Purpose driven companies have developed their corporate culture with a commitment to stakeholders, Sustainable Development Goals, and social responsibility, prioritizing the management of organizational intangibles over capital. The overall objective of this research is to gain knowledge regarding the attention and emotional intensity registered by young Spanish university students when visualizing corporate purpose versus corporate visual identity, as well as the image of the Chairman of the main Spanish companies quoted on the IBEX 35. The techniques of eye (...) tracking and galvanic skin response have been used with 31 Spanish university students. The results suggest that brands with the highest brand equity in the Interbrand ranking are also the ones that receive the highest levels of attention and emotional arousal, and that a well-formulated corporate purpose is not enough to satisfy the public if company credibility is low due to previous perceptions of an organization. (shrink)

Business ethicists draw extensively on Aristotle’s work in defining the purpose of the business corporation. Insights from ancient authors can be valuable in illuminating contemporary issues, but we should be wary of enlisting their authority for our views without paying careful attention to what they might have intended by what they said in their own social and economic context. Business ethicists have argued that the business corporation should be a community within which its members can live a good life; (...) that its purpose should not be to maximise profits; and that it should integrate itself into a range of wider communities beyond its own boundaries and serve their interests. Aristotle would have agreed that the business corporation should not seek to make as much profit as possible, although he might have accepted that – in the light of modern developments in economic management - it should make enough profit to fund projects that would be beneficial to society. Aristotle’s view that the polis provided the setting in which people could best live a good life does not justify the claim that the business corporation can or should serve a similar purpose. Aristotle believed that people should strive for enough and not too much in several contexts, not only in acquiring wealth, but also in defining the size and scope of the community of which they should be members. Some expansive, contemporary views on the communities into which the business corporation should integrate itself are alien to Aristotle’s thinking. (shrink)

ABSTRACT:Of the many developments in business ethics that Thomas Donaldson has helped pioneer, one is the application of social contract theory to address questions about the responsibilities of business actors. InCorporations and Morality, Donaldson develops one of the most sustained and comprehensive accounts that aims to justify the existence of for-profit corporations and to specify and ground their responsibilities. In order to further our understanding about the purpose and responsibilities of productive organizations, and as a contribution to the (...) scholarship on Donaldson’s thought, this paper gathers together the critical responses to Donaldson’s account along with Donaldson’s replies to his critics. The paper argues that we would do well to continue engaging with Donaldson’s account because of its distinctive and challenging conception of the purpose and responsibilities of productive organizations, but that many of the insights to be gained come from reframing the role played by social contract theory. (shrink)

The Business Roundtable's “Purpose of a Corporation” letter announced a shift from stockholder primacy to stakeholder primacy. Interestingly, we contend the letter's language employed a technical efficiency emphasis, suggesting a firm's executives chose to make this shift because they believed doing so would improve the firm's financial performance, via improved corporate governance. We examine whether investors actually accepted the technical efficiency arguments at face value, or in contrast believed the announcements were merely a “rational myth,” what management thought investors (...) would want to hear. We employ a 2-day cumulative abnormal return (CAR) event study for 140 publicly-held firms. Overall, we find investor support for the announcement. In addition, we found how returns to firms with prior similar announcements were negative at the time of the announcement. Also, the returns for firms having multiple signatories were positive and significant. (shrink)

The purpose of this research is to explore corporate governance and CEO remuneration with banks capitalization strategies and payout policy within the Pakistani banking context. Data were obtained from the financial statements of scheduled banks listed on the Pakistan stock exchange from 2005 to 2020. The findings of the research study revealed that corporate governance mechanisms that promote the bank's shareholders' interests are linked to low capitalization strategies. The size of the board of directors has a significant impact on (...) the capitalization of banks. Banks' capitalization techniques are also adversely correlated with effective board size. The shareholder benefits from low capitalization. Corporate governance is positively related with banking sector instability, as seen by this negative correlation. Bank capitalization strategies have a significant impact on CEO remuneration. In the event of an income shock, dividend payout is essential. Banking sector payout policies are negatively related with corporate governance. In the event of a negative income shock, financial institutions reduce dividends. As a result, it has been argued that effective corporate governance benefits shareholders by reducing capitalization tactics and limiting financial institutions' aggressive payouts.JEL classificationG21, G30, G32, G35. (shrink)

The purpose of this study is to extend prior research on this topic by investigating whether the impact of ownership concentration moderates the link between corporate social performance and financial performance. This study uses a set of unique, hand-collected pollution control data to measure CSP, based on a sample of Taiwanese listed companies during the period from 1996 to 2006. The results of the empirical analysis provide firm support for the idea that the divergence between control rights and the (...) cash flow rights of controlling owners negatively moderates the link between social and short- and long-run FP. (shrink)

