The concept of corporate social responsibility is a relatively recent addition to the agenda in Germany, although the country has a long history of companies practicing social responsibilities. The expectations of society had remained stable for many years, encapsulated in laws, societal norms, and industrial relations agreements. But the past decade has seen significant changes in Germany, challenging established ways of treating the role of business in society. This contribution reviews and illustrates the development of diverse forms (...) of social responsibility in German corporations and analyzes how actors in business and society can build on traditional strengths to find new institutional arrangements for sharing tasks and responsibilities in the interests of achieving a better balance between societal, economic, and environmental needs. (shrink)

The concept of corporate social responsibility (CSR) is a relatively recent addition to the agenda in Germany, although the country has a long history of companies practicing social responsibilities. The expectations of society had remained stable for many years, encapsulated in laws, societal norms, and industrial relations agreements. But the past decade has seen significant changes in Germany, challenging established ways of treating the role of business in society. This contribution reviews and illustrates the development of diverse (...) forms of social responsibility in German corporations and analyzes how actors in business and society can build on traditional strengths to find new institutional arrangements for sharing tasks and responsibilities in the interests of achieving a better balance between societal, economic, and environmental needs. (shrink)

This article studies the possibility of forming social policy, and in particular policies for social security, through the participation of domestic business. By taking on social responsibility, business can eventually, of own its own accord, offer the state and society its assistance in dealing with social problems. In Kazakhstan, a major part of business people see their responsibility as many-sided, consisting of duties to employees, consumers, business partners, the local community, and the country as (...) a whole. They acknowledge responsibility along three dimensions: financial, ecological, and social. (shrink)

Three principles must be taken into account in assessing the social responsibilities of international business firms in developing areas. The first is an awareness of the historical and institutional dynamics of local communities. This influences the type and range of responsibilities the firm can be expected to assume; it also reveals the limitations of any universal codes of conduct. The second is the necessity of non-intimidating communication with local constituencies. This requires the firm to temper its power and influence (...) by recognizing and responding to local concerns in the pursuit of its own objectives. The third is the degree to which the firm's operations safeguard and indeed improve the social and economic assets of local communities. At issue is the question of adequate compensation for the inevitable disruptions that an international business brings to a local community. Beneficial returns must be shared and sustained over the long term in an equitable manner. The nine studies in this special edition illustrate in different ways the importance of these three principles. (shrink)

The views of thirteenth century Catholic thinker Thomas Aquinas and twentieth century economist Milton Friedman on the social responsibility of business are contrasted by probing the foundations of their positions. The basis of Aquinas' normative stance in political economy is found in the metaphysical and moral realism of the classic tradition. The role Descartes and Hobbes played in overturning this philosophical starting point and ushering in an age of ideology is traced out. Friedman's commitment to Comte's vision of (...) positivism is revealed and what this entails for metaphysics, ethics, and economics is given. (shrink)

Resolving the strongly polarised debate about whether or not business has social responsibilities may call for distinguishing more clearly between a business as a non‐moral agent with a purely financial raison d'être and its managers who may have wider and more complex commitments. The author worked as a financial manager in industry and taught at City University Business School for many years, and also served on the professional conduct appeal committee of the Institute of Chartered Accountants in England and (...) Wales. He is currently co‐writing his third book, a study on business strategy. (shrink)

In this paper we examine many of the arguments contained in Milton Friedman’s classic essay, in the form of critiques linked with learning objectives forclassroom discussions.

In this paper we examine many of the arguments contained in Milton Friedman’s classic essay, in the form of critiques linked with learning objectives forclassroom discussions.

