Corporate social responsibility research has focused often on the business returns of corporate social initiatives but less on their possible social returns. We study an actual company–consumer partnership CSR initiative promoting ecologically correct and conscious consumption of bottled mineral water. We conduct a survey on adult consumers to test the hypotheses that consumer skepticism toward the company–consumer partnership CSR initiative and the moral emotion of elevation mediate the relationship between company CSR motives perceived (...) by consumers and consumer behavioral responses following this CSR initiative. Favorable consumer behavioral responses, in turn, relate positively to consumer support of other green products. The results provide scholars and managers with means of improving their understanding and handling of company–consumer partnership CSR initiatives. (shrink)

In order to explore the mechanism of consumer responses to corporate social responsibility, this paper constructs a research framework including CSR, consumer–company identification, consumer responses, and fit, and tests the framework using a scene-questionnaire survey. Empirical results demonstrate that CSR not only has positive influence on consumer purchase intention, recommend intention, and loyalty directly, but also has indirect positive influence on consumer purchase intention and recommend intention through CCI. The influencing process of CSR on CCI is moderated (...) by fit and the moderating direction is different owing to product types. For the products whose association preference is positive, fit can positively moderate the relationship between CSR and CCI, while for products whose association preference is negative, the moderating role will be negative. (shrink)

Corporate social responsibility (CSR) continues to gain attention atop the corporate agenda and is by now an important component of the dialogue between companies and their stakeholders. Nevertheless, there is still little guidance as to how companies can implement CSR activity in order to maximize returns to CSR investment. Theorists have identified many company-favoring outcomes of CSR; yet there is a dearth of research on the psychological mechanisms that drive stakeholder responses to CSR activity. Borrowing from (...) the literatures on meansend chains and relationship marketing, we propose a conceptual model that explains how CSR provides individual stakeholders with numerous benefits (functional, psychosocial, and values) and how the type and extent to which a stakeholder derives these benefits from CSR initiatives influences the quality of the relationship between the stakeholder and the company. The paper discusses the implications of these insights and highlights a number of areas for future research. (shrink)

ABSTRACT:The history of the practice of corporate social responsibility has largely been limited to the twentieth century, with a focus on the United States. This paper provides a brief introduction to CSR practice from the nineteenth century through World War I in the United Kingdom, United States, Japan, India, and Germany. The relevance of nineteenth-century CSR to current debates and research regarding the motivations for CSR, the business cases for CSR, stakeholder management, political CSR, industry self-regulation, and (...) income inequality are also discussed. (shrink)

This comparative study explores 499 corporate social responsibility initiatives implemented by 178 corporations in five distinct, institutionally consistent European clusters. This study provides an empirically grounded response to calls to develop comprehensive, nuanced pictures of CSR in the composite European business environment. In so doing, the article stresses three distinct, non-exclusive approaches that characterize the embedding of CSR considerations in corporations’ strategies across Europe and the CSR challenges for corporations operating in different socio-political contexts. Furthermore, the (...) study reaffirms the CSR notion as a contextualized concept, shaped by socio-political drivers, and contributes by bridging macro-level, socio-political facets of CSR with its meso-level, organizational implications. (shrink)

In this article, we contend that due to their size and emphasis upon addressing external social concerns, the corporate relationship between social enterprises, social awareness and action is more complex than whether or not these organisations engage in corporate social responsibility (CSR). This includes organisations that place less emphasis on CSR as well as other organisations that may be very proficient in CSR initiatives, but are less successful in recording practices. In this (...) context, we identify a number of internal CSR markers that may be applied to measuring the extent to which internal CSR practices are being observed. These considerations may be contrasted with the evidence that community based CSR activities is often well developed in private sector small to medium sized enterprises (SMEs) (Observatory of European SMEs, 2002), a situation which may be replicated in social enterprises especially those that have grown from micro-enterprises embedded in local communities. We place particular emphasis upon the implications for employee management. Underpinning our position is the Aristotelian-informed capabilities approach, a theory of human development and quality of life, developed by Sen (1992; 1999) and Nussbaum (1999) which has been developed further, in an organisational context, (e.g., Cornelius, 2002); Cornelius and Gagnon, 2004; Gagnon and Cornelius, 1999; Vogt, 2005. We contend that the capabilities approach offers additional insights into CSR in social enterprises in general and internal CSR activity in particular. Our article concludes with proposals for future research initiatives and reflections upon social enterprise development from a capabilities perspective. (shrink)

