Skip to main content
SpringerLink
Log in

CSR Initiatives as Market Signals: A Review and Research Agenda

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

The purpose of this paper is to provide a basis for a systematic development of signaling theory on CSR initiatives. The paper (i) proposes signaling theory as a framework supportive of a strategic CSR approach; (ii) maps extant research on signaling through CSR initiatives; (iii) offers a comprehensive assessment of the most diffused CSR initiatives and discusses their eligibility as signaling devices; and (iv) outlines a research agenda to further develop and test signaling theory in business ethics. Specifically, the study reconsiders some key assumptions, identifies key gaps in empirical validation, and proposes directions to extend multiple signal, signaling pattern, and target cases.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

Notes

  1. Search of the EBSCO database using the terms ‘Signal*’ and ‘Ethic*’ in either the abstract or title fields. Last accessed August 3, 2014.

References

  • Ackerloff, G. (1970). The market for lemons: Quality uncertainty and the market mechanism. Quarterly Journal of Economics, 84(3), 488–500.

    Article  Google Scholar 

  • Adams, J. S., Tashchian, A., & Shore, T. H. (2001). Codes of ethics as signals for ethical behavior. Journal of Business Ethics, 29(3), 199–211.

    Article  Google Scholar 

  • Aguinis, H., & Glavas, A. (2012). What we know and don’t know about corporate social responsibility a review and research agenda. Journal of Management, 38(4), 932–968.

    Article  Google Scholar 

  • Aiken, K. D., & Boush, D. M. (2006). Trustmarks, objective-source ratings, and implied investments in advertising: Investigating online trust and the context-specific nature of internet signals. Journal of the Academy of Marketing Science, 34(3), 308–323.

    Article  Google Scholar 

  • Albertini, E. (2014). A descriptive analysis of environmental disclosure: A longitudinal study of French companies. Journal of Business Ethics, 121(2), 233–254.

    Article  Google Scholar 

  • Albinger, H. S., & Freeman, S. J. (2000). Corporate social performance and attractiveness as an employer to different job seeking populations. Journal of Business Ethics, 28(3), 243–253.

    Article  Google Scholar 

  • Albrecht, J. W. (1981). A procedure for testing the signalling hypothesis. Journal of Public Economics, 15(1), 123–132.

    Article  Google Scholar 

  • Allen, F., & Faulhaber, G. R. (1989). Signaling by underpricing in the ipo market. Journal of Financial Economics, 23(2), 303–323.

    Article  Google Scholar 

  • Ambarish, R., John, K., & Williams, J. (1987). Efficient signalling with dividends and investments. Journal of Finance, 42(2), 321–343.

    Article  Google Scholar 

  • Aras, G., & Crowther, D. (2009). Corporate sustainability reporting: A study in disingenuity? Journal of Business Ethics, 87, 279–288.

    Article  Google Scholar 

  • Arkes, J. (1999). What do educational credentials signal and why do employers value credentials? Economics of Education Review, 18(1), 133–141.

    Article  Google Scholar 

  • Autry, C. W., & Golicic, S. L. (2010). Evaluating buyer–supplier relationship–performance spirals: A longitudinal study. Journal of Operations Management, 28(2), 87–100.

    Article  Google Scholar 

  • Backes-Gellner, U., & Tuor, S. N. (2010). Avoiding labor shortages by employer signaling: on the importance of good work climate and labor relations. Industrial and Labor Relations Review, 63(2), 271–286.

    Article  Google Scholar 

  • Bagwell, K., & Ramey, G. (1990). Advertising and pricing to deter or accommodate entry when demand is unknown. International Journal of Industrial Organization, 8(1), 93–113.

    Article  Google Scholar 

  • Bagwell, K., & Riordan, M. H. (1991). High and declining prices signal product quality. American Economic Review, 81(1), 224–239.

    Google Scholar 

  • Bansal, P., & Clelland, I. (2004). Talking trash: Legitimacy, impression management, and unsystematic risk in the context of the natural environment. Academy of Management Journal, 47(1), 93–103.

