Despite a strong plea for integrating sustainability goals into traditional corporate bonus schemes, a comprehensive implementation of these systems has been lacking until recently. This article explores four illustrative cases from the Netherlands, where several multinationals started to pioneer with sustainable bonuses in the past few years. The article examines the setups and the different elements of bonus programmes used, in terms of performance criteria (focusing in particular on external vs. internal benchmarking), their link to specific stakeholders, type and size (...) of bonuses, target levels and transparency. While sustainable bonuses signal corporate awareness of responsibility vis-à-vis society and stakeholders, credibility varies considerably depending on these elements. Our case evidence sheds some light on the extent to which sustainable bonuses may be a credible sign of corporate responsibility or rather just another perverse mechanism meant to keep up bonus levels (window dressing). A definite assessment is hampered by the emergent state and lack of full transparency—while ‘justified’ by companies for competitive reasons, this raises questions. Insights are offered to appraise current and future systems and provide directions for further research. (shrink)

Aiming at a better understanding of the extent to which Africa-focused research has helped develop context-bound, context-specific, and context-free knowledge, the authors present the findings from a literature review of journal articles with an African context. A systematic search resulted in 271 articles with African data and 139 Africa-focused articles published in 63 top business journals and related disciplines from 2010 onwards. The sample included all journals belonging to the University of Texas Dallas and Financial Times research rankings, as well (...) as the main international business, and business and society outlets. An in-depth analysis of the 139 Africa-focused articles shows an important imbalance in terms of publication patterns, topics covered, theoretical groundings, types of contributions, approaches to the African contexts, and empirics. Building on this exhaustive literature review, the authors provide specific suggestions regarding potential data sources and empirical strategies in African contexts, propose avenues for future research, and introduce four recent studies included in the special issue. (shrink)

Cross-sector social partnerships are often studied from a macro and meso perspective, also in an attempt to assess effectiveness and societal impact. This article pays specific attention to the micro perspective, i.e. individual interactions between and within organizations related to partnerships that address the 'social good'. By focusing on the potential effects and mechanisms at the level of individuals and the organization(s) with which they interact, it aims to help fill a gap in research on partnerships, including more insight into (...) the process of interaction. We conceptually explore micro level interactions, and how partnership effects may 'trickle down' (e.g. from management to employees), or 'trickle up' (from employees to management) or 'trickle round' (e.g. between employees). Based on the literature from various disciplines, we discuss how more generic theories on social exchange and contagion, social learning and attraction-selection-attrition can help shed light on micro level interactions in a partnership, considering in particular transmission mechanisms via employees, top and middle management, and customers. In this way, partnerships can have wider benefits, as individuals have multiple roles and effects at the micro level can spread to the meso and macro levels as well. Implications for research and practice are outlined. (shrink)

In recent years, researchers and practitioners have increasingly paid attention to food waste, which is seen as highly unethical given its negative environmental and societal implications. Waste recovery is dependent on the creation of connections along the supply chain, so that actors with goods at risk of becoming waste can transfer them to those who may be able to use them as inputs or for their own consumption. Such waste recovery is, however, often hampered by what we call ‘circularity holes’, (...) i.e., missing linkages between waste generators and potential receivers. A new type of actor, the digital platform organization, has recently taken on a brokerage function to bridge circularity holes, particularly in the food supply chain. Yet, extant literature has overlooked this novel type of brokerage that exploits digital technology for the transfer and recovery of discarded resources between supply chain actors. Our study investigates this actor, conceptualized as a ‘circularity broker’, and thus unites network research and circular supply chain research. Focusing on the food supply chain, we adopt an interpretive inductive theory-building approach to uncover how platform organizations foster the recovery of waste by bridging circularity holes. We identify and explicate six brokerage roles, i.e., connecting, informing, protecting, mobilizing, integrating and measuring, and discuss them in relation to extant literature, highlighting novelties compared to earlier studies. The final section reflects on contributions, implications, limitations and areas for further research. (shrink)

This article explores how the institutional context, including central and local governments, has co-evolved with business in relation to small cars and sustainability. This issue is very relevant for business and society in view of the environmental implications of the rapidly growing vehicle fleet in China, the economic importance attached to this pillar industry by the government, and citizen interest in owning and driving increasingly larger cars. The interactions between different levels of government, and with business in countries with a (...) large role for the state is a novel area of study in the business-society area and a complex one given the multitude of objectives and interests involved in industry competitiveness, economic development, energy security, and sustainability. The article shows that the central government has adopted policies to further the production and use of small cars, which it perceives as serving environmental, economic, and social goals. Concurrently, however, many local governments imposed restrictions on small cars and have, implicitly or explicitly, favored larger cars. There seems to be a clear linkage to municipal ownership of those domestic automobile companies which, via joint ventures with foreign firms, focused more on larger cars. By adopting a co-evolutionary approach focused on macro-level interactions, the case helps to shed some more light on concrete sustainability challenges, and broader government–business interactions in a highly institutionalized setting, contributing insights on issues that have remained underexposed in business and society research. (shrink)