This article tracks Corporate Social Responsibility (CSR) as an emergent organizational process that places the employee at its center. Predominantly, research on CSR tends to focus on external pressures and outcomes leading to a neglect of CSR as a dynamic and developing process that relies on the involvement of the employee as a major stakeholder in its co-creation and implementation. Utilizing case study data drawn from a study of a large multinational energy company, we explore how management (...) relies on employees' interaction with CSR as the process of initiation → implementation → maturation develops. Employee involvement grows from a minor element in the CSR initiation stage to a vital contributory factor in CSR's success in the later stages of the process. The article offers new insights into a processual and interactional approach to CSR that accounts for the actions of different actors involved at each stage. Most unusually, it also recognizes the dual impact this has on broader issues concerning the management and involvement of employees through CSR actions, and gaining legitimacy in the eyes of not only external stakeholders but internal too. (shrink)

Should CSR be approached only on a voluntary basis or should it be complemented with a compulsory regulatory framework? What type of government intervention is more effective in fostering CSR among companies? This paper is an attempt to answer these questions, reviewing the debate between proponents of the voluntary case and the obligatory case for CSR, and critically analysing current international government-led initiatives to foster CSR among companies, and national government-led initiatives in the EU area. Finally, the paper (...) focuses on the Spanish case, as an example of the failure of an exclusively voluntary approach. Despite the rapid uprise of CSR, Spain is still far behind late in CSR promotion strategies. Most action has been undertaken by companies themselves with no common guidelines, governmental support, or independent verification. The lack of a regulatory framework for CSR or ethical investment issues and the virtual absence of other indirect incentives, explains the misbalance between private, public and Third Sector initiatives. Based on the Spanish context which is quite similar to other non-OECD countries, the authors call for a more proactive government position in CSR related issues. The conclusions of the paper detail the features of this regulatory framework and other policies to promote CSR in Spain as well as in other OECD countries. (shrink)

This research involves a review of the submissions to a 2005/06 Australian Government Inquiry into Corporate Social Responsibility. The Inquiry was established to investigate whether corporate social responsibilities and accountabilities should be regulated, or left to be determined by market forces. Our results show that the business community overwhelming favour an anti-regulation approach whereby corporations should be left with the flexibility to determine their social responsibilities and associated accountabilities and ‘enlightened self-interest’ should be retained (...) as the guiding mechanism for social responsibility initiatives. In stark contrast, the submissions from social and environmental organisations and individuals provided counter-arguments in favour of a pro-regulation view. Ultimately Government embraced the ‘free market perspective’ promoted by the business community and decided against the introduction of national legislation pertaining to corporate social responsibilities. (shrink)

In 2016 the Chinese government initiated a nationwide campaign aiming to eliminate poverty in China by 2020. Over 20% of listed firms in China have made significant contributions to the campaign. Using hand-collected data on listed firms’ contributions to the campaign and multivariate analyses, we examine whether managers’ and politicians’ personal incentives play an important role in firms’ contributions to the campaign. The results show that firms are more likely to contribute if they are state-owned and managers are appointed by (...) governments, if managers have a higher risk of being targeted in a concurrent anti-corruption campaign, if the political leaders in their province are new or intend to seek promotion, and if managers or directors have experienced poverty in their early life. The results suggest that it is important to consider managers’ and politicians’ personal incentives in CSR activities that could have a grand social impact. (shrink)

Should CSR be approached only on a voluntary basis or should it be complemented with a compulsory regulatory framework? What type of government intervention is more effective in fostering CSR among companies? This paper is an attempt to answer these questions, reviewing the debate between proponents of the voluntary case and the obligatory case for CSR, and critically analysing current international government-led initiatives to foster CSR among companies, and national government-led initiatives in the EU area. Finally, the paper (...) focuses on the Spanish case, as an example of the failure of an exclusively voluntary approach. Despite the rapid uprise of CSR, Spain is still far behind late in CSR promotion strategies. Most action has been undertaken by companies themselves with no common guidelines, governmental support, or independent verification. The lack of a regulatory framework for CSR or ethical investment issues and the virtual absence of other indirect incentives, explains the misbalance between private, public and Third Sector initiatives. Based on the Spanish context which is quite similar to other non-OECD countries, the authors call for a more proactive government position in CSR related issues. The conclusions of the paper detail the features of this regulatory framework and other policies to promote CSR in Spain as well as in other OECD countries. (shrink)