Professor Thomas Mulligan undertakes to discredit Milton Friedman's thesis that The Social Responsibility of Business Is to Increase Its Profits. He attempts to do this by moving from Friedman's paradigm characterizing a socially responsible executive as willful and disloyal to a different paradigm, i.e., one emphasizing the consultative and consensus-building role of a socially responsible executive. Mulligan's critique misses the point, first, because even consensus-building executives act contrary to the will of minority shareholders, but even more importantly, because (...) he assumes that the mandate of a shareholder majority brings legitimacy to efforts of corporate managers to utilize corporate wealth in solving social problems. It is the role of our democratic institutions to deal with national agenda issues such as inflation, unemployment, and pollution, not that of the private sector. Corporations and private individuals do have a role to play in enhancing the quality of the human environment, however, and the author suggests a coherent means of developing that role in an effort rescue corporate social responsibility from Mulligan no less than from Friedman. (shrink)

The main arguments of Milton Friedman's famous and influential essay are unsuccessful: He fails to prove that the exercise of social responsibility in business is by nature an unfair and socialist practice.Much of Friedman's case is based on a questionable paradigm; a key premise is false; and logical cogency is sometimes missing.

The separation thesis states that business and moral decision making should and can be differentiated clearly. This study provides empirical support for the competing view that the separation thesis is impossible through a case study of the Rotary Club, which fosters an ethical orientation among its global business and professional membership. The study focuses attention on the Club in the early to middle 20th century. Based on a reading of their service doctrine, the four objects of Rotary and the Four (...) Way Test, the author argues that the example of the Rotary Club undermines the separation thesis. The Rotary message was conceptually ambiguous: it did not clearly differentiate business roles from social activities; rather both fed into each other, with the business tools developed by members and disseminated by Rotary, utilized in nonbusiness contexts with a view to enhancing societal well-being. (shrink)

The current economic crisis, unsustainable growth, and financial scandals invite reflection on the role of universities in professional training, particularly those who have to manage businesses. This study analyzes the main factors that might determine the extent to which Spanish organizational management educators use corporate social responsibility (CSR) or business ethics stand-alone subjects to equip students with alternative views on business. A web content analysis and non-parametric mean comparison statistics of the curricula of undergraduate degrees in all universities (...) in Spain were conducted. The main conclusion of this paper is related to the Bologna effect in Spanish universities. Comparing our results with prior research in this matter, it is demonstrated that the main reason that explains the increase of CSR and ethical education in Spain is the Bologna process and its adaptation to the European Higher Education Area. Also, private universities in Spain are more likely to require an ethics course than public universities. Other factors, such as size, political orientation, or related to CSR chairs are not statistically explanatory of CSR and ethical education. (shrink)

In 1992, I sent Milton Friedman a draft of my 1993 paper “Friedman's Theory of Corporate Social Responsibility.” He and I corresponded at length. My 1993 paper argues that Friedman's published formulations of his theory are not equivalent and that they prescribe different courses of action in many possible cases. In our correspondence, Friedman conceded that his two formulations of his theory are inconsistent and, at my suggestion, he endorsed a modified version of the view he presented in (...) Capitalism and Freedom as the preferred version of his theory. This modified theory is an important formulation of his position. In one of his letters to me, Friedman writes: “I agree that corporate executives might have duties to the general public which sometimes outweigh their duties to the shareholders.” I argue that this creates major problems for his theory. I also answer Friedman's published response to one of my criticisms. (shrink)

This chapter contains sections titled: Corporate social responsibility Corporate social responsiveness Public policy The development of business ethics New developments in business ethics Conclusion.

ABSTRACTThe social responsibility of business has been a prominent issue in the academic and practitioner literatures, as well as in the curricula of business schools, for many years. While Friedman's iconic defense of profit maximization as the responsibility of management has been widely and extensively assailed, emerging positions on the role of business in society offer little clear and practical guidance to current managers, as well as Masters of Business Administration students. I argue in this article that (...) the focus of the debate should shift to considering how the rules of the game surrounding business' behavior should be formulated and what the role of socially responsible managers should be in helping to establish those rules. My contention is that the goal of society should be to strengthen the linkage between the achievement of social objectives and profit maximization by business through “bright line” regulations and laws. Socially responsible managers will participate in setting the rules of the game by advising policymakers on how specific regulations and laws can be structured so that they most effectively condition the linkage between social objectives and profit maximization. If there is a unique social responsibility of managers beyond profit maximization, it is to participate in the policymaking process “honestly,” that is, without attempting to game the system through guile and opportunism. (shrink)