Although interest in Corporate Social Responsibility (CSR) in emerging markets has increased in recent years, most research still focuses on developed countries. The scant literature on the topic, which traditionally suggested that CSR was relatively underdeveloped in emerging markets, has recently explored the context specificity, suggesting that it is different and reflects the specific social and political background. This would particularly apply to local companies, not so much to foreign subsidiaries of multinationals active in emerging markets. Thus far, empirical research (...) that systematically documents a range of CSR activities of local companies and their performance has been scarce. This paper reports the results of a survey conducted among companies in the Mexican auto industry. CSR performance was investigated across three dimensions: environmental, labor, and community, using measures from existing research and global, ' Western' standards of practice, to identify the type of CSR activities and the level of CSR performance that exists, if at all, in the emerging-market context. Results show that local companies do engage in the type of CSR activities commonly associated with CSR in developed countries. To the extent that comparisons could be made, our findings also indicate that CSR activities and levels among the sample are comparable to what is known about CSR in developed-country settings. Moreover, six of the nine CSR dimensions are intercorrelated, which suggests that CSR in the Mexican auto parts industry is more structural than incidental. (shrink)

In recent years, corporate social responsibility (CSR) of Multinational Corporations (MNCs) in developing countries has received more attention. However, in this literature, Africa is much less well represented than other regions, and existing studies about Africa have mainly focused on South Africa and Nigeria. This focus has resulted in scant research on other African countries where MNCs are located as well, and where their presence is notable. Settings largely unexplored include conflict-ridden areas in Central Africa where a limited number of (...) usually large MNCs can potentially have a large impact on the local situation and play a role in addressing the huge problems with which these countries are confronted. Moreover, the MNCs themselves face large CSR dilemmas, related to the contribution they can (or cannot) give in the different setting compared to their home countries as well as their attitude vis-a-vis ongoing conflicts. In order to help shed light on these issues, this article explores how MNCs report on CSR and conflict in three Central African countries (Angola, Democratic Republic of the Congo, and Republic of the Congo). Our analysis of company information reveals that opportunities are widely seen and that most MNCs report on their economic and social impacts. However, CSR reporting is fairly generic, and the specific context seems to bear little influence on the type of CSR activities. The conflict dimension also receives limited attention, although some companies show awareness and outline the limitations of their power and the dilemmas inherent to their presence in these countries. The potential for MNCs' involvement in (co)creating sustainable economies is recognised, and needs further research attention in the coming years. (shrink)

To contribute to the debate on the role of social media in responsible business, this article explores blogger buzz in reaction to food companies’ press releases on health and obesity issues, considering the content and the level of fit between the CSR initiatives and the company. Findings show that companies issued more product-related initiatives than promotion-related ones. Among these, less than half generated a substantial number of responses from bloggers, which could not be identified as a specific group. While new (...) product introductions led to positive buzz, modifications of current products resulted in more negative responses, even if there was a high fit with core business. While promotion-related press releases were received negatively in general, particularly periphery promotion generated most reactions. Our exploratory study suggests that companies can increase the likelihood of a positive reaction if they carefully consider the fit between initiatives and their core business, while taking the notion of ‘controversial fit’, relating to the unhealthy nature of original products, into account. Further research avenues and implications, as well as limitations, are discussed. (shrink)

The growing body of literature on partnerships has paid most attention to their implications at the macro level, for society, as well as the meso level, for the partnering organisations. While generating many valuable insights, what has remained underexposed is the micro level, i.e. the role of managers and employees in partnerships, and how their actions and interactions can have an effect on the spread and potential effectiveness of collaborative efforts. This article uses a case-study approach to empirically explore the (...) patterns and potential boundary conditions of so-called ‘trickle effects’ of partnerships among individual actors within and outside partnering companies, which have thus far only been proposed conceptually. Based on interviews with employees from three different companies, we found an evidence of trickle-down and trickle-up effects with higher and lower management, as well as trickle-round effects with colleagues, family, friends and customers. The article discusses several partnership characteristics that seem to play a role, and notes implications for research and practice. (shrink)

The growing body of literature on partnerships has paid most attention to their implications at the macro level, for society, as well as the meso level, for the partnering organisations. While generating many valuable insights, what has remained underexposed is the micro level, i.e. the role of managers and employees in partnerships, and how their actions and interactions can have an effect on the spread and potential effectiveness of collaborative efforts. This article uses a case-study approach to empirically explore the (...) patterns and potential boundary conditions of so-called ‘trickle effects’ of partnerships among individual actors within and outside partnering companies, which have thus far only been proposed conceptually. Based on interviews with employees from three different companies, we found an evidence of trickle-down and trickle-up effects with higher and lower management, as well as trickle-round effects with colleagues, family, friends and customers. The article discusses several partnership characteristics that seem to play a role, and notes implications for research and practice. (shrink)

