This article proposes a unified theory of the relationship between corporate social performance (CSP) and corporate financial performance (CFP). The theory provides a framework for rationalizing the various and contradictory findings in past empirical research. The theory is based on the parallels between the business and CSR domains, and thus draws on models from economics.

Do unobservable CEO characteristics predict corporate social performance and are they significantly correlated with CEO compensation? How meaningful is stock-based CEO compensation as a predictor of CSP? To answer these questions, the author empirically examines the relationship between stock-based CEO compensation and CSP while accounting for unobservable CEO characteristics. This study finds that CEO fixed effects account for a significant variance in CSP and that these fixed effects are correlated with CEO compensation variables in a statistically significant manner. The findings (...) suggest that unobservable CEO characteristics should be accounted for when examining the effect of CEO compensation variables on CSP. The findings also highlight the usefulness of stock-based compensation instruments for shareholders and other stakeholders who care about CSP and intend to promote CEO attention to social and ethical issues. (shrink)

Previous studies have proposed a virtuous circle between corporate social performance (CSP) and corporate financial performance (CFP). However, a key challenge researchers face when empirically examining this virtuous circle is endogeneity. In this paper, we apply a well-developed method—dynamic panel data (DPD) estimation—to account for endogeneity and conduct two studies to reexamine the causal relationship between CSP and CFP. Study 1 relies on KLD ratings from 1997 to 2012 as the measure of CSP. According to the results of Study 1, (...) although CFP measured as ROE may have a causal impact on CSP, it is doubtful whether there is a causal influence of CSP on CFP. Study 2 relies on the sustainability scores provided by Sustainalytics from 2009 to 2018 as the measure of CSP. Study 2 reports that CSP does not causally influence CFP and that CFP does not have a causal impact on CSP. Together, Study 1 and Study 2, using different measures for CSP, suggest that a virtuous circle between CSP and CFP may not exist. Our study suggests that doing good may not necessarily lead to doing well and that doing well may not naturally result in doing good. Thus, our study implies that future studies should seriously consider the causal mechanisms through which CSP may influence or may be influenced by CFP. Our paper also discusses the implications for CSP research and for management and organization research. The limitations of applying DPD estimation to empirically examine the causal relationship between CSP and CFP are also discussed. (shrink)

As a criterion of a good firm, a lucrative and growing business has been said to be important. Recently, however, high profitability and high growth potential are insufficient for the criteria, because social influences exerted by recent firms have been extremely significant. In this paper, high social relationship is added to the list of the criteria. Empirical corporate social performance versus corporate financial performance (CSP–CFP) relationship studies that consider social relationship are very limited in Japan, and there are no definite (...) conclusions for the studies in the world, because of scant data and the inappropriate methods, especially for supporting linear hypothesis which these studies are based on. In this paper, the CSP–CFP relationship is analyzed by an artificial neural networks model, which can deal with a non-linear relationship, using 10-year follow-up survey data. (shrink)

Firms are spending billions annually in the name of corporate social responsibility (CSR). Whilst markets are increasingly willing to reward good and responsible firms, they lack the instruments to measure corporate social performance (CSP). To convince investors and other stakeholders, firms invest heavily in building a reputation for good corporate behaviour. This article argues that reputations for CSP are often unrepresentative of true CSP and investigates how differences in 'perceived' and 'actual' – as measured by the Fortune and KLD databases, (...) respectively – can partly be explained by firm characteristics. Amongst other things, it finds that overrated firms are more likely to be relatively big, profitable, operating in non-polluting but competitive industries and with no history of wrong doings to their primary stakeholders. They will also typically spend a lot of effort satisfying the claims of their secondary stakeholders. Above all, the results emphasise the need for researchers to recognise that the databases measure different phenomenon and are not interchangeable. (shrink)