The stock market crash of 1987 had a profound effect on corporate Australia and the Australian community in general. The fall-out revealed that some of our most respected business figures had not been as ethical, or even as lawful, as we would have hoped. This impropriety produced in Australia an awakening to business ethics. Whilst many companies endeavoured to introduce ethical practices into their corporations, they perceived ethics as a way of minimising damage to the corporation and in some (...) cases as a means of competitive advantage. What was lost was the reason that one should embark on business ethics; and that is to make the society and corporate Australia a more ethical place in which to exist.This paper proposes a model based on 2 factors: commitment and partnerships, as a means of enabling corporate Australia to refocus attention on the main purpose of being inherently ethical in all that we do. This ethical model requires a commitment to partnerships with all stakeholders both internal and external in an attempt to enhance the level of ethical business practices that are contemplated and pursued within corporate Australia. Whilst the research agenda and the information collected is Australian-based, it is hoped that the ideas contained within this paper will have a wider appeal to corporations in similar cultural settings. (shrink)

The purpose of this paper is to provide a constructive criticism of Corporate Social Responsibility (CSR) standards. After pointing out a number of benefits and limitations in the effectiveness of CSR standards, both from a theoretical point of view and in the light of empirical evidence, we formulate and discuss a Paradox of CSR standards: despite being well-intended, CSR standards can favor the emergence of a thoughtless, blind and blinkered mindset which is counterproductive of their aim of enhancing the (...) social responsibility of the organization. We analyze three problems that might underlie the Paradox—namely the problem of deceptive measurements; the problem of responsibility erosion and the problem of blinkered culture. We apply the philosophical tradition of American Pragmatism to reflect on these issues in relation to different types of existing standards, and conclude by suggesting a number of considerations that could help both CSR standards developers and users to address the Paradox. (shrink)

The findings of this article increase our understanding of corporate social responsibility from the consumers' perspective in a Chinese setting. Based on primary data collected via a self-administered survey in Shanghai and Hong Kong and results of similar studies conducted in Europe and the United States, we provide evidence to show that Chinese consumers are more supportive of CSR. We also show that Carroll's pyramid of responsibilities can be applied in China. We evaluated the importance placed by Chinese consumers on (...) the four responsibilities of firms - economic, legal, ethical and philanthropic - and find that economic responsibilities are most important while philanthropic responsibilities are of least importance. The nature of these differences is important for firms intending to use corporate social responsibility for strategic purposes. (shrink)

The article is devoted to the experience of postmodern representation of the metaphysics of corporeality. The meaning of A. Artaud’s “Theatre of Cruelty” is shown as a living act of ontologization of the body through the pain phenomenon. The game of mercantile and thinking participant in the action is distinguished. The purpose of scientific research: to distinguish between psychological and metaphysical experiences as those that determine the bodily and carnal goals of the participants; accordingly, to show the actions of (...) selfish and selfless roles with their ability to pass or block pain. Objectives of the research: to investigate the mechanisms of postmodern understanding of the metaphysics of the body through A. Artaud’s experience; to present the sphere of the Theater of Cruelty as the destiny of mankind to be a participant in the horrible and to be able to sympathize with it; to highlight the game of mercantile and selfless participant in ambiguous actions; to emphasize pain as a criterion of ontologizing the body; to show the places of the Theater of Cruelty in action on living examples. The scientific novelty lies in the view of the metaphysics of corporeality through the Theater of Cruelty and existential pain. Being a man of postmodern thinking, A. Artaud considers metaphysics in action and shows corporeality by a joint action, which is an event. (shrink)

Purpose The purpose of this paper is to develop an ethical framework for the marketing of corporate social responsibility. Methods The approach is a conceptual one based on virtue ethics and on the corporate identity literature. Furthermore, empirical research results are used to describe the opportunities and pitfalls of using marketing communication tools in the strategy of building a virtuous corporate brand. Results/conclusions An ethical framework that addresses the paradoxical relation between the consequentialist perspective many proponents of the (...) marketing of CSR adopt, and ethical perspectives which criticize an exclusive profit-oriented approach to CSR. Furthermore, three CSR strategies in relation to the marketing of CSR are discussed. For each CSR strategy it is explored how a corporation could avoid falling into the promise/performance gap. (shrink)

Corporations are increasingly engaging in corporate social advocacy (CSA) by communicating on social issues that are controversial and contemporary and not necessarily linked to the corporations' business activities. The purpose of this study is to understand the desirability of CSA: Should corporations be communicating on these debated social issues, and to what extent? Using the online sampling platform Qualtrics, participants (N = 699, located in the United States and 18–35 years old) responded to a survey asking (...) them how they perceived corporate communication on debated social issues. Findings indicate that participants view corporate communication on debated social issues as something that corporations should be engaging in, that this communication is helpful in solving these debated social issues, and that corporations should be the leaders in changing how society thinks about these debated social issues. At the same time, individuals do not trust the moral compass of corporations. Findings also show that certain corporate sectors (e.g., Health Care) should communicate more than other sectors (e.g., Chemicals), certain corporate characteristics (e.g., Reputation) matter more than other corporate characteristics (e.g., Size), and certain topics (e.g., Race Relations) should be discussed more than other topics (e.g., Confederate Flag Use). The implications, limitations, and directions for future research are also discussed. (shrink)

