This paper argues that research on the business case for corporate social responsibility (CSR) must account for the path dependent nature of firm-stakeholderrelations, and develops the construct of stakeholder influence capacity (SIC) to fill this void. SIC helps to explain why the effects of CSR on corporate financial performance (CFP) vary across firms and across time, therein providing a missing link in the study of the business case. This paper distinguishes CSR from related and confounded corporate resource allocations and from (...) corporate social performance (CSP), then incorporates SIC into a model that explains how acts of CSR are transformed into CFP through stakeholder relationships. This paper also develops a set of propositions to aid future research on the contingencies that produce variable financial returns to investments in CSR. (shrink)
Do firms benefit from their voluntary efforts to alleviate the many problems confronting society? A vast literature establishing a “business case” for corporate social responsibility appears to find that usually they do. However, as argued herein, the business case literature has established only that firms usually benefit from responding to the demands of their primary stakeholders. The nature of the relationship between the interests of business and those of broader society, beyond a subset of powerful primary stakeholders, remains an open (...) question despite this vast literature. This article develops a set of propositions that highlight constraints on firms’ ability to profit from CSR and outlines a set of managerial challenges on which researchers must focus their attention to truly determine whether and when firms can profit by responding to the needs of society. (shrink)
Trade associations operate under the premise of advancing the shared interests of their member firms. How well do they fulfill this role? This article measures the activity of 148 major industry trade associations over time and relates this activity to the performance of the relevant industries and dominant firms within them. Findings suggest that trade association spending increases when the profitability of the four largest firms in an industry decreases, but spending is unrelated to the profitability of the industry overall. (...) This implies that large firms exert control over trade association agendas and may use these communal organizations to advance their own interests rather than the shared interests of the entire industry. Moreover, it points to the need for further development of the currently anemic management literature on the activities of trade associations. (shrink)
We measure the influence of reputation rankings on individuals’ perceptions of firms. Through experimental design, we vary whether and how participants are exposed to a reputation ranking alongside other information about a firm. We find that rankings influence perceptions when they are negative and congruent with other information about the firm. These findings help explain how a firm’s reputation can change even if its characteristics remain constant and why change in a firm’s characteristics can be slow to produce change in (...) its reputation. (shrink)
From church-sponsored AIDS prevention campaigns in Africa to Muslim charity efforts in flood-stricken Pakistan to Hindu charities in India, religious groups have altered the character of the global humanitarian movement. Moreover, even secular groups now gesture toward religious inspiration in their work. Clearly, the broad, inexorable march toward secularism predicted by so many Westerners has halted, which is especially intriguing with regard to humanitarianism. Not only was it a highly secularized movement just forty years ago, but its principles were based (...) on those we associate with " modernity: cosmopolitan one-worldism and material (as opposed to spiritual) progress. How and why did this happen, and what does it mean for humanitarianism writ large? That is the question that the eminent scholars Michael Barnett and Janice Stein pose in Sacred Aid, and for answers they have gathered chapters from leading scholars that focus on the relationship between secularism and religion in contemporary humanitarianism throughout the developing world. Collectively, the chapters in this volume comprise an original and authoritative account of religion has reshaped the global humanitarian movement in recent times. (shrink)
Adler and Barnett demonstrate how changes occurring in international politics create the nostalgia of security communities, a concept made prominent by Karl Deutsch nearly forty years ago.
In her new memoir, The Education of an Idealist, Samantha Power reflects on her eight years in the Obama administration. Although she claims that the experience did little to change her views, there is a considerable disjuncture between her point of view in her award-winning earlier book “A Problem from Hell,” in which she criticizes U.S. officials for not doing the right thing, and her point of view in The Education of an Idealist, in which she defends indifference of U.S. (...) officials under somewhat similar circumstances during the Obama years. The author of Problem could not have written Education, and the author of Education could not have written Problem. What does this tell us about the possibility for ethics in foreign policy? (shrink)
Barnett argues that the United Nations, by operating on the principle of the consent of the parties, can encourage the development of a more stable and cooperative security architecture.
