This paper aims to critically review the existing literature on the relationship between corporate governance, in particular board diversity, and both corporate social responsibility and corporate social responsibility reporting and to suggest some important avenues for future research in this field. Assuming that both CSR and CSRR are outcomes of boards’ decisions, this paper proposes that examining boards’ decision making processes with regard to CSR would provide more insight into the link (...) class='Hi'>between board diversity and CSR. Particularly, the paper stresses the importance of studies linking gender diversity and CSR decision making processes, which is quite rare in the existing literature. It also highlights the importance of more qualitative methods and longitudinal studies for the development of understanding of the diversity–CSR relationship. (shrink)

The positive or negative impacts corporate social responsibility (CSR) may have on business performance have drawn research interest. In recent years, the focus of research has shifted toward the link between CSR and corporate competitive advantage. Corporate competitive advantage is a multifaceted and holistic concept that captures more than just corporate financial performance. Building on the resource-based view (RBV), corporate competitive advantage construct theory, and CSR behavior theory, we explore how a firm's CSR engagement shapes its (...) corporate competitive advantage. Our analysis of a panel dataset of 64 companies with a top-100 CSR development index in China and 704 firm-year observations over the sample period from 2009 to 2019 reveals an inverse U-shaped relationship between CSR and corporate competitive advantage. This signifies that corporate competitive advantage first increases with CSR engagement but declines as it reaches a threshold level where CSR activities are beyond the affordability of the firm. We also examine how behaviors at various CSR engagement levels influence different dimensions of corporate competitive advantage. These results support a curvilinear relationship, explaining why many CSR strategies have been ineffective in the past. The findings may help guide corporate decisions and government policymaking on CSR. (shrink)

This chapter examines the philosophical underpinnings of Durkheim’s account of anomie as social pathology. It examines and evaluates Durkheim’s conception of social pathology and his claim that social problems must be understood as analogous to illnesses. Further, it explores the vision of social ontology—of the kind of being that human societies have—underlying Durkheim’s position, which involves articulating the ways in which human societies are both different from and similar to biological organisms. Because Durkheim conceives of the (...) task of social theory as similar to that of medicine, his account of anomie can be regarded as compatible in important ways with the tradition of Frankfurt-style critical theory. Both approaches to social reality attribute to social theory three inter-related tasks: theoretical understanding, normative evaluation, and guidance for practical action directed at changing the pathologies it diagnoses. (shrink)

Socially responsible investment is a rapidly emerging phenomenon within the field of personal investment. However, the factors that lead investors to choose socially responsible investment products are not well understood, especially in an Australian context. This study provides a comparative examination of conventional and socially responsible investors, with the aim of identifying such factors. A total of 55 conventional investors and 54 ethical investors participated in the study by completing mailed questionnaires about their investment and general behaviour and their attitudes (...) and beliefs. Results indicated some important differences between socially responsible and conventional investors in their beliefs of the importance of ethical issues, their investment decision-making style, and their perceptions of moral intensity. These results support the notion that socially responsible investors differ in critical ways to conventional investors, and are discussed in terms of theoretical and practical implications. (shrink)

Increasing women’s participation in intrahousehold decision-making has been linked with increased agricultural productivity and economic development. Existing studies focus on identifying the decision-maker and exploring factors affecting women’s participation, yet the context in which households make decisions is generally ignored. This paper narrows this gap by investigating perceptions of women's participation and the roles of social norms in agricultural decision-making. It specifically applies a fine-scale quantitative responses tool and constructs a women’s participation index to measure men’s (...) and women’s perceptions regarding women’s participation in decisions about 21 agricultural activities. The study further examines the correlation between social norms in these perceptions as measured by the WPI for 439 couples in West Java, Indonesia. We find that first, men and women have different perceptions about women's decision-making in agricultural activities, but the same perceptions of the types of activities in which women have the most and the least participation. Second, joint decisions come in various combinations but overall, the women’s role is smaller. Third, social norms influence spouses' perceptions of decision-making participation, which explains most of the variation of the WPI. These results suggest that rigorous consideration of social norms is required to understand intrahousehold decision-making. (shrink)

This study examines whether and how female board directors may affect corporate social performance (CSP) by drawing on social role theory and feminist ethics literature. The empirical analysis, based on a sample of 126 firms drawn from the S&P500 group of companies over a 5-year period, suggests that board gender diversity (BGD) significantly affects CSP. However, this impact depends on the social performance metric under investigation. In particular, more gender diverse boards exert stronger influence on CSP metrics (...) focusing on ‘negative’ business practices, such as the ‘concerns’ dimension of the Kinder Lydenberg Domini, Inc. (KLD) ratings. This is because such CSP ratings have the potential to induce higher levels of ‘empathic caring’, which strongly appeals to female directors. Hence, this study reveals further hidden connections in the BGD–CSP link which have important implications for managers, nongovernmental organisations and socially responsible investors. (shrink)