Research on employees’ responses to corporate social responsibility has recently accelerated and begun appearing in top-tier academic journals. However, existing findings are still largely fragmented, and this stream of research lacks theoretical consolidation. This article integrates the diffuse and multi-disciplinary literature on CSR micro-level influences in a theoretically driven conceptual framework that contributes to explain and predict when, why, and how employees might react to CSR activity in a way that influences organizations’ economic and social performance. Drawing (...) on social identity theory and social exchange theory, we delineate the different but interdependent psychological mechanisms that explain how CSR can strengthen the employee–organization relationship and subsequently foster employee-related, micro-level outcomes. Contributions of our framework to extant literature and potential extensions for future research are then discussed. (shrink)

This study examines whether corporate social responsibility performance is associated with corporate tax avoidance. Employing a matched sample of 434 firm-year observations from the Kinder, Lydenberg, and Domini database over the period 2003–2009, our logit regression results show that the higher the level of CSR performance of a firm, the lower the likelihood of tax avoidance. Our results indicate that more socially responsible firms are likely to display less tax avoidance. Finally, the results from our additional analysis show (...) that the CSR categories community relations and diversity represent particularly important elements of CSR performance that reduce tax avoidance. (shrink)

A critique of Milton Friedman's thesis that corporate executives have a fiduciary responsibility not to pursue socially desirable goals at the expense of profitability. The author argues that even under a libertarian conception of the nature of corporate property, Friedman's thesis does not follow. In particular, an executive's decision to prize "socially responsible behavior" above profit maximization does not necessarily violate the contractual rights of dissenting stockholders. Whether executives have obligations to refrain from such behavior depends entirely on the (...) content of the contract which actually exists between stockholders and executives. After an examination of the body of legal precedent which informs the content of that contract, the author concludes that there are clearly recognizable circumstances in which executives may legitimately pursue corporate altruism at the expense of profits, stockholder protestations notwithstanding. Since this contractual relationship with management is one in which stockholders have voluntarily engaged, libertarians have no grounds for complaining that the behavior of such executives constitutes a form of theft of the stockholders' property. (shrink)

This study examines the moderating effects of corporate social responsibility (CSR) on the association between market orientation and firm performance in the context of an emerging economy. The results from a sample of firms that operate in Dubai indicate that CSR has a synergistic effect on the impact of market orientation on business performance. The results of our research on the moderating effects of CSR on market orientation subsets reveal that although CSR moderates the association between customer orientation (...) and business performance, it does not moderate the association between competitive orientation and interfunctional coordination and performance. The results of this study are discussed, and implications for practitioners and researchers are presented. (shrink)

The purpose of this paper is to advance research on CSR beyond the stalemate of economic versus ethical models by providing an alternative perspective integrating existing views and allowing for more shared dialog and research in the field. It is suggested that we move beyond making a normative case for ethical models and practices of CSR by moving beyond the question of how to manage organizational self-interest toward the question of how accurate current conceptions of the organizational self seem to (...) be. Specifically, it is proposed that CSR is not a question of how self-interested the corporation should be, but how this self is defined. Economic and ethical models of CSR are not models of opposition but exist on a continuum between egoic and post-egoic, illusory and authentic conceptions of the organizational self. This means that moving from one to the other is not a question of adopting different paradigms but rather of moving from illusion and dysfunction to authenticity and functionality, from pathology to health. (shrink)

This research explores how consumers respond to Corporate Social Responsibility (CSR) in China with a multiproduct, comparative survey. Empirical results conclude that (1) Chinese consumers, who show a high level of awareness and trust of CSR, are more likely to transform a good CSR record into positive corporate evaluation, product association, and purchase intention; (2) Consumer responses to CSR vary across different product categories. Those firms selling experience products (vs. search and credence products) are more likely to gain (...) consumers' positive product associations and purchase support through CSR practices; and (3) The relationships between consumer demographics and their CSR responses are not linear, and those consumers with a middle level of age and income would respond to CSR more positively. Managerial implications are provided. (shrink)

