As the interest in corporate social responsibility within advertising industry is growing, this paper explores the discourse on CSR among employees in advertising agencies. Different sensemaking dimensions are taken into account to examine how employees, as one of the key stakeholders involved in the joint meaning construction, make sense of CSR. In addition, this paper studies the legitimation approaches that employees use to address CSR of advertising agencies. The empirical evidence of discursive examples also indicates that there is a linkage (...) between sensemaking and legitimation perspective in CSR discourse analysis and supports the idea that both may be a potential route toward institutionalization of CSR inside organizations or sectors. (shrink)

As a contribution to the emerging field of corporate social responsibility cognition, this article reports on the findings of an exploratory study that compares SME owner–managers’ mental models with regard to CSR and related concepts across six European countries. Utilising Repertory Grid Technique, we found that the SME owner–managers’ mental models show a few commonalities as well as a number of differences across the different country samples. We interpret those differences by linking individual cognition to macro-environmental variables, such as language, (...) national traditions and dissemination mechanisms. The results of our exploratory study show that nationality matters but that classifications of countries as found in the comparative capitalism literature do not exactly mirror national differences in CSR cognition and that these classifications need further differentiation. The findings from our study raise questions on the universality of cognition of academic management concepts and warn that promotion of responsible business practice should not rely on the use of unmediated US American management terminology. (shrink)

Organizations routinely make choices when addressing conflicting stakes of their stakeholders. As stakeholder theory continues to mature, scholars continue to seek ways to make it more usable, yet proponents continue to debate its legitimacy. Various scholarly attempts to ground stakeholder theory have not narrowed down this debate. We draw from the work of Juergen Habermas to theoretically advance stakeholder theory, and to provide practical examples to illustrate our approach. Specifically, we apply Habermas’ language-pragmatic approach to extend stakeholder theory by advancing (...) seven sets of normative axioms. We conclude that a deliberative approach, with its focus on the conditions of legitimation and deliberative democracy, has the potential to become a cornerstone of stakeholder theory. The need for global stakeholder discourse and its internalization in corporate structures and institutions is exemplified by a multitude of CSR and stakeholder initiatives that have mushroomed in response to global risk scenarios such as climate change, nuclear warfare, or terrorism. Further research may help to build a functioning global governance system in order to provide guidance for management in the 21st century. (shrink)

The management of cross-sector social partnerships (CSSPs) among government, business, and not-for-profit entities can be complex and difficult. This article considers the importance of organizational experience and learning for the successful development of CSSPs. By analyzing the Manchester Super Casino, this research emphasizes the significant benefits of prior experience with CSSPs that enable partners to learn and develop relationships, skills, and capabilities over time, which then have positive influences on future performance. The result is a refined learning model of the (...) CSSP process that includes key variables for CSSP success. As such, these findings provide a template for managing complex CSSPs from the perspective of the different partner organizations. (shrink)

The current debate as to whether the natural environment should be accorded stakeholder status involves an assumption that it is in some way ‘different’ from other stakeholders, requiring favourable discriminatory treatment. Essentially it is regarded as passive, requiring regulatory agencies to represent its interests or the wider public to demand its protection on the occasion of, for example, oil spills that leave wildlife in a visibly distressed state. But the natural environment does not have ‘consciousness’ as do traditional classes of (...) stakeholders such as employees, shareholders and contractors, nor does it negotiate in markets over the price at which it sells its output in the way that a trader haggles with potential buyers. This paper proposes that in the context of financial markets the natural environment possesses stakeholder status, founded upon the essentiality of ecosystem stability for their proper functioning and the structuring of instruments traded on them. (shrink)

The current debate as to whether the natural environment should be accorded stakeholder status involves an assumption that it is in some way ‘different’ from other stakeholders, requiring favourable discriminatory treatment. Essentially it is regarded as passive, requiring regulatory agencies to represent its interests or the wider public to demand its protection on the occasion of, for example, oil spills that leave wildlife in a visibly distressed state. But the natural environment does not have ‘consciousness’ as do traditional classes of (...) stakeholders such as employees, shareholders and contractors, nor does it negotiate in markets over the price at which it sells its output in the way that a trader haggles with potential buyers. This paper proposes that in the context of financial markets the natural environment possesses stakeholder status, founded upon the essentiality of ecosystem stability for their proper functioning and the structuring of instruments traded on them. (shrink)

Business Ethics: A European Review, EarlyView.

