In this article, I propose a business paradigm that allows and enables the integration of environmental ethics into business decisions while creating a competitive advantage through the use of an ethical framework based on classical American pragmatism. Environmental ethics could be useful as an alternative paradigm for business ethics by offering new perspectives and methodologies to grant consideration of the natural environment. An approach based on classical American pragmatism provides a superior framework for businesses by focusing on experimentation and innovation, (...) driving a long-term focus, and providing actionable clarity. Under a pragmatic approach to ethics, the choice for sustainability becomes self-evident for business performance and moral reasons. (shrink)

This article examines the conceptualisation of corporate social responsibility (CSR) in the context of mining multinationals (MNCs) in Argentina. It explores the suitability of CSR for addressing social, environmental and economic issues associated with mining in the country. The study is based on interviews with four stakeholder groups in the country: government, civil society, international financial organisations, and mining industry. These are analysed using content and interpretative techniques and supplemented by the content analysis of secondary data from headquarters of mining (...) MNCs. Using the concept of corporate social responsibility orientation (CSRO), the study contrasts the perceptions of major stakeholders and examines adaptation of mining companies’ CSRO to local context. It reveals that the CSRO of mining managers in Argentina differs from CSRO developed by global headquarters; and in Argentina companies “negotiate” economic, environmental and legal dimensions of CSR with the government. Although companies “negotiate” philanthropic responsibilities with the communities, ethical responsibilities are defined by the headquarters and not negotiated locally. The analysis suggests that environmental duties are the critical element of CSR in the mining sector in Argentina. This study treats environment as a separate dimension of corporate responsibility defined as to do “what is safe for the environment”. (shrink)

This article presents a framework intended to provide pension funds with practical guidance for the successful implementation of a sustainable investing strategy. The framework is developed with respect to the UK and US pension funds (as these share certain common legal characteristics) and focuses on the changes that pension funds adopting such a strategy should make to their investment strategies and governance (particularly through the formulation and articulation of clear investment mission and strong investment beliefs). The article proceeds with a (...) review of socially responsible investment (SRI) and more recent responsible investment (RI) literature, in the context of growing public awareness (but not necessarily understanding) of the concept of sustainability ("Literature review of SRI field: SRI, RI and sustainable investing" section). It then examines the literature on pension fund governance, arguing the need for more detailed practical guidance for funds moving towards sustainable investing, especially for those implementing a sustainable investing strategy ("Anglo-American pension fund governance" section). It presents the framework for the practical implementation of sustainable investing in the "Sustainable investing framework" section. Finally, we review the relevant Anglo-American legal backdrop, outlining how pension funds adopting our framework should approach their fiduciary obligations, and then discussing potential regulatory enablers of sustainable investment ("Legal context: barriers to and enablers of sustainable investing" section). (shrink)

This article gives a practice-based and theoretical overview of the transformation from a traditional hierarchical organization in the care and cure sector towards a so-called Community-driven organization providing human happiness to 6000 elderly people. The actual case study is intertwined with conceptual information for better understanding of the innovative transition which took place at Humanitas. The case description includes its initial situation, its new core values, mission and objectives and shows the sequence of emerging policies and interventions that resulted in (...) a stakeholder oriented business model for the care sector. The selected concepts are Graves'' Emerging Cyclical Level of Existence Theory (or Spiral Dynamics), Ken Wilber''s Four Quadrant Model, Roberts Simons'' Four Levers of Control and various elements from the European Corporate Sustainability Framework sponsored by the European Commission. The conclusion marks the match between theory and practice in transforming Humanitas Rotterdam into providing cure, care, housing and well-being to elderly people. (shrink)

How can firms support their customers' collaborative, social responsibility initiatives — and especially pro-environmental, firm—customer collaborations? Does corporate transparency affect customers' willingness to undertake pro-environmental collaborative programs? This study addresses these questions in relation to the US residential electricity market. It focuses on the impact of customers' perceptions of the utility's degree of transparency and on the willingness to engage in proenvironmental behavior related to electricity consumption. The responses of 1257 interviewees from US households to questions related to their electricity (...) suppliers are analyzed through structural equation models (SEMs) using latent variables. Results show that customers' perceptions of an electricity utility's transparency affect their willingness to collaborate in environmental programs, and that the degree of perceived transparency of the utility is related to customers' environmental awareness. (shrink)