    Article  Google Scholar 

  • Bansal, P., & Hunter, T. (2003). Strategic explanations for the early adoption of ISO 14001. Journal of Business Ethics, 46(3), 289–299.

    Article  Google Scholar 

  • Barnett, M. L. (2007). Stakeholder influence capacity and the variability of financial returns to corporate social responsibility. Academy of Management Review, 32(3), 794–816.

    Article  Google Scholar 

  • Baron, D. P. (2001). Private politics, corporate social responsibility, and integrated strategy. Journal of Economics & Management Strategy, 10(1), 7–45.

    Article  Google Scholar 

  • Basdeo, D. K., Smith, K. G., Grimm, C. M., Rindova, V. P., & Derfus, P. J. (2006). The impact of market actions on firm reputation. Strategic Management Journal, 27(12), 1205–1219.

    Article  Google Scholar 

  • Basuroy, S., Desai, K. K., & Talukdar, D. (2006). An empirical investigation of signaling in the motion picture industry. Journal of Marketing Research (JMR), 43(2), 287–295.

    Article  Google Scholar 

  • Bedard, J., Coulombe, D., & Courteau, L. (2008). Audit committee, underpricing of IPOs, and accuracy of management earnings forecasts. Corporate Governance—An International Review, 16(6), 519–535.

    Article  Google Scholar 

  • Bell, R. G., Moore, C. B., & Filatotchev, I. (2012). Strategic and institutional effects on foreign IPO performance: Examining the impact of country of origin, corporate governance, and host country effects. Journal of Business Venturing, 27(2), 197–216.

    Article  Google Scholar 

  • Berman, S. L., Wicks, A. C., Kotha, S., & Jones, T. M. (1999). Does stakeholder orientation matter? The relationship between stakeholder management models and firm financial performance. Academy of Management Journal, 42(5), 488–506.

    Article  Google Scholar 

  • Bondy, K., Matten, D., & Moon, J. (2004). The adoption of voluntary codes of conduct in MNCs: A three-country comparative study. Business and Society Review, 109(4), 449–477.

    Article  Google Scholar 

  • Boyd, B. K., Bergh, D. D., & Ketchen, D. J. (2010). Reconsidering the reputation—performance relationship: A resource-based view. Journal of Management, 36(3), 588–609.

    Article  Google Scholar 

  • Branco, M. C., & Rodrigues, L. L. (2006). Corporate social responsibility and resource-based perspectives. Journal of Business Ethics, 69(2), 111–132.

    Article  Google Scholar 

  • Brenner, S. N., & Molander, E. A. (1977). Is the ethics of business changing? Harvard Business Review, 55(1), 57–71.

    Google Scholar 

  • Brown, J. A., Buchholtz, A., Stewart, M., & Dennis, B. 2012. Board Diversity as a Camouflage Signal. Paper presented at the Academy of Management Proceedings.

  • Buckley, M. R., Beu, D. S., Frink, D. D., Howard, J. L., Berkson, H., Mobbs, T. A., & Ferris, G. R. (2001). Ethical issues in human resources systems. Human resource management review, 11(1), 11–29.

    Article  Google Scholar 

  • Burke, L., & Logsdon, J. M. (1996). How corporate social responsibility pays off. Long Range Planning, 29(4), 495–502.

    Article  Google Scholar 

  • Buysse, K., & Verbeke, A. (2003). Proactive environmental strategies: A stakeholder management perspective. Strategic Management Journal, 24(5), 453–470.

    Article  Google Scholar 

  • Calantone, R. J., & Schatzel, K. E. (2000). Strategic foretelling: Communication-based antecedents of a firm’s propensity to preannounce. Journal of Marketing, 64(1), 17–30.

    Article  Google Scholar 

  • Campbell, J. L. (2007). Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility. Academy of Management Review, 32(3), 946–967.

    Article  Google Scholar 

  • Carroll, A. B. (1991). The pyramid of corporate social responsibility: toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39–48.