This study proposes two identification cuing factors (i. e., CSR associations and CSR participation) to understand how corporate social responsibility (CSR) relates to employees' identification with their firm.The results reveal that a firm's CSR initiatives increase employee-company identification (E-C identification).E-C identification, in turn, influences employees' commitment to their company. However, CSR associations do not directly influence employees' identification with a firm, but rather influence their identification through perceived external prestige (PEP). Compared to CSR associations, CSR participation (...) has a direct influence on E-C identification. On the basis of these findings, it is argued that CSR performance can be an effective way for companies to maintain a positive relationship with their employees. (shrink)

Small and medium-sized firms form 90% of the worldwide population of businesses. However, it has been argued that given their smaller scale of operations, resource access constraints and lower visibility, smaller firms are less likely to participate in Corporate Social Responsibility (CSR) initiatives. This article examines the different economic motivations of firms with varying combinations of visibility, resource access and scale of operations. Arguments are presented to propose that in terms of visibility, resource access and operating (...) scale, very small and very large firms are equally motivated to participate in CSR. However, the motivational bases for CSR participation are likely to be different. Medium-sized firms are the least motivated. This suggests a U-shaped relationship between firm size and CSR participation. This study contributes towards resolution of the long-standing debate on the effects of firm size on CSR participation, and highlights the importance of considering configurations of firm characteristics in the study of CSR outcomes. In conclusion, cautions are raised against the broad categorization of firms, without adequate attention to the underlying dimensions of such categorizations. (shrink)

The aim of this paper is to shed some light on understanding why companies adopt environmentally responsible behavior and what impact this adoption has on their performance. This is an empirical study that focuses on the United Nations (UN) Global Compact (GC) initiative as a Corporate Social Responsibility (CSR) mechanism. A survey was conducted among GC participants, of which 29 responded. The survey relies on the anticipated and actual benefits noted by the participants in the GC. The (...) results, while not conclusive, indicate that companies have more than one reason for adopting environmentally responsible behavior and that ethical and economic reasons co-exist. In terms of performance, the impact of participation in the GC seems to be particularly high in securing network opportunities and improved corporate image. The results indicate that companies that have participated many years in the GC, have submitted the most projects and have attended the most GC meetings also regard their CSR involvement as having had a strong, positive influence on their market performance. GC participation does not result in significant cost advantages, but this does not seem to have been regarded as a goal anyway. Costs seem to be affected to a␣large extent by existence of in-house research and␣development and the capability of developing environmentally sound technologies. Overall, the company receives both ethical and economic benefits from joining the GC. (shrink)

Despite the economic relevance and distinctiveness of family firms, little attention has been devoted to researching their nature and functioning. Traditionally, family firms have been associated both to positive and negative features in their relationships with the stakeholders. This can be linked to different orientations toward corporate social responsibility. Thus, this research aims to identify the approaches that Spanish family firms maintain about social responsibility, based on the model developed by Quazi and O' Brien Journal (...) of Business Ethics 25, 33-51 (2000). An empirical study carried out for 112 Spanish family firms gives support to our initial assumption about these organizations not being a homogeneous group in terms of their orientation towards corporate social responsibility. The differences in perceptions do not seem to be associated to biographical characteristics. These results lead to some relevant academic and practical implications that suggest interesting lines for future research. (shrink)

This article explores the dynamics of the discourse and practice of corporate social responsibility (CSR) in France to illustrate the interplay between endogenous and exogenous factors in the development of CSR in a country. It shows how the cultural, socioeconomic, and legal traditions influence the way ideas are raised, the kinds of questions considered relevant, and the sorts of solutions conceived as desirable and possible. Furthermore, the article traces how expectations and practices evolve as a result of (...) various social and economic factors within a country, and increasingly, as a result of global influences such as the international academic discourse, the international practices of multinational companies, nongovernmental organizations and trade unions, and initiatives of supranational organizations. The article closes with reflections about what can be learned from the French experience with CSR and how to stimulate such cross-border learning. (shrink)

Corporate social responsibility (CSR) is widely viewed as an important feature of contemporary business. It is characterized by the notion that organizations ought to voluntarily recognize and, where possible, practically mitigate the social impacts of its business activities, and that doing so allows organizations to meet the expectations of affected stakeholders. However, CSR initiatives are almost universally tethered to the idea that corporations exist to serve their own performance objectives, and that these will ultimately take (...) precedence over wider macro-social considerations. The present paper proposes that this conception of CSR mirrors the underlying neurological tension between the domains of analytic reasoning and empathic or socioemotional reasoning, and the neural correlates of each. Using the opposing domains hypothesis, it is proposed that CSR, as it is currently conceived of and practiced, is antithetical to social and ethical reasoning at the level of the brain, can increase the scope for dehumanization, and demands calling the ethical dimensions of CSR into question. (shrink)