This paper explores the role of ideology in attempts to influence public policy and in business representation in the EU–China solar panel anti-dumping dispute. It exposes the dynamics of international activity by emerging-economy multinationals, in this case from China, and their interactions in a developed-country context. Theoretically, the study also sheds light on the recent notion of ‘liability of origin’, in addition to the traditional concept of ‘liability of foreignness’ explored in international business research, in relation to firms’ market and (...) political strategies and their institutional embeddedness in home and host countries. Through a qualitative analysis of primary and secondary materials and interview data with key protagonists, we provide a detailed evolution of the case, the key actors involved and their positions, arguments and strategies. This illustrates the complexities involved in the interaction between markets and ideologies in the midst of debates regarding different forms of subsidy regimes for renewable energy, free trade versus protectionist tendencies by governments, and the economic and sustainability objectives of firms and societies. The case shows how relative newcomers to the EU market responded to overcome a direct threat to their business and became, with support from their home government, active participants in the public debate through interactions with local commercial partners and non-governmental organisations. Firms adopted relatively sophisticated strategies to reduce their liabilities vis-à-vis host-country institutions and local stakeholders, including collective action, to increase their legitimacy and reputation, and counter ideologically based attacks. We also discuss implications and limitations. (shrink)

Anecdotal evidence often suggests that multinational enterprises operating in developing countries “exploit their multinationality” to avoid paying taxes to host governments. This article explores the concept of “responsible tax” as a corporate social responsibility issue for MNEs, based on the notion that MNEs face considerable variation in the extent, monitoring, and application of tax laws internationally. This variation creates a “moral free space” as to which tax payments to make. Using firm-level data from three important sectors in India, the authors (...) explore whether foreign MNE subsidiaries pay higher taxes than local firms, and whether, in the case of MNEs, there are differences between subsidiaries of MNEs with and without a reputation for CSR. The results show that MNEs pay considerably higher effective tax rates than do local firms, and MNE subsidiaries known for CSR pay more tax than do MNE subsidiaries less known for CSR. This set of findings suggests that MNEs operating in India see taxation in developing countries in relation to CSR. (shrink)

In this article we explore how multinational corporations (MNCs) adopt assurance practices to develop and sustain organizational accountability for sustainability. Using a panel of Fortune Global 250 firms over a period of 10 years, we document the diffusion patterns of third-party assurance of sustainability reports. We specifically investigate how evolving auditing practices, namely diversity of assurance standards and type of assurance providers, shape the quality of sustainability assurance statements. The results illustrate great variability in the adoption of assurance practices in (...) the formative stages of this novel market. Our descriptive analysis indicates the relevance of external institutional pressure as well as internal resources and capabilities as underlying factors driving the adoption of assurance. Our evidence also suggests that several MNCs project a decoupled or symbolic image of accountability through assurance, thereby undermining the credibility of these verification practices. The paper contributes to the emerging literature on international accountability standards and emphasizes the need to enhance theory-based, cross-disciplinary knowledge related to auditing and accountability processes for sustainability. (shrink)

Climate change is one of the environmental issues that has increasingly attracted business attention in the course of the 1990s. Multinationals have developed different strategies over the years, initially more political, nonmarket in nature, but currently also market-oriented. This article examines the evolution of multinationals’ responses to climate change, paying attention to both market and non-market components. It first gives an overview of the main policy developments, followed by a characterisation of non-marketand market responses, based on a survey among the (...) largest multinationals worldwide. The chapter also reflects on overall corporate responses to climate change, paying attention to the influence of the policy contexts on emergent market strategies, and taking respondent characteristics regarding country of origin and sector into account. (shrink)

Increasing attention to the issue of child labor has been reflected in codes of conduct that emerged in the past decade in particular. This paper examines the way in which multinationals, business associations, governmental and non-governmental organizations deal with child labor in their codes. With a standardized framework, it analyzes 55 codes drawn up by these different actors to influence firms’ external, societal behavior. The exploratory study helps to identify the main issues related to child labor and the use of (...) voluntary instruments such as codes of conduct. Apart from a specific indication of the topics covered by the code, especially minimum-age requirements, this also includes monitoring systems and monitoring parties. Most important to company codes are the sanctions imposed on business partners in case of non-compliance. Severe measures may be counterproductive as they do not change the underlying causes of child labor and can worsen the situation of the child workers by driving them to more hazardous work in the informal sector. This underlines the importance of a broad rather than a restrictive approach to child labor in codes of conduct. The paper discusses the implications of this study, offering suggestions for future research. (shrink)