The issue of corporate responsibility has long been discussed in relationship to universities, but generally only in an ad hoc fashion. While the role of universities in teaching business ethics is one theme that has received significant and rather constant attention, other issues tend to be raised only sporadically. Moreover, when issues of corporate responsibility are raised, it is often done on the presumption of some understanding of a liberal arts mandate of the university, a position that has come under (...) much attack in recent years. The purpose of this article is to investigate more systematically the nature of the obligations that the university has to promote more responsible corporate behaviour. It does so on the basis of a reinterpretation of the liberal arts tradition from a critical theory perspective. This entails: (1) an initial conceptualization of the roles and functions of the university; (2) an examination of these functions at two formative periods of the liberal arts tradition, the medieval university and the rise of the modern university in Germany in the early 19th century; (3) an investigation of ruptures in the understanding and practices of the liberal arts tradition, resulting in large part from the rise of the bureaucratic state and the industrial capitalist economy; (4) a reinterpretation of the liberal arts tradition from a critical theory perspective; and (5) a systematic elaboration of the obligations of the university vis-à-vis corporations based upon the university's key functions of teaching, research, formation and professional development. (shrink)

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

While the ethical implications of corporate actions have received increasing attention, one important area overlooked by both researchers and corporate codes of ethics is the significant ethical implications of corporate records management practices. This article discusses the operational and strategic purposes of modern corporate records management programs—including scorched earth programs which seek to reduce exposure to potential liability by eliminating documentary evidence from corporate files that could be used to establish culpability in future governmental investigations or in litigation by persons (...) injured by corporate actions. As a first step toward developing relevant ethical guidelines and decision criteria for socially-responsible records management practices, the ethical values of freedom of choice and avoidance of harm are applied to various corporate decisions as to (1) which information should be retained as records and for how long, (2) subsequent disclosure or non-disclosure of that information and to whom, and (3) decisions as to when information in corporate records may properly be destroyed. (shrink)

This case study illustrates the dilemmas facing multinational companies in meeting social challenges in Sub-Saharan Africa. It also discusses the purpose, responsibilities and limitations of business involvement in social development. From a business standpoint, social challenges in developing countries differ greatly from those in nations where governments or markets effectively provide for the population’s health needs. The case illustrates what led a multinational to set up a corporate foundation and focuses on three strategic and operational dilemmas it ran up (...) against. The case discussion shows that the ethical issues intertwined with these dilemmas are best understood using a variety of ethical approaches. We also show that Ethics of Care are just as relevant to analysing corporate social responsibility and corporate philanthropy as the Deontological and Utilitarianism theories commonly used in business ethics. (shrink)

The purpose of this article is to transcend the assumption that stakeholder engagement is necessarily a responsible practice. Stakeholder engagement is traditionally seen as corporate responsibility in action. Indeed, in some literatures there exists an assumption that the more an organisation engages with its stakeholders, the more it is responsible. This simple 'more is better' view of stakeholder engagement belies the true complexity of the relationship between engagement and corporate responsibility. Stakeholder engagement may be understood in a variety of (...) different ways and from a variety of different theoretical perspectives. Stakeholder engagement may or may not involve a moral dimension and, hence, is primarily a morally neutral practice. It is therefore argued that stakeholder engagement must be seen as separate from, but related to, corporate responsibility. A model that reflects the multifaceted relationship between the two constructs is proposed. This model not only allows the coincidence of stakeholder engagement with corporate responsibility, but also allows for the development of the notion of corporate irresponsibility. (shrink)

Purpose The purpose of this paper is to explore the nuances of the consequences of greenwashing in the consumer and financial markets. Greenwashing is discussed frequently but in very abstract terms. Hence, a closer examination of the palpable consequences elucidates the ripple effects of this widespread phenomenon. Design/methodology/approach Focal points are the concept of green marketing, the stigmatization of corporations in the media and the regulatory consequences of greenwashing behaviour across consumer and financial markets. The two markets (...) are paralleled in order to trace the novelties as well as the points of commonality in greenwashing. Findings The current consequences are an insufficient deterrence in both markets. The regulatory trend in both markets is leaning towards more stringent and punitive measures, which will likely affect the efficacy of the deterrence factor. Originality/value The influence on consumer perception is identified both as a motivating factor for greenwashing and as one of the most immediate elements which is negatively influenced by its exposition. In addition to the fact that greenwashing practices are common across the two markets, this paper identifies that a systemic deterioration of investor trusts significantly compromises the potential of sustainable finance and impacts investment in the financial market, mirrored in the negative consequences on consumer reactions to greenwashed products. (shrink)