This study examines whether penalties issued to Chinese listed companies by securities regulators for violations of corporate law affect the cost of debt, and the moderating role of corporate social responsibility fulfillment on this relationship. Our sample consists of firms listed on Shanghai and Shenzhen stock exchanges from 2011 to 2017 and the data are collected from the announcements of China Securities Regulatory Commission. The findings are as follows: punishment announcements by regulatory authorities increase the cost of debt; (...) and the effect of punishment announcements on the cost of debt is partially offset by prior CSR performance. These findings are shown to be robust. The reputation insurance effect of CSR is more pronounced in state-owned enterprises and in an institutional environment with low marketization, a weak legal environment, and low information transparency. The findings support the reputation insurance hypothesis of CSR and employ the cost of debt as a governance mechanism. (shrink)

In the wake of the most recent financial crisis, corporations have been criticized as being self-interested and unmindful of their relationship to society. Indeed, the blame is sometimes placed on the corporate legal form, which can exacerbate the tension between duties to shareholders and interests of stakeholders. In comparison, the Benefit Corporation (BC) is a new legal business entity that is obligated to pursue public benefit in addition to the responsibility to return profits to shareholders. It is legally a (...) for-profit, socially obligated, corporate form of business, with all the traditional corporate characteristics combined with societal responsibilities. Considering the history and perception of shareholder primacy in United States law, it is argued that this new business structure is an ethical step toward empowering socially committed commercial entities. The contribution of this research is to provide a fundamental base of knowledge about the new legal form of business, the BC, upon which further study may rely. First, the legal history of the corporation is briefly reviewed in order to provide context to the relationship of the corporate form to society, including exploration of the premise that shareholder wealth maximization is its best and only purpose. Second, the BC is described in detail, and state statutes are compared. Third, the BC is placed within the context of corporate social responsibility. Finally, opportunities for future research are discussed. (shrink)

Abstract:Comparatively few studies have analyzed the social behavior of multinational corporations (MNCs) at a cross-national level. To address this gap in the literature, we propose a “transnational” model of corporate social responsibility (CSR) that permits identification of universal domains, yet incorporates the flexibility and adaptability demanded by international research. The model is tri-dimensional in that it juxtaposes: 1) Bartlett and Ghoshal’s (1998, 2000) typology of MNC strategies (multinational, global, “international,” and transnational); 2) the three conceptual domains of (...) CSR (human rights, labor, and the environment) proposed by the UN Global Compact (Compact 2003); and 3) Zenisek’s (1979) description of three CSR perspectives (ideological, societal, and operational). The end result is a multidimensional typology that permits the organization and development of empirical CSR research in an international setting. (shrink)

The concept of corporate social responsibility is becoming integral to effective corporate brand management. This study adopts a multidimensional and cross-country perspective of the concept and analyses consumer perceptions of behaviour of four leading consumer products manufacturers. Data was collected from consumers in two countries – Spain and the UK. The study analyses consumers’ degree of interest in corporate responsibility and its impact on their perception about the company. The findings here suggest a weak impact of company-specific (...) communication on consumers’ perception. The implications of this study are relevant to companies for strengthening their social responsibility associations with the consumers. (shrink)

Building a coherent discourse on professionalism is a challenge for corporate social responsibility practitioners, as there is not yet an established knowledge basis for CSR, and CSR is a contested notion that covers a wide variety of issues and moral foundations. Relying on insights from the literature on micro-CSR, new professionalism, and Boltanski and Thévenot’s economies of worth framework, we examine the discourses of 56 CSR practitioners in South Korea on their claimed professionalism. Our analysis delineates four distinct (...) discourses of CSR professionalism—strategic corporate giving, social innovation, risk management, and sustainability transition—that are derived from a plurality of more or less compatible moral foundations whose partial overlaps and tensions we document in a systematic manner. Our results portray these practitioners as compromise makers who selectively combine morally distant justifications to build their own specific professionalism discourse, with the aim to advance CSR within and across organizations. By uncovering the moral relationality connecting these discourses, our findings show that moral pluralism is a double-edged sword that can not only bolster the justification of CSR professionalism but also threaten collective professionalism at the field level. Overall, our study suggests paying more attention to the moral relationality and tensions that underlie professional fields. (shrink)

