We theoretically discuss and empirically show how CEO power based on environmental expertise and formal influence over executives and directors, in the absence and presence of shareholder activism, spurs firms toward greener strategies. Our results support the idea that CEOs with informal power, grounded in expertise, reduce corporate environmental impact and this relationship is amplified when the CEO also enjoys formal power over the board of directors. Additionally, we found that any source of CEO power, whether informal or formal, is (...) a good catalyst for transforming shareholder activism into corporate greening. However, in the absence of such activism, only CEOs’ informal environmental expert power acts as a determinant of firm environmental performance. (shrink)

The intensification of cross-sector collaboration phenomena has occurred in multiple fields of action. Organizations in the private, public, and social sectors are working together to tackle society’s most wicked problems. Some success has resulted in a generalized belief that cross-sector collaborations represent the new paradigm to manage complex problems. Yet, important knowledge gaps remain about how cross-sector alliances generate value for society, particularly to its beneficiaries. This paper answers the question: How cross-sector collaborations lead to systemic change? It uses a (...) qualitative embedded case study design. I use two general cases of alliance-based interventions in the developing country Colombia. Embedded cases within each general case identify evidence of collective action capacity of the beneficiaries. Findings identify and explain alliances’ contributions to beneficiaries’ capacity building: brokering trust and creating spaces where beneficiaries develop an emergent collective action capacity. Alliances also enable beneficiaries to enact that capacity by building bridges, circulating capitals, and buffering relationships to protect people’s initiatives. Alliances and empowered collectives of beneficiaries produce systemic change using five mechanisms: brokering trust, creating spaces, building bridges, circulating capitals, and buffering relationships. Beneficiaries increased capacity for collective action is an outcome that becomes an alliance input, leading overtime to further benefits involving systemic change. (shrink)

Based on a community psychology perspective, this qualitative study explores the community-inclusion effort of one of the largest pulp and paper companies in the world. Extending the literature on workforce diversity/inclusion, we present the community-inclusive organizational framework, which signifies the dynamics of community inclusiveness of organizations highlighting key managerial accountabilities based on the community psychology perspective. Theoretical and practical implications are presented for promoting community-inclusive organizations, along with avenues for further research.

When companies engage in corporate philanthropy, they can donate to a number of causes supporting a variety of issues, thus establishing cause portfolios. This research examines how the focus of a cause portfolio affects company evaluations. Results from an experiment show that when a company donates a small amount of money, consumers have lower evaluations of a company when the cause portfolio is focused (i.e., supports one issue) versus diverse (i.e., supports many issues). This is because the focused (vs. diverse) (...) portfolio is perceived to have a weaker impact to society. We provide additional evidence of this effect using a data set of Fortune 500 companies’ foundations, showing that cause portfolios are more likely to result in lower stakeholder evaluations when focused (vs. diverse). Again, we find that donation amount alleviates the difference between focused and diverse portfolios. The findings hold important implications for the company’s management of cause portfolios. (shrink)

The impact of socially responsible corporate behavior on economic performance is a major preoccupation of managers today. This article explores the links between narrowly defined constructs: stakeholder orientation, environmental proactivity and profitability, from the perspectives of stakeholder theory and resource-based theory. We collected data on the food and beverage, and household and personal products industries. Using structural equation modeling, this paper makes two contributions. We found a negative link between companies simply having a higher stakeholder orientation and profitability. Importantly, however, (...) environmental proactivity not only had a positive impact on profitability, but also appeared to mediate the relationship between stakeholder orientation and profitability. In other words, if a company is more environmentally proactive, it will be more attentive to a broad array of stakeholders, and this will in turn contribute positively to profitability. (shrink)

The United States National Preparedness System has evolved significantly in the recent past. These changes have affected the system structures and goals for disaster response. At the same time, actors such as private businesses have become increasingly involved in disaster efforts. In this paper, we begin to fill the gap in the cross-sector literature regarding interactions that have systemic impacts by investigating how the simultaneous processes of systemic change and intensifying cross-sector interaction worked and interacted in the context of the (...) preparedness system. We examine these inter-linkages through a qualitative study in the setting of Hurricane Sandy. Drawing from systems theory, we develop a grounded model that provides an explanation for the system change and highlights how cross-sector interaction relates to the changes observed in the system. (shrink)