Owing to the growing academic and practitioner’s interest in the field of Corporate Social Responsibility, there is a need to do a comprehensive assessment and synthesis of research activities. This article addresses this need and examines the academic literature on Corporate Social Responsibility and Performance using a paradigmatic and methodological lens. The objective of this article is fourfold. First, it examines the status of CSR research from its beginning especially after 1970 to year 2008 in leading academic journals and reports (...) to assess the focus areas of research on CSR so far. Second, it analyzes the research paradigms adopted in these research articles using the Operations Research Paradigm framework. Third, it compares and contrasts various kinds of research articles, methodologies, and research designs used in various researches in literature. Finally, it uncovers the implications of this study and directions for future research. (shrink)

This article advances the idea that shareholders who seek to influence corporate behaviour can be understood analytically as norm entrepreneurs. These are actors who seek to persuade others to adopt a new standard of appropriateness. The article thus goes beyond studies which focus on the influence of shareholder activism on single instances of corporate conduct, as it recognises shareholders' potential as change agents for more widely shared norms about corporate responsibilities. The article includes the empirical example of US internet technology (...) companies who, in their Chinese operations, face conflicts of norm systems in regard to freedom of expression on the internet. Shareholders have been active in seeking to persuade these companies to adopt a norm of adhering to global standards for human rights over restrictions implied by authoritarian regimes to which they deliver services. (shrink)

Corporate social responsibility (CSR) is an area of great interest, yet little is known about how CSR is perceived and practiced in the professional sport industry. This study employs a mixed-methods approach, including a survey, and a qualitative content analysis of responses to open-ended questions, to explore how professional sport executives define CSR, and what priorities teams have regarding their CSR activities. Findings from this study indicate that sport executives placed different emphases on elements of CSR including a focus on (...) philanthropic activities and ethical behaviors. The data suggest that professional sport executives view CSR as a strategic imperative for their business. Sport executives indicated that a number of factors influenced the practice of their CSR including: philanthropy (altruistic giving), an emphasis on the local community, partnerships, and ethical concerns. We also examine important organizational variables for sport (winning, revenues, and team value) and highlight their relationship with reported CSR involvement. We discuss the implications of the findings and propose recommendations for both theory and practice. (shrink)

The purpose of this paper is to explore corporate perspectives on the development and use of sustainability reports. Interviews with experts from 35 Canadian corporations were conducted. The research showed that the content of the reports was determined by following standards, conducting an internal evaluation, and other methods. Five corporations were found to develop fully integrated reports, while another 15 included some sustainability aspects in their annual reports. The extent of external stakeholder involvement in the development of the report varied (...) widely, but the majority of the corporations considered stakeholder input. Data collection was handled by a number of different individuals and groups, with sustainability departments often taking a lead role. Twenty-five corporations relied exclusively on internal personnel to write the report, with the remaining corporations using a combination of internal and external writers. A number of key challenges in developing sustainability reports were identified, including timelines, data collection, selecting content, and striking an appropriate balance in reporting. The reports were used internally in a number of different ways, including enhancing employee awareness and engagement and as an internal reference tool. A number of potential future uses of sustainability reports were also mentioned, such as improving the ability to track real-time performance. (shrink)

Corporate sustainability performance measurement systems (SPMS) have been the subject of a growing amount of research. However, there are many challenges and opportunities associated with the design, implementation, use, and evolution of these systems that have yet to be addressed. The purpose of this article is to identify future directions for research in the design, implementation, use, and evolution of corporate SPMS. A concise review of key literature published between 2000 and 2010 is presented. The literature review focuses on research (...) conducted at the both the individual corporation- and sector-levels. The review of published literature provides a basis for the identification of a structured set of 65 key research questions to guide future work. The research questions will be of interest to both practitioners and researchers in corporate sustainability performance measurement. (shrink)

Abstract The debate on corporate social responsibility (CSR) has been going on for decades, without leading to a clearer understanding of the term. Furthermore, the current literature on the topic remains relatively silent on the actual impact of CSR, especially the impact on issues of international development, for example poverty reduction in the Global South. By developing a conceptual assessment framework with a bipolar differentiated definition of CSR and a Sen-based notion of poverty, the article analyses the effects and impact (...) of two different types of CSR-strategies on the reduction of poverty. For this, two case studies have been conducted in Phnom Penh, Cambodia. The results imply that CSR measures which are built into the core business of a company (both transnational companies and small/medium sized companies) have larger effects on poverty than CSR measures which are located outside of the core business activities. Content Type Journal Article Pages 1-33 DOI 10.1007/s13520-012-0016-6 Authors Maike J. Schölmerich, Institute for Development and Peace, University of Duisburg-Essen, Duisburg, Germany Journal Asian Journal of Business Ethics Online ISSN 2210-6731 Print ISSN 2210-6723. (shrink)

