The question of what drives corporate social performance has become a vital concern for many managers and researchers of large corporations. This study addresses this question by adopting a multilevel, multistakeholder, and multimethod approach to theorize and estimate the relative influence of macro, meso, and micro factors on CSP. Applying three different methods of variance decomposition analysis to an international sample of 2060 large public companies over a time span of 5 years, our results show that firm-level factors explain the (...) largest proportion of variance in aggregate CSP as well as CSP oriented toward communities, the natural environment, and employees. These results support our hypotheses according to which CSP is not primarily driven by macrolevel or mesolevel factors, except for shareholder-oriented CSP, which is relatively more influenced by country-level factors. As a whole, our findings also point to the value of subdividing CSP into its stakeholder-specific components as this disaggregation allows for a more careful examination of distinct drivers of distinct aspects of CSP. (shrink)

This research applies the notion of sustainability (Barney, 1991; Braa, Monteiro, & Sahay, 2004) to the mechanisms used by socially responsible investment(SRI) firms with respect to their stakeholders (investors and target firms). A contrast is developed between US and UK SRI firms. It is noted that screens, while maintaining a strong investor base, are less sustainable from the perspective of the firms targeted by SRI funds, whereas advocacy has stronger elements of sustainability with respect to the relations with corporations.

Religious organisations are major investors with sometimes substantial investment volumes. An important question for them is how to make investments in, and to earn returns from, companies and activities that are consistent with their religious beliefs or that even support these beliefs. Religious organisations have pioneered responsible investment. Yet little is known about their investment attitudes. This article addresses this gap by studying faith consistent investing. Based on a survey complemented by interviews, we investigate religious organisations’ attitudes towards responsible investment (...) including opinions, practices and the impediments for implementing faith consistent investing. Although our results cannot be generalised because of the non-random character of our sample, six main characteristics of faith consistent investing are drawn: investing is not perceived as being in contradiction with religious values, religious values are important drivers, there is a strong community around faith consistent investing, religious investors are pioneering impact investing, implementing faith consistent investing is not without difficulties, and practices vary across regions. The survey also reveals that faith consistent investing has many commonalities with secular responsible investors. (shrink)

Improving working conditions at the bottom of global value chains has become a central issue in our global economy. In this battle, trade unionism has been presented as a way for workers to make their voices heard. Therefore, it is strongly promoted by most social standards. However, establishing a well-functioning trade union is not as obvious as it may seem. Using a comparative case study approach, we examine impediments to farm-level unionism in the cut flower industry in Ethiopia. For this (...) purpose, we propose an integrated framework combining two lenses, namely a vertical one and a horizontal one. We identify 10 impediments that point to three major dimensions contributing to unionisation. These three dimensions include awareness of and interest from workers, legitimacy of trade unions, and capacity of trade unions to act. Furthermore, our results suggest that private social standards may, in certain cases, be counterproductive for the efficient functioning of trade unions. Although we argue that there is no ‘quick fix’ solution to weak workplace unionism at the bottom of global value chains, we stress the importance of considering the dynamics of, and interactions between, the impediments when designing potential support measures that mitigate negative impacts. (shrink)

The paper explores the emergence and development of socially responsible investment (SRI) in Japan. SRI is a recent field in Japan. It is not clear which model it will follow: the European, American or its own model. Through the analysis of the historical roots of SRI, the key actors and motivations that have contributed to its diffusion, the paper provides explorative grounds to sketch the translation mechanisms of SRI in Japan and offers insight into its future path. Based on primary (...) and secondary sources of information, the paper shows that although SRI in Japan holds some similarities with the U.S. and especially with the European model, it remains unique. It highlights the importance of translation and re-interpretation in adopting a practice in a new context. SRI in Japan is still in a dynamic construction process. Although we expect it to develop further, it is difficult to depict its future shape and form. (shrink)

This paper provides a summary of the symposium on the institutional and social construction of Responsible Investment (RI), held at the 22nd IABS conference. In the context of the symposium, we propose to move beyond the dominant focus on the financial impact of RI to consider the potential of emergent institutional and sociological perspectives to explain the practices and concepts related to RI. In doing so, our aim is to explore in greater detail the current changes in the RI infrastructure (...) and the impact of these changes on wider issues of corporate sustainability and social responsibility. (shrink)

The paper focuses on the development and practices of Socially Responsible Investment (SRI) in the US and Europe. The aim is to explore the historical, cultural and political embeddedness of SRI. Based on secondary sources of information, it offers a comparative analysis of the development and current practicesof SRI on both sides of the Atlantic and discusses the future implications for SRI. The paper shows that SRI movements in both regions present differences in terms of definitions, actors involved, vocabulary and (...) motivations, and strategies implemented. Nonetheless, they also share a common underlying purpose and seek similar goals of improving corporations’ policies and practices on social and environmental issues. (shrink)

