Existing research on the formation of employee ethical climate perceptions focuses mainly on organization characteristics as antecedents, and although other constructs have been considered, these constructs have typically been studied in isolation. Thus, our understanding of the context in which ethical climate perceptions develop is incomplete. To address this limitation, we build upon the work of Rupp to develop and test a multi-experience model of ethical climate which links aspects of the corporate social responsibility, ethics, justice, and trust literatures and (...) helps to explain how employees’ ethical climate perceptions form. We argue that in forming ethical climate perceptions, employees consider the actions or characteristics of a complex web of actors. Specifically, we propose that employees look outward at how communities are impacted by their organization’s actions, upward to make inferences about the ethicality of leaders in their organizations, and inward at their own propensity to trust others as they form their perceptions. Using a multiple-wave field study conducted at a privately held US corporation, we find substantial evidence in support of our model. (shrink)

The paper responds to the recent calls for further evidence on corporate social responsibility (CSR) in small and medium-sized enterprises (SMEs). Drawing on the extant literature, the authors identify four characteristics contended by academicians as peculiarities of SMEs’ approach to CSR: the intrinsic relationship between CSR and corporate strategy motivated by the need to continuously dialogue with stakeholders; the centrality of the entrepreneur's ethos in CSR decisions; the coexistence and the cross-effect of economically instrumental and ethically motivated CSR policies; and (...) the finalization of CSR initiatives to specific firm growth objectives. These four peculiarities are explored in the case of an Italian medium-sized company operating in the furniture industry. The outcomes show how the four peculiarities are salient in analyzing the CSR approach by the company and suggest areas for further research aimed at developing a thorough theory of CSR in SMEs. In particular, we deepen the analysis of the nature of the uniqueness of medium-sized companies’ approach to CSR, providing possible interpretations of the reasons making medium-sized companies’ approach to CSR different from both small and large companies. (shrink)

In today’s neo-liberalist world, Islamic financial institutions face many difficulties combining contemporary financial thinking with Islamic, faith-based principles, on which their day-to-day operations ought to be based. Hence, IFI are likely to experience shifts/changes in organizational and ethical identity due to tensions that the combination of these principles invokes. We present an in-depth case study that focuses on these shifts in a major European based IFI across a 14-year period. We conceptualize identity change as drift, highlighting the multivocal nature of (...) identity construction. The ethico-faith principles that were meant to serve as living codes of ethics guiding the IFI’s organizational culture, operational processes, and strategy formation turned out to mainly have been discursively rationalized to respond to regulatory, market and institutional imperatives. The company is aware that it needs to engage in a continuous dialogue with those who set these requirements. Its ethico-faith principles may consequently be adapted quite radically, especially in periods of turmoil and takeover, as we show across the analysed time period. The paper provides valuable insights for faith-inspired organizations to reflect on the extent to which they wish to engage in the discursive justification and legitimization of current market hegemonies, whilst they actively encourage their managers to behave ethically as well. (shrink)

Using a dataset of corporate philanthropic gifts of $1 million or more, we examine the influence of corporate donors on the performance of recipient non-profit organizations. We find that corporate donors positively influence NPO performance, specifically in the form of higher revenues per employee, program ratios, and fundraising returns. We find little evidence that large foundation or individual donors similarly enhance organizational performance. In additional analysis, we find that large corporate donations matter when the corporation is more likely to have (...) influence over the recipient NPO. These findings suggest that corporate donors provide the monitoring and expertise needed to enhance organizational performance beyond simply providing funding to NPOs. Our results are robust to a two-stage model and propensity score matching to address endogeneity concerns. While prior research has examined the effect of corporate philanthropy on donor organization performance, we contribute to the literature by examining whether corporate philanthropy also improves recipient organization performance. (shrink)

The study examines the employment experience of workers with intellectual disability in the hotel sector in Australia. Through a qualitative case study, we interviewed managers and WWID, and held focus groups with supervisors and colleagues at three hotels. We have used the theoretical framework of corporate social responsibility to investigate HR practices that create an ethical climate which promote authentic work experiences for WWID. The study found that participative work practices provide evidence of how WWID fit in at the workplace. (...) When workers are confronted with work-related anxieties, the pragmatic nature of existential authenticity becomes a reality. Our findings reveal that managing workers ethically can lead to more authentic work experiences. In turn, this may promote social inclusion of WWID and improve their reported well-being. (shrink)

The marketplace has seen significant growth in the demand for ‘ethical’ behavior, and banks are seeking to leverage customers’ perception in order to build a sustainable competitive advantage. In consequence, the concepts of corporate social responsibility and corporate reputation are of vital concern for academics and managers in terms of their potential impact on customers. This study seeks to contribute to the literature by examining the mediating role of corporate reputation on the relationship between perceived corporate social responsibility and customer (...) loyalty. The study also takes into consideration the role played by bank type in the mediation effect. To achieve this aim, a study was performed comprising 572 personal surveys in the Basque Country. The results showed that corporate reputation partially mediated the relation between corporate social responsibility and customer loyalty. On the other hand, bank type is shown not to moderate the mediation effect. The results have important implications for practitioners wishing to manage their relations with customers. (shrink)