The pioneering work on environmental regulation in Sweden and that country's leading position in sustainability rankings has paradoxically passed almost unnoticed by academics. To this fact should be added, the scant attention given to the Nordic banking system. Becoming immersed into the realm of Swedish commercial banking ethics, we have focused on one of the top three commercial banks in the country, to map its corporate sustainability policies (CSP) and the compliance of the lending business process (LBP) to these policies. (...) A descriptive-explanatory research framework utilises a critical case with a phronetic design. Data collected through interviews was manipulated under the thematic analysis method. We found a unique understanding of act-utilitarianism, in which, policies and practices are set to prevent financial risks and environment rebounds, as they are symbiotic. This allowed us to enlarge the body of knowledge on Nordic banking's sustainable governance and design the green lending model (GLM). (shrink)

This article explores how cross-sector partnerships (CSPs) operating in a development context built resilience during the outbreak of the COVID-19 pandemic. Based on a qualitative analysis of eight partnerships operating in East-Africa, Central America, and Indonesia, I show how CSPs engaged in three practices of resilience building (i.e., forming unconventional alliances, mobilizing digital technologies, and building subnetworks), which allowed them to remain functional despite facing adversity. In addition to fostering their resilience, my findings show how engaging in these practices enabled (...) the CSPs to develop new capabilities (i.e., improved abilities to engage with beneficiaries) that benefit them in the long run. Based on these insights, I advance our understanding of resilience building by unpacking this concept on a CSP level. Furthermore, by unfolding the relevance of incidental learning in a cross-sectoral setting, I widen our knowledge of learning processes in CSPs. (shrink)

Objectives: The objective of this post hoc exploratory analysis was to examine the relationship between age and measures of cortical excitability and inhibition. Methods: Forty-six participants (24 with major depressive disorder and 22 healthy controls) completed MT, SICI, ICF, and CSP testing in a cross-sectional protocol. Of these 46 participants, 33 completed LICI testing. Multiple linear robust regression and Spearman partial correlation coefficient were used to examine the relationship between age and the TMS measures. Results: In the overall sample of (...) 46 participants, age had a significant negative relationship with motor threshold in both the right (rs = -0.49, adjusted p =.007; β= -0.08, adjusted p=.001) and left (rs = -0.42, adjusted p =.029; β= -0.05, adjusted p=.004) hemispheres. This significant negative relationship of age with motor threshold was also observed in the sample of depressed youth in both the right (rs = -0.70, adjusted p =.002; β= -0.09, adjusted p=.001) and left (rs = -0.54, adjusted p =.034; β= -0.05, adjusted p=.017) hemispheres, but not in healthy controls. In the sample of the 33 participants who completed LICI testing, age had a significant negative relationship with LICI (200 millisecond interval) in both the right (rs = -0.48, adjusted p =.05; β= -0.24, adjusted p=.007) and left (rs = -0.64, adjusted p =.002; β= -0.23, adjusted p=.001) hemispheres. This negative relationship between age and LICI (200 millisecond interval) was also observed in depressed youth in both the right (rs = -0.76, adjusted p =.034; β= -0.35, adjusted p=.004) and left (rs = -0.92, adjusted p =.002; β= -0.25, adjusted p=.001) hemispheres. Conclusion: These findings suggest that younger children have higher motor thresholds. This is more pronounced in depressed youth than healthy controls. LICI inhibition may also increase with age in youth. (shrink)

Although high-performance human resource practices do not directly affect corporate social performance strengths, they do positively affect CSP strengths in companies that are highly innovative or have high levels of slack. High-performance human resource management practices also directly and negatively affect CSP concerns. Drawing on the resource-based view and using secondary data from an objective, third-party database, the authors develop and test hypotheses about how high-performance HRM affects a company’s CSP strengths and concerns. Findings suggest that HRM and innovation are (...) important capabilities because they create and enhance other capabilities. (shrink)

This article focuses on the question of whether Social Issues in Management (SIM) is a “field” and, if so, what kind, emphasizing specifically the recent literature on corporate social responsibility and performance (CSR/csp). Fields are defined in part by coherent bodies of knowledge that serve as guideposts for current research, and so the authors construct a simple model of CSR/csp scholarship, illustrating the relevant categories with representative publications. The authors conclude that SIM is a “low-paradigm” field but is not recognized (...) or accepted as a field by many scholars who write about CSR/csp from “outside” the field. This analysis points to the need for SIM scholars to continue to integrate useful ideas from other fields, and also to critique the work of scholars who address “failings” or “gaps” in SIM research without appropriately dealing with the existing SIM literature. The article concludes with some ideas for sustaining the institutional legitimacy of SIM and for challenging those who would “reinvent” a field with a long and fruitful history, including paying careful attention to journal review processes and the content of publications in prominent journals. (shrink)