This paper presents a roadmap of Finnish companies adopting and managing corporate social responsibility (CSR). It discusses the companies' views on CSR and highlights the practices that Finnish companies have adopted or are currently adopting. It also presents a framework that outlines the CSR processes and management prospects. Results showed that Finnish companies are progressively managing CSR. This newly revived thinking about social responsibility is viewed as an issue traced back from Finland's history of industrial (...) development. There is no general definition of CSR; however, various concepts are connoted into it. Driven by several factors, CSR is developing gradually as indicated by the positive responses and initiatives of the companies. CSR management and practices towards employees, suppliers, community and customers are well defined locally based generally on established socially responsible behavior which could be articulated by laws and regulations, corporate values and business ethics. However, managing CSR with a global scope, problems such as; lack of information and structured management system, different views and interpretations, supply chain complexities, overlap with environmental issues, etc. often lead some companies to manage CSR haphazardly. Views and management of CSR are also influenced by some distinct Finnish cultural attributes. An initial conceptual framework for CSR is drawn reflecting the current practices and prospects for management strategies. Such framework can be used in organizing and streamlining CSR elements for effective management approaches and measuring of performance. It could be expected that in due time, the efforts of the companies will become more evident, organized and systematically managed. (shrink)

Corporate social responsibility is a tortured concept. We review the current state of the art across a number of academic disciplines, from accounting to management to theology. In a world that is increasingly global and pluralistic, progress in our understanding of CSR must include theorizing around the micro-level processes practicing managers engage in when allocating resources toward social initiatives, as well as refined measurement of the outcomes of those initiatives on stakeholder and shareholder interests. (...) Scholarship must also account for the influence of diverse, and even maladaptive, stakeholders as well as more fully incorporate non-Western philosophical and economic perspectives. Based on this review, we pose five questions that scholars from each of these disciplines should address as the CSR field moves forward. We hope our questions provoke deeper thinking and greater rigor and attention to detail in this important area of business research. (shrink)

To date, the primary focus of research in the field of corporate social responsibility (CSR) has been on the strategic implications of CSR for corporations and less on an evaluation of CSR from a wider political, economic and social perspective. In this paper, we aim to address this gap by critically engaging with marketing campaigns of so-called ‘ethical’ bottled water. We especially focus on a major CSR strategy of a range of different companies that promise to (...) provide drinking water for (what they name as) ‘poor African people’ by way of Western consumers purchasing bottled water. Following Fairclough's approach, we unfold a three-step critical discourse analysis of the marketing campaigns of 10 such ‘ethical’ brands. Our results show that bottled water companies try to influence consumers' tastes through the management of the cultural meaning of bottled water, producing a more ‘ethical’ and ‘socially responsible’ perception of their products/brands. Theoretically, we base our analysis on McCracken's model of the cultural meaning of consumer goods, which, we argue, offers a critical perspective of the recent emergence of CSR and business ethics initiatives. We discuss how these marketing campaigns can be framed as historical struggles associated with neo-liberal ideology and hegemony. Our analysis demonstrates how such CSR strategies are part of a general process of the reproduction of capitalist modes of accumulation and legitimation through the usage of cultural categories. (shrink)

To date, the primary focus of research in the field of corporate social responsibility (CSR) has been on the strategic implications of CSR for corporations and less on an evaluation of CSR from a wider political, economic and social perspective. In this paper, we aim to address this gap by critically engaging with marketing campaigns of so‐called ‘ethical’ bottled water. We especially focus on a major CSR strategy of a range of different companies that promise to (...) provide drinking water for (what they name as) ‘poor African people’ by way of Western consumers purchasing bottled water. Following Fairclough's approach, we unfold a three‐step critical discourse analysis of the marketing campaigns of 10 such ‘ethical’ brands. Our results show that bottled water companies try to influence consumers' tastes through the management of the cultural meaning of bottled water, producing a more ‘ethical’ and ‘socially responsible’ perception of their products/brands. Theoretically, we base our analysis on McCracken's model of the cultural meaning of consumer goods, which, we argue, offers a critical perspective of the recent emergence of CSR and business ethics initiatives. We discuss how these marketing campaigns can be framed as historical struggles associated with neo‐liberal ideology and hegemony. Our analysis demonstrates how such CSR strategies are part of a general process of the reproduction of capitalist modes of accumulation and legitimation through the usage of cultural categories. (shrink)