The purpose of this study is to develop a system of corporate ethics based on an understanding and interpretation of the ethical demand of human beings who are in relation with each other according to Emmanuel Levinas' teachings and the responsibility the human being has to and for herself and others whom she encounters based on Paul Ricoeur's teachings on human action, text and hermeneutics. While the philosophies to which we will be referring may not overtly present a normative (...) ethic, we shall convey them in such a way that is reasonably germane to the development of our system of corporate ethics that would, indeed, demonstrate why (and, perhaps, how in some instances) the human being must act in response to the demand of the other whom she encounters. -/- We must not abandon the discussion as it relates to the economy but rather include it in a broader and more comprehensive dialogue about working to promote, support and protect the human dignity of all people using the advancements of technology to improve the human condition. The broader discussion must include but not be limited to developing a working definition of corporate ethics. To engage in discussions about the economy as an indicator for human success, we must speak openly and honestly about all stakeholders that participate and are affected by the economy. Without forsaking other stakeholders, we find the corporation - the entity whose actions have the farthest reaching and, in some cases, longer lasting impact on the human condition - to be an appropriate point of departure for this endeavor. (shrink)

The purpose of this study is to explore the extent and nature of sustainability disclosure practices of companies from environmentally sensitive industries in India. It further investigates the influence of potential determinants on sustainability information disclosure of the companies. The study analyzed the data of 57 energy and mining companies included in NIFTY500 index at National Stock Exchange of India (NSE) for the period 2016 to 2019. In the present study, environment, social, and governance (ESG) parameters were considered to (...) measure the corporate sustainability disclosure practices. Panel data analysis was conducted to investigate the impact of possible determinants on sustainability reporting. The results indicate that variables, such as firm size, market capitalization, and a standalone sustainability reporting, are positively associated with the sustainability information disclosure of companies. The finding also suggests that policymakers should promote a standalone sustainability reporting based on Global Reporting Initiative (GRI) standards and also broaden the existing scope of business responsibility reporting in India. Overall findings should help the policymakers and regulators to assess and advance the disclosure reforms to improve sustainability reporting in India. (shrink)

This paper explores the level of corporate social responsibility contributions disclosed by central public sector enterprises in India. This paper analyses the nature and quality of CSR disclosures made by CPSEs listed in India following the issue of CSR guidelines by the Department of Public Enterprises for CPSEs in March 2010. The purpose of the study is to investigate the impact of CSR guidelines on the reporting practices of the CPSEs. A content analysis of annual reports across seven themes (...) shows that Human Resources and Community Development are the prime focus areas of CSR disclosures, whereas Carbon and Greenhouse Gas emissions are the least reported activity. The disclosures across all CSR themes are primarily narrative rather than quantitative or in monetary terms. The findings of the study may help policy makers in India to assess practices and devise detailed and specific CSRD requirements, rather than the current general mandatory requirements, to enhance the performance and quality of CSRDs by the CPSEs. (shrink)

This paper argues the case that tests of how investors value corporate social performance (CSP) based upon realised stock market returns are liable to be weak tests if markets are efficient and firms change CSP policies infrequently. We provide a theoretical explanation of why this will be the case using examples to illustrate. Subsequently, we set out an alternative theoretical framework for the purposes of investigating whether markets place a positive, or a negative, valuation on CSP, and show why this (...) is superior to tests based upon Tobin’s Q. Using US KLD data, we demonstrate that, as theorised, markets place a positive value on CSP that is not detected by conventional returns-based tests. Our conclusion is that researchers who are interested in the question of whether engagement with a corporate social responsibility agenda is a value-enhancing activity for a company (as argued by some stakeholder theorists) or value destructive (as argued by Friedman, The social responsibility of business is to increase its profits, The New York Times Magazine, 1970), need to look beyond returns-based tests to answer the research question posed. (shrink)

The contention that organizational culture influences ethical decision making is not disputable. However, the extent to which it influences ethical decision making in the workplace is a topic for scholarly debate and investigation. There are scholars who argue that, though corporate values are a powerful force in explaining the behavior of individuals and groups within organizations, these values are unperceived, unspoken, and taken for granted. However, there are others who argue that the formalization of corporate values facilitates job and role (...) clarity and is the key to influencing employee behavior. The purpose of this study is to examine the extent of the influence of organizational codes of ethics. The findings suggest that, depending upon the particular situation, corporate culture and ethics may mitigate individual personal moral convictions about right and wrong. (shrink)

The purpose of this study is to examine whether corporate social responsibility activities perceived by consumers affect brand trust and corporate sustainability management. In other words, this study tried to examine whether the compatibility and authenticity of CSR influences brand trust, thereby affecting CSM including economic viability, environmental soundness, and social responsibility. To measure this, an empirical analysis was conducted on 479 consumers who had experience purchasing products from cosmetic companies that are carrying out CSR. As a result of (...) the analysis, it was found that the compatibility and authenticity of CSR have a positive effect on brand trust. Also, it was found that brand trust had a positive effect on social responsibility among the sub-concepts of CSM, but did not affect economic viability and environmental soundness. The results of this study are expected to provide strategic implications for social responsibility performance and brand trust building necessary for cosmetics companies to grow continuously. (shrink)