Nanotechnologies are enabling technologies which rely on the manipulation of matter on the scale of billionths of a metre. It has been argued that scientific uncertainties surrounding nanotechnologies and the inability of regulatory agencies to keep up with industry developments mean that voluntary regulation will play a part in the development of nanotechnologies. The development of technological applications based on nanoscale science is now increasingly seen as a potential test case for new models of regulation based on future-oriented responsibility, lifecycle (...) risk management, and upstream public engagement. This article outlines findings from a project undertaken in 2008–2009 for the UK Government’s Department of Environment, Food and Rural Affairs (DEFRA) by BRASS at Cardiff University, involving an in-depth survey both of current corporate social responsibility (CSR) reporting in the UK nanotechnologies industry, and of attitudes to particular stakeholder issues within the industry. The article analyses the results to give an account of the nature of corporate social performance (CSP) within the industry, together with the particular model of CSR operating therein (‘do no harm’ versus ‘positive social force’). It is argued that the nature of emerging technologies requires businesses to adopt particular visions of CSR in order to address stakeholder issues, and that the nanotechnologies industry presents specific obstacles and opportunities in this regard. (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 article reviews empirical research of corporate social performance using Kinder, Lydenberg, Domini social ratings data through 2011. The review synthesizes 100 empirical studies, noting consistencies and inconsistencies among studies examining similar constructs. Notable consistencies were that, although accounting measures of financial performance were a positive outcome of CSP, the same was not often true of stock returns. Also, demographics of top management teams increased CSP strengths, but did not reduce concerns, whereas organizational decentralization reduced CSP concerns. Notable inconsistencies were (...) that CEO demographics were not as often related to CSP as were TMT demographics, indicating that managerial discretion may be an important mitigating factor shaping managerial effects on CSP. Also, although CSP for some organizations seemed influenced by institutional pressures, other organizations appeared to be less influenced, perhaps suggesting that some organizations are more able than others to resist institutional pressures. Future research should attempt to probe observed consistencies and inconsistencies, and to test the boundaries of observed relationships, toward a disciplined program of middle-range theory development. (shrink)

For four decades, research on the role and responsibilities of business in society has centered on the business case for corporate social responsibility (CSR) and an increasing number of studies on the corporate social performance (CSP)—corporate financial performance (CFP) link emerged leading to controversial results. Heeding the call for a deeper understanding of the mechanisms linking certain CSR efforts to certain performance outcomes, this study provides a stakeholder-based organizing framework rooted in an extensive review of existing literature on the link (...) between CSP and CFP. In so doing, we aim at guiding research and practice toward less simplistic understandings of the CSP–CFP connection, thus advancing the debate over the consequences of voluntary integrating CSR into business operations and into relationships with stakeholders. By disentangling specific drivers and outcomes of the CSP–CFP link, we underline the importance of setting clear boundaries and specifying levels of analysis to generate comparable results. (shrink)

We draw upon the attention-based view of the firm to identify the conditions under which community influentials (CIs) on a board impact a firm’s corporate social performance (CSP). We test our hypotheses with a panel data set of Fortune 500 firms from 2004 to 2008, including 3,955 unique firm–director combinations (aggregated to the board level). Although CIs are often considered less powerful directors, we identify that when the firm is experiencing poor CSP, CIs have a positive effect on CSP. The (...) ability of CIs to influence CSP is also conditional on the access of CIs and other board members to socially oriented board ties. Our article points out that power and influence is contingent on the decision context and the relative knowledge of organizational players, and that players with relatively lower power may improve their status and command attention when they can offer exclusive insight into important issues. (shrink)