This study proposes two identification cuing factors to understand how corporate social responsibility relates to employees’ identification with their firm. The results reveal that a firm’s CSR initiatives increase employee–company identification. E–C identification, in turn, influences employees’ commitment to their company. However, CSR associations do not directly influence employees’ identification with a firm, but rather influence their identification through perceived external prestige. Compared to CSR associations, CSR participation has a direct influence on E–C identification. On the (...) basis of these findings, it is argued that CSR performance can be an effective way for companies to maintain a positive relationship with their employees. (shrink)

This book presents initiatives that were launched or are currently being pursued in the name of CSR, and showcases how different dimensions of CSR, sustainability, ethics and governance can help to solve global challenges. Contributions by international experts from Australia to Bangladesh and from Nigeria to Spain address current issues in their respective country, such as challenges faced by nations, initiatives launched in the name of CSR, and attempts on the part of small and medium sized enterprises to (...) promote CSR initiatives. This volume provides readers with in-depth insights into CSR and important initiatives around the globe intended to encourage more responsible behavior. (shrink)

This paper examines how employees react to their organizations’ corporate social responsibility initiatives. Drawing upon research in internal marketing and psychological contract theories, we argue that employees have multi-faceted job needs and that CSR programs comprise an important means to fulfill developmental and ideological job needs. Based on cluster analysis, we identify three heterogeneous employee segments, Idealists, Enthusiasts, and Indifferents, who vary in their multi-faceted job needs and, consequently, their demand for organizational CSR. We further find (...) that an organization’s CSR programs generate favorable employee-related outcomes, such as job satisfaction and reduction in turnover intention, by fulfilling employees’ ideological and developmental job needs. Finally, we find that CSR proximity strengthens the positive impact of CSR on employee-related outcomes. This research reveals significant employee heterogeneity in their demand for organizational CSR and sheds new light on the underlying mechanisms linking CSR to employee-related outcomes. (shrink)

Corporate social responsibility is a tortured concept. We review the current state of the art across a number of academic disciplines, from accounting to management to theology. In a world that is increasingly global and pluralistic, progress in our understanding of CSR must include theorizing around the micro-level processes practicing managers engage in when allocating resources toward social initiatives, as well as refined measurement of the outcomes of those initiatives on stakeholder and shareholder interests. (...) Scholarship must also account for the influence of diverse, and even mal-adaptive, stakeholders as well as more fully incorporate non-Western philosophical and economic perspectives. Based on this review, we pose five questions that scholars from each of these disciplines should address as the CSR field moves forward. We hope our questions provoke deeper thinking and greater rigor and attention to detail in this important area of business research. (shrink)

ABSTRACT Corporate Social Responsibility denotes a movement away from shareholder theories of the corporation, and refers to a set of practices designed to have an economic, environmental, and social impact. Public companies report on their CSR practices annually in the form of multimodal reports which are made available on the companies’ websites, and are typically read by investors who seek standardisation across this genre. Thus, most companies across the globe follow the Global Reporting Initiative framework for (...) reporting, a framework developed within the Global North. The dominance of the Global North in CSR practices is also evident in the academic literature – while applied linguists have gone some way in highlighting the generic, interpersonal, and ideational features of reports, such studies have predominantly focused on multinational corporations. There is, comparatively, very little literature on the CSR practices and discourses circulating in the Global South or former colonial contexts and because of this we have limited insight into how companies operating in these contexts discursively represent themselves, their employees and their suppliers within the same context. To address this shortcoming, this study draws on analytical approaches developed within Critical Discourse Analysis coupled with postcolonial theory in order to comment on the ideational features of the four most recent CSR reports of one South African company. (shrink)

CSR has become an important element in the business strategy of a growing number of companies worldwide. A large number of initiatives have been developed that aim to support companies in developing, implementing, and communicating about CSR. The Global Compact (GC), initiated by the United Nations, stands out. Since its launch in 2000, it has grown to about 2900 companies and 3800 members in total. The GC combines several mechanisms to support CSR strategies: normative principles, networks for learning and (...) co-operation, and communication and transparency about CSR activities. However, up to now only a few empirical evaluations of the contribution of the GC to CSR strategies have been conducted that however have not differentiated between different types of companies (regarding type of industry or regarding the maturity of CSR). This paper aims to partly fill this knowledge gap by a case study examination of three frontrunner companies in the telecommunications industry. The results show that the GC is only one of the many initiatives that these companies employ in shaping, implementing, and reporting about their CSR strategies, and that its role is at most modest. There are two important reasons. One is that many of the CSR issues that these companies deal with are industry specific and are hence addressed in specific networks. The second reason is that the GC principles are perceived as minimum requirements that do not provide many incentives to the three case study companies to perform better. A differentiation of norms for GC members is expected to enhance the contribution of the GC to CSR strategy employment, not only for frontrunner companies but as well for other categories of companies. (shrink)