Current corporate social responsibility approaches attempt to implement the vision of sustainable development at the corporate level. In fact, the term "corporate sustainability" may be a more accurate descriptive label for these attempts. Ambitious governmental, business and academic goals, and corresponding efforts have been established. Nonetheless, a truly satisfactory implementation of the broad CSR concept as well as the more specific challenges of corporate sustainability continue to be an elusive goal at the corporate management level. This article presents a description (...) of a new management tool, a systematic method for implementing CSR successfully on the basis of a triple bottom line approach to sustainability. It fills in many of the still missing gap on the corporate level. The method presented here offers a multi-purpose approach for the collection, systematization, quantification, and evaluation of all the relevant issues found within a corporate environment. It allows for specifying and systematizing appropriate areas of action, taking into account the continuum of economic, ecologic,1 and social dimensions. Accordingly, the article is best characterized as a treatment of complex CSR issues, developed against the normative anchor of sustainability as the conceptual background. (shrink)

In order to be competitive in an era of ethical consumerism, brands are facing an ever-increasing pressure to integrate ethical values into their identities and to display their ethical commitment at a corporate level. Nevertheless, studies that relate business ethics to corporate brands are either theoretical or have predominantly been developed empirically in goods contexts. This is surprising, because corporate brands are more relevant in services settings, given the nature of services, and the fact that services settings comprise a greater (...) number of customer–brand interactions and touch points than goods contexts. Accordingly, the purpose of this article is to empirically examine the effects of customer perceived ethicality of corporate brands that operate in the services sector. Based on data collected for eight service categories using a panel of 2179 customers, the hypothesized structural model is tested using path analysis. The generalizability theory is applied to test for measurement equivalence between these categories. The results of the hypothesized model show that, in addition to a direct impact, customer perceived ethicality has a positive and indirect impact on brand equity, through the mediators of recognition benefits and brand image. Moreover, brand heritage negatively influences the impact of customer perceived ethicality on brand image. The main implication is that managers need to be aware of the need to reinforce brand image and recognition benefits, as this can facilitate the translation of customer perceived ethicality into brand equity. (shrink)

Recent years have witnessed an escalation in corporate social reporting (CSR) by UK companies (Gray, Kouhy and Lavers 1995). Whilst some elements of CSR reporting are required by law, much of it represents voluntary reporting. By investigating the non‐mandatory reporting of two aspects of social responsibility, corporate community involvement (CCI) and environmental impact, this paper seeks to explore why companies choose to make such disclosures. It specifically asks whether companies are primarily motivated by the strategic need to manage their reputation (...) and legitimacy rather than by the recognition of their ethical accountability, which is the stated purpose of reports produced by cutting edge companies (Clarke 1998). (shrink)

Recent years have witnessed an escalation in corporate social reporting (CSR) by UK companies (Gray, Kouhy and Lavers 1995). Whilst some elements of CSR reporting are required by law, much of it represents voluntary reporting. By investigating the non‐mandatory reporting of two aspects of social responsibility, corporate community involvement (CCI) and environmental impact, this paper seeks to explore why companies choose to make such disclosures. It specifically asks whether companies are primarily motivated by the strategic need to manage their reputation (...) and legitimacy rather than by the recognition of their ethical accountability, which is the stated purpose of reports produced by cutting edge companies (Clarke 1998). (shrink)

Empirical analyses of the ethics of corporations with the aim to improve the state of corporate ethics are rare. This paper develops an integrated, normative model of corporate ethics by conceptualizing the ethical quality of organizations and by relating this contextual quality to various expressions of immoral behavior. This so-called Ethics Qualities Model for organizations, which contains 21 ethical qualities, allows one to assess the ethical content of institutional groups of individuals. A proper conceptualization is highly relevant both for (...) the empirical corroboration of business ethics theories and for managerial purposes, such as judging individual and group performance or informing external stakeholders. The empirical applicability of the model is illustrated by an explorative case study of a large, globally operating financial institution. This case-study demonstrates that the corporate ethical qualities differ with respect to their perceived optimality as well as to their estimated impact on (un)ethical conduct. The various results provide managers with many clues to understand their organization and to take effective measures to improve the ethical content of their organization. (shrink)

Recent corporate social initiatives (CSIs) have garnered criticisms from a wide range of audiences due to perceived inconsistencies. Some critics use the label “woke” when CSIs are perceived as inconsistent with the firm’s purpose. Other critics use the label “woke washing” when CSIs are perceived as inconsistent with the firm’s practices or values. I will argue that this derogatory use of woke is stigmatizing, leads to claims of hypocrisy, and can cause stakeholder backlash. I connect this process to our (...) own field by considering inconsistencies in our organizations and in our teaching that could garner similar criticisms. After describing the stigmatization process, I consider the moral implications of inconsistencies for CSIs and draw parallels to our field. I end by suggesting next steps for our field in response to the stigmatization of CSIs and to guard against the stigmatization of our own work. (shrink)