This study complements previous empirical research on the business case for corporate social responsibility (CSR) by employing hitherto unused data on corporate social performance (CSP) and proposing statistical analyses to account for bi-directional causality between social and financial performance. By allowing for differences in the importance of single components of CSP between industries, the data in this study overcome certain limitations of the databases used in earlier studies. The econometrics employed offer a rigorous way of addressing the problem of endogeneity (...) due to simultaneous causality. Although the study’s results provide no evidence that there is a generic or universal business case for CSR, they indicate that there is a strong link between single stakeholder-related issues of CSR and financial performance. However, the analysis does not establish causality within these relationships. (shrink)

Corporate social performance (CSP) has become a widely applied concept, discussed in most large firms’ corporate reports and the academic literature alike. Unfortunately, CSP has largely been employed as a way of demonstrating corporate social responsibility (CSR) in practice, or to justify the business case for CSR in academia by relating some measure of CSP to some measure of financial performance. In this article, we discuss multiple shortcomings to these approaches. We argue that (1) CSR activities need to be managed (...) and measured as projects and aggregated to the business or corporate level using a project portfolio; (2) appropriate measures need to be identified that move away from reporting the firm’s activities toward quantifying actual social outcomes achieved; and (3) given the types of projects prevalent in CSR, statistical evaluation methods common in other fields (ideally, pre-test post-test control group designs, such as used in medicine or propensity score matching for ongoing or past projects) should be employed to properly measure outcomes. We make a first, albeit imperfect, attempt at using such an approach with data collected on behalf of the Patrimonio Hoy project, a well-publicized CSR initiative carried out by Cemex in Mexico. We show that the results from this data reinforce concerns voiced earlier in this article. (shrink)

Business Ethics, the Environment & Responsibility, EarlyView.

Cross-sector partnerships (CSPs) between nonprofits and businesses are increasingly implemented in response to humanitarian crises. These partnerships are motivated by ideals of alignment as stakeholders strive to find the “sweet spot” between humanitarian and business interests. However, this article shows that the ideals of alignment differ from the actual practices of alignment in the CSPs, and sweet spots are not merely found but constructed in and through changing relations of power. Based on an ethnographic case study of partnerships between a (...) global humanitarian organization and five technology companies, the article deploys a theoretical lens from critical humanitarian studies to analyze how alignment in CSPs comes about in practice. This analysis demonstrates that in the construction of alignment, the companies’ interests become the priorities with which humanitarian organizations must align their and their beneficiaries’ needs. Consequently, while the discourse of sweet spots perpetuates an ideal of alignment where all partners benefit equally from the partnership, it legitimates power imbalances and asymmetrical alignment in practice. (shrink)

This paper argues that research on the business case for corporate social responsibility (CSR) must account for the path dependent nature of firm-stakeholderrelations, and develops the construct of stakeholder influence capacity (SIC) to fill this void. SIC helps to explain why the effects of CSR on corporate financial performance (CFP) vary across firms and across time, therein providing a missing link in the study of the business case. This paper distinguishes CSR from related and confounded corporate resource allocations and from (...) corporate social performance (CSP), then incorporates SIC into a model that explains how acts of CSR are transformed into CFP through stakeholder relationships. This paper also develops a set of propositions to aid future research on the contingencies that produce variable financial returns to investments in CSR. (shrink)

The Corporate Social Performance (CSP) model (Wood, Acad Manag Rev 164:691–718, 1991) assesses a firm’s social responsibility at three levels of analysis—institutional, organizational and individual—and measures the resulting social outcomes. In this paper, we focus on the individual level of CSP, manifested in the managerial discretion of a firm’s principles, processes, and policies regarding social responsibilities. Specifically, we address the human resources management of employees as a way of promoting CSR values and producing socially minded outcomes. We show that applying (...) the humanist philosophy to the managerial discretion of a business organization leads to the creation of an “autonomy supportive work environment”—as defined by the self-determination theory—which in turn, facilitates the internalization of social values, citizenship behaviors, and cooperation. The objective of promoting self-determination at work (i.e., the core of a humanist management) fits well with the ontology of social responsibility since autonomy and consideration of individuals as moral actors are central tenets. Furthermore, we show that applying humanistic management philosophy to the discretion of managers can lead to socially responsible outcomes. First, intra-organizational stakeholders (e.g., employees) are treated with respect and focus is put on their well-being, satisfaction, and self-actualization at work. Second, as employees’ need of self-determination is addressed by managers, it is likely that pro-social behaviors toward other stakeholders of the organization will be adopted, leading to socially responsible outcomes for extra-organizational stakeholders (Gagné, Motiv Emot 77:58–75, 2003). Thus, this paper ultimately posits that humanistic management applied to the HRM can be a solution for developing and maintaining socially responsible outcomes as determined at the individual level of the CSP model, through managerial discretion. (shrink)