This paper examines voluntary corporate social responsibility (CSR) reporting as a form of moral discourse. It explores how alternative stakeholder perspectives lead to differing perceptions of the process and content of responsible reporting. We contrast traditional stakeholder theory, which views stakeholders as external parties having a social contract with corporations, with an emerging perspective, which views interaction among corporations and constituents as relational in nature. This moves the stakeholder from an external entity to one that is (...) integral to corporate activity. We explore how these alternative stakeholder perspectives give rise to different normative demands for stakeholder engagement, managerial processes, and communication. We discuss models of CSR reporting and accountability: EMAS, the ISO 14000 series, SA8000, AA1000, the Global Reporting Initiative, and the Copenhagen Charter. We explore how these models relate to the stakeholder philosophies and find that they are largely consistent with the traditional atomistic view but fall far short of the demands for moral engagement prescribed by a relational stakeholder perspective. Adopting a relational view requires stakeholder engagement not only in prescribing reporting requirements, but also in discourse relating to core aspects of the corporation such as mission, values, and management systems. Habermas’ theory of communicative action provides guidelines for engaging stakeholders in this moral discourse. (shrink)

This study investigates the influence of chief executive officers' (CEOs) career horizon on the adoption of Global Reporting Initiative (GRI) standards for corporate social responsibility (CSR) reporting. Using data from A-share Chinese listed firms on the Shanghai and Shenzhen stock exchanges from 2010 to 2020, we employ logistic regression analysis to examine the empirical relationship. Our findings indicate that companies led by CEOs with shorter career horizons (older CEOs) are less inclined to adopt GRI reporting standards for (...) CSR reporting. This association is particularly pronounced in non-state-owned enterprises compared to state-owned enterprises. Additionally, we observe a weaker relationship between CEO career horizon and GRI adoption when the CEO possesses foreign experience. These results remain robust across various measures of CEO career horizons and econometric methodologies as well. The implications of our findings are significant for understanding the development and implementation of GRI standards for CSR reporting, particularly within the context of China. (shrink)

While Corporate Social Responsibility (CSR) has traditionally been the domain of the corporate sector, recognition of the growing significance of the Small and Medium Sized Enterprise (SME) sector has led to an emphasis on their social and environmental impact, illustrated by an increasing number of initiatives aimed at engaging SMEs in the CSR agenda. CSR has been well researched in large companies, but SMEs have received less attention in this area. This paper presents the (...) findings from a U.K. wide study of socially responsible SMEs. The 24 companies studied were chosen as “exemplars” of␣CSR in SMEs. The aim of this study therefore is to progress understanding of both the limitations on and opportunities for CSR in SMEs through the exploration of exemplary characteristics in the study companies. Key areas of investigation were CSR terminology, the influence of managerial values, the nature of SME CSR activities, motivation for and benefits from engaging in CSR, and the challenges faced. The results of this study demonstrate some of the exemplary goals and principles needed to achieve social responsibility in SMEs, and begin to provide knowledge that could be used to engender learning in other SMEs. In particular, there is evidence that stakeholder theory may provide a framework in which SMEs and CSR can be understood. SMEs prefer to learn through networking and from their peers, so this is a possible avenue for greater SME engagement in CSR. This would require strong leadership or “championing” from individuals such as highly motivated owner–managers and from exemplary companies as a whole. (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)

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 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)

Little is known about how and why corporate social responsibility (CSR) emerged in lesser developed countries. In order to address this knowledge gap, we used Chile as a test case and conducted a series of in-depth interviews with leaders of CSR initiatives. We also did an Internet and literature search to help provide support for the findings that emerged from our data. We discovered that while there are similarities in the drivers of CSR in developed countries, (...) there are distinct differences as well. In particular, we found that different sectors drive CSR in Chile. In contrast to other geographies where consumer demand and government regulation provided the impetus for CSR efforts, multinational companies (MNCs) and non-governmental organizations (NGOs) are key actors in Chile. MNCs imported their CSR beliefs, skills, and processes into Chile. Their efforts resulted in a virtuous cycle. Once large domestic firms felt pressured by their MNC rivals, they too adopted CSR initiatives. The ability to manage relationships with multiple stakeholders and perceptions of authenticity were also critical to the success of CSR in Chile. Using network theory as a lens, we suggest that network density and centrality largely determine whether CSR efforts will be authentic. Based on these contentions, we suggest avenues for future research. (shrink)