This article examines quantitatively the determinants of purchase decisions based on corporate social responsibility (CSR), adopting a hierarchical conceptual model of decision making where the key factors are personal concern, information availability and financial considerations. We use best–worst methods to assess consumer priorities (personal concern) for CSR activities in milk production; and elicit consumer interpretation of four labels (organic, Validus, Colorado Proud and rBST free) in terms of CSR and other outcomes (information availability). We then elicit willingness (...) to pay (WTP) for the labels (financial considerations), and estimate regression models to determine how predictive each label perceptual profile is of WTP for milk. Animal welfare and sustainable agricultural practices are the most important activities, and milk labels do convey CSR-related messages. With the exception of the pair animal welfare-Validus, the link between CSR messages and WTP is tenuous. The discussion emphasizes the central role of each label’s perceptual profile in triggering product differentiation among consumers. (shrink)

This article draws on historical material to examine the co-evolution of economic science and business education over the course of the twentieth century, showing that fields evolve not only through internal struggles but also through struggles taking place in adjacent fields. More specifically, we argue that the scientific strategies of business schools played an essential—if largely invisible and poorly understood—role in major transformations in the organization and substantive direction of social-scientific knowledge, and specifically economic knowledge, in twentieth century America. (...) We use the Wharton School as an illustration of the earliest trends and dilemmas (ca. 1900–1930), when business schools found themselves caught between their business connections and their striving for moral legitimacy in higher education. Next, we look at the creation of the Carnegie Tech Graduate School of Industrial Administration after World War II. This episode illustrates the increasingly successful claims of social scientists, backed by philanthropic foundations, on business education and the growing appeal of “scientific” approaches to decision-making and management. Finally, we argue that the rise of the Graduate School of Business at the University of Chicago from the 1960s onwards (and its closely related cousin at the University of Rochester) marks the decisive ascendancy of economics, and particularly financial economics, in business education over the other behavioral disciplines. We document the key role of these institutions in diffusing “Chicago-style” economic approaches—offering support for deregulatory policies and popularizing narrowly financial understandings of the firm—that sociologists have described as characteristic of the modern neo liberal regime. (shrink)

This study examined how social media marketing activities influence consumers’ engagement behaviour in developing countries. Based on the stimulus-organism-response theory, we examined the effect of SMMA on consumers’ engagement intention and further investigated the moderating effect of social media sales intensity. The study employed a time-lagged design with two waves to confirm the hypothesised framework. The study findings showed that SMMA positively influence consumers’ engagement intention and engagement behaviour. In addition, social media sales intensity strengthens the (...) class='Hi'>link between engagement intention and engagement behaviour. This study adds to the literature on social media and discusses its practical implications. (shrink)

Recent research suggests that committing to corporate social responsibility (CSR) can induce moral licensing among employees, resulting in unethical behaviors. We extend this line of research and develop a theoretical framework to study how CSR influences managerial decision-making in crisis management. We test this theory in the context of product recall remediation. We examine under what circumstances CSR induces morally consistent or morally dubious recall remedial decisions and factors moderating this effect. We focus on two product recall (...) remedial decisions that differ in ambiguity—full versus partial compensation and proactive versus passive recall. We predict and show that a company’s strong prior CSR performance increases the likelihood of full compensation but decreases the likelihood of a proactive recall. This finding suggests that CSR can induce moral licensing behavior at the highest corporate level when a decision is morally difficult to diagnose. Further analysis reveals that consumer harm and institutional ownership moderate the relationship between CSR and these two remediation strategies. Together, our findings provide important insights into when CSR leads to moral licensing in crisis remediation and how the link can be mitigated, and thus shed light on when CSR yields consistent and meaningful ethical business decisions. (shrink)

This paper examines the economic impact of implementing Corporate Social Responsibility in the supply chain operations of multinational corporations. Because they have global supply chains in emerging markets, MNCs face certain operational challenges. For example, unethical operations often result in a huge loss to MNCs in the long run, even though their initial cost seems to be low. In this paper, we extend the Bullwhip Effect theory in supply chain management to the ethical operations context, and define and (...) evaluate a special Bullwhip Effect due to Unethical Operations. Using economic data from various sources including Ford, Toyota, and GM in the auto industry, we first estimate the indices of BEUO for the three companies and demonstrate the economic necessity for MNCs to incorporate CSR with supply chain operations. We then propose a coherent approach, blending what we term the bottom-up and proactive methods, to achieve such an outcome. The bottom-up approach requires MNCs to switch their focus on stakeholders, shifting from shareholders to consumers and workers, and on decision levels from public relationships to supply chain operations. The proactive approach recommends initializing specific CSR operations to mitigate the negative impact of BEUO. Both theoretical analysis and case studies are conducted to evaluate our developed propositions that MNCs adopting the proposed CSR operations will in the long run achieve better economic performance. Recommended actions for implementation, based on best practices, are also presented. (shrink)