While there are growing bodies of research examining both the differences between strongly and poorly socially performing firms, and the impact of firm leaders on other strategic outcomes, little has been done in examining the effect of firm leaders on corporate social performance (CSP). This study directly addresses this issue by using upper echelon theory, and the KLD Research Analytics CSP ratings, to show that observable CEO characteristics predict differences in CSP between firms, even when firm and industry characteristics are (...) controlled for. Using a sample of 650 public US firms I find that strong or exemplary CSP, as measured by the strengths categories of KLD's ratings, is positively related to the CEO having a bachelor's degree in humanities, having a breadth of career experience and being female. I find that KLD strength ratings are negatively related to the CEO having a bachelor's degree in economics and to their level of short-term compensation. Preliminary tests of causality support the assertion that these effects reflect CEO discretion rather than being an artifact of reverse causality. Significant relationships between the CEO characteristics and poor social performance as measured by the concerns categories of KLD's ratings are not found. This suggests that CEOs have more discretion in influencing strong and exemplary social performance than in impacting poor CSP. Implications, particularly for economics education, are discussed. While there are many fruitful directions for future research, the benefits and challenges to conducting similar studies in other countries is focused upon to correspond to the global nature of this special issue. (shrink)

This study investigates the pattern of institutional shareholding in the U.K. and its relationship with socially responsible behavior by companies within a sample of over 500 UK companies. We estimate a set of ownership models that distinguish between long- and short-term investors and their largest components and which incorporate both aggregated and disaggregated measures of corporate social performance (CSP). The results suggest that long-term institutional investment is positively related to CSP providing further support for earlier studies by Johnson and Greening (...) (1999, Academy of Management Journal 42, 564–576) and Graves and Waddock (1994, Academy of Management Journal 37, 1034–1046). Disaggregation of CSP into its constituent components suggests that the pattern of institutional investment is also related to the form which CSP takes. Investigation of the impact of investment screens on the selection of stocks suggests that long-term institutional investors select primarily through exclusion, rejecting those firms which have the worst CSP. (shrink)

We argue that corporate social performance (CSP) has become a legitimizing identity (brand) for researchers in the business and society field, but it has not developed into a viable theoretical or operational construct. Because measuring CSP is contingent on the operational setting (industry, issues, etc.), it is difficult to produce worthwhile comparisons across studies or generalizing beyond the boundaries of a specific study. The authors suggest that researchers remove the CSP label from their operational variables, and instead narrowly define their (...) studies in operational terms. They provide aworking example of the proposed research direction by examining the theory underlying the popular CSP–financial performance (FP) debate. In the authors’ conceptualization, stakeholder action provides the underlying logic connecting CSP-FP, and we recast the research question to investigate the conditions under which stakeholders will take action to influence the focal organization and when those actions will influence the CSP-FP link. (shrink)

Although business and society scholars have sought to demonstrate that corporate social performance (CSP) leads to corporate financial performance (CFP), a complete model of the pathway from CSP to CFP has not been substantiated. One suggestion is that certain indicators of CSP are noticed by stakeholders, who then act in ways that ultimately affect the firm's CFP. The present study focused on the first step in this path: identifying the factors that initially lead a stakeholder group to target a particular (...) firm. Existing theory from the literature on the environmental movement, stakeholder theory, and CSP fostered the development of eight propositions regarding corporate environmental performance. Case studies of five environmental non-governmental organizations (ENGOs) are used to address the propositions. The case studies also supply additional insight into ENGO targeting of particular firms, unrelated to the propositions, thereby facilitating the development of a theoretical model. (shrink)