    Article  Google Scholar 

  • Carroll, A., & Buchholtz, A. (2014). Business and society: Ethics, sustainability, and stakeholder management. Boston: Cengage Learning.

    Google Scholar 

  • Carson, T. L. (2003). Self-interest and business ethics: Some lessons of the recent corporate scandals. Journal of Business Ethics, 43(4), 389–394.

    Article  Google Scholar 

  • Carter, R., & Manaster, S. (1990). Initial public offerings and underwriter reputation. The Journal of Finance, 45(4), 1045–1067.

    Article  Google Scholar 

  • Certo, S. T. (2003). Influencing initial public offering investors with prestige: Signaling with board structures. Academy of Management Review, 28(3), 432–446.

    Google Scholar 

  • Chang, C. J., & Yen, S.-H. (2007). The effects of moral development and adverse selection conditions on managers’ project continuance decisions: A study in the Pacific-Rim region. Journal of Business Ethics, 76(3), 347–360.

    Article  Google Scholar 

  • Chapple, W., & Moon, J. (2005). Corporate social responsibility (CSR) in asia a seven-country study of CSR web site reporting. Business and Society, 44(4), 415–441.

    Article  Google Scholar 

  • Chatterji, A. K., & Toffel, M. W. (2010). How firms respond to being rated. Strategic Management Journal, 31(9), 917–945.

    Google Scholar 

  • Chavez, G. A., Wiggins, R. A, I. I. I., & Yolas, M. (2001). The impact of membership in the ethics officer association. Journal of Business Ethics, 34(1), 39–56.

    Article  Google Scholar 

  • Christmann, P., & Taylor, G. (2006). Firm self-regulation through international certifiable standards: Determinants of symbolic versus substantive implementation. Journal of International Business Studies, 37(6), 863–878.

    Article  Google Scholar 

  • Chu, W., & Chu, W. (1994). Signaling quality by selling through a reputable retailer: An example of renting the reputation of another agent. Marketing Science, 13(2), 177–189.

    Article  Google Scholar 

  • Clark, A. E., Kristensen, N., & Westergård-Nielsen, N. (2009). Job satisfaction and co-worker wages: Status or signal?*. The Economic Journal, 119(536), 430–447.

    Article  Google Scholar 

  • Clarkson, M. E. (1995). A stakeholder framework for analyzing and evaluating corporate social performance. Academy of Management Review, 20(1), 92–117.

    Google Scholar 

  • Cohen, B. D., & Dean, T. J. (2005). Information asymmetry and investor valuation of IPOs: Top management team legitimacy as a capital market signal. Strategic Management Journal, 26(7), 683–690.

    Article  Google Scholar 

  • Colwell, S. R., Zyphur, M. J., & Schminke, M. (2011). When does ethical code enforcement matter in the inter-organizational context? The moderating role of switching costs. Journal of Business Ethics, 104(1), 47–58.

    Article  Google Scholar 

  • Connelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2011). Signaling theory: A review and assessment. Journal of Management, 37(1), 39–67.

    Article  Google Scholar 

  • Craig, R., Mortensen, T., & Iyer, S. (2013). Exploring top management language for signals of possible deception: the words of Satyam’s Chair Ramalinga Raju. Journal of Business Ethics, 113(2), 333–347.

    Article  Google Scholar 

  • Daughety, A. F., & Reinganum, J. F. (2008). Imperfect competition and quality signalling. The Rand Journal of Economics, 39(1), 163–183.

    Article  Google Scholar 

  • Davidson, W. N., & Worrell, D. L. (2001). Regulatory pressure and environmental management infrastructure and practices. Business and Society, 40(3), 315–342.

    Article  Google Scholar 

  • Davis, J. H., Schoorman, F. D., & Donaldson, L. (1997). Toward a stewardship theory of management. Academy of Management Review, 22(1), 20–47.

    Google Scholar 

  • De Coninck, J. B. (1992). How sales managers control unethical sales force behavior. Journal of Business Ethics, 11(10), 789–798.