Learning to address moral dilemmas is important for participants on courses in business ethics and corporate social responsibility (CSR). While modern, rule-based ethical theory often provides the normative input here, this has faced criticism in its application. In response, post-modern and Aristotelian perspectives have found favour. This paper follows a similar line, presenting an approach based initially on a critical interpretation of Ross's theory of prima facie duties, which emphasises moral judgement in actual situations. However, the retention of a modern (...) element is suggested, with an invitation to hypothetically universalise detailed proposals for action, following Hare. This further step may reassure students/managers who seek additional closure in their decision-making. Some pedagogical implications are also briefly raised regarding the use of case material and the need to recognise questions of social interaction and personal character as features of dilemma resolution in actual organisational contexts. (shrink)

Learning to address moral dilemmas is important for participants on courses in business ethics and corporate social responsibility (CSR). While modern, rule‐based ethical theory often provides the normative input here, this has faced criticism in its application. In response, post‐modern and Aristotelian perspectives have found favour. This paper follows a similar line, presenting an approach based initially on a critical interpretation of Ross's theory of prima facie duties, which emphasises moral judgement in actual situations. However, the retention of a modern (...) element is suggested, with an invitation to hypothetically universalise detailed proposals for action, following Hare. This further step may reassure students/managers who seek additional closure in their decision‐making. Some pedagogical implications are also briefly raised regarding the use of case material and the need to recognise questions of social interaction and personal character as features of dilemma resolution in actual organisational contexts. (shrink)

This paper presents a study that identifies a stakeholder-defined concept of Corporate Responsibility (CR) in the context of a UK financial service organisation in the immediate pre-credit crunch era. From qualitative analysis of interviews and focus groups with employees and customers, we identify, in a wide-ranging stakeholder-defined concept of CR, six themes that together imply two necessary conditions for a firm to be regarded as responsible—both corporate actions and character must be consonant with CR. This provides both empirical support for (...) a notable, recent theoretical contribution by Godfrey (in Acad Manag Rev 30:777–798, 2005 ) and novel lessons for reputation management practice. (shrink)

Corruption within the private sector has often not been dealt with in Brazil. Organizations may find corrupt acts in its operations or practices, but specific concepts and programs to avoid them are neither concrete nor clear. Some Brazilian stockholders have become aware of the risks involved in unethical procedures and are adopting the Best Practices of Corporate Governance initiative. International agencies have intensively supported organizations and governments in an effort to define policies that inhibit illegal or corrupt cultural habits throughout (...) the world, but Brazilian practitioners show insufficient response. Skepticism may indicate a lack of understanding about how an ethical leadership can guide employees, setting high standards for the organizational culture and climate, clearly defining limits of correct behavior, and creating appropriate codes of ethics. Transparency still has to be discovered as a significant tool to encourage professionalism in performance and reporting of data in Brazilian companies. In this article, we analyze the ethical behavior of the purchasing department of a multinational company in its host country, Brazil. It focuses specifically on the supplier–buyer relationship. The results indicate that despite the negative reputation Brazilians have in business ethics, a company can still develop a positive and ethical relationship with its stakeholders. Communication, transparency, compliance with the company’s code of conduct as well as the supplier’s awareness of the buyer’s code of conduct are the factors which influence the supplier–buyer relationship. Transparency can be used as a tool to reduce corruption, thereby increasing ethical behavior and company image. Good ethical behavior can help to build up a company’s image. (shrink)

