Business Ethics, the Environment & Responsibility, EarlyView.

The authors use empirical research into the environmental practices of 31 manufacturing small and medium-sized enterprises (SMEs) to show that ‚business performance’ and ‚regulation’ considerations drive behaviour. They suggest that this is inevitable, given the market-based decision-making frames that permeate and dominate the industry in which manufacturing SMEs operate. Since the environment is a pillar of corporate social responsibility (CSR), the findings have important implications for CSR policy, which promotes voluntary actions predicated on a business case. It is argued that (...) this approach will not alter the behaviour of manufacturing SMEs significantly because CSR practice will be regarded as an optional and costly ‚extra’ affecting core business activity. Consequently, the use and development of existing regulatory structures, providing minimum standards for many activities covered by CSR, remains the most effective means through which the behaviour of manufacturing SMEs will be changed in the short to medium-term. Another feature of the paper is the distinction made between ‚business performance’ and the ‚business case’ argument. Business performance emphasises cost reductions and efficiency whereas the business case accentuates the benefits to shareholders of good practices as their firms become more attractive to stakeholders and society. Manufacturing SMEs␣try to improve business performance because of the pressures placed on them by market-dominated decision-making frames. These frames do not encourage manufacturing SMEs to undertake voluntary actions for the benefit of wider stakeholders and society. (shrink)

What drives Chinese MNEs’ global CSR integration and local CSR responsiveness? Drawing on institutional theory, we argue that both antecedents reflecting globally isomorphic patterns of adaptation and antecedents mirroring the distinct characteristics of China’s institutional context are relevant. We support our argument using fuzzy-set qualitative comparative analysis on a sample of 29 of China’s globally most influential companies. We find that state influence and global CSR associations affect global CSR integration, whereas presence in the West and internationalization through mergers and (...) acquisitions predict local CSR responsiveness. Our study thus suggests that home-country characteristics are an important co-determinant of the CSR approaches of emerging-market MNEs. We further find that multicultural experience in top management teams is associated with both global CSR integration and local CSR responsiveness, supporting notions of transnational CSR. (shrink)

What drives organisations to engage in socially responsible purchasing initiatives? To investigate this important question, this article uses a case-study approach to examine the context within which supplier diversity programmes have emerged in both the U.S. and U.K. The analysis identifies legislative and policy developments, economic imperatives, stakeholder pressures and ethical influences as forces shaping organisational responses. It reveals important contextual differences between U.K. and U.S. experience and offers an empirical and theoretical explanation of corporate behaviour.

The present study analyzes the key drivers facilitating corporate social responsibility practices in large-scale organizations of North-West region of India. Further research is using Carroll’s model of CSR responsibility as a basis to develop a strategic framework that demonstrates transition from economic to holistic approach. Carroll’s CSR model focuses on four aspects: economic, legal, ethical, and philanthropic responsibilities. This research has been taken to understand whether there is a transition in Indian large-scale organizations from its primary focus on economic (...) responsibilities to legal, ethical, and philanthropic responsibilities to adopt holistic approach. Results are indicative of the fact that Indian economy has given considerable importance to social responsibility practices, and clear transition can be observed from economic to holistic approach. (shrink)

In this theoretical paper, motives for CSR are considered. An underlying assumption is that the commercial imperative is not the sole driver of CSR decision-making in private sector companies, but that the formal adoption and implementation of CSR by corporations could be associated with the changing personal values of individual managers. These values may find expression through the opportunity to exercise discretion, which may arise in various ways. It is suggested that in so far as CSR initiatives represent individuals' values, (...) so the responsibility in evidence is less obviously corporate. Our emphasis on personal initiative is intended to counter a tendency to view the corporation as the agent, and may serve to remind us that individuals can, indeed, make a difference. (shrink)

This work focuses on corporate social responsibility disclosure practices of multinational corporations. Based on a longitudinal study of CSR reports of companies operating in the automotive industry, the paper offers a detailed study of how disclosure practices are changing and which principles and approaches influence and drive the development of such disclosure. Based on a four-year report-based study, the findings enable us to identify three main trends in the CSR disclosure strategy of automotive firms. First, in line with the mainstream (...) CSR literature, the present study confirms the trend towards the increasing environmental and social accountability. Second, it adds evidence to the emerging debate regarding the harmonization and standardization of reporting and discusses this aspect by mentioning the standards as exerting some normative pressures within the sector. Finally, it provides evidence on specific links emerging between issues and actors. The implications of this evidence contribute to opening up the debate on CSR disclosure to the possibility of combining the institutional lens with a strategic approach that captures the materiality considerations of CSR disclosure. (shrink)

The establishment or nurturing of a supportive organizational climate encompasses various activities rooted in ethical commitments. This study focuses on the outcome of these activities, exploring how team members’ collective interpretation and evaluation of corporate social responsibility (CSR) initiatives’ presence and authenticity impact team empowerment as a driver of team performance. Drawing on the organizational climate literature, while integrating signaling theory and attribution theory, we hypothesize that the impact of CSR climate on team performance through team empowerment hinges on two (...) key factors. First, teams must perceive the presence of CSR initiatives, denoting CSR climate quality. Secondly, there must be a consensus regarding the authenticity of these initiatives, signifying CSR climate strength. Results from a partial least squares—structural equation modeling analysis of multi-informant data obtained from 537 team members within 73 teams of 35 retail organizations in Belgium support most of our hypotheses. The results reveal that both CSR climate quality and strength are important drivers of team empowerment in support of team performance. (shrink)