This article revolves around the debate surrounding the lack of a coherent definition for corporate social responsibility (CSR). I make use of Jacques Derrida’s theorizing on contested meaning to argue that CSR’s ambiguity is actually necessary in light of its functional role as a “supplement” to corporate profit-seeking. As a discourse that refuses to conclusively resolve the tension between profit-seeking and prosociality, CSR expresses an important critical perspective which demands that firms act responsibly, while retaining the overall corporate frame of (...) shareholder supremacy. CSR does this by ambivalently affirming both profit-seeking and prosociality, a necessary contradiction. Attempts to reduce CSR’s ambiguity can thus only succeed by undermining its viability as a normative discourse that captures how certain elements of society understand how firms should act. The analysis suggests that greater scholarly attention is needed with regard to the material discursive environments within which discourses such as CSR are deployed. A discursive approach to research could thus benefit future practitioners, who have to act according to fluid standards of responsibility that cannot be authoritatively defined, but which can be better understood than they are at present. (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 study examines the direct impact of three dimensions of the institutional environment on managerial attitudes toward the natural environment and the direct influence of the latter on the environmental sustainability orientation (ESO) of small firms. We contend that when the institutional environment is perceived by owner–managers as supportive of sound natural environment management practices, they are more likely to develop a positive attitude toward natural environment issues and concerns. Such owner–manager attitudes are likely to lead to a positive and (...) proactive orientation of their firms toward environmental sustainability. The study uses survey data from 166 small manufacturing firms located in three Philippine cities. First, the study develops and tests the measurement models to examine the validity of the constructs representing the firm’s institutional environment, managerial attitudes toward the natural environment and the ESO of firms. Second, the study develops and tests the structural models examining the institutional environment–managerial attitudes–ESO linkages. Multi-sample invariance structural model analysis shows the mediating role of managerial attitudes in the institutional environment–ESO nexus. The findings show that ESO is a construct comprising three dimensions: knowledge of environmental issues, sustainable practices and commitment toward environmental sustainability. The cognitive, regulatory and normative elements of the institutional environment are strongly linked to positive managerial attitudes toward environmental sustainability, which in turn, positively influences the firm’s overall ESO. Managerial attitudes play a mediating role in the institutional environment–ESO linkages. The managerial, practical, research and policy implications of the research findings are discussed. (shrink)

Although research on the corporate social responsibility (CSR) dimension of corporate image has notably increased in recent years, the definition and measurement of the concept for academic purposes still concern researchers. In this article, literature regarding the measurement of CSR image from a customer viewpoint is revised and areas of improvement are identified. A multistage method is implemented to develop and to validate a reliable scale based on stakeholder theory. Results demonstrate the reliability and validity of this new scale for (...) measuring customer perceptions regarding the CSR performance of their service providers. With regard to this, CSR includes corporate responsibilities towards customers, shareholders, employees and society. The scale is consistent among diverse customer cohorts with different gender, age and level of education. Furthermore, results also confirm the applicability of this new scale to structural equation modelling. (shrink)

Corporate social responsibility (CSR) has become indispensable in modern business discourse; yet identifying and defining what CSR means is open to contest. Although such contestation is not uncommon with concepts found in the social sciences, for CSR it presents some difficulty for theoretical and empirical analysis, especially with regards to verifying that diverse application of the concept is consistent or concomitant. On the other hand, it seems unfeasible that the diversity of issues addressed under the CSR umbrella would yield to (...) a singular universal definition. Gallie, an eminent philosophical scholar, proposed the essentially contested concepts (ECC) theory in 1956 to address concepts that by their very nature engender perpetual disputes. He pointed out that there are certain concepts which by their very nature are inevitably contested and prescribed seven criteria for evaluating such concepts. This article examines these criteria to discover if CSR is an essentially contested concept and in that case, to construe if such a change in perception will resolve the definitional crisis. The analysis suggests that CSR is an ECC and this explains the potential for several conceptions of CSR, however, it does not totally obviate the need for a definition of its core or common reference point, if only to ensure that the contestants are dealing with an identical subject matter. (shrink)

This paper seeks to analyse small- and medium-sized enterprise (SME) managers' representations of corporate social responsibility (CSR) and CSR communication in a corporate communication perspective. The basic question is: how strategic is CSR communication in SMEs? Corporate communication and CSR theories are used to establish an ideal typology of CSR concepts informing an analysis of qualitative data in the form of interviews with three middle managers in two Danish SMEs. A CSR communication model published earlier by the authors is challenged (...) from a SME perspective. Results from an Internet-based questionnaire survey of 1071 SMEs pave the way for the analysis. Our analysis shows that SME managers clearly have an inside-out approach to CSR, with a strong emphasis on the internal (corporate culture) dimension. However, SMEs and/or SME managers tend not to communicate externally about the CSR activities of the company. Based on these findings, the paper argues that CSR communication in SMEs is challenged by the global economy and is under revision. The contribution of the paper is to provide an insight into SMEs' present stage in relation to a possible future approach to strategic CSR communication. The paper also reminds us that SMEs have no interest in turning their local and authentic practice into a forced marketing and branding exercise, leaving them with an artificial picture of who they are and strive to be in the future. They should keep on acting locally but force themselves to think globally. (shrink)