This article examines the relation between policies concerning Corporate Social Responsibility (CSR) and philosophical moral theories. The objective is to determine which moral theories form the basis for CSR policies. Are they based on ethical egoism, libertarianism, utilitarianism or some kind of common-sense morality? In order to address this issue, I conducted an empirical investigation examining the relation between moral theories and CSR policies, in companies engaged in CSR. Based on the empirical data I collected, (...) I start by suggesting some normative arguments used by the respondents. Secondly, I suggest that these moral arguments implicitly rely on some specific moral principles, which I characterise. Thirdly, on the basis of these moral principles, I suggest the moral theories upon which the CSR policies are built. Previous empirical studies examining the relation between philosophical moral theories and the ethical content of business activities have mainly concentrated on the ethical decision-making of managers. Some of the most prominent investigations in that regard propose that managers mainly act in accordance with utilitarian moral theory (Fritzsche, D. J. and H. Becker: 1984 , Academy of Management Journal 27 (1), 166–175; Premeaux, S. and W. Mony: 1993 , Journal of Business Ethics 12 , 349–357; Premeaux, S.: 2004 , Journal of Business Ethics 52 , 269–278). I conclude that CSR policies are not based on utilitarian thinking, but instead, on some kind of common-sense morality. The ethical foundation of companies engaged in CSR, thus, does not mirror the ethical foundation of managers. (shrink)

This article examines the relation between policies concerning Corporate Social Responsibility and philosophical moral theories. The objective is to determine which moral theories form the basis for CSR policies. Are they based on ethical egoism, libertarianism, utilitarianism or some kind of common-sense morality? In order to address this issue, I conducted an empirical investigation examining the relation between moral theories and CSR policies, in companies engaged in CSR. Based on the empirical data I collected, I (...) start by suggesting some normative arguments used by the respondents. Secondly, I suggest that these moral arguments implicitly rely on some specific moral principles, which I characterise. Thirdly, on the basis of these moral principles, I suggest the moral theories upon which the CSR policies are built. Previous empirical studies examining the relation between philosophical moral theories and the ethical content of business activities have mainly concentrated on the ethical decision-making of managers. Some of the most prominent investigations in that regard propose that managers mainly act in accordance with utilitarian moral theory, 166–175; Premeaux, S. and W. Mony: 1993, Journal of Business Ethics12, 349–357; Premeaux, S.: 2004, Journal of Business Ethics52, 269–278). I conclude that CSR policies are not based on utilitarian thinking, but instead, on some kind of common-sense morality. The ethical foundation of companies engaged in CSR, thus, does not mirror the ethical foundation of managers. (shrink)

BackgroundAdolescents’ engagement in daily physical activity brings multiple benefits, including reduction in obesity, improvement of mental health, and enhancement of cognitive function. While prior studies have examined the link between physical activity and cognitive function, little is known regarding the extent to which this relationship is shaped by health and wellbeing factors. This study examines how subjective wellbeing and general health mediate the relationship between adolescents’ physical activity and cognitive function.MethodsThis study estimates a parallel structural equation model (...) using the Program for International Student Assessment 2018 dataset. Specifically, a total of 63,228 15-year-old subjects in nine countries/economies satisfied the study inclusion criteria, including in Bulgaria, Georgia, Hong Kong, Ireland, Mexico, Panama, Serbia, Spain, and United Arab Emirates. Frequency of moderate physical activity was reported weekly; SWB and GH were assessed using an internationally validated multi-item standardized questionnaire. SWB was measured by students’ self-evaluated satisfaction with their health, life, and schooling. GH was measured by students’ physical health and mental health status. Cognitive function was modeled as a latent function consisting of plausible values derived using item response theory on reading, mathematics, and science achievement tests.ResultsFindings indicated that increase in weekly MPA was positively associated with higher levels of SWB, GH, and CF among the study subjects. Parallel mediation analyses revealed that more frequent weekly MPA had relatively large direct effects on CF, and indirect effects channeling through improvements in SWB and GH were non-trivial. Heterogeneity results showed that boosts to CF, associated with MPA, were larger for mathematics and science than for reading.ConclusionThis study used a large-scale international dataset to show that the positive relationship observed between MPA and CF among adolescents was robust, and that SWB and GH were two critical mediators through which physical activity positively bolster CF. (shrink)

Drawing on theory and research on ethical leadership and ethical climate, we examine ethical climate as a mediator of the relationship between ethical leadership and employee misconduct. Using a sample of 1,525 employees and their supervisors in 300 units in different organizations, we find support for our hypothesized model. We discuss theoretical and practical implications of these findings.

This paper analyzes the interlink among managerial experience, capabilities, and social capital in relation to corporate social responsibility (CSR) activities of multinational enterprises' (MNEs) subsidiaries in an emerging market context. Based on the empirical sample of 104 subsidiaries of 28 Italian MNEs operating in India, we found that CEO managerial capabilities are positively associated with CSR activities. However, interestingly, our findings also show that subsidiary CEO (managerial) experience is negatively associated with CSR activities in emerging markets. Therefore, (...) our study is one of the few that highlights the negative repercussions of experience in the context of CSR activities in emerging markets. Moreover, our findings show that while social capital alleviates the negative influences of CEO experience on CSR activities, it does not enhance the role of CEO managerial capabilities in CSR activities. As such, our study contributes to research on business ethics with a focus on sustainable development in business. (shrink)