The purpose of this paper is to advance research on CSR beyond the stalemate of economic versus ethical models by providing an alternative perspective integrating existing views and allowing for more shared dialog and research in the field. It is suggested that we move beyond making a normative case for ethical models and practices of CSR by moving beyond the question of how to manage organizational self-interest toward the question of how accurate current conceptions of the organizational self seem to (...) be. Specifically, it is proposed that CSR is not a question of how self-interested the corporation should be, but how this self is defined. Economic and ethical models of CSR are not models of opposition but exist on a continuum between egoic and post-egoic, illusory and authentic conceptions of the organizational self. This means that moving from one to the other is not a question of adopting different paradigms but rather of moving from illusion and dysfunction to authenticity and functionality, from pathology to health. (shrink)

This article examines the explicit and implicit corporate social responsibility (CSR) framework and its implications for leadership style, in a major banking institution. Evidence for existence of the framework's key concepts in relation to leadership styles was explored through the self-reported sensemaking of leaders charged with CSR programme introduction. Qualitative data analysis indicated that explicit CSR is linked to an autocratic leadership style, whereas implicit CSR is more closely aligned with emergent and authentic styles. Although our results reinforced key aspects (...) of the explicit and implicit CSR framework, they demonstrated conflicting systems of both CSR and leadership within our case organisation and highlighted the difficulty in categorising such a complex concept as CSR according to specific frameworks. Overall, our data suggest that the leadership styles, needed to successfully implement explicit and implicit CSR programmes, are in conflict. Given our finding that these CSR systems can coincide within one organisation, we suggest that the debating style of transformational leadership may be the required linchpin. (shrink)

In a context where individuals are increasingly more sensitive to corporate social responsibility (CSR) practices and where mobilization of savings for the energy transition is essential, our article is the first to study the drivers of online green bank adoption. By analyzing 1075 questionnaires from a panel of French individuals in charge of financial decisions in their households, we show that altruism and green consumption values are significant drivers of individuals' green banking adoption and reveal that willingness to (...) adopt a green bank is mediated by the preference for green savings. These results extend the nascent literature dealing with the link between responsible consumption and saving behaviors. Briefly speaking, green banks (and associated savings products) have the potential to enable households to express their consumption values through their investments. That said, our results suggest that households' financial well-being and financial literacy can be barriers to the mobilization of green savings. Our results also demonstrate the significant influence of information system variables, such as personal innovativeness and trust, on willingness to adopt green banking. By shedding light on the drivers of individuals' green bank adoption, our results provide valuable insights for the banking industry. (shrink)

Firms operating in developing economies are increasingly expected to implement CSR practices aligned with recognized global standards. Drawing on extensive field study data in four Latin American countries, we contribute to business ethics scholarship by making visible and explaining firm shortcomings across social, environmental, and governance goals and activities of CSR. Building on and extending sensemaking literature, we find that leaders and managers responsible for their firms’ CSR activities make sense of and justify CSR shortcomings. We specify that justification based (...) on individual, organizational/industry, and macro-environmental influences serves as a mechanism that decouples firms’ actual CSR practices from recognized CSR standards. Further, we propose that detachment, involving disconnection from the local operating environment, underlies the CSR shortcomings of firms. We develop a theoretical multi-level model that specifies justification as a mechanism and detachment as an underlying driver of CSR shortcomings. (shrink)

In this multiple-case study, I analyze the perceived importance of seven categories of institutional entrepreneurs (DiMaggio, Institutional patterns and organizations, Ballinger, Cambridge, MA, 1988 ) for the corporate social responsibility discourse of three multinational companies. With this study, I aim to significantly advance the empirical analysis of the CSR discourse for a better understanding of facts and fiction in the process of institutionalization of CSR in MNCs. I conducted 42 semi-structured face-to-face and phone interviews in two rounds with 30 corporate (...) managers from three multinational companies. The data has been analyzed using qualitative (multiple coding) and quantitative (ANOVA, χ 2 analysis) techniques. The findings indicate that one company is driven by civil society’s influence on consumer’s perception, the second company by direct attacks by civil society, agenda setting organizations and legislators, and the third by the pressure of large customers and legislators. The results suggest that the coping behaviors of MNCs at both extremes of the spectrum of perceived responsible behavior aim at (1) improving the business case for CSR and (2) increasing legitimacy in society, resulting in converging CSR perceptions, and fostering an institutionalization of CSR. (shrink)

Finance is grease to the economy. Therefore, we assume that it may affect corporate social responsibility (CSR) and the sustainability of economic development too. This paper discusses the transmission mechanisms between finance and sustainability. We find that there is no simple one-to-one relationship between financial development and sustainable development but there are various – often indirect – linkages. It appears that most of the literature concentrates on the role of public shareholders when it comes to changing corporate policy and performance (...) in a more sustainable direction. However, this focus neglects the potential impact of the credit channel and private equity on a firm’s non-financial policies and performance. These very powerful mechanisms can govern business policies and practices. Therefore, there appears to be much more scope for finance to promote socially and environmentally desirable activities and to discourage detrimental activities than has been acknowledged in the academic literature so far. (shrink)