    Article  Google Scholar 

  • DeConinck, J. B., & Lewis, W. F. (1997). The influence of deontological and teleological considerations and ethical climate on sales managers’ intentions to reward or punish sales force behavior. Journal of Business Ethics, 16(5), 497–506.

    Article  Google Scholar 

  • DeKinder, J. S., & Kohli, A. K. (2008). Flow signals: How patterns over time affect the acceptance of start-up firms. Journal of Marketing, 72(5), 84–97.

    Article  Google Scholar 

  • Delaney, J. T., & Sockell, D. (1992). Do company ethics training programs make a difference? An empirical analysis. Journal of Business Ethics, 11(9), 719–727.

    Article  Google Scholar 

  • Denis, D. J., Denis, D. K., & Sarin, A. (1994). The information-content of dividend changes—Cash flow signaling, overinvestment, and dividend clienteles. Journal of Financial and Quantitative Analysis, 29(4), 567–587.

    Article  Google Scholar 

  • Ding, H.-B., & Pukthuanthong, K. (2013). Legitimacy signals and family IPO performances. Journal of Business Economics and Management, 14(1), 156–181.

    Article  Google Scholar 

  • Doh, J. P., Howton, S. D., Howton, S. W., & Siegel, D. S. (2010). Does the market respond to an endorsement of social responsibility? The role of institutions, information, and legitimacy. Journal of Management, 36(6), 1461–1485.

    Article  Google Scholar 

  • Donaldson, L., & Davis, J. H. (1991). Stewardship theory or agency theory: CEO governance and shareholder returns. Australian Journal of Management, 16, 49–64.

    Article  Google Scholar 

  • Dutta, S., Biswas, A., & Grewal, D. (2007). Low price signal default: An empirical investigation of its consequences. Journal of the Academy of Marketing Science, 35(1), 76–88.

    Article  Google Scholar 

  • Eisenhardt, K. M. (1989). Agency theory: An assessment and review. Academy of Management Review, 14(1), 57–74.

    Google Scholar 

  • Eliashberg, J., & Robertson, T. S. (1988). New product preannouncing behavior—A market signaling study. Journal of Marketing Research, 25(3), 282–292.

    Article  Google Scholar 

  • Erdem, T. L., Keane, M. P., & Baohong, S. (2008). A dynamic model of brand choice when price and advertising signal product quality. Marketing Science, 27(6), 1111–1125.

    Article  Google Scholar 

  • Fishman, M. J., & Hagerty, K. M. (1989). Disclosure decisions by firms and the competition for price efficiency. The Journal of Finance, 44(3), 633–646.

    Article  Google Scholar 

  • Flammer, C. (2012). Corporate social responsibility and shareholder reaction: The environmental awareness of investors. Academy of Management Journal: amj., 2011, 0744.

    Google Scholar 

  • Fombrun, C. J. (2005). A world of reputation research, analysis and thinking—Building corporate reputation through CSR initiatives: Evolving standards. Corporate Reputation Review, 8(1), 7–12.

    Article  Google Scholar 

  • Fombrun, C., & Shanley, M. (1990). What’s in a name? Reputation building and corporate strategy. Academy of Management Journal, 33(2), 233–258.

    Article  Google Scholar 

  • Fowler, S. J., & Hope, C. (2007). A critical review of sustainable business indices and their impact. Journal of Business Ethics, 76(3), 243–252.

    Article  Google Scholar 

  • Francis, B. B., Hasan, I., Lothian, J. R., & Sun, X. (2010). The signaling hypothesis revisited: Evidence from foreign IPOs. Journal of Financial and Quantitative Analysis, 45(1), 81–106.

    Article  Google Scholar 

  • Freeman, R. E., & McVea, J. (2001). A stakeholder approach to strategic management. In M. A. Hitt, R. E. Freeman & J. S. Harrison (Eds.), Handbook of Strategic Management (pp. 189–207). Oxford, UK: Blackwell Publishers.