There is a growing body of research on the theory and practice of sustainable supply chain management (SSCM). However, relatively little research has been conducted on the extent to which corporations have integrated sustainability principles into the management of their supply chain and the evaluation of supplier performance. The purpose of this article is to explore the extent to which corporate sustainability principles are integrated into supply chain management (SCM) in corporations. Canada is used as a case study in this (...) article. The study included a content analysis of one hundred Canadian corporate sustainable development reports and in-depth interviews with 18 Canadian experts on SSCM. The article highlights the wide array of ways in which Canadian corporations address SSCM issues. Amongst other topics, issues associated with supply chain governance, standards for SSCM, collaboration with suppliers, performance measurement, and accountability within the supply chain are explored. The findings reveal that there are many challenges in integrating sustainability into SCM. These challenges shed light on possible future directions for research in SSCM. This article underlines the need for research that reflects the interconnected nature of the economic, environmental, and social dimensions of sustainability, particularly as it relates to measuring supplier performance on sustainability initiatives. (shrink)

This article investigates the development of research in the field of CSR in China. The justification for this is that (i) there is evidence that CSR is emerging as a management practice and management field internationally; (ii) there is a general interest in the distinctiveness or comparability of management and management research in Asia and China; (iii) there is evidence that CSR is growing as a management issue in China; and (iv) yet, the mainsprings of this are very different from (...) those in Western business systems. This article adopts a methodology used in wider analysis of CSR in management research (Lockett et al., Journal of Management Studies 43, 2006, 115) to bring forth comparisons over the salience, focus and nature of CSR in China research. It finds a rapidly growing salience of CSR in China research, albeit from a low base. It parallels Lockett et al.'s (2006) finding of a 'thickening' of CSR research focus from early concerns with Ethical issues only to greater attention to Social, Environmental and Stakeholder concerns. It also generally parallels Lockett et al.'s (2006) findings on the balance of research methodologies deployed. The significance of the findings for future CSR research in China is considered both for the notion of a CSR field of research and for our understanding of the development of CSR in China. (shrink)

This paper offers a critique of sustainability reporting and, in particular, a critique of the modern disconnect between the practice of sustainability reporting and what we consider to be the urgent issue of our era: sustaining the life-supporting ecological systems on which humanity and other species depend. Tracing the history of such reporting developments, we identify and isolate the concept of the ‘triple bottom line’ (TBL) as a core and dominant idea that continues to pervade business reporting, and business engagement (...) with sustainability. Incorporating an entity’s economic, environmental and social performance indicators into its management and reporting processes, we argue, has become synonymous with corporate sustainability; in the process, concern for ecology has become sidelined. Moreover, this process has become reinforced and institutionalised through SustainAbility’s biennial benchmarking reports, KPMG’s triennial surveys of practice, initiatives by the accountancy profession and, particularly, the Global Reporting Initiative (GRI)’s sustainability reporting guidelines. We argue that the TBL and the GRI are insufficient conditions for organizations contributing to the sustaining of the Earth’s ecology. Paradoxically, they may reinforce business-as-usual and greater levels of un-sustainability. (shrink)

Despite recognizing the importance of developing authentic corporate social responsibility (CSR) programs, noticeably absent from the literature is consideration for how employees distinguish between authentic and inauthentic CSR programs. This is somewhat surprising given that employees are essentially the face of their organization and are largely expected to act as ambassadors for the organization’s CSR program (Collier and Esteban in Bus Ethics 16:19–33, 2007 ). The current research, by conducting depth interviews with employees, builds a better understanding of how employees (...) differentiate between authentic and inauthentic CSR programs, and how these judgments influence their perceptions of the organization. We find that employees rely on two different referent standards to form authenticity judgments—the extent to which the image put forth in the CSR program aligns with the organization’s true identity and the extent to which the CSR program itself is developmental. To assess the former, employees draw on cues about resource commitment, alignment between elements of the organization’s CSR program, emotional engagement, justice, and embeddedness. The latter assessments are based on the extent to which the organization adopts a leadership role with regards to its CSR initiatives. We also find that perceived authenticity can lead to positive outcomes such as organizational identification and employee connections. This study contributes to the broad literatures on both CSR and authenticity, as well as more specifically adding to the conversation on authenticity as a potentially valuable lens for enriching business ethics theorizing. (shrink)