Recent academic articles point to an increased vagueness and overlap in concepts related to business ethics and corporate responsibility. Further, the perception of these notions can differ in the smallbusiness world from the original academic definitions. This article focuses on the cognition of small-business owner-managers. Given the impact of small-business owner-managers on their ventures, corporate responsibility and ethical issues can take a different route in SMEs. The small-business owner-manager is able to shape the corporate culture and to enact values other (...) than profit. Adopting a cognitive perspective, we have identified how the small-business owner-manager makes sense of notions linked to corporate social responsibility (CSR) and business ethics. The concept of sensemaking has recently been applied to CSR (Basu and Pallazzo, 2008; Cramer et al., 2006). Applying a cognitive perspective to small-business owners may help in explaining specific phenomena found within smallbusiness ownership. For this research, the Repertory Grid Technique (RGT) is used, a method that has not previously been widely applied in the business and society field. Our findings to an extent invalidate the confusion in terminology found in the academic literature. Smallbusiness owner-managers, pragmatically and rather clearly, differentiate among the various concepts related to corporate responsibility and business ethics but, at the same time, they recognise the interrelationships and interdependencies of these concepts. These findings contribute to a better understanding of how small-business owners think and integrate corporate responsibility and ethical issues into their decisionmaking. (shrink)

As a contribution to the emerging field of corporate social responsibility cognition, this article reports on the findings of an exploratory study that compares SME owner–managers’ mental models with regard to CSR and related concepts across six European countries. Utilising Repertory Grid Technique, we found that the SME owner–managers’ mental models show a few commonalities as well as a number of differences across the different country samples. We interpret those differences by linking individual cognition to macro-environmental variables, such as language, (...) national traditions and dissemination mechanisms. The results of our exploratory study show that nationality matters but that classifications of countries as found in the comparative capitalism literature do not exactly mirror national differences in CSR cognition and that these classifications need further differentiation. The findings from our study raise questions on the universality of cognition of academic management concepts and warn that promotion of responsible business practice should not rely on the use of unmediated US American management terminology. (shrink)

ABSTRACT:We examine whether religion influences company decisions related to corporate community involvement. Employing a large US sample, we show that the CCI initiatives of a company are positively associated with the level of Christian religiosity present in the region within which that company’s headquarters is located. This association persists even after we control for a wide range of firm characteristics and after we subject our results to several econometric tests. These results support our religious morality hypothesis which holds that companies (...) headquartered in regions with higher levels of Christian religiosity will engage in more CCI initiatives. We also find that while Catholic and mainline Protestant religiosity have a positive influence on firms’ CCI initiatives, evangelical Protestant religiosity does not. This supports our differentiated responses hypothesis which holds that institutional differences among religious groups will produce different effects on companies’ CCI. This hypothesis is based on institutional theory. (shrink)

This paper critiques dominant corporate social responsibility (CSR) theory, which claims that commercial and social goals overlap and coincide. It is suggested that this uncritical portrayal and treatment of complex industry–community relations risks neglecting the potential tensions that may arise should these goals diverge or be in conflict. In this context, the experiences of residents in a small Western Australian town are presented to describe a long-running conflict between community members and their corporate neighbour. The data point to a range (...) of community impacts as a result of corporate activities and unearth strong differences between ‘local’ and ‘corporate’ understandings of CSR. Based on the perceived shortcomings of an economically underpinned CSR approach, we question the possibility of meeting local needs by means of economic efficiency. Calls are made for critical reflection on the key assumptions underlying dominant CSR theory and consideration is given to questions of guidance for CSR practitioners. (shrink)

This paper critiques dominant corporate social responsibility (CSR) theory, which claims that commercial and social goals overlap and coincide. It is suggested that this uncritical portrayal and treatment of complex industry–community relations risks neglecting the potential tensions that may arise should these goals diverge or be in conflict. In this context, the experiences of residents in a small Western Australian town are presented to describe a long-running conflict between community members and their corporate neighbour. The data point to a range (...) of community impacts as a result of corporate activities and unearth strong differences between ‘local’ and ‘corporate’ understandings of CSR. Based on the perceived shortcomings of an economically underpinned CSR approach, we question the possibility of meeting local needs by means of economic efficiency. Calls are made for critical reflection on the key assumptions underlying dominant CSR theory and consideration is given to questions of guidance for CSR practitioners. (shrink)