The creation of a "market for virtue" and social responsibility is dependent on the flow of information from the corporation to the responsible agents. To achieve a free flow of information, excessive, missing and unreliable information must be avoided. More generally, a market for virtue should make it possible to create the appropriate means to signal true commitments and enable informed agents to know how to effectively use their limited resources for deploying market power that rewards and sanctions the (...) class='Hi'>corporations that deserve such responses. The underlying assumption of this query is that if corporations in fact compete among themselves in the dimension of social responsibility, then some corporations will identify ways of demonstrating credibility of both efforts and results. The purpose of publishing codes of conduct and annual Corporate Social Responsibility reports would be to improve the level of information that is needed for the market for virtue to function. In order to assess the existence of a competitive market for virtue, the Article analyzes the codes and associated documents of sixteen multinational companies in three industries — textile, petrochemical and automobile. The Article finds some differences between labor and environmental norms, both within each of the sectors, as well as between sectors. However, the major finding casts doubt on the very assumption that labor and environmental norms are shaped by a market for virtue. Contrarily, the Article sheds new light on alternative reasons for developing social norms in corporations and rethinks the purpose of CSR reports. (shrink)

Purpose The purpose of this paper is to develop an ethical framework for the marketing of corporate social responsibility. Methods The approach is a conceptual one based on virtue ethics and on the corporate identity literature. Furthermore, empirical research results are used to describe the opportunities and pitfalls of using marketing communication tools in the strategy of building a virtuous corporate brand. Results/conclusions An ethical framework that addresses the paradoxical relation between the consequentialist perspective many proponents of the (...) marketing of CSR adopt, and ethical perspectives which criticize an exclusive profit-oriented approach to CSR. Furthermore, three CSR strategies in relation to the marketing of CSR are discussed. For each CSR strategy it is explored how a corporation could avoid falling into the promise/performance gap. (shrink)

Purpose Corporate social responsibility communication on corporate websites have become an emerging trend by firms. Similarly, corporate websites have been used to manage stakeholders’ impressions about the organization. Meanwhile, CSR by firms have been criticized for been a manipulative tactics used by firms. The purpose of this paper therefore is to ascertain how telecommunication companies operating in Ghana communicate CSR on their corporate websites. Design/methodology/approach This study used a qualitative content analysis technique. It also used Bolino et al.’s (...) impression management framework as the conceptual framework. Data were extracted from the websites of four telecommunication companies operating in Ghana. Data were analyzed using thematic analysis techniques. Findings The results show that the companies use impression management in communicating CSR on their corporate websites. Account, assertive impression management; blaring, boasting, defensive impression management; demonstrative impression management; exemplification, favor-rendering, illustrative impression management; ingratiation, other-enhancement, other-focused impression management; self-enhancement, self-focused impression management; and self-promotion tactics are tactics prevalent in the CSR communication of the companies. Actor-to-actor link impression management and other emotional appeal also emerged as some of the impression management tactics used by the companies. Originality/value This provides insights into how organizations use impression management in their CSR communication on their corporate websites. Studies of this nature are limited. Again, studies specifically adapting Bolino et al.’s impression management to study CSR communication on corporate websites are rare. (shrink)

Corporate social responsibility in developing countries has recently received increasing attention, and scholars have pointed to the strong contextuality of CSR in the respective regions. Regarding the latter, however, sub-Saharan Africa has been scrutinized only marginally by academia. Moreover, empirical research on the impact of the institutional context has been scant, despite its attributed importance for CSR. Our article seeks to fill a part of this research gap by investigating CSR website reporting of 211 companies in seven sub-Saharan countries. The (...) study’s aim is twofold: First, we identify to what extent sub-Saharan companies report on CSR and which contents they disclose. Second, by building on institutional theory, we investigate how the socio-economic and political environments influence CSR reporting. For this purpose, we examine the impact of country-level and company-level determinants. We find that the sample African companies’ CSR efforts focus strongly on local philanthropy and therefore differ substantially from Western CSR approaches. Furthermore, we evidence that GDP and level of governance standard positively affect CSR reporting. Our study contributes to the literature by empirically evidencing the contextuality of CSR in Africa and by explaining how specific country- and company-level determinants contribute to or hamper the development of CSR in developing countries. (shrink)

Investors' confidence in the financial market is boosted by good corporate governance (CG). Good governance builds trust and improves an organization's financial performance (FP). However, organizations with bad management lose the trust of their stakeholders because they do not perform well financially. Therefore, the purpose of this study is to examine the influence of CG 89; on FP through mediating the role of humble leadership (HL) and monetary incentive (MI) as a moderator between CG and HL. Data were collected (...) from 300 respondents who were working in various cement manufacturing organizations located in different cities of Pakistan. The analysis was performed using SPSS software version 25 and AMOS version 22 software to work out the study sample size. The result revealed that the framework of CG has a positive impact in terms of FP. Furthermore, HL positively and significantly mediates on CG, and FP is inextricably linked. However, MI acts as a moderator between CG and HL, but despite strengthening, it weakens the impact of CG' on HL. This study contributes toward the literature, specifically toward the expectancy theory literature. Finally, some theoretical and practical implications at the organizational level are offered, describing how CG influences FP within the organization, and research limitations and future directions are presented. (shrink)