Religion is an important cultural and individual difference variable. Yet, despite its obvious importance in consumers’ lives, religion in the United States has been under-researched. This study addresses that gap in the literature and investigates the influence of consumer religion in the buyer–seller dyad. Specifically, this study examines the influence of consumer religious commitment and a Christian consumer’s conservative beliefs in the United States on store loyalty when retailers make business decisions which are potentially reli- gious objectionable. This study uses (...) structural equation modeling and applies Anderson and Gerbing’s :411–423, 1988 ) two-step approach to exam- ine data obtained from a national sample of 531 consumers. The results from this study suggest that consumers evaluate seller’s actions and form ethical judgments. These judgments are a major explanatory variable in consumer store loyalty intentions. (shrink)

The relationship between corporate social responsibility and corporate financial performance has long been a central and contentious debate in the literature. However, prior empirical studies provide indefinite conclusions. The purpose of this study is to review systematically and quantify the CSR–CFP link in a meta-analytic framework. Based on 119 effect sizes from 42 studies, this study estimates that the overall effect size of the CSR–CFP relationship is positive and significant, thus endorsing the argument that CSR does (...) enhance financial performance. Furthermore, this work sheds light on the causal relationship between CSR and CFP. Subsequent financial performance is associated with prior social responsibility, while the reverse direction is not supported. This finding supports the instrumental stakeholder theory. As predicted, the meta-analysis results indicate that the measurement strategies of the two key constructs of CSR and CFP explain some variations of the CSR–CFP relationship. Last, this study examines the moderating effect of the environmental context on the CSR–CFP link. This work proposes that CSR in the developed world, with a relatively mature institutional system and efficient market mechanism, will be more visible than CSR in the developing world. The results show that the CSR–CFP relationship is stronger for firms from advanced economies than for firms from developing economies. (shrink)

In an ever more transparent, digitalized, and connected environment, customers are increasingly pressuring brands to embrace genuine corporate social responsibility practices and co-creation activities. While both CSR and co-creation are social and collaborative processes, there is still little research examining whether CSR can boost co-creation. In addition, while previous research has mainly related co-creation to emotional outcomes, limited empirical research has related it to rational and behavioral outcomes. To address these shortcomings in the literature, this paper (...) examines the influence of CSR on customer loyalty, considering the mediating roles of co-creation and customer trust. It also investigates the influence of co-creation on customer trust. The data were collected in Spain in late 2017 using an online survey, and the sample contained 1101 customers of health insurance services brands. Structural equation modeling was used to test the hypothesized relationships simultaneously. The results show that CSR influences customer loyalty both directly and indirectly through co-creation and customer trust. However, the indirect impact is the stronger of the two, implying that embracing co-creation activities and developing customer trust can make it easier for CSR practices to enhance customer loyalty. In addition, co-creation has a direct effect on customer trust. (shrink)

This study attempts to examine the direct impact of corporate social responsibility initiatives on employees’ job performance and the indirect relationships between CSR initiatives on employees’ job performance via industrial relations climate and psychological contract fulfillment. Data were collected from 764 supervisor–subordinate dyads and 271 middle managers from 85 companies. Using a multilevel approach, the results showed that organizational-level CSR was positively related to employees’ job performance. Moreover, the industrial relations climate and psychological contract fulfillment played mediating (...) effects between CSR initiatives and job performance. This study provides novel theoretical evidence for why and how CSR initiatives improve job performance. Theoretical and practical implications for implementing CSR initiatives are discussed. (shrink)

Business Ethics, the Environment &Responsibility, Volume 31, Issue 3, Page 620-633, July 2022.

Readers of fiction tend to have better abilities of empathy and theory of mind. We present a study designed to replicate this finding, rule out one possible explanation, and extend the assessment of social outcomes. In order to rule out the role of personality, we first identified Openness as the most consistent correlate. This trait was then statistically controlled for, along with two other important individual differences: the tendency to be drawn into stories and gender. Even after accounting for (...) these variables, fiction exposure still predicted performance on an empathy task. Extending these results, we also found that exposure to fiction was positively correlated with social support. Exposure to nonfiction, in contrast, was associated with loneliness, and negatively related to social support. (shrink)

ABSTRACT:The link between firm corporate social performance (CSP) and executive compensation could be driven by a sorting effect (a firm’s CSP is related to the initial levels of compensation of newly hired executives), or by an incentive effect (incumbent executives are rewarded for past firm CSP). Existing empirical work focuses exclusively on the incentive effect. In contrast, in this paper we explore the sorting effect of firm CSP on the initial compensation of newly hired executives. In doing (...) so, we develop a novel theoretical approach based on an integration of stakeholder theory and human capital theory, suggesting a positive association between the initial compensation of executives and firm CSP strengths and concerns. It also suggests that the strength of this relationship varies between different executive roles (as a function of stakeholder-management responsibilities). We find support for this theoretical framework in a large sample of newly-hired executives employed by Standard & Poor 1500 firms. (shrink)

We examine the link between the growing emphasis on corporate social responsibility at the organizational level and beliefs about social responsibility at work (SRW) expressed by individuals. Drawing from theories of professionalism and diffusion of innovations (including practices and beliefs), we advance hypotheses about beliefs of managers and non-managers in 11 countries at two time periods, and use a unique international data set to test our hypotheses. Our general prediction that managers would score higher (...) than non-managers on a measure of SRW was not supported. However, further analysis revealed a more complex relationship moderated by the contextual factors of time frame and country inequality level. We discuss implications and extensions for future research. (shrink)