The novel COVID-19 has created an exogenous shock to capital markets and, hence, an ideal opportunity for researchers to assess whether CSR-related activities provide an insurance-like mechanism to protect firms against the shock. Using a large sample of 4361 firms domiciled in 40 countries, we investigate the roles of CSR reporting and assurance in the negative consequences of COVID-19 on firm value. The results confirm that prior CSR reporting experience buffers firms against the adverse effects of the health crisis. The (...) results also support that not only does the assurance on CSR reports create a buffering effect against the health crisis, but it also intensifies the buffering effects of prior CSR reporting experience against the pandemic. Moreover, using difference-in-difference method for testing the link between CSR reporting and firm value, we show that the positive association of reporting and assurance with firm value is more pronounced during the pandemic as compared with the years preceding it. The results of this study are robust to various analyses. Replicating the analyses to the context of the global financial crisis, we find that prior CSR reporting experience and assurance provide similar buffering effects when a market is exposed to various exogenous shocks. The results also hold for the mandatory disclosure regimes. By distinguishing first and subsequent reports and assurance, we show that, unlike subsequent CSR reports and assurance, the initial ones cannot mitigate the negative effects of the crisis on firm value, indicating that stakeholders take into account longer-term CSR reporting experiences. Aside from reporting and assurance aspects of CSR, we analyze the role of CSR report's quality and accuracy and show that the adoption of Global Reporting Initiatives (GRI) frameworks can enhance socially responsible firms' resilience against systematic shocks. (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)

The implementation of corporate social responsibility is crucial for the legitimacy of an organization in today’s globalized economy. This study aims to enrich our knowledge of the implementation of the largest voluntary CSR initiative—the UN Global Compact. Drawing on insights from stakeholder, network, and institutional theory, I derive a positive impact of UNGC participation duration on the implementation level of the UNGC principles, despite potential weaknesses in the initiative’s accountability structure. Moreover, I scrutinize the validity of the (...) newly introduced UNGC “Differentiation Programme” before applying this framework in the empirical analysis. Results from ordinal, linear, and instrumental variable regression models suggest that, contrary to claims made by UNGC critics, the duration of UNGC participation does affect the level of UNGC implementation. However, this effect appears to be much smaller than previous practitioner studies have suggested. Moreover, strong local UNGC networks affect the implementation level of the UNGC positively. Their hypothesized moderating role between UNGC participation duration and UNGC implementation level, however, is only significant in networks with activities of high quality rather than high quantity. (shrink)

According to the Dutch Ministry of Economic Affairs (2001), transparency by means of Sustainability Reporting should lead to better Corporate Social Responsibility (CSR) performance of companies. Sustainability Reporting should also give consumers the information they need to purchase the most sustainable products available (Dutch Ministry of Economic Affairs, 2004). This article analyses the driving factors influencing CSR and Sustainability Reporting at seven breweries in the Netherlands. It also gives a better understanding of organizational behaviour with reference to (...) CSR and the reasons breweries have for Sustainability Reporting. The Dutch government has no intention of forcing organizations to publish a sustainability report, since it is trying to diminish the volume of legislation. Rather, the government prefers to rely on the willingness and initiatives of organizations to make CSR a success. In 2006, the Dutch Ministry of Economic Affairs will evaluate the effect of its CSR policy. But is it a success already? During our research, breweries appeared to find CSR more important than Sustainability Reporting. Sustainability reporting is, for most breweries, not the way to reach stakeholders. Most stakeholders have their own means for receiving information e.g. annual reports, meetings, public statements and press releases. Although small breweries think CSR is very important, they feel no pressure from outside to publish a sustainability report. For them it is very complex and expensive to publish a sustainability report. Large breweries feel pressure from many stakeholders to be transparent, but not on a regular basis. We conclude from this research that CSR does not stimulate Sustainability Reporting, but neither does Sustainability Reporting stimulate CSR. (shrink)

This article argues that whether and how a firm chooses to adopt Corporate Social Responsibility (CSR) initiatives is conditional in part upon the domestic political institutional structures present in its home market. It demonstrates that economic globalization has increased the pressure applied to companies to develop CSR policies that might help overcome specific governance gaps associated with the globalization phenomenon. Drawing upon an examination of domestic institutions and overall political structure, it argues that the political conditions (...) and expectations present in a company’s home market will condition whether a firm might pursue CSR activity. For home markets, it is posited that perceived electoral salience will be filtered through government type and ideology, and state/societal structures will influence if and how firms will use CSR. Specific arguments are developed from these categorizations. The article concludes with a discussion of how researchers might further explore links between CSR, domestic political structures, and corporate political activity. (shrink)