In the management and business ethics literatures, stakeholder engagement has been demonstrated to lead to more ethical management practices. However, there may be limits on the extent to which stakeholder engagement can, as currently conceptualized, resolve some of the more difficult ethical challenges faced by managers. In this paper we argue that stakeholder engagement, when seen as a way of reducing five types of knowledge problems—risk, ambiguity, complexity, equivocality, and a priori irreducible uncertainty—can aid managers in resolving such ethical challenges. (...) Using a practical illustration of the ethical challenges surrounding the development and application of genetic modification technologies, we demonstrate how stakeholder engagement enables managers to better address these knowledge problems, thereby to manage more ethically. In this way, we suggest that stakeholder engagement has an even more crucial role to play in business ethics research and practice. (shrink)

This article analyses the ethics of how community engagement and dialogue as applied by a mining corporation in Chile led to erosion of the community’s psychological freedom despite being aligned with best practice. This article details how a mining company squeezed the psychological freedom of the community in order to obtain an agreement between the period of 2000 and 2016. The findings focus particularly on a 9-month period between 2015 and 2016 when the company undertook intense community engagement. The article (...) identifies six corporate action phases undertaken which curtailed the community’s psychological freedom as paying off local leaders; challenging via courts of law; co-opting community lawyers; prohibiting a key debate during dialogue; and remaining silent after failing to honour its own self-imposed rule. The findings label the company’s community engagement as contradictory; while it conducted transitional and transformational engagement in formal spaces, it also engaged in unethical strategies in the informal spaces of community engagement. The result was overall community consent and an even more fragmented community. This article finds that when it limits the psychological freedom of participants, who are already divided as a group, corporate–community engagement can be viewed as ethically problematic. Based on analysis of the literature and an empirical case analysis, this article contributes a test for assessing the ethics of CCE. (shrink)

To address the prevalence and complexities of sustainable development challenges around the world, organizations in the business, government, and non-profit sectors are increasingly collaborating via multi-stakeholder partnerships. Because complex problems can be neither understood nor addressed by a single organization, it is necessary to bring together the knowledge and resources of many stakeholders. Yet, how these partnerships coordinate their collaborative activities to achieve mutual and organization-specific goals is not well understood. This study takes an organization design perspective of collaborative decision-making (...) processes to explore how they impact the effectiveness of multi-stakeholder partnerships. We compare the decision-making processes of 94 sustainability-focused multi-stakeholder partnerships and find that collaborative decision-making has an indirect and positive impact on partnership capacity through systems that keep partners informed, coordinate partner interactions, and facilitate ongoing learning. The implications of this study for multi-stakeholder partnership research and practice are that partnership capacity is contingent on the design of decision-making processes, as well as internal mechanisms that coordinate and monitor collaborative activities. (shrink)

The conceptual literature increasingly portrays corporate philanthropy (CP) as an old-fashioned and ineffective operationalization of a firm’s corporate social responsibility. In contrast, empirical research indicates that corporations of all sizes, and both in developed and emerging economies, actively practice CP. This disadvantaged status of the concept, and research, on CP, complicates the advancement of our knowledge about the topic. In a systematic review of the literature containing 122 journal articles on CP, we show that this business practice is loaded with (...) unique characteristics, strengths, and weaknesses, and both conceptual and practical challenges that require renewed attention. We identify six interrelated but distinctive research themes in the literature: concept, motives, determinants, practices, business outcomes, and social outcomes. Dividing the literature on CP into six research themes creates an insightful comprehensive map of this intellectual terrain. Moreover, we distinguish among the level at which CP is analyzed: individual, organizational, institutional, or any combination of these levels. The review reveals significant gaps in the knowledge on CP. Most importantly we find that the conceptualization is limited, the research is mostly quantitative, the effects of CP on society are severely under-researched, and there is a lack of multilevel analyses. A detailed future research agenda is offered, including specific suggestions for research designs and measurements. (shrink)