    Google Scholar 

  • Friedman, M., (1970, September 13). The social responsibility of business is to increase its profits. New York Times Magazine.

  • Friedman, M. (2007). The social responsibility of business is to increase its profits. Berlin: Springer.

    Book  Google Scholar 

  • Gelb, D. S. (2000). Corporate signaling with dividends, stock repurchases, and accounting disclosures: An empirical study. Journal of Accounting, Auditing & Finance, 15(2), 99–120.

    Article  Google Scholar 

  • Gerstner, E. (1985). Do higher prices signal higher quality? Journal of marketing research, 22(2), 209–215.

    Article  Google Scholar 

  • Gertner, R., Gibbons, R., & Scharfstein, D. (1988). Simultaneous signalling to the capital and product markets. The RAND Journal of Economics, 19, 173–190.

    Article  Google Scholar 

  • Gino, F., & Pierce, L. (2009). The abundance effect: Unethical behavior in the presence of wealth. Organizational Behavior and Human Decision Processes, 109(2), 142–155.

    Article  Google Scholar 

  • Goldsmith, R. E., Lafferty, B. A., & Newell, S. J. (2000). The impact of corporate credibility and celebrity credibility on consumer reaction to advertisements and brands. Journal of Advertising, 29(3), 43–54.

    Article  Google Scholar 

  • Goyal, A. (2006). Corporate social responsibility as a signalling device for foreign direct investment. International Journal of the Economics of Business, 13(1), 145–163.

    Article  Google Scholar 

  • Greening, D. W., & Turban, D. B. (2000). Corporate social performance as a competitive advantage in attracting a quality workforce. Business and Society, 39(3), 254–280.

    Article  Google Scholar 

  • Griffin, J. J., & Mahon, J. F. (1997). The corporate social performance and corporate financial performance debate twenty-five years of incomparable research. Business and Society, 36(1), 5–31.

    Article  Google Scholar 

  • Grossman, S. J. (1981). The informational role of warranties and private disclosure about product quality. Journal of Law and Economics, 24(3), 461–483.

    Article  Google Scholar 

  • Guay, W., & Harford, J. (2000). The cash-flow permanence and information content of dividend increases versus repurchases. Journal of Financial Economics, 57(3), 385–415.

    Article  Google Scholar 

  • Gunthorpe, D. L. (1997). Business ethics: A quantitative analysis of the impact of unethical behavior by publicly traded corporations. Journal of Business Ethics, 16(5), 537–543.

    Article  Google Scholar 

  • Haas, M. R., & Hansen, M. T. (2007). Different knowledge, different benefits: toward a productivity perspective on knowledge sharing in organizations. Strategic Management Journal, 28(11), 1133–1153.

    Article  Google Scholar 

  • Hahn, K. H., & Kim, J. (2009). The effect of offline brand trust and perceived internet confidence on online shopping intention in the integrated multi-channel context. International Journal of Retail & Distribution Management, 37(2), 126–141.

    Article  Google Scholar 

  • Hannah, S. T., Avolio, B. J., & May, D. R. (2011). Moral maturation and moral conation: A capacity approach to explaining moral thought and action. Academy of Management Review, 36(4), 663–685.

    Google Scholar 

  • Harrison, J. S., & Freeman, R. E. (1999). Stakeholders, social responsibility, and performance: Empirical evidence and theoretical perspectives. Academy of Management Journal, 42(5), 479–485.

    Article  Google Scholar 

  • Hart, S. L. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4), 986–1014.

    Google Scholar 

  • Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1), 405–440.

    Article  Google Scholar 

  • Heil, O., & Robertson, T. S. (1991). Toward a theory of competitive market signaling: A research agenda. Strategic Management Journal, 12(6), 403–418.

    Article  Google Scholar 

  • Higgins, M. C., & Gulati, R. (2006). Stacking the deck: the effects of top management backgrounds on investor decisions. Strategic Management Journal, 27(1), 1–25.