We examine the link between the growing emphasis on corporate social responsibility at the organizational level and beliefs about social responsibility at work (SRW) expressed by individuals. Drawing from theories of professionalism and diffusion of innovations (including practices and beliefs), we advance hypotheses about beliefs of managers and non‐managers in 11 countries at two time periods, and use a unique international data set to test our hypotheses. Our general prediction that managers would score higher (...) than non‐managers on a measure of SRW was not supported. However, further analysis revealed a more complex relationship moderated by the contextual factors of time frame and country inequality level. We discuss implications and extensions for future research. (shrink)

As far as we are aware, this study presents the first comparative analysis of the stock picking and market timing abilities of managers of conventional and socially responsible (SR) pension funds, and of their use of superior information. For the United Kingdom, the results obtained show a slight stock picking ability on the part of SR pension fund managers (although it disappears if multifactorial models are considered), and a negative market timing ability on the part of both SR and conventional (...) pension fund managers (these results hold for multifactorial models controlled by home bias). In relation to the management styles, both conventional and SR pension funds usually invest in small cap and growth values, although it is the SR pension funds that are the most exposed to these styles. We also observed that, while conventional pension fund managers make certain use of superior information to follow stock picking strategies, managers of SR pension funds use superior information to follow market timing strategies. (shrink)

In this paper, three major themes in research on corporate social responsibility (CSR) are identified. Of particular interest, however, is the potential link between CSR and organizational effectiveness (OE). Data collected from 410 college graduate and undergraduate students were used to examine this relationship. Using factor analysis, eight dimensions of CSR and three components of OE were extracted. Canonical analysis was then performed. The result supports the proposition that specific CSR practices affect select OE outcomes. In (...) addition, the method employed here provides a parsimonious approach to give priority to social claims. (shrink)

Most studies investigating the relationship between cultural constructs and ethical perception have focused on individual- and societal-level values without much attention to other type of cultural constructs such as social beliefs. In addition, we need to better understand how social beliefs are linked to ethical perception and the level of analysis at which social beliefs may best predict ethical perceptions. This research contributes to the cross-cultural ethical perception literature by examining the relationship of individual-level (...) class='Hi'>social cynicism belief, one of five universally endorsed social beliefs, together with individual social dominance orientation and the perception of unethical behavior. By means of two studies, we examine these relationships across societies that significantly differ on societal-level social cynicism belief. Using 371 business students from Russia and the U.S. in Study 1 and 268 professionals from Portugal and the U.S. in Study 2, we found that individual-level social cynicism belief was positively associated with social dominance orientation. Social dominance orientation, in turn, mediated the relationship between individual social cynicism belief and the perception of unethical behavior. Although we found significant societal-level differences in social cynicism belief in both studies, the relationships between individual-level social cynicism belief, social dominance orientation, and the perception of unethical behavior were structurally equivalent across societies in both studies, suggesting that societal-level differences did not significantly affect these relationships. Implications for cross-cultural business ethics research and practice are discussed. (shrink)

In a recent contribution to this journal Paolo Gerbaudo has argued that an ‘elective affinity’ exists between social media and populism. The present article expands on Gerbaudo’s argument and examines various dimensions of this affinity in further detail. It argues that it is helpful to conceptually reframe the proposed affinity in terms of affordances. Four affordances are identified which make the social media ecology relatively favourable to both-right as well as left-wing populism, compared to the pre-social (...) media ecology. These affordances are neither stable nor uniquely fixed: they change in concordance with ongoing technological developments and in response to political events. Even though these dynamics can be quick-moving, a fairly stable alliance of interests between social media and populism seems to have emerged over the last decade. This raises the plausibility that as long as the current social media ecology persists, populist tendencies will remain prevalent in politics. (shrink)

The capability approach is gaining momentum as a theory of corporate responsibility and business ethics at a time when the UN Guiding Principles have become a most important framework. A novel approach is now emerging that seeks to understand and specify human rights obligations of businesses within the framework provided by the capability approach. This article partially examines the triad corporate responsibility–human rights–capability approach by exploring the relationship between human rights and capabilities. Thus, it offers conceptual and (...) practical implications for a human rights perspective on corporate responsibility. The bulk of our thesis focuses on studying Nussbaum’s and Sen’s claim that human rights are entitlements to capabilities by means of a discussion of the notion of human dignity. In particular, we show the capability approach’s ability to dissipate theoretical and practical challenges posed by the notion of dignity. This article does not offer a detailed explanation of the implications of our investigation for human rights responsibilities of business. However, an outline of its potential contribution toward unfolding those obligations, conceptually and practically, is provided. (shrink)

This study seeks to examine the mechanism by which a corporation’s use of philanthropy might affect its reputation for CSP. We propose and test a model relating corporate philanthropy and foundations to awareness of and evaluations of firm social responsibility. We find that the relationships are more perplexing than others have proposed. Our contention that corporate philanthropy is a complex variable is upheld and we propose avenues for future research.