The European Corporate Sustainability Framework (ECSF) is, among other concepts, based on a phase-wise development approach as described by Clare Graves' Levels of Existence Theory. As much as corporate sustainability has a sequence of adequate interpretations, aligned with each development level, also the notion of business excellence can be defined at multiple levels, as this paper demonstrates. Furthermore, the authors analyze the current EFQM Excellence Model for particular biases towards various development levels and suggest a new and innovative two-step approach (...) to assessing organizational performance with respect to organizational excellence (OE) and corporate sustainability. According to the organization's ambition, the assessment is either limited to a shareholder approach, mainly focusing at optimal usage of resources, or it also includes an additional assessment format based on the stakeholder approach, with specific reference to the organization's performance on the financial, social and ecological bottom line. This paper demonstrates the need and feasibility of an EFQM-Based assessment tool with a combined focus on corporate sustainability and OE. (shrink)

While tourism's positive contributions to societies have long been debated, commerce based tourism activities can strengthen peaceful societies by adhering to sustainable tourism principles. This study utilizes content analysis to examine 136 tourism practices from four major awards programs for their contributions to sustainability and peace. Specific practices which illuminate each of these contributions are highlighted. The findings reveal the most common initiatives focus on environmental quality, economic development, and community nourishment efforts, with substantially less focus on initiatives to engage (...) citizen diplomacy and increase transparency. The use of awards programs to further sustainable tourism is discussed, and suggestions for future research in this important area of study are shared. (shrink)

The lack of consensus in stating what Corporate Social Responsibility (CSR) exactly means has led some people to argue that the concept is too vague to offer guidance, while others suggest forgetting about theorising and instead focusing entirely on the development of practical applications such as codes of conduct, standards and reporting initiatives. This article argues that the discussion on CSR as a whole has reached this impasse because it ignores two major underlying problems. First, the fact that CSR is (...) an ideological notion: the definition and use of ‘CSR’ depends on the moral and practical views of the people and organisations involved. Secondly, the debate on CSR lacks a thorough discussion about the nature and role of the firm, the main actor when it comes to accepting and implementing CSR. After explaining our standpoint, this article winds up with the implications of this reframing for the CSR debate, for the efforts to define it and for the efforts to apply it. (shrink)

There is a distinct lack of research into the relationship between corporate governance and corporate social responsibility (CSR) in the banking sector. This paper fills the gap in the literature by examining the impact of corporate governance, with particular reference to the role of board of directors, on the quality of CSR disclosure in US listed banks’ annual reports after the US sub-prime mortgage crisis. Using a sample of large US commercial banks for the period 2009–2011 and controlling for audit (...) committee characteristics, board meeting frequency, and banks’ profitability, size and risk, we find evidence that board independence and board size, the two board characteristics usually associated with the protection of shareholder interests, are positively related to CSR disclosure. This indicates that, with regard to CSR disclosure, more independent boards of directors and larger boards are the internal corporate governance mechanisms which promote both shareholders’ and other stakeholders’ interests. Contrary to our expectations, CEO duality also impacts positively on CSR disclosure. From an agency-theoretical viewpoint, this suggests that powerful CEOs may promote transparency about banks’ CSR activities for their private benefits. While this could indicate that powerful CEOs are under particular pressure to appease stakeholders’ concerns that they might abuse their power by providing a high degree of CSR disclosure, it could also be a sign of managerial risk aversion or managers’ private reputational concerns. (shrink)

The notion of “responsible luxury” may appear as a contradiction in terms. This article investigates the influence of two defining characteristics of luxury products—scarcity and ephemerality—on consumers’ perception of the fit between luxury and corporate social responsibility (CSR), as well as how this perceived fit affects consumers’ attitudes toward luxury products. A field experiment reveals that ephemerality moderates the positive impact of scarcity on consumers’ perception of fit between luxury and CSR. When luxury products are enduring (e.g., jewelry), a scarce (...) product is perceived as more socially responsible than a more widely available one and provokes positive attitudes. However, this effect does not appear for ephemeral luxury products (e.g., clothing). The perceived fit between luxury and CSR mediates the combined effects of scarcity and ephemerality on consumers’ attitudes toward luxury products. This study provides valuable insights that luxury brand managers can use to design their CSR and marketing strategies. (shrink)

This article examines the ethical framing of employment in contemporary human resource management (HRM). Using Axel Honneth's theory of recognition and classical critical notions of reification, I contrast recognition and reifying stances on labor. The recognition approach embeds work in its emotive and social particularity, positively affirming the basic dignity of social actors. Reifying views, by contrast, exhibit a forgetfulness of recognition, removing action from its existential and social moorings, and imagining workers as bundles of discrete resources or capacities. After (...) discussing why reification is a problem, I stress that recognition and reification embody different ethical standpoints with regards to organizational practices. Thus, I argue paradoxically that many current HRM best practices can be maintained while cultivating an attitude of recognition. If reification is a type of forgetting, cultivating a recognition attitude involves processes of "remembering" to foster work relations that reinforce employee dignity. (shrink)

Appropriate enablers are essential for management of intellectual capital. Through the use of structural equation modeling, we investigate whether organic renewal environments, interactive behaviors, and trust are conducive to intellectual capital management processes, as they each depend upon the establishment of a climate emphasizing mutual respect. Owing to a lack of clarity in the literature, we tested the ordering of the variables and found statistical significance for two ordering alternatives. However, the sequence presented in this article provides the best statistical (...) fit: an organic renewal environment provides a foundation for interactive behaviors, which leads to trust, and thus is consistent with the development of intellectual capital management pro- cesses within the organization. (shrink)

The present paper explores, theoretically, and empirically, whether compliance with the International Code of marketing of breast-milk substitutes impacts on financial performance measured by stock markets. The empirical analysis, which considers a 20-year period, shows that stock markets are indifferent to the level of compliance by manufacturers with the International Code. Two important issues emerge from this result. Based on our finding that financial performance as measured by stock markets cannot explain the level of compliance, the first issue refers to (...) what alternative types of mechanisms drive manufacturers who comply the least with voluntary codes such as the International Code. Conversely, from our finding that stock markets do not reward the most compliant, the second issue raised is an inherent weakness of stock markets to fully incorporate social and environmental values. (shrink)

This research, couched in the resourcebased view of the firm, investigates the potential for reducing an organization's decision uncertainty within its structural equation modeling, we empirically test if organizational design can reduce the perceived uncertainty related to an IC context, which we refer to as knowledge uncertainty. We found evidence that decentralization and technology infrastruture support a resultsbased IC mangement contrl system which in turn is associated with reduced support a good overall fit for our model. Our findings suggest that (...) if managers structure their organizational control systems appropriately for developing IC capabilities, these systems can lead to reduced internal uncertainty regarding human, structural, and relational capital. (shrink)

Socially responsible business and ethical behaviour of companies have been of interest to academia and practice for decades. But the focus has almost exclusively been on large corporations while small- and medium-sized enterprises (SME) have not received as much attention. Thus, this paper focuses on socially responsible business practices of SME entrepreneurs or owner–managers in Germany. Based on the assumption that decision-makers in SMEs are the central point where all business activities start, members of a German entrepreneurs association were approached (...) in the course of a qualitative and quantitative survey. They were asked to assess in what way their social responsibility is expressed in specific management practices towards selected stakeholder groups. These practices in turn were assumed to result in perceived positive reactions of the respective stakeholders and subsequently to positively influence the firm's financial performance, i.e. cost reductions and increase in profits. In the paper, a research model is presented that elaborates the relationship between an SME executive's social responsibility and the value creation of a firm, i.e. whether (personal) values create (economic) value. It was found that socially responsible management practices towards employees, customers and to a lesser extent society have a positive impact on the firm and its performance. As such, values can create additional value. (shrink)

We develop a framework for understanding how lack of clarity in business press coverage of corporate social responsibility functions as a mediated and emergent form of strategic ambiguity. Many stakeholders expect CSR to exhibit clarity, consistency, and discursive closure. But stakeholders also expect CSR to conform to varying degrees of both formal and substantive rationality. These diverse expectations conflict with each other and change over time. A content analysis of press coverage in Denmark suggests that the business media reflect and (...) amplify the ambiguity generated by these shifting demands. We propose that this very public lack of discursive closure provides strategic advantages to CSR stakeholders by rendering the concept of CSR adaptable, resilient, and meaningful to diverse interests. From this perspective, strategic ambiguity emerges from a relational and mediated process, not from the direct intentions of individual stakeholders. Our framework suggests that CSR is best understood not as a clear or consistent agenda, but rather as a forum for sensemaking, diversity of opinion, and debate over the conflicting social norms and expectations attached to corporate activity. (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)

In this paper, a positive organizational ethics -based framework is informed by the microfinance and socially responsible investing movements to capture the process of sustainable financial innovations. Both of these movements are uniquely characterized by the formation of positive ethical networks to develop sustainability innovations in response to external crises. The crisis–PEN–innovation framework proposed makes four contributions to the POE literature: positions corporate sustainability through a POE lens; formalizes the PEN construction through POE theory; proposes PENs are mobilized to respond (...) to external crises; and demonstrates how PENs facilitate sustainability innovations. The theoretical framework is tested using theory-guided process tracing in the sustainable banking sector to understand how sustainability innovations were realized. The findings are consistent with the crisis–PEN–innovation framework proposed. (shrink)

Several studies have focused on the effects of corporate social responsibility fit on external stakeholders’ evaluations of CSR activities, attitudes towards companies or brands, and behaviors. The results so far have been contradictory. A possible reason may be that the concept of CSR fit is more complicated than previously assumed. Researchers suggest that there may be different types of CSR fit, but so far no empirical research has focused on a typology of CSR fit. This study fills this gap, describing (...) a qualitative content analysis of the congruence between six organizations and their various CSR activities. Ten annual reports and CSR reports were analyzed, and 102 specific CSR activities were identified. The results show that two levels of fit must be distinguished: based on the means for and the intended ends of the CSR activity. Furthermore, six different types of fit were found, focusing on products and services, production processes, environmental impact, employees, suppliers, and geographical location. Considering the above variety of fit possibilities, the findings emphasize the role of CSR communication as a means of creating fit perceptions. (shrink)

This research analyses the influence of the perception of Corporate Social Responsibility (CSR image) on consumer–company identification (C–C identification). This analysis involves an examination of the influence of CSR image on brand identity characteristics which provide consumers with an instrument to satisfy their self-definitional needs, thereby perceiving the brand as more attractive. Also, the direct and mediated influences (through their effect on brand attitude), of CSR-based C–C identification on purchase intention are analysed. The results offer empirical evidence that CSR generates (...) more C–C identification because it improves brand prestige and distinctiveness; brand coherence is also a powerful antecedent of brand attractiveness in the context of CSR communication. Finally, CSR-based C–C identification is able to generate directly better attitude towards the brand and greater purchase intention. (shrink)

This article makes first use of a set of databases that are authoritative, independent, and consistent to examine an old research question: do firms hurt their financial performance by damaging stakeholder interests? The databases are US government on-line listings of fines for environmental breaches, unsafe workplaces, fraudulent accounting standards, and product recalls. These measures are assumed to proxy for signals to stakeholders of the environmental, social, and governance (ESG) risks in transacting with the firm and appear to have fewer biases (...) than conventional measures of stakeholder standards. Using a sample of all non-financial S& P 500 firms during the most recent 1998-2003 full cycle in the market, after controlling for firm-specific differences, sales margins of firms fell by 0.8% if they announced a product recall and by 0.4% if cited by OSHA for an unsafe workplace; and shareholder return was significantly reduced by an EPA or SEC prosecution. This study links the risk of transaction uncertainty, information signaling theory, and the resource-based view of the firm to company financial performance. Results support the normative assumption that a firm's sales margin will be damaged by unethical treatment of stakeholders as evidenced by ESG breaches, presumably because risk-averse customers and suppliers are alert to signals of counterparty risk. (shrink)

This article considers the stakeholder approach (SHA) to organisational management through the lens of what it means for humans to live sustainably on the Earth (that is, for there to be a sustainable world). In particular, the article considers if the SHA, as it is presented in mainstream academic and management literature, is supportive of corporate practices that advance the achievement of a sustainable world. The analysis shows the SHA to have significant failings in this regard when viewed against key (...) sustainable world criteria, with issues of concern evident from the normative core of the SHA through to is practical application in the management setting. (shrink)

Sustainability is increasingly a matter of concern in the corporate world. Many business scholars have analyzed the phenomenon from institutional and cultural perspectives, addressing the key questions of what drives the spread of sustainability principles, and also why sustainability adoption varies so widely among organizations and cultures. In this article, we propose that sustainability adoption can be better explained by integrating the insights from the institutional and cultural perspectives. This would break the current practice of choosing one approach or the (...) other, a trend that has estranged these fields despite their obvious overlap in questions, core constructs, and theoretic arguments. We therefore introduce a model that emphasizes a dual-effect of culture—namely, culture plays a role in "norming" the proliferation of sustainability-relevant institutions, while also influencing the "conforming" to pressures for sustainability emanating from these institutions. We offer theoretic insights not only for explaining sustainability adoption but also for addressing the recognized challenge of bringing culture back into institutional theory. (shrink)

This paper represents the attempt to define a methodology that can evaluate the degree to which companies' information systems correspond to needs determined by the objectives of sustainability the firm imposes on itself. The result is the creation of a general model which define the correct approach to evaluating information systems - a model which should be adapted to the specificity of each single company which intends to adopt it. In the chart indicated, we obviously have not considered activities connected (...) to the implementation of the survey system, which are particular to each company's situation. The first part of the paper consists of an overall introduction to the approach that has been used to assess the of Granarolo, one of the Italian companies involved. The case study contains a profile of the company, the analysis of its MIS referred to the three dimensions of sustainability, and an evaluation of the strong points and issues to be developed. This approach to evaluate the gap between desired requirements of an information system for sustainability and current data available in a firm, has proved its consistency and usefulness. It helps to understand where data are, which dimensions, spheres, stakeholders account for and what is the level of integration between different information systems existing in the firm. (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)