This study explores the relevance of corporate social responsibility (CSR) as an element of the corporate identity of Spanish financial institutions. Specifically, it aims to analyze the CSR actions developed by financial entities through the analysis of all the available information disclosed in their websites. A content analysis applied to 82 banking institutions, followed by different quantitative analyses, reveals the multidimensionality of CSR. Findings show that, while the number of entities institutionalizing CSR values as core elements of their identities is (...) still reduced, most organizations disclose CSR information to construct communicated identities and legitimate behaviours. Besides, these dimensions are classified depending on the stakeholder the action is aimed to, and that entities favour the generation of distinctive identities through the implementation and communication of more visible CSR actions like those involving their customers or the community. In any case, results indicate that organizations with certain characteristics are more likely to construct distinctive identities through CSR activities and to establish ethical and social values within their corporate statements and cultures. (shrink)

Perceptions of a firm’s stance on corporate social responsibility (CSR) are influenced by its corporate marketing efforts including branding, reputation building, and communications. The current research examines CSR from the consumer’s perspective, focusing on antecedents and consequences of perceived CSR. The findings strongly support the fact that particular cues, namely perceived financial performance and perceived quality of ethics statements, influence perceived CSR which in turn impacts perceptions of corporate reputation, consumer trust, and loyalty. Both consumer trust and loyalty were also (...) found to reduce the perceived risk that consumers experience in buying and using products. From these significant findings, we draw several conclusions and implications, including the importance of enhancing firm focus toward its ethical commitment and long-term reputation. (shrink)

This study integrates theories of diffusion and social identity to conceptualize the diffusion of Sustainability Report as a result of a firm’s identification with its reference groups. Specifically, we first hypothesize four different sources of external stakeholder pressures driving the diffusion. Next, we argue that the source of external stakeholder pressures has a differential effect on the adoption of SR for firms that claim their identity on sustainability management. For firms with organizational identity claims, in-group stakeholder pressure will amplify whereas (...) out-group stakeholder pressure will dampen the adoption. We test our theory using an event-history analysis of 675 publicly traded firms in Korea during the period of 2003–2010. The results show that all four sources of external pressure serve as mechanisms through which SR spread in Korea. More importantly, we find support for the moderating role of organizational identity claims in the effect of external pressures. We discuss how organizational identity matters in the diffusion of corporate social initiatives along with implications for policy makers. (shrink)

Family values are argued to enable ethical family business conduct. However, how these arise, evolve, and how family leaders articulate them is less understood. Using an ‘identity work’ approach, this paper finds that the values underpinning identity work: arise from multiple sources, evolve in tandem with the context; and, that their articulation is relational and aspirational, rather than merely historical. Prior research mostly understood family values as rooted in the past and relatively stable, but our rhetorical analysis unlocks a more (...) dynamic and promising research direction advancing family business ethics. (shrink)

Many studies have emphasized the importance of medical, insurance, and workplace systems treating individuals fairly in work disability prevention and return-to-work. However, ethical theories and perspectives from these different systems are rarely discussed in relation to each other, even though in practice these systems constantly interact. This paper explores ethical theories and perspectives that may apply to the WDP–RTW field, and discusses these in relation to perspectives attributed to dominant stakeholders in this field, and to potential differences in different jurisdictional (...) contexts. Literature was sought primarily in biomedical ethics, business ethics, and public administration ethics. In biomedical ethics, four ethical principles are dominant: autonomy, beneficence, nonmalevolence, and justice. Business ethics involve theories on Corporate Social Responsibility, social contracts, and organizational justice. Public administration ethics focus on constitutional theory, citizenship, social equity, virtue, and public interest. Several concepts were identified as relevant for ethical analyses in the WDP–RTW field, including justice; individual autonomy; nonmalevolence; economic and social responsibility; and social contracts. These concepts provide a vocabulary that may be used to analyze stakeholders’ actions and interactions in RTW processes. It was also noted how the power balance between stakeholders will influence which ethical perspectives will influence RTW. Jurisdictional differences that influence RTW processes with regard to stakeholder responsibilities were identified, as well as varying beliefs as to who is the client in different compensation systems. A social contractual approach may inform an analysis of cultural and legal differences. (shrink)