Corporate social responsibility (CSR) and its action-oriented offspring Corporate Citizenship (CC) currently trigger an intensifying debate on ethics, role and behavior of companies within civil society. For companies, CSR raises the question of what may be the "good reason(s)" for acting responsible towards its members, customers or society. In order to answer this question, we face the debate on CSR and its strategic engagement drivers on the levels of corporate culture, social innovation, and civil society. In this (...) article, we provide a conceptual framework based on the analytic distinction of legitimation and sensemaking. The conceptual framework developed in this article can serve as a basis to develop a company's CSR strategy. It provides measures and instruments to make complex CSR processes more visible and manageable. (shrink)

This article investigates how companies make sense of CSR. It is based on an explorative comparative case study of 18 companies in the Netherlands using background information, interviews and annual reports. Initially, the sensemaking process of CSR is guided and coordinated by change agents who are specifically appointed to explore the implementation of CSR in their company. These change agents initiate the CSR process within their own organisations. The meaning they develop stems from their personal and organisational values and frames (...) of reference. By attuning the vocabulary of CSR to the language of their colleagues, they aim to gain support for this undertaking in their organisation. This sensemaking procedure can be divided into pragmatic, external, procedural, policy‐oriented and value‐driven processes. The capability of an organisation to embed CSR is the result of trial and error, personal preferences and the use of language by the change agent that fits the (dynamic) situation at hand. Thus, each organisation needs a tailor‐made approach to implement CSR successfully. (shrink)

Boards of directors affect corporate strategy and decision-making through monitoring of management and resource provision. Recently, an increasing number of studies have examined the relationships between board characteristics and corporate social responsibility (CSR). These studies have yielded inconsistent findings. This article therefore reports the results of a study applying meta-analytical techniques to a sample of 82 empirical studies to help clarify the relationships between board characteristics and CSR. Although prior research has tended to apply relatively simplistic models investigating (...) the impact of individual board characteristics independently and only directly, we adopt a more complex perspective to shed new light on the board characteristics–CSR nexus. Specifically, we use a meta-analytic path model that accounts for the potential interplay between board characteristics in determining CSR and tests whether the presence of a CSR committee plays a meditating role. Our findings suggest that board size, board independence, and female board representation are partially interrelated with each other and jointly influence CSR directly as well as indirectly via the presence of a CSR committee. In addition, we find that country-level institutional factors act as moderators and that the relationships differ with regard to the specific dimension of CSR (i.e., social, environmental, or aggregate). (shrink)

This research extends previous findings related to the positive influence of company credibility on a social Cause–Brand Alliance’s (CBA) persuasion mechanism. This study analyzes the mediating role of two dimensions of company credibility (trustworthiness and expertise) with regard to the influence of altruistic attributions and two types of brand–cause fit (functional and image fit) on corporate social responsibility image. A structural equation model tests the proposed framework with a sample of 299 consumers, and the results suggest that (...) (1) image fit and altruistic attribution are cues that consumers use to evaluate company trustworthiness when linking to a social cause; (2) functional fit significantly influences perceived company expertise but not trustworthiness; and (3) trustworthiness has more weight than expertise in judgments about corporate social responsibility. (shrink)

Following resource-based and complementary asset perspectives, this paper examines the effects of board and management resources on corporate social responsibility in a sample of large Australian public firms. Specifically, this study posits that outside directors and women on boards are complementary in that their multiplicative effect incrementally influences CSR above their individual, independent effects. The hypothesis is confirmed. Further, the study tests the interactive effect of a senior CSR manager, determining the independent and complementary effects of managerial resources (...) upon board resources. The results suggest that a senior CSR manager has both an independent and complementary effect, offering support for the hypotheses. The findings offer some confirmation of resource-based theory, demonstrating that board resources can be complementary within the boardroom context and complementary to management in positively affecting firm outcomes. (shrink)