Aggregated reputation scores and rankings have been rightly criticized for lacking a theoretical basis by which to weight the individual perceptions that form them. The resulting product can be a score or ranking that fails to represent the perceptions of many or even most stakeholders. Little attention has been paid, however, to the reverse. Rather than focus on how individual perceptions can be represented at an aggregate level, herein we focus on how an aggregated reputation can influence individual perceptions. We (...) hypothesize that ratings have a significant influence on stakeholder perceptions, especially where other information is lacking. Through experiments, we find that exposure to reputation ratings provides stakeholders with an anchor point – information about what others think – and their perceptions of the firm are adjusted relative to this anchor. We suggest future work on reputation delve into the heuristics and biasesboundedly rational stakeholders deploy when assessing firms. (shrink)
Originally published in 1973, this book is about people and psychiatry. About people who rejected psychiatry as it was generally practised at the time, people who sought for and found alternative ways of caring for and healing one another. The author, who had been active in radical alternatives to psychiatry for some time, offers us a programme based not on drugs, repression and a 'questionable' expertise, but on human caring, greater awareness of the body, deeper communication between persons and a (...) willingness to let the emotions flow. It is a challenging alternative which came at a time when the viability of scientific, theoretical and chemical approaches to distress were being questioned at all levels of society. This alternative includes the new direct methods of healing (making whole) such as Encounter, Gestalt, Bioenergetics, Psychofantasy - methods that do not do things to people but allow them to feel their way into change through experiment, flow and choice. The main focus of the book is People, not Psychiatry (PNP), the network set up by the author in 1969. PNP is open to all, and people in it help one another in times of stress and crisis, if they are asked to and when they are needed. One of the main assets of these networks is that they are an alternative and they are there. The book tells the story of PNP's birth and growth. It is a personal story, a moving story, a story about people. In addition, the book contains some lively theoretical discussion, both simple and clear, in the course of which the author tentatively offers his own theory of neurosis - that many people become victims of the primitive logic patterns laid down in infancy, patterns that become reinforced through fear and habit and have to be dissolved or replaced if we are to enjoy a full, healthy, free-flowing life. The book is directed at doctors, patients, consultants, nurses, psychologists, social workers, therapists, in fact anyone involved in any way in the field of psychiatry. It is also offered to all those whom psychiatry touches, that it to say - everyone. (shrink)
:Contemporary global governance is organized around an odd pairing: care and control. On the one hand, much of global governance is designed to reduce human suffering and improve human flourishing, with the important caveat that individuals should be allowed to decide for themselves how they want to live their lives. On the other hand, these global practices of care are also entangled with acts of control. Peacebuilding, public health, emergency aid, human rights, and development are expressions of this tension between (...) care and control. There is a concept that captures this tension: paternalism. Drawing on our moral intuitions, I argue that paternalism is the attempt by one actor to substitute his judgment for another actor's on the grounds that such an imposition will improve the welfare of the target actor. After discussing and defending this definition, I note how our unease with paternalism seems to grow as we scale up from the interpersonal to the international, which I argue owes to the evaporation of community and equality. After exploring the implications of this definition and distinguishing it from other forms of intervention, I consider how different elements of paternalism combine to generate different configurations. Specifically, I point to five dimensions that are most relevant for examining the paternalism found in contemporary global and humanitarian governance: the tools used to restrict another actor’s liberty ; the scope of the interference ; the purpose of the intervention ; the source of the paternalizer’s confidence ; and the mechanisms of accountability. These different elements often correlate historically, suggestive of two ideal types of global paternalism: strong and weak. Contemporary global and humanitarian governance is largely the weak variety: force is severely proscribed, interference is relatively restricted, the paternalizer’s confidence has epistemic roots, and accountability to local populations remains a noble but rarely practiced goal. I further speculate that a major reason for this difference is the effects of liberalism and rationalization. I use this taxonomy to suggest how two different global efforts to improve the lives of those peoples living in what were perceived to be unstable and illiberal territories — the civilizing missions of the nineteenth century and the peacebuilding operations of the post-Cold War period — exhibited different kinds of paternalism. I conclude by reflecting on the ethics of international paternalism. (shrink)
In this paper, I seek to build a theoretical framework that explains how effectively different firms can use different types of corporate social responsibility (CSR)to influence stakeholders perceptions of and reactions to different types of errors. CSR affects the errors stakeholders notice, how they frame them, how they respond to them, and how quickly any punishment wanes. Ex ante and ex post CSR decrease the likelihood that stakeholders will notice some errors, improve the framing of those errors that are noticed, (...) and decrease the magnitude and duration of stakeholder attacks sparked by those errors. (shrink)