Community development, or the socio-economic transformation of local communities, has been a significant focus of organizational ethics. Such community development programmes—whether led by state, civil society, or businesses—are animated by modernization and have involved, I argue, the production of a new moral order. As part of which, communities were imagined in particular ways, historically. Drawing on a periodization of history of philanthropy of the Tata Group (India’s leading multinational conglomerate) from the 1860s onwards, I outline the four stages involved in (...) the production of this new moral order—each with a distinct formulation of community—as part of India’s development. The shifts in imaginaries of community, I conclude, were justified and legitimized by the elites as part of the wider nation-building efforts. (shrink)

The concept of sustainability was developed in response to stakeholder demands. One of the key mechanisms for engaging stakeholders is sustainability disclosure, often in the form of a report. Yet, how reporting is used to engage stakeholders is understudied. Using resource dependence and stakeholder theories, we investigate how companies within the same industry address different dependencies on stakeholders for economic, natural environment, and social resources and thus engage stakeholders accordingly. To achieve this objective, we conducted our research using qualitative research (...) methods. Our findings suggest that the resource dependencies on different stakeholders lead to development of different stakeholder relationships and thus appropriate resources within the company to execute engagement strategies that are informing, responding, or involving. Our research explains why diversity exists in sustainability disclosure by studying how it is used to engage stakeholders. We find that five sustainability reporting characteristics are associated with the company’s stakeholder engagement strategy: directness of communication, clarity of stakeholder identity, deliberateness of collecting feedback, broadness of stakeholder inclusiveness, and utilization of stakeholder engagement for learning. Our study develops the literature by providing insight into companies’ choices of stakeholder engagement strategy thus explaining diversity in sustainability reporting based on the characteristics and relationships with specific stakeholders. (shrink)

Corporate Social Responsibility (CSR) has existed in name for over 70 years. It is practiced in many countries and it is studied in academia around the world. However, CSR is not a universally adopted concept as it is understood differentially despite increasing pressures for its incorporation into business practices. This lack of a clear definition is complicated by the use of ambiguous terms in the proffered definitions and disputes as to where corporate governance is best addressed by many of the (...) national bodies legislating, mandating, or recommending CSR. This article explores the definitions of CSR as published on the Internet by governments in four countries (United Kingdom (UK), France, the United States, and Canada). We look for a consensus of understanding in an attempt to propose a more universal framework to enhance international adoption and practice of CSR using the triple bottom line. Our results concur with the findings of both national and international bodies and suggest that both within and among the countries in our study there exists no clear definition of the concept of CSR. While there are some similarities, there are substantial differences that must be addressed. We present a number of proposals for a more universal framework to define 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)

While the benefits of including local communities in multi-stakeholder initiatives have been acknowledged, their successful involvement remains a challenging process. Research has shown that large business interests are regularly over-represented and that local communities remain marginalized in the process. Additionally, little is known about how procedural fairness and inclusion can be managed and maintained during multi-stakeholder initiatives. The aim of this study was therefore to investigate how marginalized stakeholders, and local communities in particular, can be successfully involved during the course (...) of a multi-stakeholder initiative. An action research approach was adopted where the first author collaborated with a social housing association on an initiative to involve the local community in the design and implementation of circular economy approaches in a low-income neighbourhood. This study contributes to the multi-stakeholder initiative literature by showing that the successful involvement of marginalized stakeholders requires the initiators to continuously manage a balance between uncertainty–certainty, disagreement–agreement and consensus- and domination-based management strategies. Furthermore, our study highlights that factors which are regularly treated as challenges, including uncertainty and disagreement, can actually play a beneficial role in multi-stakeholder initiatives, emphasizing the need to take a temporally sensitive approach. This study also contributes to the circular economy literature by showing how communities can play a bigger role than merely being consumers, leading to the inclusion of a socially oriented perspective which has not been recognized in the previous literature. (shrink)

This article examines corporate social responsibility (CSR) through the lens of political ontology. We contend that CSR is not only a discursive mean of legitimization but an inherently ontological practice through which particular worlds become real. CSR enables the politics of place-making, connecting humans and nonhumans in specific territorial configurations in accordance with corporate needs and interests. We discuss three CSR mechanisms of singularization that create a particular corporate ontology in place: (1) community engagements that form ‘stakeholders’; (2) CSR standards (...) and certifications that produce singular sustainable environments; and (3) CSR reporting that erases ontological conflicts and enables the singularized representation (of the environment and the community) to travel to other locations of the corporate world. We argue that these ontological CSR practices obscure the pluriverse of other world and place-making practices that would create different kinds of sustainabilities based on less extractive and non-corporate ways of being in place. (shrink)