Since the 1970s, many Anglo-American studies have investigated the theme of corporate social responsibility (CSR) and its costs and benefits. Most studies have tried to test, largely in samples of multiple industries, the relationship between corporate social performance (CSP) and corporate financial performance (CFP). These analyses, however, have produced conflicting results and any attempt to give a generalized and coherent conclusion has proved inadequate. This article examines the ways CSP can be proxied and investigates the possible (...) relationship between CSP (measured by ethical rating) and CFP (measured by market and accounting ratios) in the banking sector using correlation methodology. It emerges that there is no statistically significant link between CSP and CFP. (shrink)

This paper investigates the link between the consumer perception that a company is socially oriented and the consumer intention to buy products marketed by that company. We suggest that this link exists when at least two conditions prevail: (1) the products sold by that company comply with ethical and social requirements; (2) the company has an acknowledged commitment to protect consumer rights and interests. To test these hypotheses, we conducted a survey among the clients of retail (...) chains offering Fair Trade products. The results show that socially oriented companies can successfully leverage their reputation to market products with high symbolic values. (shrink)

This article investigates the link between corporate social responsibility (CSR) practices and the reasons for which legitimacy is ascribed or denied. It fills a gap in the literature on CSR and legitimacy that lacks empirical studies regarding the question whether CSR contributes to organisational legitimacy. The problem is discussed by referring to the case of De Beers’s diamond mining partnership with the Government of Namibia. A total of 42 interviews were conducted—41 with stakeholders and one with (...) the focal organisation Namdeb. The 41 stakeholder interviews are analysed with regard to cognitive, pragmatic and moral legitimacy as defined by Suchman (Acad Manage Rev 20(3):571–610, 1995 ). The main finding is that the majority of statements on organisational legitimacy refer to moral legitimacy and most issues raised in this context challenge the company’s legitimacy despite its comprehensive CSR engagement. The study demonstrates that legitimacy gaps can be a result of communication practices that raise unrealistic stakeholder expectations and that the legitimacy gained by CSR engagement in one area cannot substitute legitimacy losses caused by failures in another. (shrink)

This research investigates the interplay between leadership styles and institutional corporate social responsibility (CSR) practices. A large-scale field survey of managers reveals that firms with greater transformational leadership are more likely to engage in institutional CSR practices, whereas transactional leadership is not associated with such practices. Furthermore, stakeholder-oriented marketing reinforces the positive link between transformational leadership and institutional CSR practices. Finally, transactional leadership enhances, whereas transformational leadership diminishes, the positive relationship between institutional CSR (...) practices and organizational outcomes. This research highlights the differential roles that transformational and transactional leadership styles play for a firm’s institutional CSR practices and has significant implications for theory and practice. (shrink)

Most studies investigating the relationship between cultural constructs and ethical perception have focused on individual- and societal-level values without much attention to other type of cultural constructs such as social beliefs. In addition, we need to better understand how social beliefs are linked to ethical perception and the level of analysis at which social beliefs may best predict ethical perceptions. This research contributes to the cross-cultural ethical perception literature by examining the relationship of individual-level (...) class='Hi'>social cynicism belief, one of five universally endorsed social beliefs, together with individual social dominance orientation and the perception of unethical behavior. By means of two studies, we examine these relationships across societies that significantly differ on societal-level social cynicism belief. Using 371 business students from Russia and the U.S. in Study 1 and 268 professionals from Portugal and the U.S. in Study 2, we found that individual-level social cynicism belief was positively associated with social dominance orientation. Social dominance orientation, in turn, mediated the relationship between individual social cynicism belief and the perception of unethical behavior. Although we found significant societal-level differences in social cynicism belief in both studies, the relationships between individual-level social cynicism belief, social dominance orientation, and the perception of unethical behavior were structurally equivalent across societies in both studies, suggesting that societal-level differences did not significantly affect these relationships. Implications for cross-cultural business ethics research and practice are discussed. (shrink)

Most studies investigating the relationship between cultural constructs and ethical perception have focused on individual- and societal-level values without much attention to other type of cultural constructs such as social beliefs. In addition, we need to better understand how social beliefs are linked to ethical perception and the level of analysis at which social beliefs may best predict ethical perceptions. This research contributes to the cross-cultural ethical perception literature by examining the relationship of individual-level (...) class='Hi'>social cynicism belief, one of five universally endorsed social beliefs, together with individual social dominance orientation and the perception of unethical behavior. By means of two studies, we examine these relationships across societies that significantly differ on societal-level social cynicism belief. Using 371 business students from Russia and the U.S. in Study 1 and 268 professionals from Portugal and the U.S. in Study 2, we found that individual-level social cynicism belief was positively associated with social dominance orientation. Social dominance orientation, in turn, mediated the relationship between individual social cynicism belief and the perception of unethical behavior. Although we found significant societal-level differences in social cynicism belief in both studies, the relationships between individual-level social cynicism belief, social dominance orientation, and the perception of unethical behavior were structurally equivalent across societies in both studies, suggesting that societal-level differences did not significantly affect these relationships. Implications for cross-cultural business ethics research and practice are discussed. (shrink)