The purpose of this study was to examine how young publics in the United States and South Korea perceive the corporate social responsibility (CSR) practices of multinational corporations and evaluate the effectiveness of CSR practices in terms of organization–public relationship (OPR). Results showed that young publics in the United States and South Korea differently characterized CSR practices of multinational corporations and evaluated relationships with them. Young American participants evaluated the CSR practices of multinational corporations more favorably (...) than did the young Korean participants. In addition, four CSR practices (internal environment, moral, discretionary, and relational) were associated with OPR dimensions in the United States, while only relational CSR practices were significantly related to OPR dimensions in South Korea. Overall, the findings highlight that cultural and societal meanings were embedded in identifying CSR practices and evaluating the relationship with multinational corporations involved in CSR practices. (shrink)

In order to enable firms to successfully deal with issues of corporate sustainability, the firms' stakeholders would need to participate in sustainability accounting and management. In practice, however, participative sustainability accounting and management are often unfeasible. The resulting consequence is the risk of misbalancing single aspects of sustainability. The purpose of this article is to show that reflexivity in sustainability accounting and management, that is, an ongoing reflection on the relationship between the goals of corporate sustainability and the overarching (...) objective of sustainable development can, at least, mitigate this problem. Reflexivity has the potential to initiate processes of collective learning and could eventually bring about the realization of business models that integrate economic, ecological, and social considerations. (shrink)

The article examines the peculiarities of corporate culture formation and development in the modern stage of societal development, which is characterized by high levels of dynamism and conflict. It has been said that culture is something created by Man just as Man is the creation of culture, because culture influences behavior in a person from the beginning of their socialization through the assimilation of norms, values, models of behavior, etc. A person implements all of these in various types of relationships (...) which, in turn, develop structures, organizations, and all individuals, in particular. Corporate culture becomes the basis for the development of organizations at various levels through the application of management theory, especially when considering the current state of international, intercultural relations caused by globalization and migration processes. Corporate culture plays a particularly important role in ensuring the progressive development of science and education, and in preserving the intellectual potential of the state in conditions of social contradiction and military conflict. The development of corporate culture is based on such principles as tolerance, equality and partnership, which are embodied in the relations of any organization, corporation, etc. It has been shown that culture always involves some kind of change, and through such change, corporate culture can act as the criterion that will ensure a group’s integrity under the pressure of external challenges and act as the measure of the internal stability of any team that has determined its goals, tasks and the purpose of its development and the effective implementation of its values and beliefs. (shrink)

This paper offers a new model of corporate purpose and applies it to the emerging legal form of the benefit corporation. First, corporate purpose is applied to the two currently dominant models of shareholder and stakeholder focus. Both are found inadequate to promote positive social and environmental impact because they remain anchored in a profit-seeking corporate purpose. Second, we offer an alterna­tive model of Integrative Corporate Purpose. Third, we apply ICP to benefit corporations as an (...) ethically superior model for promoting the common good. The benefit corporation offers four advancements: positive duties to stakeholders; legal protections for managers and directors to manage for the common good; a requirement to have a purpose geared toward public benefit; and required report­ing of benefits to stakeholders and the environment. The implications of benefit corporations are discussed within the larger arena of corporate social responsibility. (shrink)

This paper addresses a gap in knowledge concerning heterogeneity in stakeholder expectations of Corporate Responsibility. Past research concentrates onprioritising stakeholders in groups, such as groups of employees, customers, investors, suppliers, etc. It has, however, been suggested that stakeholders do not consist of homogenous groups, but differ according to individual needs and expectations. A latent class model is proposed as a method to investigate heterogeneity within stakeholder groups and to identify homogenous subpopulations within stakeholder groups who share similar expectations of Corporate (...) Responsibility. Latent Class Analysis is a relatively new method being used for segmentation purposes, applied mainly by research in Sociology and the Social Sciences. The contribution is thus twofold: to identify subgroups of stakeholders with reference to their attitudes to Corporate Responsibility and the application of a research technique not widely used in the Corporate Responsibility field before. (shrink)