Over the last two decades there has been a proliferation of partnerships between business and government, multilateral bodies, and/or social actors such as NGOs and local community organizations engaged in promoting development. While proponents hail these partnerships as an important new approach to engaging business, critics argue that they are not only generally ineffective but also serve to legitimate a neo-liberal, global economic order which inhibits development. In order to understand and evaluate the role of such partnerships, it is (...) necessary to appreciate their diversity with respect to not only the activities that they engage in, but also the degree to which they are subject to social control. This paper distinguishes four different types of business partnerships, based upon differing degrees of social control: conventional business; corporate social responsibility; corporate accountability; and social economy. Each type of partnership is described, their basic forms are noted, and the conditions and prospects for them contributing to development are examined. By way of conclusion, an analysis is offered of how the different types of business partnerships relate to different conceptions of development and function as policy paradigms to promote different globalization agendas. (shrink)

This paper investigates the association between board characteristics and the company’s corporate social responsibility assurance decision in China. By examining 2054 firm-years of Chinese listed companies with CSR reports from 2008 to 2012, we find that firms with a large board size, more female directors, and separation of CEO and chairman positions are more likely to engage in CSR assurance. Gender diversity also influences the CSR assurance provider choice. However, board independence and overseas background of the CEO do (...) not affect the CSR assurance decision. Inconsistent with our prediction, firms with foreign directors are less likely to engage in voluntary CSR assurance. In summary, this research provides in-depth insights into the determinants of Chinese firms’ voluntary CSR assurance. (shrink)

While it is generally agreed that companies need to manage their relationships with their stakeholders, the way in which they choose to do so varies considerably. In this paper, it is argued that when companies want to communicate with stakeholders about their CSR initiatives, they need to involve those stakeholders in a two-way communication process, defined as an ongoing iterative sense-giving and sense-making process. The paper also argues that companies need to communicate through carefully crafted and increasingly sophisticated processes. Three (...) CSR communication strategies are developed. Based on empirical illustrations and prior research, the authors argue that managers need to move from ‘informing’ and ‘responding’ to ‘involving’ stakeholders in CSR communication itself. They conclude that managers need to expand the role of stakeholders in corporate CSR communication processes if they want to improve their efforts to build legitimacy, a positive reputation and lasting stakeholder relationships. (shrink)

Corporate social responsibility has been intensively discussed in business ethics literature, whereas the social responsibility of private consumers appears to be less researched. However, there is also a growing interest from business ethicists and other scholars in the field of consumer social responsibility. Nevertheless, previous discussions of ConSR reveal the need for a viable conceptual basis for understanding the social responsibility of consumers in an increasingly globalized market economy. Moreover, evolutionary aspects of (...) human morality seem to have been neglected despite the fact that private consumers are undoubtedly human beings. In addition to that, empirical studies suggest that many consumers believe themselves to be responsible but do not act according to their alleged values or attitudes. This raises the question of what deters them from doing so. Therefore, the contribution of this conceptual paper is threefold: we conceptualize ConSR in terms of a combination of a Max Weber-inspired approach with the social connection approach to shared responsibility proposed by Iris Marion Young; shed light on the previously neglected implications of an evolutionarily induced bounded morality for ConSR, and identify potential obstacles to socially responsible consumption, particularly against the backdrop of shared social responsibility and bounded morality. In this latter respect, the paper focuses specifically on the obstacles of low moral intensity, moral stupefaction, informational complexity, and the lack of perceived consumer effectiveness. In sum, the paper advances knowledge in the field of ConSR by using a transdisciplinary, literature-based approach. (shrink)

The objective of this article is double: first, to analyze, using a descriptive analysis, the main differences in the level and components of social behaviour between European and North American firms and, second, to contrast empirically, using a multiple linear regression model, whether the motives behind corporate social behaviour are different depending on the region or country of the firm. With this aim, an indicator of social behaviour (termed effort in sustainability) has been constructed by aggregating the (...) firm's social effort with customers, employees, community and environment for a sample of the 40 European and North American companies most highly reputed in the years 2003 and 2004. The results obtained indicate that the region or country of the firm influences the level, components and motivation of its social behaviour. (shrink)