In this article, we develop theoretical and empirical linkages between corporate social responsibility initiatives of business organizations and their market development efforts at the bottom of the pyramid. We use qualitative in-depth interviews of 21 CSR heads of business organizations and its CSR partner organizations in India to explore, develop, and explain plausible theoretical linkages between CSR initiatives of the organizations and its market development efforts at BOP using theory of market separations. Using theoretical frameworks (...) from CSR literature and sub-theory of market separations from marketing literature, the study suggests that market development at BOP is enhanced using the CSR route in several ways. These are, making the BOP market development less risky, mask the CSR initiative as a BOP pilot project to generate internal traction within the organization, integrating the BOP communities with the last mile of the supply chain of the organization, bringing government intervention to accelerate scale-up, and developing BOP as future markets for consumers and supply chain partners to make business more sustainable. Our study has several theoretical as well as managerial implications linking organizations’ market development efforts at BOP with its CSR initiatives. (shrink)

This article evaluates the potential of the current Corporate Social Responsibility (CSR) agenda for addressing issues related to societal governance. The investigation focuses on the experience of the oil and gas sector, which has been among the leading industry sectors in championing CSR. In particular, the article analyses the issue of revenue transparency, which has been the principal governance challenge addressed by multinational oil and gas companies. The article suggests that (1) tackling governance challenges is crucial to (...) addressing the impact of corporate activities; (2) current CSR and policy initiatives are entirely insufficient in addressing governance challenges and (3) corporate activities may be contributing to governance failures. (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)

Domestic violence is a serious issue, and the costs for business of failing to address the impacts of domestic violence in the workplace are high. New technologies and economic shifts towards services sector industries are fast dissolving the boundaries between the workplace and the home in many national labor markets. Moreover, companies are now expected to meet higher standards of behavior in fulfilling their responsibilities to employees and wider society. These developments present challenges for ethical reasoning about the limits of (...) employer responsibility in relation to domestic violence. While a number of possible approaches have something to contribute, this paper argues that feminist theories provide the most useful framework for ethical reasoning about the issues domestic violence raises for business organizations. The practical value of such reasoning is then illustrated by applying the organizing framework developed by Yuan et al. to examine how recurring domestic violence-related initiatives can be integrated as routine practices in firm operations. The paper thus provides a structured qualitative study of theory and practice for dealing with the impacts of domestic violence in the workplace. (shrink)

This book explores the current state of Corporate Social Responsibility (CSR) in 24 European nations, examining the state of the development and practice of CSR and sustainability for organizations in these countries. The common denominator for all of the book's 25 chapters is a management perspective rather than an ethical discourse. The book therefore represents a comprehensive survey of initiatives and activities in the field of CSR and provides a wealth of complete cases and examples for (...) different approaches to sustainable and responsible management practice. The book also reviews the relevant political and governmental guidelines and frameworks for organizations, both on a national and a European level. Europe has taken a leading role in the promotion and implementation of CSR. This book showcases how, through CSR, enterprises can significantly contribute to achieving the European Union's treaty objectives of sustainable development and a highly competitive social market economy. (shrink)

According to the Green Paper presented by the European Commission in July 2001, corporate social responsibility (CSR) is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis (Commission of the European Communities, 2001b, p. 6). On this basis, in 2002, the Italian Government, and especially the Italian Ministry of Welfare, launched an initiative called CSR-SC (social commitment) in order to foster (...) the proactive social role of Italian enterprises, with great attention on SME involvement. The technical partner of the Italian Ministry of Welfare for this initiative is Bocconi University. The goal of this contribution is to present the main results of CSR–SC research project developed by Bocconi University. The paper provides a detailed picture of the general scheme designed to carry out the research project and a review of the different methodologies used to support the solutions proposed. (shrink)

In a series of articles, Thomas Dunfee defended the view that managers are permitted and at times, required, to utilize corporate resources to alleviate human misery even if this is at the expense of shareholder interests. In this article, I summarize Dunfee's defense of this view, raise some questions about his account and propose ways in which to answer these questions. The aim of this article is to highlight one of Dunfee's contributions to the debate about corporate governance (...) and corporate responsibility. (shrink)