    Article  Google Scholar 

  • Holder-Webb, L., Cohen, J. R., Nath, L., & Wood, D. (2009). The supply of corporate social responsibility disclosures among US firms. Journal of Business Ethics, 84(4), 497–527.

    Article  Google Scholar 

  • Hölmstrom, B. (1979). Moral hazard and observability. The Bell Journal of Economics, 10(1), 74–91.

    Article  Google Scholar 

  • Holtz, J. (1995). The representation of ac machine dynamics by complex signal flow-graphs. IEEE Transactions on Industrial Electronics, 42(3), 263–271.

    Article  Google Scholar 

  • Hooghiemstra, R. (2000). Corporate communication and impression management–new perspectives why companies engage in corporate social reporting. Journal of Business Ethics, 27(1–2), 55–68.

    Article  Google Scholar 

  • Hull, T. J. (2013). Does the timing of dividend reductions signal value? Empirical evidence. Journal of Corporate Finance, 22, 193–208.

    Article  Google Scholar 

  • Ishida, H., Spilerman, S., & Su, K.-H. (1997). Educational credentials and promotion chances in Japanese and American organizations. American Sociological Review, 62(6), 866–882.

    Article  Google Scholar 

  • Izraeli, D., & Barnir, A. (1998). Promoting ethics through ethics officers: A proposed profile and an application. Journal of Business Ethics, 17(11), 1189–1196.

    Article  Google Scholar 

  • Jennings, P., & Zandbergen, P. (1995). Ecologically sustainable organizations: an institutional approach. Academy of Management Review, 20, 1015–1052.

    Google Scholar 

  • Jones, T. M. (1995). Instrumental stakeholder theory—A synthesis of ethics and economics. Academy of Management Review, 20(2), 404–437.

    Google Scholar 

  • Jose, A., & Lee, S.-M. (2007). Environmental reporting of global corporations: A content analysis based on website disclosures. Journal of Business Ethics, 72(4), 307–321.

    Article  Google Scholar 

  • Jose, A., & Thibodeaux, M. S. (1999). Institutionalization of ethics: The perspective of managers. Journal of Business Ethics, 22(2), 133–143.

    Article  Google Scholar 

  • Joyner, B. E., & Payne, D. (2002). Evolution and implementation: a study of values, business ethics and corporate social responsibility. Journal of Business Ethics, 41(4), 297–311.

    Article  Google Scholar 

  • Kaptein, M. (2004). Business codes of multinational firms: What do they say? Journal of Business Ethics, 50(1), 13–31.

    Article  Google Scholar 

  • Kaptein, M. (2009). Ethics programs and ethical culture: A next step in unraveling their multi-faceted relationship. Journal of Business Ethics, 89(2), 261–281.

    Article  Google Scholar 

  • Kihlstrom, R. E., & Riordan, M. H. (1984). Advertising as a signal. The Journal of Political Economy, 92(3), 427–450.

    Article  Google Scholar 

  • Kim, Y., Park, M. S., & Wier, B. (2012). Is earnings quality associated with corporate social responsibility? The Accounting Review, 87(3), 761–796.

    Article  Google Scholar 

  • Kirmani, A., & Rao, A. R. (2000). No pain, no gain: A critical review of the literature on signaling unobservable product quality. Journal of Marketing, 64(2), 66–79.

    Article  Google Scholar 

  • Kolk, A. (2008). Sustainability, accountability and corporate governance: exploring multinationals’ reporting practices. Business Strategy and the Environment, 17(1), 1–15.

    Article  Google Scholar 

  • Kolk, A., & Perego, P. (2014). Sustainable bonuses: Sign of corporate responsibility or window dressing? Journal of Business Ethics, 119(1), 1–15.

    Article  Google Scholar 

  • Kracher, B., & Johnson, R. R. (1997). Repurchase announcements, lies and false signals. Journal of Business Ethics, 16(15), 1677–1685.

