports. Quantitative tools were used to measure variables studied in which index was developed and used scoring methodology. Further, brand equity is introduced as a mediator between CSRD and financial performance. (...) The results of content analysis revealed that GSK Pakistan laboratories involved in greater level of disclosure as compared to other pharmaceutical firms. The average rate of disclosure of listed pharmaceutical firms is increasing annually. Among four themes, the results showed that pharmaceutical firms mostly disclose information regarding community involvement. The results of regression which were significant shows that brand equity act as mediator between the corporate social responsibility disclosure and financial performance. (shrink)

To develop this study of strategic philanthropy in the United Kingdom, voluntary charitable donations policy disclosures were captured from the annual reports of two samples of U.K. companies: one of the entire Financial Times Stock Exchange 100 at year-end 2002 and another of 14 selected companies over a 15-year period. Post and Waddock's descriptions of “philanthropy strategy” and “strategic philanthropy” were employed to establish the extent to which these concepts were conveyed to readers of annual reports based on the belief (...) that high disclosure serves both agency accountability to shareholders and the information needs of soliciting charities. Conclusions drawn include that although there is a relatively high level of policy disclosure, the detail of narrative in, and consistency (over time) of, these disclosures is very patchy, and only a minority of companies show evidence of adopting a fully strategic approach to philanthropy. (shrink)

According to the Green Paper presented by the European Commission in July 2001, corporate social responsibility (CSR) is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis (Commission of the European Communities, 2001b, p. 6). On this basis, in 2002, the Italian Government, and especially the Italian Ministry of Welfare, launched an initiative called CSR-SC (social commitment) in order to foster the proactive social role (...) of Italian enterprises, with great attention on SME involvement. The technical partner of the Italian Ministry of Welfare for this initiative is Bocconi University. The goal of this contribution is to present the main results of CSR–SC research project developed by Bocconi University. The paper provides a detailed picture of the general scheme designed to carry out the research project and a review of the different methodologies used to support the solutions proposed. (shrink)

This study investigated whether employee perceptions of corporate social responsibility (CSR) were associated with the presence of Corporate Psychopaths in corporations. The article states that, as psychopaths are 1% of the population, it is logical to assume that every large corporation has psychopaths working within it. To differentiate these people from the common perception of psychopaths as being criminals, they have been called “Corporate Psychopaths” in this research. The article presents quantitative empirical research into the influence of (...) Corporate Psychopaths on four perceptual measures of CSR and three further measures of organizational commitment to employees. The article explains who Corporate Psychopaths are and delineates the measures of CSR and organizational commitment to employees that were used. It then outlines the research conducted among 346 corporate employees in Australia in 2008. The reliability of the instrument used is commented on favorably in terms of its statistical reliability and its face and external validity. Results of the research are described showing the highly significant and negative influence of Corporate Psychopaths on all of the measures of CSR and of organizational commitment to employees used in the research. When Corporate Psychopaths are present in leadership positions within organizations, employees are less likely to agree with views that: the organization does business in a socially desirable manner; does business in an environmentally friendly manner and that the organization does business in a way that benefits the local community. Also, when Corporate Psychopaths are present in leadership positions within organizations, employees are significantly less likely to agree that the corporation does business in a way that shows commitment to employees, significantly less likely to feel that they receive due recognition for doing a good job, to feel that their work was appreciated and to feel that their efforts were properly rewarded. The article argues that academics and researchers in the area of CSR cannot ignore the influence of individual managers. This is particularly the case when those managers have dysfunctional personalities, or are actually psychopaths. The article further argues that the existence of Corporate Psychopaths should be of interest to those involved in corporate management and corporate governance because their presence influences the way corporations are run and how corporations affect society and the environment. (shrink)