PurposeThis study aimed to apply “multi-criteria decision approach and attitude-change theory” to examine post-COVID-19 impact on entrepreneurial mindset by investigating the link between entrepreneurs social capital and entrepreneurial success. Specifically, this study analyzed entrepreneurs' dispositional factor as an underlying mechanism to bridge trust and entrepreneurial success. Furthermore, it also analyzed entrepreneurs' situational factor as boundary condition.Design/methodology/approachWe applied time-lagged data collection from 505 industrial entrepreneurs. Survey method was used for data collection. A 7-point Likert scale was used (...) for the respondent response. Hayes developed PROCESS models 4 and 7 were used to test the hypothesis.FindingsThe direct impact of trust on three elements of the ecosystem was found significantly positive on both startup behavior and entrepreneurial success. The direct impact of startup behavior on entrepreneurial success is also significantly positive. The impact of startup behavior on indirect mediation between trust and entrepreneurial success is visibly positive. The moderated and moderated mediation impact of entrepreneurial strategy found positively significant at low and medium values. However, this study found an insignificant moderated impact at high values of entrepreneurial strategy between trust on media and startup behavior. Furthermore, this study also found insignificant moderated mediation impact at high values of entrepreneurial strategy by interacting with two elements of ecosystem through startup behavior on entrepreneurial success.Originality/valueThe authors suggested that startup behavior is an underlying mechanism through which industrial entrepreneurs trust achieved desired entrepreneurial success. The authors also suggested that the influencing role of “low level of entrepreneurial strategy” in comparison with “high level entrepreneurial strategy” is more helpful to achieve entrepreneurial success.ImplicationsThis study contributed to the literature on entrepreneurial strategy for its conditional indirect moderated impact on startup behavior and moderated mediation impact on firm entrepreneurial success. It also contributed to owners of the manufacturing industry for their startup behavior as an underlying mechanism through which trust influences entrepreneurial success. (shrink)

One area of business performance of particular interest to both scholars and practitioners is corporate social responsibility. The notion that organizations should be attentive to the needs of constituents other than shareholders has been investigated and vigorously debated for over two decades. This has provoked an especially rich and diverse literature investigating the relationship between business and society. As a result, researchers have urged the study of the profiles and backgrounds of corporate upper echelons in order to (...) better understand this relationship.There is ample evidence that corporations have in recent years increased the proportion of outside directors on their boards. This has been partly in reaction to increased interest in the corporate social responsiveness of business organizations and suggestions that the board of directors could play a unique role in this area. The expectation on the part of practitioners, researchers, and governmental regulators is that outside directors will advocate greater corporate responsiveness to society''s needs by playing a more active role in overseeing managerial decisions. (shrink)

Metaphors from strategic management can be applied effectively to business ethics programs. While effective strategies help implement ethical decisions that are formulated in good faith, ostensibly value-neutral control mechanisms can indirectly affect the substantive nature of policies and decisions themselves. This article examines the effectiveness of various corporate social responsibility implementation strategies. It also addresses the effects of implementation choices on the substantive formulation of ethical decisions and policies.Implementation and evaluation of corporate social responsibility programs through (...) models of responsiveness are integrated into the social policy cycle using four tools: strategic control and performance control approaches, and hierarchical control and contractual control structures. The choices made among these forms of control approaches and structures, which as implementation mechanisms are typically considered to be value-free devices, may affect the substance of corporate social responsibility content. Hierarchical control structures, which use outside directors, tend to be associated with performance control approaches, and are biased towards applying utilitarian approaches to ethical decision making. Contractual control structures are compatable with strategic control approaches, and generally favor the application of principle-based approaches to ethical decision-making. Both the content and the quality of ethical decisions will be affected by differences between hierarchical and contractual control. (shrink)

Both economists and psychologists are interested in understanding decision making under uncertainty. Yet, they rely on different concepts to analyse human behaviour: economists use economic preference parameters rooted in utility theory, while psychologists use personality traits to describe responses to uncertain situations. Using a large sample of university students, this study examines and contrasts five economic preference parameters and six psychological personality traits that are commonly used to study individuals’ attitudes towards uncertainty. A novelty of this paper is including (...) both the economic concept of ambiguity aversion as well as the personality trait of ambiguity intolerance. We find that standard economic preference measures based on incentivized choice tasks seem to capture rather different characteristics than psychological personality traits. In contrast, economic preference measures obtained from self-assessment questions appear more related to personality traits, especially ambiguity intolerance. (shrink)