The business case for Corporate Social Responsibility is a powerful driver for mainstreaming socially responsible behavior in corporate practice. This is because managers’ proclivity to assume responsibility is positively correlated with their expectations that CSR pays off. However, there is the danger that managers might be tempted to focus primarily on those CSR activities that allow to link the associated costs and benefits ex ante reliably which, in turn, is a precondition for a perceived business case. Unfortunately, the perceived business (...) case for CSR activities that prevent irresponsible behavior is rather weak. In contrast, CSR in terms of the voluntary engagement for society is quite promising for the perceived business case. In consequence, a business case–driven approach to CSR might foster “cherry picking” behavior, in the sense that managers might tend to reduce CSR to “doing good” and put less efforts on CSR in terms of “avoiding bad” which, in turn, increases the risk of irresponsible business practices. (shrink)

The aim of this article is to contribute to understanding the changing role of government in promoting corporate social responsibility (CSR). Over the last decade, governments have joined other stakeholders in assuming a relevant role as drivers of CSR, working together with intergovernmental organizations and recognizing that public policies are key in encouraging a greater sense of CSR. This paper focuses on the analysis of the new strategies adopted by governments in order to promote, and encourage businesses to adopt, (...) CSR values and strategies. The research is based on the analysis of an explanatory framework, related to the development of a relational analytical framework, which tries to analyze the vision, values, strategies and roles adopted by governments, and the integration of new partnerships that governments establish in the CSR area with the private sector and social organizations. The research compares CSR initiatives and public policies in three European countries: Italy, Norway and the United Kingdom, and focuses on governmental drivers and responses. The preliminary results demonstrate that governments are incorporating a common statement and discourse on CSR, working in partnership with the private and social sectors. For governments, CSR implies the need to manage a complex set of relationships in order to develop a win–win situation between business and social organizations. However, the research also focuses on the differences between the three governments when applying CSR public policies. These divergences are based on the previous cultural and political framework, such as the welfare state typology, the organizational structures and the business and social and cultural background in each country. (shrink)

Despite growing evidence of the benefits to a firm of improving corporate social performance (CSP), many firms vary significantly in terms of their CSP activities. This research investigates how the characteristics of the stakeholder landscape influence a firm’s CSP breadth. Using stakeholder theory, we specifically propose that several factors increase the salience and impact of stakeholders’ demands on the firm and that, in response to these factors, a firm’s CSP will have greater breadth. A firm’s CSP breadth is operationalized as (...) the number of different sub-domains of CSR for which a firm has taken positive actions and is captured using a unique dataset from Kinder, Lydenburg, and Domini (KLD). This data set includes positive and negative firm actions across more than 35 different dimensions of socially responsible behavior. Findings based on a longitudinal, multi-industry sample of 447 US firms during the period from 2000 to 2007 demonstrate that firms which: (1) have greater sensitivity to stakeholder needs as a result of the firm’s strategic emphasis on marketing and/or value creation, (2) face greater diversity of stakeholder demands, and (3) encounter a greater degree of scrutiny or risk from stakeholder action have a greater breadth of CSP in response to the stakeholder landscape that they face. (shrink)

This paper investigates the corporate social responsibility (CSR) structures of U.S. listed firms. We find evidence of a general tendency towards CSR specialization with almost three-quarters (73.91%) of these firms focusing on a single CSR dimension. The degree of specialization varies across industries and the single CSR dimension focused on also varies for industries with similar degrees of specialization. We find that firms with higher exposures to CSR concerns, international activities, larger size, and higher financial slack tend to diversify across (...) multiple CSR dimensions. More importantly, we find evidence that diversified CSR structures positively affect a firm’s value relative to a control group before and during the 2008 financial crisis. Our findings have important implications for corporate and portfolio managers, investors, and policy makers. (shrink)

This paper explores the role of NGOs in corporate social responsibility (CSR) through an analysis of various stakeholders’ perceptions and of NGOs’ self-perceptions. In the course of qualitative research based in Spain, we found that the perceptions of the role of NGOs fall into four categories: recognition of NGOs as drivers of CSR; concerns about their legitimacy; difficulties in the mutual understanding between NGOs and trade unions; the self-confidence of NGOs as important players in CSR. Each of these categories (...) comprises the various elements analysed in the paper. We found some discrepancies between the perception of others and the self-perceptions of NGOs, which explains why their role is often controversial. The research confirms that secondary stakeholders, such as NGOs, are key players in CSR, but their role is still regarded as controversial and their legitimacy contested. Deep-seated misunderstandings and mistrust among various stakeholder groups (particularly between NGOs and trade unions) are a possible hurdle to the integration of social and environmental concerns in business activity and corporate governance in Spain. The study finds that business managers need to take a less firm-centric and a more contextual approach, and look more closely into the relationship with and among stakeholder groups. For NGO managers, the research shows that NGOs are not always aware of the stereotypes they generate and the problems caused mainly by what is seen as ambivalent roles: critic and counsellor, accuser and judge, idealist and fund raiser. (shrink)

Motivated by the social and environmental challenges resulting from the COVID‐19 pandemic, this research examines the influence of the “big five” personality traits; extroversion, agreeableness, openness, conscientiousness, and neuroticism on sustainable social responsibility with a mediating role of bricolage. We collected empirical evidence from 245 family‐owned SMEs. The results indicate that the personality traits do not directly influence sustainable social responsibility, although the traits (except extroversion) influence bricolage. Moreover, we found that open, conscious, and agreeable personalities indirectly contribute to sustainable (...) social responsibility, with bricolage as a mediator. Our findings encourage enterprises to focus on those personality traits during crises (especially COVID‐19) that empower people to effectively manage existing resources (e.g., bricolage) and protect their stakeholders. Family‐owned SMEs need to assign resource utilization tasks to family members having personalities of openness, conscientiousness, and neuroticism because these kinds of people have high capacities for bricolage. (shrink)

Interest in the drivers of firms’ corporate social responsibility (CSR) is growing. However, little is known about the influence of a CEO’s childhood experience of natural disasters on CSR. Using archival data, we explore this relationship by offering three mechanisms that may account for how the CEO’s childhood experience of natural disaster is related to their CSR. More specifically, while prior research has established a positive relationship based on the post-traumatic growth theory, we show that the dual mechanisms of (...) prosocial values and a CEO’s risk aversion explain the positive relationship. We further find that the positive relationship is stronger (1) when CEOs have longer career horizons and (2) when community social capital is high. This study contributes to both research and managerial implications on the topics of CEO’s childhood experience and CSR. In particular, this study advances the upper echelon theory by revealing that a CEO’s childhood experience of natural disaster is a useful yet relatively underexplored variable that can help explain the substantial variations in firms’ CSR. Moreover, we emphasize that a CEO’s career horizons and level of community social capital are important variables that further amplify the effect of a CEO’s childhood experience of natural disaster on the firm’s CSR commitment. (shrink)

The Russia–Ukraine war has challenged our understanding of corporate social responsibility (CSR). Whereas CSR is traditionally associated with business self-regulation that benefits business and society, the conflict has revealed new forms of what we call “partisan CSR.” Based on comprehensive data from Fortune Global 500 firms, this study discovers that in particular Western, but also some non-Western, corporations have engaged in partisan CSR activities, ranging from (1) strengthening Ukraine’s economy, to (2) enhancing security and protection for Ukrainian citizens, (3) providing (...) military support, (4) weakening Russia’s economy, and (5) supporting Ukraine in symbolic ways. By comparison, several mostly non-Western firms, e.g. from Asian countries, have chosen to be “neutral”, while, in some cases, exploiting economic opportunities arising from the conflict. This study also discusses major drivers of these CSR responses, including political climate, resource availability and economic dependency, isomorphism, and regulatory requirements. Our findings suggest a shift from political CSR to partisan CSR, which we expect to become more important with growing geopolitical divides and territorial conflicts. (shrink)

This study develops an internal–external institutional framework that explains why firms act in socially responsible ways in the emerging country context of China. Utilizing a mixed method of in-depth interviews and a survey study of 225 Chinese firms, the author found that internal institutional factors, including ethical corporate culture and top management commitment, and external institutional factors, including globalization pressure, political embeddedness, and normative social pressure, will affect the likelihood of firms to act in socially responsible ways. In particular, implicit (...) ethical corporate culture plays a key role in predicting different aspects of corporate social responsibility, while external institutional mechanisms mainly predict market-oriented CSR initiatives. This study contributes to the research on CSR antecedents by showing that in the emerging economy of China, CSR toward nonmarket stakeholders is more closely intertwined with corporate tradition and values, while legitimacy-seeking CSR activities are still limitedly rewarded. (shrink)

Globally, corporate social responsibility (CSR) needs to find its sustainable development via the recognition of tangible benefits that CSR will bring to organizations and their stakeholders. The less tangible but likely most important benefit lies in the continual improved leadership and management quality emerging from organizations investing in CSR. Companies’ failure to act in a CSR way and the lack of wise leadership and quality management is a dominant root factor in the past scandals and financial crisis. Looking at current (...) interactions between Chinese companies and their various influencing environmental, society and government (ESG) factors, many of the motivational drivers for Western companies to invest in CSR are today still being challenged here based on China’s market specifics. More rapid development of the regulatory framework with adequate enforcement resources, as well as incorporation of CSR “value” education at universities can accelerate this needed development. In the short term, foreign companies as “guests” of China should also be a catalyst as role models. Apart from a foreign investor’s actions, it is equally important to acknowledge and address local China challenges remaining to provide the right climate for a foreign company’s CSR programs to be successfully executed here. The world is at a cross roads of a new value-based leadership paradigm. With global interdependence accelerating and hence, management and leadership complexity expanding, there is a need for a new leadership model, bringing “common wisdom” more pronounced to the forefront, arising from a renewed focus and strengthening of an aligned set of values between family, society, and corporate life. China’s unique demographic challenges and economic progress provide a fertile environment to lead the world in this development. (shrink)

Little is known about how and why corporate social responsibility (CSR) emerged in lesser developed countries. In order to address this knowledge gap, we used Chile as a test case and conducted a series of in-depth interviews with leaders of CSR initiatives. We also did an Internet and literature search to help provide support for the findings that emerged from our data. We discovered that while there are similarities in the drivers of CSR in developed countries, there are distinct (...) differences as well. In particular, we found that different sectors drive CSR in Chile. In contrast to other geographies where consumer demand and government regulation provided the impetus for CSR efforts, multinational companies (MNCs) and non-governmental organizations (NGOs) are key actors in Chile. MNCs imported their CSR beliefs, skills, and processes into Chile. Their efforts resulted in a virtuous cycle. Once large domestic firms felt pressured by their MNC rivals, they too adopted CSR initiatives. The ability to manage relationships with multiple stakeholders and perceptions of authenticity were also critical to the success of CSR in Chile. Using network theory as a lens, we suggest that network density and centrality largely determine whether CSR efforts will be authentic. Based on these contentions, we suggest avenues for future research. (shrink)

The study investigates how board cultural diversity (BCD) affects bank stakeholder engagement through improved corporate social performance (CSP) and whether banks' corporate social responsibility (CSR) strategy mediates the relationship between BCD and banks' social performance. Adopting an international sample of 379 banks from 2010 to 2019, we found that BCD improves engagement in socially responsible issues in the banking sector. Moreover, we show a mediating role of strategic CSR on the relationship between BCD and banks' social performance. Hence, we contribute (...) to the research on the role of corporate governance mechanisms as drivers of CSR engagement. Furthermore, based on the mediation effect of strategic CSR, we advance the discussion on the link between BCD and banks' social performance. Our findings provide implications for banks and policy-makers, indicating the opportunity to promote cultural diversity, which supports socially responsible banking, while a CSR strategy positively impacts the stakeholder approach in the banking industry. (shrink)

Despite continuous academic attempts to investigate the relationship between public expectations of ethical leadership and corporate social responsibility (CSR) efforts, little research has demonstrated the subliminal process of the relationship. This study focuses on the publics' power distance perceptions as a key driver to lead individuals to prioritize CSR, mediated by the expectations of corporate ethical leadership. To further understand the mechanism and the way power distance perception influences public attitudes toward CSR operations, this study suggests a theoretical model illustrating (...) the relationships among power distance perception, expectancy of ethical leadership, expectancy of ethical CSR, and willingness to support socially responsible companies. A cross-national survey was conducted to provide empirical evidence from the United States (U.S.) and South Korea. Given that strategic approaches of CSR prioritize meeting public expectations toward corporate social roles, this study provides meaningful implications on public relations practice and CSR scholarship by demonstrating how public expectations of corporate ethical operations are shaped and how these expectations influence the public evaluation of corporate behaviors. (shrink)

Drawing on the Agency-Stewardship approach, which suggests that manager profile may range from the agent model to the steward model, this article aims to examine how important CEOs are to corporate social responsibility (CSR). Specifically, this exploratory study proposes the existence of a relationship between manager profile and CSR practices and that this relation is mediated by the perceived role of ethics and social responsibility. After applying a mediated regression analysis using survey information collected from 149 CEOs in Spain, results (...) show that those closer to the steward model are more inclined to attach great importance to ethics and social responsibility, and to implement CSR practices in their companies. Results also provide support for the suggested mediating effect. Thus, this article extends research in understanding top managers as drivers for CSR and suggests new ways to deal with this issue empirically. (shrink)

Codes of conduct have become the perhaps most often used tool to manage corporate social responsibility (CSR). Researchers have primarily analysed such documents at company-wide or trans-company levels, whereas there is a dearth of studies into the use of codes for particular corporate functions. Hence, this article will examine one particular group of sub-company level codes, namely codes of conduct that stipulate CSR criteria for suppliers. Examining such ethical sourcing policies adopted by the FTSE100 corporations, the article draws out what (...) environmental, social and economic issues large corporations perceive to be important in the management of their supply chains. At an aggregate level, the coverage of CSR issues is rather extensive, yet at the level of the individual corporation a degree of selectivity in the issues that are addressed becomes noticeable. The code content analysis furthermore confirms the business case and public pressure to be the most important drivers of CSR. Finally, the study highlights the role of isomorphic processes in the adoption of CSR tools. (shrink)

The state is a key driver of corporate social responsibility across developed and developing countries. But the existing research provides comparatively little knowledge about: (1) how companies strategically manage the relationship with the state through corporate social responsibility (CSR); (2) how this strategy takes shape under the influence of political institutions. Understanding these questions captures a realistic picture of how a company applies CSR to interacting with the state, particularly in countries where the state relationship is critical to the business (...) operation. This article draws on political legitimacy as a useful concept to directly address both strategic and politically embedded natures of CSR. This work extends the currently under-specified political implication of the strategic view of CSR and provides fresh insights to the political legitimacy research by specifying a typology of CSR-based legitimacy strategies and its contextual variation. China and Russia are the focal settings. A qualitative analysis of business—state interaction cases is done using a database that contains the majority of CSR reports published in Chinese and Russian as the end of 2009. As a result, this paper identifies four qualitatively different types of CSR-based political legitimacy strategies and reveals how the adoption of these strategies differs across Chinese companies, Russian companies, and multinational corporations. (shrink)

The view that CSR performance can be improved most effectively through external pressures is shown to be invalid for most firms. In exploring why this is the case, the authors demonstrate that most small and medium enterprises are not exposed to the same pressures as large firms, and that this undermines many of the assumptions that underpin the externally driven business case (EDBC) for voluntary CSR practices. The analysis does this by looking at the external drivers of one of (...) the components of CSR; namely, the environmental behaviour of firms. This shows that the strength of the EDBC is largely determined by five factors. Importantly, the analysis provides the basis for the claim that -- and helps to explain why -- the EDBC for voluntary environmental behaviour is likely to remain a weak form of pressure for many small firms. (shrink)

This article provides a historical contextualization of Corporate Social Responsibility and its political role. CSR, we propose, is one form of business–society interactions reflecting a unique ideological framing. To make that argument, we compare contemporary CSR with two historical ideal-types. We explore in turn paternalism in nineteenth century Europe and managerial trusteeship in early twentieth century US. We outline how the political responsibilities of business were constructed, negotiated, and practiced in both cases. This historical contextualization shows that the frontier between (...) economy and polity has always been blurry and shifting and that firms have played a political role for a very long time. It also allows us to show how the nature, extent, and impact of that political role changed through history and co-evolved in particular with shifts in dominant ideologies. Globalization, in that context, is not the driver of the political role of the firm but a moderating phenomenon contributing significantly to the dynamics of this shift. The comparison between paternalism, trusteeship, and contemporary CSR points to what can be seen as functional equivalents—alternative patterns of business–society interactions that each correspond, historically, to unique and distinct ideological frames. We conclude by drawing implications for future theorizing on CSR and stakeholder democracy. (shrink)

ABSTRACT:Existing research on certifiable management standards (CMS) and corporate social responsibility (CSR) tends to focus on large companies and is characterised by disagreement about the role of these standards as drivers of CSR. We contribute to the literature by shifting the analytical focus to the behaviour of small and medium-sized enterprises (SMEs) that subscribe to multiple CSR related standards. We argue that, in respect of motive and commitment, SMEs are not as different from large companies as the literature suggests, (...) as they are guided by similar institutional and economic motives. Results, based on ISO 9001, ISO 14001 and OHSAS 18001 certified SMEs in Greece, demonstrate that later adopters are more susceptible to coercive and mimetic motives and are less likely to commit fully to the CMS requirements, while earlier adopters react to normative motives and considerations of internal efficiency gains and tend to carry out CMS requirements with greater diligence. (shrink)

This article explores whether and how long-term investors influence non-executive employees’ incentives. While long-term investors benefit from long-term investments that create value over time, employees tend to be averse to long-term investments. We conjecture that long-term investors foster employee-related CSR to motivate employees to engage in long-term investment projects. Consistent with this prediction, we find that long-term investor ownership is a strong driver of employee-related CSR. Additional analyses indicate that this result is not driven by self-selection or reverse causality. We (...) further show that employee-related CSR leads to increased long-term investments (R&D expenses and corporate innovation). Overall, our findings highlight that employee-related CSR is an important channel through which long-term investors encourage long-term investments. (shrink)

There is a shift in the role of business in society where societal, environmental and stakeholder value drivers could reshape the basis of economic competitive advantage. Investors are willing to pay a premium for well-governed companies because of positive perceptions of CSR. Organizations respond to the value drivers to endure and function effectively along the societal, environmental and stakeholder dimensions. In this article case analysis is performed for four international firms, chosen from USA/Europe and Asia, with distinguished records (...) of sustainability. The case studies were based on the company sustainability reports and related material published in EthicalCorp, CSRWire and Covalence online publications. Assessments were performed using publicly available information. The non-parametric correlation analysis shows that firms with better commitment to CSR respond more to societal, environmental and stakeholder drivers through strategic initiatives. This improves their competitive advantage as assessed by economic value added. (shrink)

Food safety problems in China, such as deadly tainted milk, have attracted growing attention from a corporate social responsibility perspective. To examine the forces that potentially drive CSR behavior within the Chinese food industry, our study is organized as follows. First, a review is conducted on the unique history of CSR in China as well as some of the major Chinese food scandals that have taken place. The primary drivers of CSR in China that have been suggested in the (...) literature are then summarized. Next, new institutional theory perspectives are drawn upon to analyze three forces that potentially affect the behavior of Chinese firms: coercive isomorphism, mimetic processes, and normative pressures. Based on a questionnaire survey of 164 Chinese managers and employees, the CSR behavior of firms operating in the Chinese food industry is found to only be significantly affected by the institutional factor of normative pressures. The study concludes with its limitations as well as the implications of the findings. (shrink)

This paper seeks to examine the putative growth of corporate social responsibility (CSR) in Singapore. A key impetus for the nascent CSR movement in twenty-first century Singapore is the economic imperative. As a trade-dependent industrializing economy, the economic development drive coupled with the need for international expansion has made it necessary for Singapore businesses to be cognizant of the growing CSR movement in the western, industrialized world. The government supports the CSR endeavour with an instrumental bent, where CSR ideas and (...) concepts are adapted, incorporated, and promoted in various sectors of the economy. This paper assesses the state’s active encouragement of CSR in various facets of economic life in Singapore. The government sees itself as a promoter and practitioner of CSR. For instance, Singapore’s unique tripartite labor relations have recently emphasized a CSR gloss while CSR is also touted as being beneficial for corporate governance as well as improving the competitiveness of companies and improving the quality of life. However, CSR is too often seen as another form of corporate governance. This paper argues that the CSR drive in Singapore coheres with the government’s pragmatic approach to governance broadly conceived. There are many intrinsic and tangible benefits in the government being seen as an active promoter of CSR in various facets of Singapore life. The close association with the various concerns of CSR ensures that the government is seen to be involved in issues, such as environmentalism, work–life balance, anti-corruption, and philanthropy, that concern and appeal to the younger generation of Singaporeans. The CSR endorsement by the state, while not taking a legislative framework and still very much a private sector-driven initiative, is in accord with Singapore’s political and cultural values where the promotion of social responsibility (individual and group), harmony, cohesion, and stability in a multi-racial, multi-religious, and multi-lingual society are very much valued. In studying the putative CSR movement in Singapore, a sense of the values that the state, in partnership with the business world, hopes to inculcate would be evident. (shrink)

Based on a survey and content analysis of 462 peer-reviewed academic articles over the period 1990–2014, this article reviews theories related to the external drivers of corporate social responsibility and the internal drivers of CSR that have been utilized to explain CSR. The article discusses the main tenets of the principal theoretical perspectives and their application in CSR research. Going beyond previous reviews that have largely failed to investigate theory applications in CSR scholarship, this article stresses the importance (...) of theory-driven explanations of CSR and the complementarity of different theories. The article demonstrates that the current mainstream theorizing of CSR is dominated by theories related to the external drivers of CSR and is less developed with regard to the internal dynamics. The article outlines several productive avenues for future research: the need for multi-theory studies and more research at multiple levels of analysis, particularly at the individual level of analysis. It suggests that CSR scholarship can benefit from combining theoretical insights from a range of established theoretical lenses such as institutional theory and RBV, and can gain new insights from theoretical lenses such as Austrian economics and micro-level psychological theories. (shrink)

Within the limited, but growing, literature on small business ethics almost no attention has been paid to the issue of social responsibility within ethnic minority businesses. Using a social capital perspective, this paper reports on an exploratory and qualitative investigation into the attitudinal and behavioural manifestations of CSR within small and medium-sized Asian owned or managed firms in the U.K., with particular reference to the distinctive factors motivating organisational responses. It offers alternative explanations of entrepreneurial behaviour and suggests areas for (...) further research. (shrink)

The concept of corporate social responsibility (CSR) has been widely investigated, but a generally accepted theoretical framework does not yet exist. This paper argues that the idiosyncrasies of large firms and SMEs explains the different approaches to CSR, and that the notion of social capital is a more useful way of understanding the CSR approach of SMEs, whereas stakeholder theory more closely addresses the CSR approach of large firms. Based on the extant literature, we present a comparison of large firm (...) and SME idiosyncrasies suggesting that both consolidated and emerging strategic orientations toward responsible behaviours exist. Idiosyncrasies of large firms and SMEs are also discussed to provide an assessment of the firm’s strategic CSR orientation, suggesting the key drivers upon which CSR strategies must be based. A twofold consideration emerges. First, the CSR–SME relationship could be better explained if the notion of social capital is taken into account, but this should also be accompanied by a stakeholder view of the SME; second, social capital and stakeholder theory should be taken as alternative ways of explaining CSR in both large firms and SMEs. (shrink)

There is little doubt that Corporate Social Responsibility (CSR) is now a global concept and a prominent feature of international business, with its practice localised and differing across countries. Despite the growing body of research focussing on CSR in developing countries, there is dearth research on CSR institutionalisation in African countries. Drawing on institutional theory (IT), this article examines the focus and form of CSR practice of companies in Kenya. It is evident from our findings that the nature and orientation (...) of CSR differ across companies with operations only in Kenya and those headquartered abroad or with international operations. Significantly, firm-related drivers such as public relations and performance, as well as global institutional pressures explain the focus and form of CSR in Kenya. This article concludes that for the institutionalisation of CSR in Kenya, attention must be paid to conditions that stifle CSR uptake such as lack of government regulations, and the government's capacity and commitment to enforce regulation. The establishment of functional CSR institutions and a vibrant civil society that advance civil regulation ought to be encouraged. (shrink)

In this theoretical paper, I analyze business groups’ corporate social responsibility. Building on economic thinking, I propose that the level and diversity of CSR investments of business groups evolve with the development of the country, as a result of the interaction of two drivers: the level of infrastructure deficiencies and the cost of negative externalities. I argue that in underdeveloped countries, business groups have high levels and low diversity of CSR investments, focusing on the social arena to compensate for (...) infrastructure deficiencies. As countries implement pro-market reforms and become emerging economies, the level of CSR investments diminishes as business groups can rely on external providers and the government for supporting infrastructure, but CSR diversity increases to address the growing costs of negative externalities in the environmental and economic arenas. As countries further develop to become advanced economies, business groups’ level and diversity of CSR investments increase to prevent the high costs of negative externalities in the social, environmental, and economic arenas proactively. (shrink)

In the context of some criticism about social responsibility education in business schools, the paper reports findings from a survey of CSR education (teaching and research) in Europe. It analyses the extent of CSR education, the different ways in which it is defined and the levels at which it is taught. The paper provides an account of the efforts that are being made to mainstream CSR teaching and of the teaching methods deployed. It considers drivers of CSR courses, particularly (...) the historical role of motivated individuals and the anticipation of future success being dependent on more institutional drivers. Finally it considers main developments in CSR research both by business school faculty and PhD students, tomorrow''s researchers and the resources devoted to CSR research. The conclusion includes questions that arise and further research directions. (shrink)

Despite the extensive research in both the determinants and the results of corporate social responsibility (CSR), relatively few studies have considered extra-legal institutions as potential determinants of CSR. Our work fills this gap by looking at how media attention affects CSR over a long-term period in a continental European setting. Our results show that media coverage positively affects CSR. Additional scrutiny triggered by media coverage encourages dominant owners to signal their commitment to limiting self-dealing transactions and their orientation toward stakeholders' (...) needs through CSR investments. Additionally, our results reveal that this signaling device offers greater benefits and lower costs in firms where controlling owners show a voting-cash flow wedge. Our results are relevant to different actors such as investors, auditors, and policy makers as they provide solid evidence that media coverage is an important driver of CSR orientation in a continental European setting. (shrink)

The purpose of this paper is to highlight the importance and impact of terminology used to describe corporate social responsibility (CSR). Through a review of key literature and concepts, we uncover how the economic business case has become the dominant driver behind CSR action. With reference to the literature on semiotics, connotative meaning and social marketing we explore how the terminology itself may have facilitated this co-opting of an ethical concept by economic interests. The broader issue of moral muteness and (...) its relation to ethical behaviour is considered. We conclude by proposing a number of important attributes for any proposed terminology relating to ethical/socially responsible/sustainable business. (shrink)

This manuscript investigates the factors influencing the selection of responsive corporate social responsibility (CSR) programmes in the subsidiaries of Japanese manufacturing multinational enterprises (MNEs) operating in Indonesia. With a significant and growing manufacturing sector funded by foreign direct investment—of which Japanese MNEs are a major participant—Indonesia offers a novel but significant focus given its low GDP per capita, ecological challenges and being one of the first nations in South-East Asia to mandate CSR practices. Institutional and agency theories provide a multitheoretical (...) lens for this responsive CSR study enabling a rich, robust framework for addressing both the external and internal drivers of CSR. This study uses a qualitative approach with a sample of four Japanese manufacturing MNEs. The data were collected by interviewing managing directors and CSR personnel of the subsidiary organisations and investigating the CSR practices in secondary data sources from websites and CSR reports from both the headquarter and subsidiary organisations. A proximity effect based on a combination of the size and location of the subsidiary operation was found to be important in determining responsive CSR activities. Personal preferences and connections with the community were also identified as key factors. Feedback loops were identified through MNE CSR reports and websites, which could influence other MNEs and community stakeholders seeking funding. This study's main contribution to the literature is the development of a conceptual framework that details both the internal and external factors influencing the decision-making process of responsive CSR. (shrink)

Small family businesses have generally been shown to exhibit significant concern for social responsibility, especially at the community level. Despite the reported heterogeneity of family firms in their preferences for and participation in social responsibility, the drivers of such differences are not agreed upon in the literature. We draw from enlightened self-interest and social capital theories by exploring their complementary and competing implications for the effect of duration and community satisfaction on participation in community-oriented social responsibility. Additionally, drawing on (...) the association between gender and self-construal and evidence that gender shapes helping and giving behaviors, we assess the moderating role of the gender of the firm manager in these relationships. We test our hypotheses on a sample of 279 family businesses and find support that gender moderates the relationship between community duration and satisfaction and measures of CSR. (shrink)

Recent developments in global business gave rise to innovative forms of digital-exchange, facilitated by a new big data-based infrastructure – the sharing economy platform. SEPs are rapidly expanding, challenging the political-economic order and the classical division of work in society. Against the background of the current sustainability crisis, we discuss the increasingly momentous role of SEPs as a potential driver toward a more sustainable economy and society. Drawing on the theoretical lens of political CSR theory, we first outline how SEPs (...) are applying institutional strategies to gain a competitive advantage, thereby shaping contexts in their favor and triggering an erosion of foundations of social sustainability. However, SEPs also strive for legitimacy by taking over novel social responsibilities via profound digital capacities. Thus SEPs carry the potential to contribute to a more sustainable future economy. Our chapter considers future pathways of platform CSR regimes and a democratization of SEPs building on political CSR theory. (shrink)

This comparative study explores 499 corporate social responsibility initiatives implemented by 178 corporations in five distinct, institutionally consistent European clusters. This study provides an empirically grounded response to calls to develop comprehensive, nuanced pictures of CSR in the composite European business environment. In so doing, the article stresses three distinct, non-exclusive approaches that characterize the embedding of CSR considerations in corporations’ strategies across Europe and the CSR challenges for corporations operating in different socio-political contexts. Furthermore, the study reaffirms the CSR (...) notion as a contextualized concept, shaped by socio-political drivers, and contributes by bridging macro-level, socio-political facets of CSR with its meso-level, organizational implications. (shrink)

While China has experienced an unprecedented growth over the past decades, sustainability has become a major concern for policymakers and management practitioners. Consideration has been given to the convergence of mass entrepreneurship and innovation as a new economic driver and sustainability as a long-term economic objective. The focus of China’s economic development has moved from a resource-based expansion to a more entrepreneurial and socially responsible one. This is a timely and critical topic that captures the increasing concerns over sustainability and (...) Chinese firms’ increased responsibility under the new governmental initiatives in fulfilling their social mandates from stakeholders at different levels. It is also a rich area for academic research but still under studied in the Chinese context. More indigenous management research on corporate social responsibility is required to adopt Chinese perspectives in conceptualizing CSR-related problems and further formulating more contextualized CSR theories, the emergence of a new research horizon. (shrink)