Despite the burgeoning literature on the governance and impact of cross-sector partnerships in the past two decades, the debate on how and when these collaborative arrangements address globally relevant problems and contribute to systemic change remains open. Building upon the notion of wicked problems and the literature on governing such wicked problems, this paper defines harnessing problems in multi-stakeholder partnerships as the approach of taking into account the nature of the problem and of organizing governance processes accordingly. The paper develops (...) an innovative analytical framework that conceptualizes MSPs in terms of three governance processes harnessing three key dimensions of wicked problems. The Roundtable on Sustainable Palm Oil provides an illustrative case study on how this analytical framework describes and explains organizational change in partnerships from a problem-based perspective. The framework can be used to better understand and predict the complex relationships between MSP governance processes, systemic change and societal problems, but also as a guiding tool in organizing governance processes to continuously re-assess the problems over time and address them accordingly. (shrink)

This article proposes a way to zoom in on the concept of the social license to operate from the broader normative perspective of contractarianism. An SLO can be defined as a contractarian basis for the legitimacy of a company’s specific activity or project. “SLO”, as a fashionable expression, has its origins in business practice. From a normative viewpoint, the concept is closely related to social contract theory, and, as such, it has a political dimension. After outlining the contractarian normative background (...) to the SLO, we will show how academic concepts such as legitimacy and stakeholder management have a tendency to provide the intellectual underpinning for the business case for securing an SLO. While business case perspectives on the SLO may well be in line with the use of the term in business practice, we will highlight certain difficulties and ambiguities related to the instrumental use of the expression. In the final section, we briefly introduce the articles of this Special Issue to the reader and explain how they relate to the topic. (shrink)

Stakeholder engagement is central to organizations’ social impact. Engagement activities rely on mechanisms whose complexity increases for multinational corporations. This study explores the boundary conditions of our Western/Northern-based knowledge of stakeholder engagement mechanisms through the examination of such practices in multinational companies founded in Latin America. Based on previous studies on the identification of organizational stakeholders in the region, we aim to understand the specific engagement mechanisms MLs use. To this end, we analyze qualitatively 28 corporate sustainability reports by relevant (...) firms. Our findings show that the community includes silent stakeholders composed of subgroups not listed as organizational stakeholders but mentioned in the report as engaged by the company or a subsidiary. MLs in our sample use four main mechanisms to engage these subgroups: strong, visible commitments to local social organizations; continuous dialogue with members of the community; networks of volunteers to help perform the social activities of the companies; and creation of social infrastructure institutions. We end by detailing the theoretical implications for stakeholder engagement among emerging economies multinational companies and for MNCs in general. (shrink)

ABSTRACT:We examine whether religion influences company decisions related to corporate community involvement. Employing a large US sample, we show that the CCI initiatives of a company are positively associated with the level of Christian religiosity present in the region within which that company’s headquarters is located. This association persists even after we control for a wide range of firm characteristics and after we subject our results to several econometric tests. These results support our religious morality hypothesis which holds that companies (...) headquartered in regions with higher levels of Christian religiosity will engage in more CCI initiatives. We also find that while Catholic and mainline Protestant religiosity have a positive influence on firms’ CCI initiatives, evangelical Protestant religiosity does not. This supports our differentiated responses hypothesis which holds that institutional differences among religious groups will produce different effects on companies’ CCI. This hypothesis is based on institutional theory. (shrink)

The World Bank recently noted: “Social license to operate has traditionally referred to the conduct of firms with regard to the impact on local communities and the environment, but the definition has expanded in recent years to include issues related to worker and human rights”. In this paper, we examine a factor that can influence the kind of work conditions that can facilitate or obstruct a firm’s attempts to achieve the social license to operate. Specifically, we examine the empirical association (...) between a company’s employee practices and the religiosity of its local community by investigating their fixed and endogenous effects. Using a large and extensive U.S. sample, we find a positive association between the “employee friendly” practices of a firm and the religiosity of the local community after controlling for several firm characteristics. In addition, after mitigating endogeneity with the dynamic panel system generalized method of moment and after employing several other econometric tests, we still find a robust positive association between the religiosity of the local community and employee-friendly practices. Since recent research has shown that the firm’s treatment of its stakeholders is a key to achieving an SLO, and since employees constitute a highly significant stakeholder group, we interpret our results as supporting the view that religion is an important influence on the kinds of employee practices that can increase the likelihood that a firm will acquire the SLO. (shrink)