Global Corporate Citizenship (GCC) continues to become increasingly popular in large corporations. However, this concept has rarely been considered in small and medium size enterprises (SMEs). A case study of a Norwegian clothing company illustrates how GCC can be also applied to small companies. This case study also shows that SMEs can be very innovative in exercising corporate citizenship, without necessarily following the patterns of large multinational companies. The company studied engages as partner in some voluntary labor initiatives promoted by (...) the government, employs people in marginal situations, and exerts influence for the adoption of good working conditions in its supply chain. Environmental issues and actions of solidarity are also considered within a global scope. Ethics of care and concern for specific aspects of the common good seem crucial as GCC drivers in this company, as do personal values, character, and leadership of the owner-manager of the firm. (shrink)

Of the many ethical corporate marketing practices, many firms use corporate social responsibility (CSR) communication to enhance their corporate image. Yet, consumers, overwhelmed by these more or less well-founded CSR claims, often have trouble identifying truly responsible firms. This confusion encourages ‘greenwashing’ and may make CSR initiatives less effective. On the basis of attribution theory, this study investigates the role of independent sustainability ratings on consumers’ responses to companies’ CSR communication. Experimental results indicate the negative effect of a poor sustainability (...) rating for corporate brand evaluations in the case of CSR communication, because consumers infer less intrinsic motives by the brand. Sustainability ratings thus could act to deter ‘greenwashing’ and encourage virtuous firms to persevere in their CSR practices. (shrink)

While environmental claims are increasingly used by companies to appeal consumers, they also attract greater scrutiny from independent parties interested in consumer protection. Consumers are now able to compare corporate environmental claims against external, often disconfirming, information to form their brand attitudes and purchase intentions. What remains unclear is how the level of information specificity of both the environmental claims and external disconfirming information interact to influence consumer reactions. Two experiments address this gap in the CSR communication literature. When specific (...) claims are countered by specific external information, consumers report more negative brand attitudes and lower purchase intentions. The effect is serially mediated by skepticism toward the claims and lack of corporate credibility. We conclude by discussing strategies that firms can utilize to avoid information dilution and ensure that external disconfirming information percolates to consumers as specific. (shrink)

Ethicalisation processes that partake in the construction of a firm or a professional group’s ethical identity are often described as a relatively linear combination of several components, such as policies (starting with the development of a code of ethics), corporate practices, and leadership. Our study of a professional community dealing with the topics related to cultural diversity indicates a more reciprocal relationship between ethical identity and ethicalisation processes. We argue that a tangible form of ethical identity can pre-date the ethicalisation (...) process of a professional group, and additionally, can impact this process at the start. We highlight that, despite the absence of official ethical statements in the community, a form of ethical professional identity is already present among the interculturalists of the international organisation Society for Intercultural Education Training and Research. Using critical discourse analysis, we identify the proclaimed humanist ethos in the discourses that interculturalists co-produce and diffuse during conferences, on on-line discussion forums, and in the mission of their professional organisations. This study contributes to the literature on ethical identity development by showing how a pre-existing form of ethical identity can influence the early stage of the development of a code of ethics. In addition, we indicate that, similar to organisational identity construction, ethical identity construction uses self-other identity talks, thus, defining an ethical other (or less ethical other) in its development. (shrink)

Recently, organizational identity is being given more attention than ever before in the business world. This notion has grown substantially in importance in the hospitality industry. Facing increased competition, hospitality companies are driven to project a positive image to their stakeholders. Therefore, these organizations have begun to develop new organizational identity programs as part of their strategies to achieve their desired identities. This study analyzes the role of corporate social responsibility in the definition of the Organizational Identity of these organizations, (...) employing a qualitative research methodology based on an illustrative case study. Particularly, the authors analyze the case of Meliá Hotels International, a leading hotel company in Spain with a presence in 27 countries. The findings indicate that the company has formally integrated CSR into its strategy to align its actual identity with its desired and conceived identity in view of the critics in its local community. Moreover, the interest of the firm toward its stakeholders suggests that the company understands its conceived identity as an important link in understanding its organizational identity. This paper demonstrates that firm’s organizational identity is a set of several elements. When analyzing Meliá Hotels International’s identity, we see that the firm defines this concept as that which is most central, enduring, and distinctive about the organization. In this sense, the company appears to follow the vision-driven approach by referring to the organizational mission and vision statements, organizational philosophy, and core values as the basis of organizational identity. (shrink)

Understanding firms' interfaces with the community has become a familiar strategic concern for both firms and non-profit organizations. However, it is still not clear when different community engagement strategies are appropriate or how such strategies might benefit the firm and community. In this review, we examine when, how and why firms benefit from community engagement strategies through a systematic review of over 200 academic and practitioner knowledge sources on the antecedents and consequences of community engagement strategy. We analytically describe evidence (...) on the rise of the community engagement strategy literature over time, its geographical spread and methodological evolution. A foundational concept underlying many studies is the ' continuum of community engagement'. We build on this continuum to develop a typology of three engagement strategies: transactional, transitional and transformational engagement. By identifying the antecedents and outcomes of the three strategies, we find that the payoffs from engagement are largely longer-term enhanced firm legitimacy, rather than immediate cost-benefit improvements. We use our systematic review to draw implications for future research and managerial practice. (shrink)