In this research, we shed new light on the empirical link between corporate social performance (CSP) and corporate financial performance (CFP) via the application of empirical models and methods new to the CSP–CFP literature. Applying advanced financial models to a uniquely constructed panel dataset, we demonstrate that a significant overall CSP–CFP relationship exists and that this relationship is, in part, conditioned on firms’ industry-specific context. To accommodate the estimation of time-invariant industry and industry-interaction effects, we estimate linear (...) mixed models in our test of the CSP–CFP relationship. Our results show both a significant overall CSP effect as well as significant industry effects between CSP and CFP. In conflict with expectations, the unweighted average effect of CSP on CFP is negative. Our industry analysis, however, shows that in over 17% of the industries in our sample, the effect of CSP on CFP for socially responsible firms is positive. We also examine the multidimensional nature of the CSP construct in an industry context by exploring the CSP dimension–industry nexus and identify dimensions of social performance that are associated with either better or worse financial performance. Our results confirm the existence of disparate CSP dimension–industry effects on CFP, thus our results provide important and actionable information to decision makers considering whether and how to commit corporate resources to social performance. (shrink)

Although a number of studies have shown that corporate social responsibility (CSR) activities often lead to greater organisational performance in western developed economies, researchers are yet to examine the strategic value of CSR in emerging economies. Using survey data from 280 firms operating in Dubai, this study examines the link between CSR activities and organisational performance. The results show that CSR has a positive relationship with all three measures of organisational performance: financial performance, employee commitment, and (...) corporate reputation. These results reinforce the accumulating body of empirical support for the positive impact of CSR on performance and challenge the dominant assumption that, given the weak institutional framework in emerging economies, CSR activities drain resources and compromise firms’ competitiveness. (shrink)

Since scholarly interest in corporate social responsibility (CSR) has primarily focused on the synergies between social and economic performance, our understanding of how (and the conditions under which) companies use CSR to produce policy outcomes that work against public welfare has remained comparatively underdeveloped. In particular, little is known about how corporate decision-makers privately reconcile the conflicts between public and private interests, even though this is likely to be relevant to understanding the limitations of (...) CSR as a means of aligning business activity with the broader public interest . This study addresses this issue using internal tobacco industry documents to explore British-American Tobacco’s (BAT) thinking on CSR and its effects on the company’s CSR Programme. The article presents a three-stage model of CSR development, based on Sykes and Matza’s theory of techniques of neutralization, which links together: how BAT managers made sense of the company’s declining political authority in the mid-1990s; how they subsequently justified the use of CSR as a tool of stakeholder management aimed at diffusing the political impact of public health advocates by breaking up political constituencies working towards evidence-based tobacco regulation; and how CSR works ideologically to shape stakeholders’ perceptions of the relative merits of competing approaches to tobacco control. Our analysis has three implications for research and practice. First, it underlines the importance of approaching corporate managers’ public comments on CSR critically and situating them in their economic, political and historical contexts. Second, it illustrates the importance of focusing on the political aims and effects of CSR. Third, by showing how CSR practices are used to stymie evidence-based government regulation, the article underlines the importance of highlighting and developing matrices to assess the negative social impacts of CSR. (shrink)

This study aims to enrich our understanding of the relationship between political connections and the adoption of environmental corporate socially responsible investments. In addition to the individual-level political connections, i.e., entrepreneurs’ personal ties to government officials, we propose in China the creation of Communist Party of China branches in privately owned firms serve as organizational and institutionalized dimensions of political connection building. Drawing on the social exchange theory, this paper details how CPC branches function in privately owned firms (...) and how entrepreneurs are motivated by the reciprocal logic to engage in ECSR. We also supplement this main effect by examining the boundary conditions of it at the firm and regional level. Using a dataset with 17,690 firm observations in China, we find that the existence of CPC branches gives rise to the ECSR investments and the firm-level contingencies such as centralized governance and financial constraints, and the regional-level contingencies such as the development of the market system, are important moderators that shape the association of political links and ECSR investments. These findings have ample implications to understand the ECSR activities and extend social exchange theory beyond the individual level on which it is typically applied. (shrink)

The primary purpose of this cross sectional study was to empirically test the notion that retail pharmacists' moral reasoning scores (using Rest's Defining Issues Test) relate to their patient care performance scores (using the Behavioral Pharmaceutical Care Scale). Presently, retail pharmacy organizations are experiencing a paradigm shift from a prescription dispensing emphasis to a patient-centered one. The present investigation examined the influence of moral reasoning, within the situational context of workload pressures and perceived normative beliefs of significant others, on retail (...) pharmacists' self-report patient care performance scores.A secondary goal was to explore the relationship between moral reasoning and retail pharmacists' propensity to exaggerate depictions of their true behavior (using a short-form Marlowe-Crowne Social Desirability Scale). (shrink)

Corporations have increasingly turned to voluntary, multi-stakeholder governance programs to monitor workers’ rights and standards in global supply chains. This article argues that the emphasis of these programs varies significantly depending on stakeholder involvement and issue areas under examination. Corporate-influenced programs are more likely to emphasize detection of violations of minimal standards in the areas of wages, hours, and occupational safety and health because focusing on these issues provides corporations with legitimacy and reduces the risks of uncertainty created by activist (...) campaigns. In contrast, these programs are less likely to emphasize workers’ rights to form democratic and independent unions, bargain, and strike because these rights are perceived as lessening managerial control without providing firms with significant reputational value. This argument is explored by coding 805 factory audits of the Fair Labor Association between 2002 and 2010, followed by case studies of Russell Athletic in Honduras, Apple in China, and worker rights monitoring in Vietnam. (shrink)