Refugee crises are one of the grand challenges of the 21st century. Despite the theoretical importance attached to value created for beneficiaries in the partnership literature, research tends to focus on internal processes and value created for partners and partnerships, leading to widespread calls to further specify the value created by partnerships for beneficiaries. Applying an analytical framework from the value creation and social impact literatures, we report on a study of multiple social partnerships of a nongovernmental organization in the (...) refugee issue field. Our results demonstrate that frames of refugees held by partners and in partnerships’ implementation contexts shape the value creation activities undertaken for beneficiaries, and determine whether value is created and what types of value. The dual contribution of this article comprises a rare empirical study of value creation activities for beneficiaries (here, refugees) and theorization of how and when implementation context affects value creation by partnerships. (shrink)

Cross-sector partnerships (CSP) are increasingly recognized as essential for addressing our world’s mounting sustainability challenges. However, place is often considered merely as a contextual backdrop for these partnerships in CSP research. In this study, we focus on the ways in which place, including the natural, built, and cultural dimensions of geographic locations, is actively leveraged to facilitate cross-sector collaboration. Employing a qualitative and engaged research approach, we helped organize and studied two workshops held in small communities on the east coast (...) of Canada whose goal was to build a cross-sector network of community leaders focused on revitalizing communities suffering from the collapse of their primary industry, the cod fishery. We show how the staging of place fostered deeper connections among participants by reducing barriers to participation, intensifying contact with others, and enabling participants to share local knowledge. In turn, connecting through place prompted participants to recognize a shared purpose and sense of belonging, two key elements for building cross-sector collaboration. (shrink)

Scheduling has been an important research field in Artificial Intelligence. Because typical scheduling problems could be modeled as a Constraint Satisfaction Problem, several constraint satisfaction techniques have been proposed. In order to handle the different levels of importance of the constraints, solving a problem as a Weighted Maximal Constraint Satisfaction Problem is an promising approach. However, there exists the case where unexpected events are added and some sudden changes are required, i.e., the case with dynamic changes in scheduling problems. In (...) this paper, we describe such dynamic scheduling problem as a Dynamic Weighted Maximal Constraint Satisfaction Problem in which constraints would changes dynamically. Generally, it is undesirable to determine vastly modified schedule even if re-scheduling is needed. A new schedule should be close to the current one as much as possible. In order to obtain stable solutions, we propose the methodology to maintain portions of the current schedule using the provisional soft constraints, which explicitly penalize the changes from the current schedule. We have experimentally confirmed the efficacy of re-scheduling based on our method with provisional constraints. In this paper, we construct the nurse scheduling system for applying the proposed scheduling method. (shrink)

This article extends earlier research concerning the relationship between corporate social performance and corporate financial performance, with particular emphasis on methodological inconsistencies. Research in this area is extended in three critical areas. First, it focuses on a particular industry, the chemical industry. Second, it uses multiple sources of data-two that are perceptual based (KLD Index and Fortune reputation survey), and two that are performance based (TRI database and corporate philanthropy) in order to triangulate toward assessing corporate social performance. Third, it (...) uses the five most commonly applied accounting measures in the corporate social performance and corporate financial performance (CSP/CFP) literature to assess corporate financial performance. The results indicate that the a priori use of measures may actually predetermine the CSP/CFP relationship outcome. Surprisingly, Fortune and KLD indices very closely track one another, whereas TRI and corporate philanthropy differentiate between high and low social performers and do not correlate to the firm's financial performance. (shrink)

This study investigates the distinct and joint effects of corporate social performance, firm size, and visibility on a company’s decision to disclose sustainability-related information through sustainability reports. It seeks to provide more nuanced explanations for why certain companies tend to extensively report on their sustainability performance. First, while prior studies have predominantly focused on environmental reporting, the current analysis considers comprehensive sustainability reports that include both environmental and social issues. Second, the article argues that the effects of two important antecedents (...) of legitimacy pressure—firm size and organizational visibility—should be analyzed separately rather than restricting the analysis on the effects of legitimacy pressure per se. Third, it argues that the hypothesized effects are nonlinear because the marginal costs and benefits of sustainability reporting vary with a company’s CSP level, its size, and its visibility in the public. Finally, although there is a strong link between CSP and sustainability reporting, the strength of this link depends on its size and visibility. The study of 280 companies in environmentally and socially sensitive industries provides considerable support for these hypotheses, including evidence that size and visibility independently affect sustainability reporting and that the shape of the CSP/sustainability reporting link is contingent upon firm size and visibility. (shrink)

We examine whether and when socially oriented shareholder activists use firms’ corporate social performance (CSP) to identify them as attractive targets for their activism. We build on the research in social movements theory and stakeholder theory to theorize how firms’ engagement with primary and secondary stakeholders reflected in their technical and institutional CSP respectively allows socially oriented shareholder activists to identify targets. We develop a theoretical model by identifying corporate targets’ degree of (1) receptivity to and (2) need to comply (...) with activist demands as two key dimensions of their corporate opportunity structure that explains the variance in firms’ attractiveness as targets for activist demands. We show that a firm’s technical and institutional CSP independently affect the likelihood of activists targeting the firm. We also show that our model has greater explanatory power at firms with high resource slack and from activists not identifying as socially responsible investment funds. Analysis of CSP and shareholder proposals data of 992 U.S. public firms over an 8-year window of observation largely supports our theory. (shrink)

Corporate social performance (CSP) has been studied extensively by business and society scholars, yet most approaches to its measurement continue to be ambiguous, controversial and difficult to use (Wood, 2010). In this paper, we propose measuring CSP via the construct of stakeholder satisfaction through social media like Facebook and Twitter. We argue that the satisfaction of stakeholder expectations can be explained with organizational justice theory particularly in the exercise of voice by stakeholders when they perceive unjust behavior on the part (...) of the firm. We test our idea using event study methodology with a sample of 5,440 observations from ten U.S. companies: We found some evidence for the sensitivity of social media to social events of interest to Twitter users. (shrink)

A critical and notoriously elusive issue in Corporate Social Responsibility (CSR) research is the impact of Corporate Social Performance (CSP) on the bottom line. Instead of looking for direct correlations between social and financial performance, we hypothesize that the first result of CSR activities is the creation of trust among the stakeholders. A survey conducted on consumers of organic products provided support for our hypothesis, showing that CSP influences consumer trust and that that trust in turn influences consumers' subsequent actions. (...) The findings further suggest that intermediate variables between CSP and Corporate Financial Performance (CFP) may best support a business case for CSR. (shrink)

A critical and notoriously elusive issue in Corporate Social Responsibility (CSR) research is the impact of Corporate Social Performance (CSP) on the bottom line. Instead of looking for direct correlations between social and financial performance, we hypothesize that the first result of CSR activities is the creation of trust among the stakeholders. A survey conducted on consumers of organic products provided support for our hypothesis, showing that CSP influences consumer trust and that that trust in turn influences consumers' subsequent actions. (...) The findings further suggest that intermediate variables between CSP and Corporate Financial Performance (CFP) may best support a business case for CSR. (shrink)

Systems change requires complex interventions. Cross-sector partnerships face the daunting task of addressing complex societal problems by aligning different backgrounds, values, ideas and resources. A major challenge for CSPs is how to link the type of partnership to the intervention needed to drive change. Intervention strategies are thereby increasingly based on Theories of Change. Applying ToCs is often a donor requirement, but it also reflects the ambition of a partnership to enhance its transformative potential. The current use of ToCs in (...) partnering efforts varies greatly. There is a tendency for a linear and relatively simple use of ToCs that does limited justice to the complexity of the problems partnerships aim to address. Since partnership dynamics are already complex and challenging themselves, confusion and disagreement over the appropriate application of ToCs is likely to hamper rather than enhance the transformative potential of partnerships. We develop a complexity alignment framework and a diagnostic tool that enables partnerships to better appreciate the complexity of the context in which they operate, allowing them to adjust their learning strategy. This paper applies recent insights into how to deal with complexity from both the evaluation and theory of change fields to studies investigating the transformative capacity of partnerships. This can serve as a check to define the challenges of partnering projects and can help delineate the societal sources and layers of complexity that cross-sector partnerships deal with such as failure, insufficient responsibility taking and collective action problems at four phases of partnering. (shrink)