The purpose of cause-related marketing (CRM) is to publicise and capitalise on a firm's corporate social performance (CSP) by enhancing its legitimacy in the eyes of its stakeholders. This study focuses on the firm's internal stakeholders - i.e. its employees - and the extent of their involvement in the selection of social campaigns. Whilst the difficulties of managing a firm that has lost or damaged its legitimacy in the eyes of its employees are well known, little is understood about the (...) extent to which managers and their social partners listen to and involve their employees in the legitimation process. Through telephone interviews with non-profit organisations and senior managers of service sector firms, the extent of employee involvement in CRM campaigns and the perceived benefits of doing so are investigated. Amongst other things, we find that (i) the extent of employee participation varies significantly across firms; (ii) larger CRM campaigns tend to be managed centrally with relatively less employee participation than smaller ones and (iii) financial services firms are more likely to make CRM decisions centrally, with relatively less employee participation than retail services firms. (shrink)

Research on corporate social responsibility (CSR) has tended to focus on external stakeholders and outcomes, revealing little about internal effects that might also help explain CSR-firm performance linkages and the impact that corporate marketing strategies can have on internal stakeholders such as employees. The two studies ( N = 1,116 and N = 2,422) presented in this article draw on theory from both corporate marketing and organizational behavior (OB) disciplines to test the general proposition that employee trust partially mediates the (...) relationship between CSR and employee attitudinal and behavioral outcomes. Both studies provide evidence in support of these general relationships. Theoretical and practical implications of these findings are discussed in the context of CSR and corporate marketing research. (shrink)

Ethical corporate marketing—as an organisational-wide philosophy—transcends the domains of corporate social responsibility, business ethics, stakeholder theory and corporate marketing. This being said, ethical corporate marketing represents a logical development vis-a-vis the nascent domain of corporate marketing has an explicit ethical/CSR dimension and extends stakeholder theory by taking account of an institution’s past, present and (prospective) future stakeholders. In our article, we discuss, scrutinise and elaborate the notion of ethical corporate marketing. We argue that an ethical corporate marketing positioning is a (...) prerequisite for corporations which claim to have an authentic ethical corporate identity. Our article expands and integrates extant scholarship vis-a-vis ethical corporate identities, the sustainable entrepreneur and corporate marketing. In delineating the breadth, significance, and challenges of ethical corporate marketing we make reference to the BP Deepwater Horizon (Gulf of Mexico) catastrophe of 2010. (shrink)

The multi-disciplinary interest in social responsibility on the part of individuals and organizations over the past 30 years has generated several descriptors of corporate social responsibility and employee social responsibility. These descriptors focus largely on socially responsible behavior and, in some cases, on socially responsible identity. Very few authors have combined the two concepts in researching social responsibility. This situation can lead to an oversimplification of the concept of CSR, thereby impeding the examination of congruence between employees and organizations with (...) regard to social responsibility. In this article, we connect two dimensions of social responsibility—identity and behavior—to build a Social Responsibility Matrix consisting of four patterns for classifying the social responsibility of employees and employers: Low Social Responsibility, Identity-based Social Responsibility, Behavior-based Social Responsibility, and Entwined Social Responsibility. The positioning of employers and employees on the same matrix is vital for assessing the level of congruence between employers and employees with regard to social responsibility and for discussing the possible outcomes for both parties. These identity and behavior-based patterns, determinants, and levels of congruence connecting employees and employers form the foundation for the multi-dimensional, dynamic ESR–CSR Congruence Model, as exemplified in a case study. This contribution enhances the existing literature and models of CSR, in addition to improving the understanding of employee–employer congruence, thereby broadening the array of possibilities for achieving positive organizational outcomes based on CSR. (shrink)

In this paper, we explore the empirical phenomenon of large multinational corporations acquiring socially oriented enterprises, such as the Unilever–Ben & Jerry’s, and the L`Oréal-The Body Shop takeovers. When focusing on these cases, we argue that variance in organisational identity orientations, as the dominant logic of managers within the acquiring organisations, determines whether MNCs consider the transaction not only in financial terms, but also decide to adopt “social technology” in the form of CSR-related organisational practices from the acquired unit. We (...) argue that in turn based on a “match” with the organisational identity of the acquired unit, managers will opt to adopt CSR practices more fully or selectively, and in more substantial or symbolic ways. With these propositional arguments we not only aim to contribute to the literature on CSR adoption by MNCs, but we also set out to develop theory on the widespread but so far undocumented phenomenon of MNCs “buying CSR” by acquiring socially oriented enterprises. (shrink)