The purpose of this paper is to investigate the legitimacy-building processes of Social Rating Organizations (SRO) and the role of objects in these processes. SROs have played a key role in the development of SRI in Europe by providing social and environmental rating to financial investors. However, little is known about the processes through which they have acquired their legitimacy, i.e. their ‘right-to-rate’ corporations. We provide here an in-depth empirical analysis of the legitimacy-building process of two European SROs and demonstrate (...) the role played by objects in these processes of legitimacy construction. (shrink)

In this paper, we compare and contrast institutional theory and convention theory on the concept of mimetism, suggesting how they can cross-pollinate each other and more specifically how the self-referential quality of collective beliefs improves the understanding of mimetic isomorphism. We test this proposition with the case of responsible investment’s mainstreaming.First level results decompose the history of RI into five successive periods. A content analysis of articles on RI in the financial press leads to second level results consisting in a (...) number of salient representations of RI, which we consider to be the dominant conventions. The data is structured using a bracketing strategy, which allows a longitudinal analysis of conventions and their evolution over the five RI periods. (shrink)

This paper provides a summary of the symposium on the institutional and social construction of Responsible Investment (RI), held at the 22nd IABS conference. In the context of the symposium, we propose to move beyond the dominant focus on the financial impact of RI to consider the potential of emergent institutional and sociological perspectives to explain the practices and concepts related to RI. In doing so, our aim is to explore in greater detail the current changes in the RI infrastructure (...) and the impact of these changes on wider issues of corporate sustainability and social responsibility. (shrink)

The financial community does not seem to have shifted to greater sustainability, despite increasing awareness and concerns around social and environmental issues. This article provides insights to help understand why. Building on responsible investment data from the U.K. financial press between 1982 and 2010, the authors examine the collective beliefs which financial actors rely on to take decisions under uncertainty, as a way of understanding the status of and implications for RI mainstreaming. The analysis of collective beliefs through five periods (...) of RI leads us to define two theoretical dimensions—justifying RI and practicing RI—that characterize how mainstream actors collectively make sense of RI. The authors’ analysis reveals that the RI collective beliefs currently do not provide a favorable environment for RI mainstreaming and need to be taken into account when discussing the value of sustainability. (shrink)

This paper investigates how social movements generate new and profit-driven organizational forms in the context of Socially Responsible Investment. Building on empirical evidence from previous research, we highlight the transformation of SRI from an activist-driven movement aimed at lobbying corporations for social causes to a profit-driven industry focused on generating revenue for investors. We first show this change as it occurs across time in the US. Then, we discuss the cross-cultural diffusion of this practice from US to two continental European (...) countries. We provide a collective action model framework to account for this process of institutional commodification. (shrink)

Religious organisations are major investors with sometimes substantial investment volumes. An important question for them is how to make investments in, and to earn returns from, companies and activities that are consistent with their religious beliefs or that even support these beliefs. Religious organisations have pioneered responsible investment. Yet little is known about their investment attitudes. This article addresses this gap by studying faith consistent investing. Based on a survey complemented by interviews, we investigate religious organisations’ attitudes towards responsible investment (...) including opinions, practices and the impediments for implementing faith consistent investing. Although our results cannot be generalised because of the non-random character of our sample, six main characteristics of faith consistent investing are drawn: investing is not perceived as being in contradiction with religious values, religious values are important drivers, there is a strong community around faith consistent investing, religious investors are pioneering impact investing, implementing faith consistent investing is not without difficulties, and practices vary across regions. The survey also reveals that faith consistent investing has many commonalities with secular responsible investors. (shrink)

Investors concerned about the social and environmental impact of the companies they invest in are increasingly choosing to use voice over exit as a strategy. This article addresses the question of how and why the voice and exit options (Hirschman 1970) are used in social shareholder engagement (SSE) by religious organisations. Using an inductive case study approach, we examine seven engagements by three religious organisations considered to be at the forefront of SSE. We analyse the full engagement process rather than (...) focusing on particular tools or on outcomes. We map the key stages of the engagement processes and the influences on the decisions made at each stage to develop a model of the dynamics of voice and exit in SSE. This study finds that religious organisations divest for political rather than economic motives using exit as a form of voice. The silent exit option is not used by religious organisations in SSE, exit is not always the consequence of unsatisfactory voice outcomes, and voice can continue after exit. We discuss the implications of these dynamics and influences on decisions for further research in engagement. (shrink)