The thesis of this paper is that corporate activity can best be understood on analogy with the acitivity of persons. The ground for this analogy lies in the nature of activity itself which is common to both and to find a ground therein an analysis of the features of activity is presented based upon a comparison of activity and process by Alburey Castell. Activity is said to be bi-polar with one pole the purpose or goal to be handled in (...) utilitarean fashion and the other pole concerned with the maintenance of the presuppositions of activity.While any goal chosen will have hypothetical oughts as its conditions, it is argued that the presuppositions of activity are categorical oughts in that they cannot be denied without asserting them. And since one of these presuppositions is freedom of choice, thus giving activity the power to destroy its own possibility, these presuppositions function in the context of practice as categorical norms and are universal in their applicability as preserving the possibility of responsible activity for everyone else as well as myself. All activity whether it be other-regarding or self-regarding (self-interest in the business world) is subject to the norms of its own possibility, its enabling conditions, and this constitutes the moral ground for personal, managerial and a basis for inquiry into corporate responsibility. (shrink)

The purpose of this study is to investigate the relationships among corporate social responsibility (CSR), corporate brand credibility, corporate brand equity, and corporate reputation. Structural equation modeling analysis provided support for the hypotheses from a sample of 867 consumers in South Korea. The results showed that CSR has a direct positive effect on corporate brand credibility and corporate reputation. In addition, the results indicate that corporate brand credibility mediates the relationship between CSR and corporate reputation. Moreover, corporate brand credibility (...) mediates the relationship between CSR and corporate reputation. Finally, the relationship between CSR and corporate brand equity is sequentially and fully mediated by corporate brand credibility and corporate reputation. The theoretical and managerial implications of the results and limitations are discussed, and future research directions are suggested. (shrink)

The link between corporate social responsibility (CSR) and competitiveness has been examined mainly at the business level. The purpose of this paper is to improve conceptual understanding and provide empirical evidence on the link between CSR and competitiveness at the national level. We draw on an eclectic-synthetic framework of international economics, strategic management and CSR literatures to explore conceptually whether and how CSR can impact on the competitiveness of nations, and test our hypotheses empirically with a sample of 19 (...) developed countries over a 6-year period. Our evidence suggests that CSR can make a significant positive contribution to national competitiveness, as measured by national living standards. We also find that countries with a relatively low innovation record can benefit more, as compared to highly innovative countries, by implementing nationwide CSR-based positioning strategies. (shrink)

If it can be argued that companies should engage with social justice advocacy, what factors might deter them from doing so? This question is pursued in a qualitative research study with participants from corporate and social justice organisations. Six inhibiting factors are identified: a lack of understanding of social justice concepts; fear of reputational risk; short-term profit orientation; a compliance mindset; disconnectedness from operating environment; and recognition that business purpose will determine its societal engagement. This research extends the theoretical (...) and practice boundaries of corporate social responsibility, while also advocating for an intensified engagement of management education with social justice in practice. (shrink)

Corporations wield power in today’s economies, and political theories of the corporation argue about the legitimacy conditions of corporate power. This paper argues in favour of a double-fiduciary theory for corporations. Based on a concession theory of markets, it sees all markets as authorized by states (in the name of society), for the purpose of creating economic value, or wealth. Hence corporations, as much as non-incorporated firms, have a fiduciary duty to the state/society to create wealth, (...) in the competitive structure of the market. However, their pursuit of wealth often creates unbalanced relations of power between corporations and their stakeholders, which can at some point be classified as instances of domination. Therefore, corporations need to be subjected to a second fiduciary duty, i.e. not to dominate others in the economy. This duty is also, in the final instance, owed to the state/society. In an era when everyone can incorporate their business, states/societies can be interpreted as having, through corporate law, mandated shareholders as ‘proximate beneficiaries’, to incentivize corporations to create wealth. Now states/societies need to think about how to prevent corporations from dominating others. New mechanisms of accountability towards stakeholders and/or citizens as proximate beneficiaries are needed. Only in this way can corporations be effectively held to account for both of the fiduciary duties which characterize their normative status. (shrink)

Based on the extended conceptualization of corporate citizenship, as provided by Matten and Crane :166–179, 2005), this paper examines the new role of corporations in society. Taking the ideas of Matten and Crane one step further, we argue that the status of corporations as citizens is not solely defined by their factual engagement in the provision of citizenship rights to others. By analysing political and sociological citizenship theories, we show that such engagement is more adequately explained by a (...) change in the self-conception of corporate citizens from corporate bourgeois to corporate citoyens. While the corporate bourgeois acts primarily for private business purposes, the corporate citoyen engages in society, performing civil and political rights and duties. As an intermediate actor in society, shaped by the principle of subsidiary task-sharing, the corporate citoyen undertakes co-responsibility for social and civic affairs and actively collaborates with fellow citizens below, beside and beyond governmental regulation. (shrink)

The purpose of this paper is to highlight the importance and impact of terminology used to describe corporate social responsibility (CSR). Through a review of key literature and concepts, we uncover how the economic business case has become the dominant driver behind CSR action. With reference to the literature on semiotics, connotative meaning and social marketing we explore how the terminology itself may have facilitated this co-opting of an ethical concept by economic interests. The broader issue of moral muteness (...) and its relation to ethical behaviour is considered. We conclude by proposing a number of important attributes for any proposed terminology relating to ethical/socially responsible/sustainable business. (shrink)