Following the situation of poverty in the rights paradigm, this paper explores the links between the rights-based and corporate social responsibility approaches to the realization of socioeconomic rights in the broader context of an emerging recognition of CSR as private regulation of business behaviour. It examines complex theoretical and practical dimensions of responsibility and potential contributions of businesses to poverty alleviation and clarifies the apparent paradox of legal compulsion of essentially voluntary CSR activities. Rather than treat rights (...) and CSR as parallel approaches to protecting socioeconomic rights, it is argued that CSR can be part of a coherent framework of laws and policies for legally translating broad human rights commitments to poverty reduction into concrete programmes. The paper demonstrates how legally propped CSR arrangements can support poverty reduction and appropriate task-specific contextualised definitions and boundaries of CSR that complement the rights-based approach. It is argued that human rights principles have normative dimensions to guide and help formulate policies, programmes and practices, which in turn allow for a creative use of and legal prop to CSR. The conceptualization of human rights is not restricted to one implementation method, and CSR can partly satisfy states’ human rights obligations and transcend the narrow conventional human rights discourse on obligations of non-state actors. (shrink)

The widespread association of business with maximising profit has tended to obscure its social dimension. Indeed some writers doubt whether business can ever be socially engaged and others claim that it should not. This paper seeks to show that besides seeking profit businesses can properly practise social responsibility, defined as involving themselves in their communities and engaging in non-profit activities. It explores the ways in which business social responsibility can contribute to social capital, the (...) resources created by social bonds which members of a society can draw upon and which make it possible to achieve otherwise unattainable ends.2. (shrink)

Drawing on institutional and signaling theories, this study examines how environmental corporate social responsibility affects firm performance in a dysfunctional institutional environment. We extend the ECSR literature by suggesting that ECSR indirectly influences firm performance through the mediating effects of business and political legitimacy. Based on a dataset of 238 firms in China, we find that ECSR affects business and political legitimacy followed by firm performance. Moreover, legal incompleteness weakens and legal inefficiency strengthens the effects of ECSR on (...) business and political legitimacy. (shrink)

This study analyzes how the board’s characteristics could be associated with globally corporate social responsibility CSR and specific areas of CSR. It is drawn on all listed firms, in 2016, on the SBF120 between 2003 and 2016. Our results provide strong evidence that diversity in boards and diversity of boards globally are positively associated with corporate social performance. However, they influence differently specific dimensions of CSR performance. First, we show that large boards are positively associated with all (...) areas of CSR performance, while specific and overall CSR scores are negatively associated with CEO-chair structures. Second, board gender diversity is positively associated with human rights and corporate governance dimensions. Third, age diversity is positively associated with corporate governance, human resources, human rights, and environmental activities. Also, our results provide evidence that outside directors care about CSR performance. Specifically, the presence of foreign directors is positively associated with environmental performance and community involvement, whereas CSR-Governance dimension is positively associated with the presence of independent directors. Regarding the director’s educational level, post-graduated directors are positively and significantly associated with overall CSR score and all CSR sub-scores, except the corporate governance one. When directors have multiple directorships, they are more concerned about human resources, environmental performance, and business ethics. Finally, our findings are robust only in non-family firms. In fact, family boards are less diverse than non-family ones; specifically, they have a lower number of independent, foreign, and high-educated directors. (shrink)