    Article  Google Scholar 

  • Lafferty, B. A., Goldsmith, R. E., & Newell, S. J. (2002). The dual credibility model: The influence of corporate and endorser credibility on attitudes and purchase intentions. Journal of Marketing Theory and Practice, 10(3), 1–12.

    Article  Google Scholar 

  • Lagnado, L., & Baylor, D. (1992). Signal flow in visual transduction. Neuron, 8(6), 995–1002.

    Article  Google Scholar 

  • Lamberti, L., & Lettieri, E. (2009). CSR practices and corporate strategy: Evidence from a longitudinal case study. Journal of Business Ethics, 87(2), 153–168.

    Article  Google Scholar 

  • Laufer, W. S. (2003). Social accountability and corporate greenwashing. Journal of Business Ethics, 43(3), 253–261.

    Article  Google Scholar 

  • Leahey, E. (2007). Not by productivity alone: How visibility and specialization contribute to academic earnings. American Sociological Review, 72(4), 533–561.

    Article  Google Scholar 

  • Levine, C. B., & Hughes, J. S. (2005). Management compensation and earnings-based covenants as signaling devices in credit markets. Journal of Corporate Finance, 11(5), 832–850.

    Article  Google Scholar 

  • Levitt, T. (1958). The dangers of social responsibility. Harvard business review, 36(5), 1–50.

    Google Scholar 

  • Lindsay, R. M., Lindsay, L. M., & Irvine, V. B. (1996). Instilling ethical behavior in organizations: A survey of Canadian companies. Journal of Business Ethics, 15(4), 393–407.

    Article  Google Scholar 

  • Littler, C. R. 2006. A signalling theory of strategy. Paper presented at the Academy of Management Proceedings.

  • Livesey, S. M., & Kearins, K. (2002). Transparent and caring corporations? A study of sustainability reports by the Body Shop and Royal Dutch/Shell. Organization & Environment, 15(3), 233–258.

    Article  Google Scholar 

  • Lougee, B., & Wallace, J. (2008). The corporate social responsibility (CSR) trend. Journal of Applied Corporate Finance, 20(1), 96–108.

    Article  Google Scholar 

  • Ma, Y., & Sun, H.-L. (1998). Where should the line be drawn on insider trading ethics? Journal of Business Ethics, 17(1), 67–75.

    Article  Google Scholar 

  • March, J. G. (1978). Bounded rationality, ambiguity, and the engineering of choice. The Bell Journal of Economics, 9(2), 587–608.

    Article  Google Scholar 

  • Margolis, J. D., & Walsh, J. P. (2003). Misery loves companies: Rethinking social initiatives by business. Administrative Science Quarterly, 48(2), 268–305.

    Article  Google Scholar 

  • Martin Curran, M., & Moran, D. (2007). Impact of the FTSE4Good Index on firm price: An event study. Journal of Environmental Management, 82(4), 529–537.

    Article  Google Scholar 

  • McGuire, J. B., Sundgren, A., & Schneeweis, T. (1988). Corporate social responsibility and firm financial performance. Academy of Management Journal, 31(4), 854–872.

    Article  Google Scholar 

  • McShane, L., & Cunningham, P. (2012). To thine own self be true? Employees’ judgments of the authenticity of their organization’s corporate social responsibility program. Journal of Business Ethics, 108(1), 81–100.

    Article  Google Scholar 

  • McWilliams, A., & Siegel, D. (2001). Profit-maximizing corporate social responsibility. Academy of Management Review, 26(4), 504–505.

    Google Scholar 

  • McWilliams, A., & Siegel, D. S. (2010). Creating and capturing value: strategic corporate social responsibility, resource-based theory, and sustainable competitive advantage. Journal of Management, 37, 1480–1495. doi:10.1177/0149206310385696.

    Article  Google Scholar 

  • McWilliams, A., Siegel, D. S., & Wright, P. M. (2006). Corporate social responsibility: Strategic implications*. Journal of Management Studies, 43(1), 1–18.

    Article  Google Scholar 

  • Mercer, M. (2004). How do investors assess the credibility of management disclosures? