This study examines the impact of mandatory Corporate Social Responsibility reporting on firms’ financial reporting quality using a quasi-natural experiment in China that mandates a subset of firms to report their CSR activities starting in 2008. We find that mandatory CSR disclosure firms constrain earnings management after the policy. The result is robust to a battery of sensitivity tests and more prominent for firms with lower analyst coverage. Further analyses reveal that upward earnings management by (...) mandatory disclosure firms is more likely to be caught after the policy. The findings suggest that mandatory CSR disclosure mitigates information asymmetry by improving financial reporting quality. (shrink)

The adoption of the 2007 Indonesian Law No. 40 has created significant debate over the nature of Corporate Social Responsibility (CSR), namely, whether it is voluntary or mandatory. On the one hand, the adoption of such a law represents a legal recognition of the existence of CSR, and this clarification on the legal nature of a concept is necessary for understanding the obligation and responsibility. On the other hand, it has created much confusion surrounding its (...) substance and procedures. This article tries to analyze the development and consequences of CSR under 2007 Indonesian Law No. 40, through the discussion of mandatory versus voluntary dichotomy. It is argued in this article that the mandatory nature of CSR is legitimate and therefore encouraged; however, in practice, this is problematic, as it not only requires a precise concept of interpretation of CSR and identification of the duty bearer and beneficiaries, but also an effective implementation mechanism and a means of verifying the impact. (shrink)

CSR in India is mandated through Section 135 of the Companies Act (2013), covering the practice and reporting of social responsibility projects. This paper examines India's CSR framework and reports findings on governance, planning, and implementation from a survey of and non-governmental organisations (NGOs). Overall findings reveal several positive aspects and inform us of the challenges that companies and NGOs consider essential. First, an overwhelming majority of companies focused on three investment areas: health, education, and the environment. Second, (...) 88% of companies undertook long-term continuing projects, a positive signal from a social development perspective. Third, 68% reported that their CSR strategy was aligned with their core business strategy. Fourth, a significant majority of the companies have established the required structure for policy development, planning, and periodic monitoring from a governance perspective. Finally, findings on NGOs indicate several elements of preparedness; however, the retention of talented employees is a continual challenge. (shrink)

Business and Society Review, Volume 127, Issue 1, Page 49-68, Spring 2022.

This paper explores the level of corporate social responsibility contributions disclosed by central public sector enterprises in India. This paper analyses the nature and quality of CSR disclosures made by CPSEs listed in India following the issue of CSR guidelines by the Department of Public Enterprises for CPSEs in March 2010. The purpose of the study is to investigate the impact of CSR guidelines on the reporting practices of the CPSEs. A content analysis of annual reports across (...) seven themes shows that Human Resources and Community Development are the prime focus areas of CSR disclosures, whereas Carbon and Greenhouse Gas emissions are the least reported activity. The disclosures across all CSR themes are primarily narrative rather than quantitative or in monetary terms. The findings of the study may help policy makers in India to assess practices and devise detailed and specific CSRD requirements, rather than the current general mandatory requirements, to enhance the performance and quality of CSRDs by the CPSEs. (shrink)

Development of carbon neutral energy sources is essential if the US is to reduce the release of greenhouse gases and the associated potential for global climate change. In the US a few giant corporations dominate the energy sector. Furthermore, there has been virtually no federal leadership on energy issues, and the awareness of the issues by the general public, let alone their understanding of them, is low. In Europe, the energy sector is also dominated by a few players, but the (...) higher awareness of the public, the long lasting efforts of NGOs and other stakeholders, in addition to the mandatory regulations (both at a national and an European level) has created a different “energy landscape”. Even in Europe, the current and pending reductions in CO2 emissions are still far short of what is required and the level of understanding of the issues by the public is still relatively low on both continents. In this paper, we identify and discuss the main politicalchallenges and drivers in the energy and climate debate, and we point out that while the energy sector has no interest to tackle greenhouse gas emissions without significantly greater public pressure, Corporate Social Responsibility (CSR) in this sector could nonetheless play a key role in changing US energy policy, but at the same time is very unlikely to be sufficient by itself. (shrink)

Corporate social responsibility (CSR) is a dramatically expanding area of activity for managers and academics. Consumer demand for responsibly produced and fair trade goods is swelling, resulting in increased demands for CSR activity and information. Assets under professional management and invested with a social responsibility focus have also grown dramatically over the last 10 years. Investors choosing social responsibility investment strategies require access to information not provided through traditional financial statements and analyses. At (...) the same time, a group of mainstream institutional investors has encouraged a movement to incorporate environmental, social, and governance information into equity analysis, and multi-stakeholder groups have supported enhanced business reporting on these issues. The majority of research in this area has been performed on European and Australian firms. We expand on this literature by exploring the CSR disclosure practices of a size- and industry-stratified sample of 50 publicly traded U.S. firms, performing a content analysis on the complete identifiable public information portfolio provided by these firms during 2004. CSR activity was disclosed by most firms in the sample, and was included in nearly half of public disclosures made during that year by the sample firms. Areas of particular emphasis are community matters, health and safety, diversity and human resources (HR) matters, and environmental programs. The primary venues of disclosure are mass media releases such as corporate websites and press releases, followed closely by disclosures contained in mandatory filings. Consistent with prior research, we identify industry effects in terms of content, emphasis, and reporting format choices. Unlike prior research, we can offer only mixed evidence on the existence of a size effect. The disclosure frequency and emphasis is significantly different for the largest one-fifth of the firms, but no identifiable trends are present within the rest of the sample. There are, however, identifiable size effects with respect to reporting format choice. Use of websites is positively related to firm size, while the use of mandatory filings is negatively related to firm size. Finally, and also consistent with prior literature, we document a generally self-laudatory tone in the content of CSR disclosures for the sample firms. (shrink)

This study examines the relationship between corporate social responsibility (CSR), earnings management (EM), and the characteristics of chief executive officers (CEOs) within the context of China's economic transformation. Drawing on stakeholder theory and upper echelon theory, this study investigates the influence of CSR on EM and the role of CEO characteristics. The empirical analysis is based on a sample of 1,980 Chinese firm-year observations from the Shenzhen and Shanghai stock markets, between 2013 and 2017. The findings reveal (...) a negative relationship between CSR performance and discretionary accruals (DA), suggesting that higher CSR is associated with lower EM. Moreover, this relationship is more pronounced among firms with highly educated CEOs (postgraduates) and mature CEOs (approaching retirement age). Notably, the negative CSR–EM relationship is strengthened in firms with mandatory CSR reports. This study expands prior research by exploring the impact of CEO characteristics on the CSR–EM relationship, incorporating CEO attributes alongside ownership structures and governance mechanisms. The findings offer insights for organizations in terms of selecting ethically committed CEOs, as well as guidance for shareholders in understanding CEO selection criteria. Furthermore, this study highlights the importance of mandatory CSR disclosure (CSRD) for policymakers evaluating CSR performance according to the disclosure type. (shrink)

This paper proposes an organizing framework that shows likely relationships among five identifiable approaches to corporate social responsibility (CSR). CSR is an umbrella term embracing mandatory, expected, and voluntary activities. CSR is a contested concept, along a continuum from strong CSR through strategic CSR to zero CSR positions. The intention for the framework is to help scholars with understanding how various CSR approaches relate to one another. The organizing framework is explicated in Figure 2.

From the financial year 2014-15, the Indian corporate sector was made to comply with a newly introduced Sect. 135 (5) by the Companies Act of 2013. The rule required select companies to spend 2% of their average net profits on CSR initiatives. This paper tries to find if the companies have complied with the provision based on data for six financial years starting 2014-15. CSR performance of the top thirty companies forming part of the Bombay Stock Exchange (BSE) Sensex (...) was evaluated and a CSR Spend-to-Obligation (CSR SO) Index was calculated comparing the actual spend vis-à-vis the obligatory requirement. A quantitative and a qualitative methodology were used for the analysis. The quantitative method involved computation of the CSR SO index at various levels. The “quality” of the CSR expenditure was also assessed by speaking to twelve experts from the Corporate to find out if the expenditure was in the right direction. The results show that the aggregate average six-year CSR SO index for the 30 Sensex companies is 0.98, suggesting that companies comply with the requirements of mandatory CSR. Moreover, the experts confirm that CSR spending is in the right spirit and direction. It certainly has a long-term orientation and qualifies as quality spending. A novel CSR-SO index is presented that compares CSR performance by comparing actual CSR spending with obligatory requirements. This index can act as a barometer for CSR performance and facilitate objective evaluation. Additionally, the qualitative assessment of CSR spending shows a holistic approach to evaluating CSR. (shrink)

The novel COVID-19 has created an exogenous shock to capital markets and, hence, an ideal opportunity for researchers to assess whether CSR-related activities provide an insurance-like mechanism to protect firms against the shock. Using a large sample of 4361 firms domiciled in 40 countries, we investigate the roles of CSR reporting and assurance in the negative consequences of COVID-19 on firm value. The results confirm that prior CSR reporting experience buffers firms against the adverse effects of the health crisis. The (...) results also support that not only does the assurance on CSR reports create a buffering effect against the health crisis, but it also intensifies the buffering effects of prior CSR reporting experience against the pandemic. Moreover, using difference-in-difference method for testing the link between CSR reporting and firm value, we show that the positive association of reporting and assurance with firm value is more pronounced during the pandemic as compared with the years preceding it. The results of this study are robust to various analyses. Replicating the analyses to the context of the global financial crisis, we find that prior CSR reporting experience and assurance provide similar buffering effects when a market is exposed to various exogenous shocks. The results also hold for the mandatory disclosure regimes. By distinguishing first and subsequent reports and assurance, we show that, unlike subsequent CSR reports and assurance, the initial ones cannot mitigate the negative effects of the crisis on firm value, indicating that stakeholders take into account longer-term CSR reporting experiences. Aside from reporting and assurance aspects of CSR, we analyze the role of CSR report's quality and accuracy and show that the adoption of Global Reporting Initiatives (GRI) frameworks can enhance socially responsible firms' resilience against systematic shocks. (shrink)

The focus of this paper is institutional change and the changing role of business in Germany. Back in the 1980s, the German institutional framework was characterized by implicit mandatory and obligatory regulations that set a clear context for responsible corporate behavior. Today, this framework has eroded and given way to a situation in which corporations explicitly and voluntarily take responsibility for social issues. This shift from implicit to explicit corporate social responsibility is an (...) indication of a major institutional change epitomized by the deconstruction of ‘old’ and the reconstruction of ‘new’ institutions. In the course of this change, corporations, state actors, and civil society organizations compete for their ideas and interests in what we call a fight for myths. The paper traces this fight for myths and the changing understanding of corporate responsibility in Germany. (shrink)

We provide the first comprehensive and robust evidence on the relationship between CSR disclosure quality and the costs of corporate bonds in China. We find that firms with high CSR disclosure quality are associated with lower costs of corporate bonds. Our findings are robust to endogeneity issues arising from reverse causality, omitted variable bias, and the interdependencies between price and non-price terms. The negative relationship between CSR disclosure quality and the costs of corporate bonds is stronger in (...) weak corporate governance firms and in firms located in regions with weak institutional environments. We also find that firms’ misconduct significantly mitigates the influence of CSR disclosure quality. In the additional analyses, we provide evidence that CSR disclosure can offer incremental information beyond the credit ratings. Regarding non-price terms, we conclude that firms with higher quality of CSR information are less likely to be subject to collateral terms, but they tend to include more restrictive covenants. Further analyses also show that compared with low-quality or mandatory CSR disclosure firms, bond investors perceive firms with CSR disclosures rated above “A” categories or voluntary CSR disclosure as less likely to cause asymmetric information problems and thus charge lower risk premiums. Overall, this study demonstrates that CSR disclosure quality is an important determinant that affects both price and non-price bond contract terms. (shrink)

This study provides evidence on the governance of CSR policies and activities by Indian central government-owned companies [i.e. Central Public Sector Enterprises ] within a unique mandatory regulatory setting. We utilise the multi-level ‘Logic of governance’ conceptual framework and draw upon interview data collected from 25 senior managers in 21 CPSEs to assess the dynamics of CSR implementation within CPSEs. Our findings indicate most managers believe that a mandatory policy has enhanced the accountability and commitment of governing boards (...) and senior management to CSR. However, CSR policy implementation within Indian CPSEs is still nascent, fraught with bureaucratic hurdles, insufficient human and knowledge resources, limited stakeholder analysis and over-emphasis on CSR budget utilisation as an outcome. Several key areas for improvements include the need for better translation of national CSR policy goals to firm-level strategies, more formal assessment of stakeholder needs, clearer communication lines with external service providers, such as NGOs and local government agencies, and the better evaluation of CSR outcomes. The findings of this study have implications for both theory and policy development. (shrink)

The familiar issue of corporate social responsibility takes on a new topic. Added to the list of concerns from affirmative action and environmental integrity is their growing contributions to education. At first glance, the efforts may appear to be ordinary gestures of communal good will in terms of providing computers, sponsoring book covers, and interactive materials provided by Scholastic Magazine. A closer view reveals a targeted market of student life who are vulnerable to commercials placed in these (...) formats. Among the most effective corporate intervention is Channel One News. It offers a newsworthy show but with mandatory commercial viewing. This increasing trend of corporations intervening to assist schools that need more money and/or equipment is disingenuous.In this essay, I present the background of this commercialization of education and demonstrate the violations against student autonomy and integrity. Although there may be utilitarian merits to some interventions, I argue that these infringe upon the moral value of personhood. Advertising in schools in its current practice is immoral on deontological grounds. (shrink)

As occupational health management (OHM) and work health promotion (WHP) become increasingly prominent in companies worldwide, little is known about consumers' attitudes towards work health‐related issues. Do consumers consider the health of employees in German companies to be important? Do German companies consider consumers to be relevant stakeholders in voluntary occupational health (OH) and well‐being activities? In the first of two qualitative interview studies, German consumers were asked which actors they consider to be responsible in OH contexts and whether or (...) not they prefer OH‐related product attributes to other socially desirable ones. During a second qualitative interview study with representatives from German companies, suppliers, institutions, and organizations concerned with voluntary and legally mandatory OH, participants were asked about their expectations regarding whether or not consumers are interested in such OH activities. Both studies highlight the difference between the consumers' perspective on OH issues and responsibilities on the one hand and what companies and stakeholders believe consumers think about OH issues and responsibilities on the other. The findings show that consumers can recognize non‐mandatory OH and well‐being activities as elements of their own social responsibility (ConSR), while companies usually do not consider this perspective in their corporate social responsibility (CSR). (shrink)

Corporate social reporting, while not mandatory in most countries, has been adopted by many large companies around the world and there are now a variety of competing global standards for non-financial reporting, such as the Global Reporting Initiative and the UN Global Compact. However, while some companies (e. g., Henkel, BHP, Johnson and Johnson) have a long standing tradition in reporting non-financial information, other companies provide only limited information, or in some cases, no information at all. Previous (...) studies have suggested that there are, country and industry-specific, differences in the extent of CSR reports (e. g., Kolk et al.: 2001, Business Strategy and the Environment 10, 15-28; Kolk: 2005, Management International Review 45, 145-166; Maignan and Ralston: 2002, Journal of International Business Studies 33(3), 497-514). However, findings are inconclusive or contradictory and it is often difficult to compare previous studies owing to the idiosyncratic methods used in each study (Graafland et al.: 2004, Journal of Business Ethics 53, 137-152). Furthermore, previous studies have relied mainly on simple measures, such as word counts and page counts of reports, to compare the extent of reporting that may not capture significant differences in the content of the reports. In this article, we seek to overcome some of these deficiencies by using textual analysis software and a more robust statistical method to more objectively and reliably compare the CSR reports of firms in different industries and countries. We examine a sample of leading companies in four countries (US, UK, Australia, and Germany) and test whether or not membership of the Global Compact makes a difference to CSR reporting and is overcoming industry and country specific factors that limit standardization. We conclude that GlobalCompact membership is having an effect only in certain areas of CSR reporting, related to the environment and workers, and that businesses from different countries vary significantly in the extent to which they promote CSR and the CSR issues that they choose to emphasize in their reports. These country differences are argued to be related to the different institutional arrangements in each country. (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)

Recent calls in the corporate social reporting literature have emphasized the importance of giving voice to non-managerial stakeholder groups in the social reporting process. The research, presented in this paper, employs recent work in stakeholder theory and CSRep to examine the perceptions of a diverse set of non-managerial stakeholders in the context of a developing country, Bangladesh. A series of semi-structured interviews were conducted with individuals who identify with various non-managerial stakeholder groups. Interviewees generally believed that the (...) motivation and practice of CSRep in Bangladesh is developing in response to pressures from international markets and is producing largely cosmetic responses. Also, they expressed concerns that, given the economic, political, and social conditions in Bangladesh, premature adoption of strict CSRep standards may lead to increased corruption and other unintended consequences. Whilst some of the interviewees sharply criticized the current process of imposing social accounting codes/standards on developing countries which fail to consider the important local socio-economic context, the findings suggest that there is overwhelming support for mandatory externally verified CSRep based on the principles of peoples’ right to know, full disclosure/completeness, and relevance, which are anchored in the broader principles of transparency and stakeholder accountability. (shrink)

This article examines the embeddedness of corporate social responsibility (CSR) communications in strategic planning. By drawing on the idea that talk and texts about CSR are an essential part of responsibility practices, I study how CSR aspirations—responsibility-related organizational self-descriptions, goals, and ideals that the organization cannot yet live up to or that the organizational constituents deem necessary to maintain—are intertwined with strategy texts and strategic episodes. Conducting a qualitative case study on a series of biennial (...) strategy processes over a 20-year period, I show how CSR aspirations are established in authoritative strategy documents during stakeholder interactions, elaborated in consecutive strategic episodes, extended to new business areas, and evaluated in subsequent communications. These findings contribute to the CSR and strategy literature by showing how (a) aspirational talk can be established and perpetuated through recurrent communicative processes, (b) stakeholder engagement in CSR issues can influence strategy texts and how strategy texts become a part of intertextual organizational communications, and (c) strategic context can be conducive to progressive performativity. (shrink)

Multinational corporations (MNCs) are the frequent target of nongovern-mental organizations (NGOs) in their advocacy efforts. In this article, the author examines NGO advocacy as it occurs in the NGO network and, using insights from the political science literature in conjunction with the resourcebased view of the firm, posits that NGO intranetwork conflict will result in a skewing of corporate social responsibility practices by the multinational corporation toward the MNC's developed country stakeholders. This skewing is a product of (...) the asymmetric accountability of NGOs (upwardly accountable to donors, downwardly accountable to recipients). Developing country government and MNC strategies in the face of such skewing are discussed. (shrink)

Social norms of responsibility are shared beliefs on what constitutes responsible behavior, and they play a significant role in determining CSR. This study analyzes how social norms of responsibility permeate corporate boundaries and influence CSR through political leaders, corporate executives, employees, and the public. Socially irresponsible behaviors of the above populations are used as proxies for local social responsibility norms and related to CSR ratings for firms headquartered in the twenty largest U.S. (...) metro areas. The empirical results show that firms headquartered in cities with more responsible social norms exhibit higher ESG scores even after controlling for various demographic, regional, and economic factors. Social responsibility norms encourage firms to be more responsible but are ineffective in deterring irresponsible corporate behaviors. Corporate and political leaders are the essential channels through which social norms of responsibility influence CSR, highlighting the importance of instituting regulations and setting high ethical standards for political and business leaders. This study also demonstrates that social norms have a significant impact on firms with leaders who are more susceptible to local social norms (i.e., local leaders) than non-local leaders. In addition, this study documents a negative bias for responsible social norms in that they condemn irresponsible behaviors more than reward responsible ones. Collectively, the above findings underline the importance of social norms of responsibility in shaping CSR and provide additional insights into societal motivations for CSR. (shrink)

In the context of the recent ascendancy of CSR, the spotlight has been primarily focused on the business sector, with sharp escalations in expectations of socialinvolvement and contributions throughout both the industrialized and developing world. These rising expectations can be reasonably understood and framed in the context of the expanded global reach and influence of the private sector, and acute market failures and governance gaps in developing countries for which the corporate sector is able to compensate. This paper argues (...) however that a narrow focus on the private sector in the pursuit of CSR is potentially short-sighted. To scale-up the beneficial impact of individual CSR activities, a more systemic approach to CSR is required, capitalizing on the joint effort and creative interactions between four key actors, including a) business and industry; b) institutions of governance; c) the non-governmental; sector and d) the scientific and research community. The paper also presents an exploratory survey of the perceptions of the different actors of their respective roles, responsibilities, strengths andweaknesses in the pursuit of CSR based on a qualitative empirical study conducted in the Lebanese context. (shrink)

We hypothesize that CSR serves as a control mechanism to reduce deviations from optimal risk taking, and therefore, CSR curbs excessive risk taking and reduces excessive risk avoidance. Based on the stakeholder theory, firms with CSR focus must balance the interests of multiple stakeholders, and therefore, managers must allocate resources to satisfy both investing and non-investing stakeholders’ interests. Using five measures of corporate risk taking and a sample of 1718 US firms during 1998 to 2011, we find that stronger (...) CSR performance is associated with smaller deviations from optimal risk taking levels. We examine the mechanism through which CSR has an impact on firm value and find a positive indirect impact of CSR on firm value through the impact of CSR on risk taking. CSR performance is positively associated with firm value because CSR reduces excessive risk taking and risk avoidance. (shrink)

Several studies have focused on the effects of corporate social responsibility fit on external stakeholders’ evaluations of CSR activities, attitudes towards companies or brands, and behaviors. The results so far have been contradictory. A possible reason may be that the concept of CSR fit is more complicated than previously assumed. Researchers suggest that there may be different types of CSR fit, but so far no empirical research has focused on a typology of CSR fit. This study fills (...) this gap, describing a qualitative content analysis of the congruence between six organizations and their various CSR activities. Ten annual reports and CSR reports were analyzed, and 102 specific CSR activities were identified. The results show that two levels of fit must be distinguished: based on the means for and the intended ends of the CSR activity. Furthermore, six different types of fit were found, focusing on products and services, production processes, environmental impact, employees, suppliers, and geographical location. Considering the above variety of fit possibilities, the findings emphasize the role of CSR communication as a means of creating fit perceptions. (shrink)

Academic research suggests that variances in contextual dynamics, and more specifically religion, may lead to disparate perceptions and practices of corporate social responsibility. Driven by the increased geopolitical and economic importance of the Middle East and identified gaps in knowledge, the study aims to examine if indeed there is a divergent form of CSR exercised in the region. The study identifies unique CSR dimensions and constructs presented through an empirical framework in order to outline the practice and (...) perception of CSR in a context with strong Islamic beliefs. The framework goes beyond the platform of mere Islamic philanthropy and is based on CSR-stakeholder management practices. Following an exploratory research design and collecting interview data from representatives of 63 organisations from Saudi Arabia, the United Arab Emirates and Oman, the study offers a snapshot of the CSR reality from the perspective of those living the phenomenon. The results suggest that the practice and perception of CSR in the examined context are largely grounded in the areas of social and altruistic actions but they cannot be examined in isolation from the religious context of CSR operation. This focus is mainly attributed to the dominant role of Islam in the examined sample, which leads to forms of non-structured or semi-structured approaches to CSR. Apart from the theoretical advancements offered to the CSR literature, the study also provides contributions for practitioners and policy makers. (shrink)

Pulling from theories of social exchange, deonance, and fairness heuristics, this study focuses on the relationship between overall justice climate and both the prosocial and deviant behaviors of groups. Specifically, it considers two contextual boundary conditions on this effect—corporate social responsibility and group moral identity. Results from a laboratory experiment are presented, which show a significant effect for overall justice climate and a two-way interaction between overall justice climate and CSR on group-level prosocial and deviant behaviors, (...) and a marginally significant interaction of group moral identity with overall justice climate on group deviance. The implications of contextual influences on workplace ethics and justice are discussed. (shrink)

Using listed firms in China over the period 2010–2018, we investigate the association between directors’ network and quality of corporate social responsibility (CSR) disclosure from the lens of resource-based view. We find a significantly positive effect of directors’ network centrality on the CSR disclosure quality, and the effect is more pronounced when the firm (1) invests less in advertising; (2) is followed by less analysts; (3) is less financially constrained; and (4) has no assurance of sustainability report. (...) Furthermore, we document that independent directors’ network centrality is positively associated with CSR disclosure quality. Our findings have important implication for practitioners, policy makers, and regulators. (shrink)

There is increasing interest in determining what impact having women in management positions may have on corporate social responsibility initiatives. Various authors suggest that gender equality practices should be factored into the broader framework of CSR. This paper examines how the presence of women on corporate boards, in top and middle management and as heads of CSR departments, influences gender equality practices in the field of CSR. Using information collected from companies that have signed up to (...) Women's Empowerment Principles in Spain, we show that the presence of women in the aforesaid posts has a positive impact on CSR activities with gender equality objectives. We thus supplement the justice, business and moral arguments with further arguments in support of the incorporation of women into not only corporate boards but all management positions. Finally, we provide a view of how gender equality can be included in the broader framework of CSR. (shrink)

Management and business literature affirm the role played by stakeholders in corporate social responsibility practices as crucial, but what constitutes a true business–society partnership remains relatively unexplored. This paper aims to improve scholarly and management understanding beyond the usual managers’ perceptions on salience attributes, to include how stakeholders can acquire missing attributes to inform a meaningful partnership. In doing this, a model is proposed which conceptualises CSR practices and outcomes within the frameworks of stakeholder salience via empowerment, (...) sustainable corporate social performances and partnership quality. A holistic discussion leads to generation of propositions on stakeholder salience management, corporate social performance, corporate–community partnership systems and CSR practices, which have both academic and management implications. (shrink)

Contemporary organizations often reciprocate to society for using resources and for affecting stakeholders by engaging in corporate social responsibility. It has been shown that CSR has a positive impact on employee attitudes. However, not all employees may react equally strongly to CSR practices. Based on socio-emotional selectivity theory, we contend that the effect of CSR on employee satisfaction will be more pronounced for older than for younger employees, because CSR practices address those emotional needs and goals that (...) are prioritized when people’s future time perspective decreases. In one multi-source field study and one experimental study, we demonstrate that CSR indeed has a stronger positive effect on employee satisfaction for older relative to younger employees. Accordingly, engaging in CSR can be an attractive tool for organizations that aim to keep their aging workforce satisfied with their job. (shrink)

Today, sustainable relations with a broad range of key stakeholders are not only important from a normative business ethics perspective, but also from an entrepreneurial viewpoint to allow and support the long-term survival of a firm. We will argue that the traditional conception of a firm’s corporate social responsibility does not reflect this view and that a comprehensive and dynamic conception of a firm’s responsibilities is necessary to map the reality of business practice and to manage the (...) challenges implied by sustainability. We think that distributive justice, that is the way in which firms involve their stakeholders in their wealth creation and dissemination processes, provides a comprehensive understanding of corporate responsibilities. Concerning procedural justice, we will discuss how firms involve stakeholders in their strategic processes according to their contribution to wealth creation. In the course of the article, we will propose a framework along with three design principles that can be used for shaping dynamic and comprehensive corporate responsibilities, and which thereby allow a sustainable procedure for changing business and non-business environments. (shrink)

Corporate Social Responsibility (CSR) has been traditionally framed within business ethics as a discourse attempting to identify certain moral responsibilities of corporations (as well as get these corporations to fulfill their responsibilities). This theory has often been normatively grounded in the idea that a corporation is (or ought to be treated as) a moral agent. I argue that it is a mistake to think of (or treat) corporations as moral agents, and that CSR’s impotency is a direct (...) result of this mistake. I then outline a distinction between business ethics and business politics, arguing that CSR might be better framed as a political goal – one which might be able to take better advantage of the resources of corporate governance and a renewed (albeit shifted) focus on agency theory. (shrink)

In this paper, the process for firms to decide whether or not to invest in corporate social responsibility is treated from a real option perspective. We extend the Husted framework with an important extra parameter that allows us to understand the timing of CSR investment and explain why some companies drag their feet over CSR investments. Our model explicitly allows for the impact of the opportunity cost of delaying the CSR investment decision, providing firms with tools to (...) determine the optimal moment of exercising the CSR investment option. We illustrate our timing model through a case study and analyze governmental support strategies for CSR from a real options perspective. (shrink)

The state plays a major role in corporate social responsibility in emerging and transitional economies and often influences firms through political connection, and hence knowing how firms respond to the state’s CSR initiatives can inform policy making and has important implication on the sustainability of society and environment. However, existent studies show conflicting results on politically connected firms’ CSR participation. We examine the relationship between political endorsement and firms’ engagement in different types of CSR simultaneously. Using a (...) representative sample of more than 1,000 private firms in the early 2000s, we find that politically endorsed firms engage more in philanthropic donation, but less in environmental practices, which impose higher costs and constraints than philanthropy. This is consistent with our explanation that they attempt to maintain legitimacy and discretion through selective engagement in CSR. Our study contributes to research on CSR in transitional economies by reconciling conflicting findings about the CSR engagement of politically connected firms, provides a new lens to illuminate firms’ strategic response in CSR, and has important policy implications. (shrink)

A one-day educational intervention with multiple activities was developed and operationalized with a sample of Chinese business students in Hong Kong, China. Its effectiveness in influencing students’ corporate social responsibility orientation was measured with a Chinese version of a forced choice scale using Economic, Legal, Ethical, and Discretionary dimensions by Carroll. A repeated measures multivariate analysis of variance showed significant differences in the Legal and Discretionary dimensions between the post-test Experimental group and Control group ; in the (...) Legal, Ethical, and Discretionary dimensions within the pre-post X group. Such significant differences may be explained by the content of the activities, especially the service learning component. Overall, the intervention appeared effective in influencing students’ CSRO within a Chinese context. Since it was designed upon Western CSR literature, its applicability goes beyond the Chinese community. (shrink)

Research focusing on the relationship between measures of Corporate Social Responsibility and company financial performance has led to mixed results in the North American context. In addition, the ethical attitudes and approaches toward CSR investments of both companies and rating agencies are not necessarily the same in Europe and the United States. In this study, we use CSR ratings issued by a major European CSR ratings agency to examine in a bi-directional manner the relationships between CSR ratings (...) and financial performance in the European context. By bi-directional, we mean an examination of the relationship between prior CSR ratings and subsequent accounting and financial performance and reciprocally, the impact of accounting and financial performance of year N − 1 on CSR ratings of year N. Our principal findings are: the greater the market capitalization of a company, the higher the Vigeo rating, the higher the risk of the company, the lower the Vigeo rating, and the greater the stock market return of a company, the lower the Vigeo rating. Based on these findings, we propose a concept of “political visibility” pursuant to which enterprises of a greater size are exposed to greater pressure to conform to norms of socially acceptable behavior, a concept of “priorities” in which enterprises that have resolved their most urgent financial needs have a greater ability to invest in CSR, a concept of “rating downgrading” which reveals the sanctioning role of the rating agency from an ethical standpoint. (shrink)

본 논문은 기업의 사회적 책임 (Corporate Social Responsibility : CSR) 분류 이론을 적용하여 기업의 공공적책임의 중요성을 강조하고자한다. 사회공헌활동 실행이론인 (CSR)의 개념을 바탕으로 사회복지의 철학과 윤리가 기본이 된 기업의 사회공헌 활동의 필요성을 논하고자 한다. 또한 A.B. Carroll(1991)의 CSR의 개념이 시대적인 요구에 부응하여 윤리적, 박애적인 사회적책임으로 변화 진화되면서 그 결과 기업의 사회공헌 활동의 유형도 역시 변화해 간다. 이는 초기의 온정주의적인 기부활동 위주의 단순한 사회공헌 활동이 점차 지역사회를 변화, 발전시키고자 하는 공공적책임(Public Responsibility)으로 발전되어야 함을 시사하며, 이는 기업의 사회공헌활동을 통한 (...) 기업의 사회복지적 공공성을 구축하기 위한 이론적 근거를 제시하는데 의의가 있다. CSR은 마땅히 기업으로서 지녀야 할 의무이자 책무이며, 그 책무 역시 전통적인 기업 고유의 사적책임을 넘어 공공적책임으로 확대되어 가야할 책임이며, 총 망라된 지역사회와의 긴밀한 관계 속에서 상호 윈윈하는 사회복지적 공공재(公共財)로서의 책임인 것이다. (shrink)

This study explored how the nature of CEOs’ human capital affects the scope of their firms’ corporate social responsibility initiatives. By integrating upper echelons theory with the attention-based view of the firm, the analyses showed that generalist CEOs with a broader range of knowledge and skills tend to aim their firms’ corporate social responsibility efforts toward a broader range of responsibility domains than do specialist CEOs with a narrower range of knowledge and skills. (...) The difference is weaker when a firm’s board has a sustainability committee or when industry peers are active in a broad range of corporate social responsibility domains. These findings are supported by data on S&P 1500 firms spanning 2000 to 2018. (shrink)

Corporate social responsibility (CSR) is a phenomenon of increasing interest. Today, it is practiced in most countries around the globe and studied in various fields of academia. However, the focus still lies on Western developed countries, their understanding, and implementation of CSR. This paper focuses on the comparison of the orientation towards CSR in Germany and Qatar, thereby closing a research gap by providing insights from a Middle Eastern country. Based on a survey among 265 business students (...) in both countries, the research examines their perception of the economic, legal, ethical, and philanthropic responsibilities of a firm. Findings suggest that, next to economic obligations, Qataris appear more willing to support philanthropic activities of a business while Germans highly value ethical standards. Moreover, females in both countries value economic responsibilities less important than males do. (shrink)

The corporate social responsibility and industrial relations studies have evolved mostly in parallel. In this paper, we integrate the IR with the CSR perspective, highlighting their similarities and differences. In particular, the study adopts a framework which includes a wide set of CSR-related issues to explore what unions and companies negotiate under the umbrella of CSR. It analyses and compares the national sectoral agreements of two key industries in the Italian economy, i.e. Metal and Chemical. We find (...) that these two sectors exhibit differences because the CSR-related issues covered by the two contracts are formally labelled as CSR in the Chemical contract, and not labelled as CSR in the Metal contract. We also find similarities regarding the CSR-related issues covered and not covered by the national contracts, and the binding processes centrally negotiated for their implementation. We interpret the similarities in light of the specificities of the Italian IR system, and the differences in light of the negotiation traditions of the two sectors under study, which induce the actors in the Metal sector to focus more on what differentiates the CSR and IR perspectives, and the actors in the Chemical sector to focus more on what the CSR and IR perspectives share. (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 the economic relevance and distinctiveness of family firms, little attention has been devoted to researching their nature and functioning. Traditionally, family firms have been associated both to positive and negative features in their relationships with the stakeholders. This can be linked to different orientations toward corporate social responsibility. Thus, this research aims to identify the approaches that Spanish family firms maintain about social responsibility, based on the model developed by Quazi and O' Brien Journal (...) of Business Ethics 25, 33-51 (2000). An empirical study carried out for 112 Spanish family firms gives support to our initial assumption about these organizations not being a homogeneous group in terms of their orientation towards corporate social responsibility. The differences in perceptions do not seem to be associated to biographical characteristics. These results lead to some relevant academic and practical implications that suggest interesting lines for future research. (shrink)

Business and Society Review, Volume 127, Issue 2, Page 493-529, Summer 2022.

In this paper, we analyze the impact of interaction between corporate social responsibility (CSR) and corporate social capital on corporate competitiveadvantage in a transitional context. Using survey data of Chinese companies, we examine the theoretical relationship empirically. Results show that CSR has no direct association with corporate financial performance or organizational reputation. However, corporate social capital can very much magnify the impact of CSR in a transitional context. Specifically, the social (...) responsibility of a firm with higher social capital is more positively related to organizational reputation than that of a firm with lower social capital, and this expands the theory of CSR. We present the strategic implication that the interaction between CSR and social capital improves corporate sustainable advantage. (shrink)

The United Nations ‘Protect, Respect and Remedy’ Framework,developed by the U.N. Special Representative JohnRuggie, brings together social expectations and law into anemerging policy framework of direct relevance to corporate social responsibility, CSR. The principle source of the Framework’s significance for the policy and practice of CSR is its definition of the theory of business responsibility for human rights as arising from business activities and relationships, and its deployment of due diligence for human rights risk as (...) the core operational concept of this theory of responsibility. The article considers the responsibility to respect human rights in light of theories about polycentric regulatory regimes and draws the conclusion that the Ruggie Framework creates a regulator dynamic in which both voluntarism and law have relevant and reinforcing roles to play in governing business behavior. In the wake of the adaptation of the Framework by the UN, the challenge for the field of CSR will be to adapt to an emerging reality in which business responsibility for ‘the social’ is increasingly a question of compliance and beyond. (shrink)