In this study, we examine the influence of senior leadership on firms’ corporate social responsibility. We integrate upper echelons research that has investigated either the influence of the CEO or the top management team on CSR. We contend that functional experience complementarity between CEOs and TMTs in formulating and implementing CSR strategy may underlie differentiated strategies in CSR. We find that when CEOs who have predominant experience in output functions are complemented by TMTs with a lower proportion of members who (...) have experience in output functions, there is a pronounced effect on the community, product, and diversity dimensions of CSR. In turn, when output-oriented CEOs are complemented by output-oriented TMTs, we observe an effect on the employee relations dimension of CSR. Interestingly, we find no influence of CEO-TMT complementarity on the environment dimension of CSR. In general, our empirical results support the relevance of the interaction between CEOs and their TMTs in defining their firms’ CSR profile. (shrink)

Entrepreneurs of contested commodities often face stakeholders engaged in market excluding boundary work driven by ethical considerations. For example, the conversion of academic scientific knowledge into technologies that can be owned and sold is a growing global trend and key stakeholders have different ethical responses to this contested commodity. Commercialization of science can be viewed as a good thing because people believe it bolsters economic growth and broadly benefits society. Others view it as bad because they believe it discourages basic (...) research that ought to be freely shared without concern for profit. Taking a descriptive sociological approach, we posit that the stance of a religious tradition toward capitalism will help shape individual scientists’ views on science commercialization and test whether the religious tradition of scientists correlates with their attitude toward the commercialization of science. To maximize variance on the religious tradition dimension, we analyze pooled data from a cross-national survey of university biologists and physicists encompassing France, Hong Kong, India, Italy, Taiwan, Turkey, UK and the USA. We indeed find religious tradition differences. Hindus and scientists with no religious tradition are more likely to agree that commercialization of science “harms a university’s commitment to knowledge production” than Protestants. We end with a discussion on business ethics and the moral limits of the market as well as implications for entrepreneurs of contested commodities. (shrink)

To fight climate change, firms must adopt effective and feasible carbon management practices that promote collaboration within supply chains. Engaging suppliers and customers on carbon management reduces vulnerability to climate-related risks and increases resilience and adaptability in supply chains. Therefore, it is important to understand the motives and preconditions for pursuing supply chain engagement from companies that actively engage with supply chain members in carbon management. In this study, a relational view is applied to operationalize the supply chain engagement concept (...) to reflect the different levels of supplier and customer engagement. Based on a sample of 345 companies from the Carbon Disclosure Project’s supply chain program, the determinants of engagement were hypothesized and tested using multinomial and ordinal logistic estimation methods. The results indicate that companies that integrate climate change into their strategies and are involved in developing environmental public policy are driven by moral motives to engage their suppliers and customers in carbon management. All these factors make a stronger impact on supplier engagement than on customer engagement. Moreover, companies operating in greenhouse gas-intensive industries are driven by instrumental motives to engage their suppliers and customers because increasing greenhouse gas intensity positively influences engagement level. Company profitability appears to increase supplier engagement, but not customer engagement. Interestingly, operating in a country with stringent environmental regulations does not appear to influence supply chain engagement. By utilizing relational capabilities and collaboration, buyers can increase their suppliers’ engagement to disclose emissions, which ultimately will lead to better results in carbon management. (shrink)

“Eco-labels” are an increasingly important form of private regulation for sustainability in areas such as carbon emissions, water consumption, ethical sourcing, or organic produce. The growing interest and popularity of eco-labels has also been coupled with growing concerns about their credibility, in part because the standard-setting and conformity assessment practices that eco-labels adopt exhibit striking differences. In this paper, we assess which assurance practices contribute to eco-labels being perceived as better governed, in the eyes of experts as well as the (...) media. Unlike previous studies, which are mostly conceptual, qualitative, or focused on one or few eco-labels, we study a large set of eco-labels, combining data from three different sources. Our findings suggest that experts and media are primarily concerned about “re-assurance” practices, looking for one or preferably multiple layers of “re-assurance” that independent parties are overseeing the eco-label and the firms certified under it. (shrink)

The public debate on climate change is filled with moral claims. However, scientific knowledge about the role that morality, ethics, and values play in this issue is still scarce. Starting from this research gap, we focus on corporations as central decision makers in modern society and analyze how they respond to societal demands to take responsibility for climate change. While relevant literature on business ethics and climate change either places a high premium on morality or presents a strong skeptical bias, (...) our sociological model depicts morality as an indeterminate force: it can lead to both workable solutions or merely reinforce the status quo, depending on what different corporations make of it. We describe, on the one side, the diffusion of moral values in the media discourse on climate change and, on the other side, the specific responses of corporations. While the media discourse generates a pressure on corporations to act responsibly, their moral claims do not provide clear advice for action. As a result, morality becomes available to organizations as a medium that can be re-specified according to their internal dynamics. Corporations transform moral values into something compatible with their own structures through a variety of different responses: introducing formal ethical structures (e.g., codes of conduct), initiating value-oriented projects, or developing informal moral norms, and so on. In some occurrences, morality becomes a mere façade, while in others it serves as a decision-making criterion and deeply influences core activities in firms. (shrink)

A growing number of companies are implementing proactive environmental strategies with the objective of gaining competitive advantage through an enhanced reputation, the reduction in production costs, and a first-mover advantage in the green product market. Yet according to the natural-resource-based view, the development and maintenance of unique and valuable environmental capabilities are the central elements allowing companies to gain financial benefit from their proactive environmental strategy. In this context, management control systems can contribute to the development of environmental capabilities by (...) focusing attention on strategic priorities and stimulating dialogue. Through a single case study, and building on Simons’ four levers of control, we propose a conceptual framework of management control levers that show how companies can enhance stakeholder integration capability through the joint use of belief, boundary, and diagnostic control systems; shared vision capability through the joint use of the belief and boundary systems; organizational learning capability through the use of interactive control systems and to a lesser extent diagnostic control systems; and continuous innovation capability through the use of interactive control systems, belief systems and to a lesser extent diagnostic control systems. (shrink)