Corporate social responsibility (CSR) is widely viewed as an important feature of contemporary business. It is characterized by the notion that organizations ought to voluntarily recognize and, where possible, practically mitigate the social impacts of its business activities, and that doing so allows organizations to meet the expectations of affected stakeholders. However, CSR initiatives are almost universally tethered to the idea that corporations exist to serve their own performance objectives, and that these will ultimately take precedence over wider macro-social considerations. (...) The present paper proposes that this conception of CSR mirrors the underlying neurological tension between the domains of analytic reasoning and empathic or socioemotional reasoning, and the neural correlates of each. Using the opposing domains hypothesis, it is proposed that CSR, as it is currently conceived of and practiced, is antithetical to social and ethical reasoning at the level of the brain, can increase the scope for dehumanization, and demands calling the ethical dimensions of CSR into question. (shrink)

While most studies on stakeholder engagement focus on high-power stakeholders (typically, employees), limited attention has been devoted to the engagement of low-power stakeholders. These have been defined as vulnerable stakeholders for their low capacity to influence corporations. Our research is framed around the engagement of low-power stakeholders in the coffee industry who are, paradoxically, critical resource providers for the major roasters. Through the case study of Lavazza—the leading Italian roaster—we investigate empowerment actions addressed to smallholder farmers located in Brazil, India, (...) East Africa, Haiti, and the Dominican Republic. We contribute to the theoretical discussion around engagement and empowerment by developing a framework linking together areas of empowerment (defined in the literature) and specific empowerment actions (emerging from our interviews). Our insights shed light on how organizations can design empowerment strategies leading to more effective stakeholder engagement and how empowerment actions can contribute to turn low-power stakeholders into active business partners. We demonstrate that moving from a traditional competitive view of corporate–stakeholder relationships to a stakeholder theory view based on a logic of cooperative partnerships reinforces the idea that stakeholder engagement and empowerment are both entangled with the value creation process. (shrink)

The impact of socially responsible corporate behavior on economic performance is a major preoccupation of managers today. This article explores the links between narrowly defined constructs: stakeholder orientation, environmental proactivity and profitability, from the perspectives of stakeholder theory and resource-based theory. We collected data on the food and beverage, and household and personal products industries. Using structural equation modeling, this paper makes two contributions. We found a negative link between companies simply having a higher stakeholder orientation and profitability. Importantly, however, (...) environmental proactivity not only had a positive impact on profitability, but also appeared to mediate the relationship between stakeholder orientation and profitability. In other words, if a company is more environmentally proactive, it will be more attentive to a broad array of stakeholders, and this will in turn contribute positively to profitability. (shrink)

Corporate Philanthropy is multi-dimensional, differs between sectors and involves both individual and organisational decision-making to achieve business and social goals. However, the CP literature characteristically focuses on strategic decisions made by business leaders and ignores the role of employees, especially those in lower status and lower paid positions. To redress this imbalance, we conducted a qualitative study of employees’ involvement in CP processes in ten workplaces in the South East of England to identify whether and how they are involved in (...) CP decision-making and to capture their perspective on the nature of CP and the benefits generated by such activities. We specifically chose to study workplaces where employees are involved in the actual execution of the CP strategy, prioritising companies with a visible presence on the high street. The results illustrate the benefits of involving employees in CP decision-making, which we argue derives in part from the ‘liminal-like states’ that typify CP activities organised by shop floor staff, involving the temporary overturning of hierarchies, humanising of workplaces and opportunities for lower level staff to prioritise their personal philanthropic preferences and signal their charitable identity to colleagues and customers. Whilst the data also suggest that CP decision-making remains predominantly top-down and driven by profit-oriented goals, we conclude that employees should be involved in choosing charitable causes as well as in designing and implementing workplace fundraising, in order to maximise the advantages of CP for the company and for wider society. (shrink)