ABSTRACT:Corporate social responsibility has been hailed as a new means to address gender inequality, particularly by facilitating women’s empowerment. Women are frequently and forcefully positioned as saviours of economies or communities and proponents of sustainability. Using vignettes drawn from a CSR women’s empowerment programme in Ghana, this conceptual article explores unexpected programme outcomes enacted by women managers and farmers. It is argued that a feminist Foucauldian reading of power as relational and productive can help explain this since those involved (...) are engaged in ongoing processes of resistance and self-making. This raises questions about the assumptions made about women and what is it that such CSR programmes aim to empower them ‘from’ or ‘to.’ Empowerment, when viewed as an ethic of care for the self, is better understood as a self-directed process, rather than a corporate-led strategy. This has implications for how we can imagine the achievement of gender equality through CSR. (shrink)

Being a controversial industry, oil companies turn to corporate social responsibility (CSR) as a means to obtain legitimacy. Adopting a case study methodology, this research examines the characteristics of CSR strategies and CSR communication tactics of six oil companies by analyzing their 2011–2012 web site content. We found that all six companies engaged in CSR activities addressing the needs of various stakeholders and had cross-sector partnerships. CSR information on these companies’ web sites was easily accessible, often involving the use (...) of multimedia technologies and sometimes social media platforms. Furthermore, to boost the credibility of their CSR messages, these companies utilized a variety of tactics, such as factual arguments and two-sided messages. In sum, this research unveils the interconnectedness among business strategy, CSR practices, and CSR communication in oil companies’ attempt to gain legitimacy in an environment of controversy. The article ends with a discussion of the theoretical and practical implications of the research findings. (shrink)

Banking scandals, accounting fraud, product recalls, and environmental disasters, their associated reputational effects as well as company response strategies have been well reported in the literature. Reported crises and scandals typically involve one focal company for example BP and the 2010 Deepwater Horizon accident. As business practices change and company supply chains become more complex and interlinked, there is a greater risk of collective crises where multiple companies are associated with the same scandal. We argue that companies are likely to (...) behave differently in a group setting compared to when faced with a crisis individually. Using an inductive approach, we examine the case of the Rana Plaza building collapse. We find that organizations with a history of similar crises adopt defensive strategies and communicate much later compared to organizations which adopt accommodative strategies. Contrary to the individual case, in a collective crisis accommodative strategies result in more negative reputational damage and a higher burden of responsibility. We propose that the relationship between crisis response strategy and organization reputation is moderated by the crisis setting. We extend the logic of crisis management and corporate reputation to incorporate the case of a collective crisis. (shrink)

This dissertation argues that corporate moral responsibility can be an element of functioning corporations and is a choice that society can make. Although many in the lay community would say that of course corporations should attend to moral questions, the philosophy of how this can be rightly said is controversial. Section one (first three chapters) gives an account of the nature of functioning business corporations involving the readily observable facts about a corporation doing business, and a tripartite model (...) of the corporation is presented. The tripartite model consists in 1) the legal entity that owns assets and liabilities, 2) a group of persons contracted to the legal entity and 3) a set of roles and relationships between the corporate associates and the legal entity. Additionally, an account of the main extant theories of the nature of corporations and their inability to account for the readily observable facts of corporations is argued. The conclusion is that the corporation, as a tripartite model, is best served by a theory that designates it as a real entity apart from but dependent on its employees. Chapter three answers the question, ‘What type of real entity is a corporation?’, using John Searle’s theory of social ontology to show that corporations are institutional facts, a social entity. The second part of the thesis argues that corporations have moral dispositions analogous to those held by natural persons and maintains that it is these that allow corporate entities to be capable of moral concern. A constitutive rule is introduced, ‘moral company rule’, that may be used as a guide for society to assess the extent of corporate moral responsibility. An account of the powers and responsibilities corporations would have if the moral company rule was followed is presented. Additionally, the dilemma for society, to insist on corporate moral responsibility or preserve the status quo, is explored. The last chapter recapitulates the argument for corporate moral responsibility to illustrate the two aims of this thesis: first to give a clear understanding of the functioning business corporation as a real entity with a series of moral dispositions, and second to show that society has a choice to insist that these moral dispositions are used in business. (shrink)