This paper sheds light on the incongruent findings concerning the relationship between family involvement and firms’ corporate social responsibility. While prior studies have mainly taken the perspective of families’ socioemotional wealth preservation, we approach this relationship from the perspective of behavioral agency theory, highlighting the important role played by CEOs’ family memberships. Specifically, we posit that family firms are more likely to invest in CSR when their CEOs are members of the controlling families. Furthermore, we examine how family (...) firms can employ long-term incentives to encourage non-family CEOs to act in the interests of the controlling families to preserve SEW and thus enhancing family firms’ CSR performance. We tested our hypotheses using hand-collected data of family firms included in the S&P 500 index, in the period of 2003–2010. The empirical findings support our hypotheses that family firms with family members as the CEOs have better CSR performance and family firms tend to provide a high level of long-term incentives to non-family than family CEOs. In addition, long-term incentives strongly motivate CEOs to improve firms’ CSR performance, regardless of their family memberships. (shrink)

Downsizing has become a significant public issue that has not yet been significantly studied by business ethicists. It is proposed that reasonable social and psychological contracts bound the moral free space of managers contemplating downsizing; the degree of constraint is also dependent on the organization's resource munificence. A framework for considering the extent of managerial moral free space and implications thereof for managerial practice are offered.

In this paper, we draw on insights from theories in the management and corporate governance literature to develop a theoretical model that makes explicit the links between a firm’s corporate social responsibility related board attributes, its board CSR strategy, and its environmental and social performance. We then test the model using structural equation modeling approach. We find that the greater the CSR orientation of the board, the more proactive and comprehensive the firm’s CSR strategy, and the higher (...) its environmental and social performance. Moreover, we find this link to be endogenous and self-reinforcing, with superior CSR performers tending to further strengthen their board CSR orientation. This result while positive is also suggestive of the widening of the gap between the leads and laggards in CSR. Therefore, the question arises as to how ‘leaders’ are using their superior CSR competencies seen by many scholars as a source of corporate competitive advantage. Stakeholders of corporations therefore need to be cognizant of this aspect of CSR when evaluating a firm’s CSR activities. Policy makers also need to be cognizant of these concerns when designing regulation in this field. (shrink)

This paper examines how corporate social responsibility (CSR) is implemented through social partnerships. Drawing on previous literature and case study research, it presents a conceptual model of the process of implementation. An exploratory case study of the social responsibility partnership programme at the Union of European Football Associations (UEFA) has been conducted. The case study draws on interview data and documentary sources of evidence gathered from UEFA and the six partner organisations that comprise its CSR (...) portfolio. The conceptual model identifies three stages of the implementation process (selection, design, management), with partnership evaluation being an ongoing process during all three. The latter consists of two elements, namely project and process evaluation. A key finding is the lack of process evaluation due to a high degree of inter-personal trust. The conceptual model adds to the growing body of research on the implementation of social partnerships and CSR. This paper is also the first to empirically explore the process of CSR implementation through social partnerships in the football sector. (shrink)

We outline the drivers, main features, and conceptual underpinnings of the compliance paradigm. We then use a similar structure to investigate the drivers, main features, and conceptual underpinnings of the cooperative paradigm for working with CSR in global value chains. We argue that the measures proposed in the new cooperation paradigm are unlikely to alter power relationships in global value chains and bring about sustained improvements in workers’ conditions in developing country export industries. After that, we provide a critical appraisal (...) of the potential and limits of the cooperative paradigm, we summarize our findings, and we outline avenues for research: purchasing practices and labor standard noncompliance, CSR capacity building among local suppliers, and improved CSR monitoring by local resources in the developing world. (shrink)

Existing research on the financial implications of corporate social responsibility (CSR) for firms has predominantly focused on positive aspects of CSR, overlooking that firms also undertake actions and initiatives that qualify as negative CSR. Moreover, studies in this area have not investigated how both positive and negative CSR affect the financial risk of firms. As such, in this research, the authors provide a framework linking both positive and negative CSR to idiosyncratic risk of firms. While investigating these relationships, (...) the authors also analyze the moderating role of financial leverage of firms. Overall, analysis of secondary information for firms from multiple industries over the years 2000–2009 shows that CSR has a significant effect on the idiosyncratic risk of firms, with positive CSR reducing risk and negative CSR increasing it. Results also show that the reduction in risk from positive CSR is not guaranteed, with firms having high levels of financial leverage witnessing lower idiosyncratic risk reduction. (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)