Understanding firms' interfaces with the community has become a familiar strategic concern for both firms and non-profit organizations. However, it is still not clear when different community engagement strategies are appropriate or how such strategies might benefit the firm and community. In this review, we examine when, how and why firms benefit from community engagement strategies through a systematic review of over 200 academic and practitioner knowledge sources on the antecedents and consequences of community engagement strategy. We analytically describe evidence (...) on the rise of the community engagement strategy literature over time, its geographical spread and methodological evolution. A foundational concept underlying many studies is the ' continuum of community engagement'. We build on this continuum to develop a typology of three engagement strategies: transactional, transitional and transformational engagement. By identifying the antecedents and outcomes of the three strategies, we find that the payoffs from engagement are largely longer-term enhanced firm legitimacy, rather than immediate cost-benefit improvements. We use our systematic review to draw implications for future research and managerial practice. (shrink)

Recent calls in the corporate social reporting (CSRep) literature have emphasized the importance of giving voice to non-managerial stakeholder groups in the social reporting process. The research, presented in this paper, employs recent work in stakeholder theory and CSRep to examine the perceptions of a diverse set of non-managerial stakeholders in the context of a developing country, Bangladesh. A series of semistructured interviews were conducted with individuals who identify with various non-managerial stakeholder groups. Interviewees generally believed that the motivation and (...) practice of CSRep in Bangladesh is developing in response to pressures from international markets and is producing largely cosmetic responses. Also, they expressed concerns that, given the economic, political, and social conditions in Bangladesh, premature adoption of strict CSRep standards may lead to increased corruption and other unintended consequences. Whilst some of the interviewees sharply criticized the current process of imposing social accounting codes/standards on developing countries which fail to consider the important local socio-economic context, the findings suggest that there is overwhelming support for mandatory externally verified CSRep based on the principles of peoples' right to know, full disclosure/completeness, and relevance, which are anchored in the broader principles of transparency and stakeholder accountability. (shrink)

Recent calls in the corporate social reporting literature have emphasized the importance of giving voice to non-managerial stakeholder groups in the social reporting process. The research, presented in this paper, employs recent work in stakeholder theory and CSRep to examine the perceptions of a diverse set of non-managerial stakeholders in the context of a developing country, Bangladesh. A series of semi-structured interviews were conducted with individuals who identify with various non-managerial stakeholder groups. Interviewees generally believed that the motivation and practice (...) of CSRep in Bangladesh is developing in response to pressures from international markets and is producing largely cosmetic responses. Also, they expressed concerns that, given the economic, political, and social conditions in Bangladesh, premature adoption of strict CSRep standards may lead to increased corruption and other unintended consequences. Whilst some of the interviewees sharply criticized the current process of imposing social accounting codes/standards on developing countries which fail to consider the important local socio-economic context, the findings suggest that there is overwhelming support for mandatory externally verified CSRep based on the principles of peoples’ right to know, full disclosure/completeness, and relevance, which are anchored in the broader principles of transparency and stakeholder accountability. (shrink)

There is a large body of literature that examines different dimensions of corporate social responsibility (CSR) in Africa, with many focusing on the false promises of these corporate initiatives. Contrary to simplistic claims of CSR being merely window-dressing, however, this paper reveals that although several rhetorical proclamations underpin the idea, such statements are often given instrumental meaning through diverse mechanisms (e.g., interpretation of cues toward the proactive (re)construction of identity, (inter)subjective discourses on social legitimacy, and acts of “issue selling”) that (...) help to enact particular characteristics of the corporation. The paper specifically employs the organizational concepts of sensemaking and sensegiving to explain how, through CSR activities, hydrocarbon companies in Ghana construct and (re)affirm a particular reality for its stakeholders. The findings suggest that by having significant leverage over the (re)construction of its identity and claims around social legitimacy and performance, the corporation gives sense to and further sustains its authority over societal norms and expectations around what social responsibility entails. The evidence presented contributes to scholarship that considers the corporation as a complex nexus of multiple relations, contested narratives, and practices. (shrink)