The objective of this paper is to explore how the various stages of consciousness development of top managers can influence, in practical terms, their abilities in and commitment to environmental leadership in different types of SMEs. A case study based on 63 interviews carried out in 15 industrial SMEs showed that the organizations that displayed the most environmental management practices were mostly run by managers at a post-conventional stage of consciousness development. Conversely, the SMEs that displayed less sustainable environmental management (...) practices were all run by managers at conventional stages of development. Drawing upon diverse examples of environmental leadership, this paper analyzes the reasons why the stages of post-conventional consciousness development of top managers seem to foster corporate greening in SMEs. The study also sheds light on the key values and abilities associated with both environmental leadership and the upper-stages of consciousness development, which include a broader and systemic perspective, long-range focus, integration of conflicting goals, collaboration with stakeholders, complexity management, collaborative learning, among others. (shrink)

This study investigated whether employee perceptions of corporate social responsibility (CSR) were associated with the presence of Corporate Psychopaths in corporations. The article states that, as psychopaths are 1% of the population, it is logical to assume that every large corporation has psychopaths working within it. To differentiate these people from the common perception of psychopaths as being criminals, they have been called “Corporate Psychopaths” in this research. The article presents quantitative empirical research into the influence of Corporate Psychopaths on (...) four perceptual measures of CSR and three further measures of organizational commitment to employees. The article explains who Corporate Psychopaths are and delineates the measures of CSR and organizational commitment to employees that were used. It then outlines the research conducted among 346 corporate employees in Australia in 2008. The reliability of the instrument used is commented on favorably in terms of its statistical reliability and its face and external validity. Results of the research are described showing the highly significant and negative influence of Corporate Psychopaths on all of the measures of CSR and of organizational commitment to employees used in the research. When Corporate Psychopaths are present in leadership positions within organizations, employees are less likely to agree with views that: the organization does business in a socially desirable manner; does business in an environmentally friendly manner and that the organization does business in a way that benefits the local community. Also, when Corporate Psychopaths are present in leadership positions within organizations, employees are significantly less likely to agree that the corporation does business in a way that shows commitment to employees, significantly less likely to feel that they receive due recognition for doing a good job, to feel that their work was appreciated and to feel that their efforts were properly rewarded. The article argues that academics and researchers in the area of CSR cannot ignore the influence of individual managers. This is particularly the case when those managers have dysfunctional personalities, or are actually psychopaths. The article further argues that the existence of Corporate Psychopaths should be of interest to those involved in corporate management and corporate governance because their presence influences the way corporations are run and how corporations affect society and the environment. (shrink)

There is an unresolved paradox concerning the role of corporate social responsibility (CSR) in consumer behavior. On the one hand, consumers demand more and more CSR information from corporations. On the other hand, research indicates a considerable gap between consumers’ apparent interest in CSR and the limited role of CSR in purchase behavior. This article attempts to shed light on this paradox by drawing on qualitative data from in-depth interviews. The findings show that the evaluation of CSR initiatives is a (...) complex and hierarchically structured process, during which consumers distinguish between core, central, and peripheral factors. This article describes these factors in detail and explains the complexity of consumers’ assessment of CSR. These insights then serve as a basis for discussing the theoretical and managerial implications of the research findings. To this end, the article contributes to a better understanding of the role of CSR in consumption decisions. (shrink)

During the last decade and a half, Estonia has concentrated predominantly on economic development in its narrowest sense. Currently, the emphasis is gradually moving towards a broader approach, including an increasingly social agenda. The research question here concerns the awareness of corporate social responsibility among Estonian owners and managers. Empirical research in Estonia indicates that there has been a shift towards recognizing the importance of social responsibility, but this primarily concerns the “lower layers” of social responsibility, recognizing the importance of (...) economic responsibility and in some respects also public responsibility. Responses in interviews show a certain amount of personal initiative, but these are single examples rather than a general trend and are not enough to change the overall picture. Still, in any assessment of the current situation regarding social responsibility in Estonia, emphasis should be laid on the fact that changes are taking effect and will continue to do so. In transition economies, including Estonia, we should not overlook the fact that, at least in the early years of transition, the focus is on a rapid economic development where the social side will inevitably be left in the background and economic development will take place at the expense of social and environmental development. (shrink)