How do societies improve over time? This paper demonstrates one means through which the independent actions of individuals can produce country-level social change. We explain how institutional governance norms, specifically those surrounding rule of law, are transmitted to developing countries through migrants and their remittances. We develop and test an empirical model using a panel dataset of 49 developing countries from 2001-2010. Results suggest that migrants and their remittances matter, but their impact depends on where both reside abroad. Developing countries (...) that suffer a “brain drain” may in some cases be compensated with a social gain. (shrink)
Most firms have taken substantive actions to improve their environmental performance, but much more still needs to be done to mitigate serious environmental degradation that threatens the planet. What can drive firms to further improve their environmental performance? Drawing from an attention-based view of the firm, we develop two hypotheses that predict that because they disrupt established patterns of organizational attention and shift managerial focus, regulatory fines and leadership turnover lead to improvements in corporate environmental performance. We test our hypotheses (...) on a sample of North American firms over the period of 2006-13. Surprisingly, we find a positive but not statistically significant relationship between regulatory fines and environmental improvement. Even more surprising, we find that when large fines are followed by CEO turnover or high turnover in board membership, environmental improvement is dampened. However, when a large fine is followed by high turnover in environmental-related leadership positions, then firms do significantly improve their environmental performance. We thus conclude that when firms are "shaken, not stirred" -- that is, they are shaken by a shock from a major regulatory fine, but it is not followed by stirring up the topmost leadership positions -- then they are most likely to improve their environmental performance. (shrink)
One of the more interesting counter-intuitive findings in organizational research is that success breeds failure. This counter-intuitive has been described in termsof core rigidities, core incompetencies, and even the Icarus Paradox. The literature on these topics has concluded that success yields overconfidence and myopia in firms and their managers, and this eventually causes failure. We augment this literature by suggesting that success breeds not only internal pathologies that cause firms to misuse their established resources over time, but also external pathologies (...) that cause firms to lose access to new resources. In particular, success influences stakeholders’ perceptions of firms, causing firms to lose the benefits of underdog status and gain the problems of overlord status. We term this notion that success warps images of the successful, leading to their decline over time, the Helios Paradox, and suggest that dominant firms must counter natural tendencies to succumb to both the Icarus and Helios Paradoxes if they are to remain successful over time. (shrink)
Over the last decade, managers have increasingly emphasised the creation of tangible measures of intangible organisational properties. Many major corporations now include measures for intellectual capital, knowledge capital, reputational capital, and other such intangible assets on their financial ledgers. Counter to the rubric that ‘If it doesn’t get measured, it doesn’t get done,’ we argue that some intangibles are truly intangible, and attempts to apply tangible measures to them creates undue organisational stress and harms the underlying asset. Instead, managers may (...) better foster the growth of intangible assets by placing less emphasis on outcome measurement and more emphasis on the process. Using New York University’s Office of Community Service as a case study, we illustrate how a Zen approach can augment tangible measures to create a truly ‘balanced’ organisational strategy. American firms have widely adopted the strict measurement practices of Japanese firms, but few have adopted the Eastern practice of Zen. A Zen approach fosters trust and provides flexibility that allows organisations to better achieve success in the long run. (shrink)
Over the last decade, managers have increasingly emphasised the creation of tangible measures of intangible organisational properties. Many major corporations now include measures for intellectual capital, knowledge capital, reputational capital, and other such intangible assets on their financial ledgers. Counter to the rubric that ‘If it doesn’t get measured, it doesn’t get done,’ we argue that some intangibles are truly intangible, and attempts to apply tangible measures to them creates undue organisational stress and harms the underlying asset. Instead, managers may (...) better foster the growth of intangible assets by placing less emphasis on outcome measurement and more emphasis on the process. Using New York University’s Office of Community Service as a case study, we illustrate how a Zen approach can augment tangible measures to create a truly ‘balanced’ organisational strategy. American firms have widely adopted the strict measurement practices of Japanese firms, but few have adopted the Eastern practice of Zen. A Zen approach fosters trust and provides flexibility that allows organisations to better achieve success in the long run. (shrink)
In this paper, I seek to build a theoretical framework that explains how effectively different firms can use different types of corporate social responsibility to influence stakeholders perceptions of and reactions to different types of errors. CSR affects the errors stakeholders notice, how they frame them, how they respond to them, and how quickly any punishment wanes. Ex ante and ex post CSR decrease the likelihood that stakeholders will notice some errors, improve the framing of those errors that are noticed, (...) and decrease the magnitude and duration of stakeholder attacks sparked by those errors. (shrink)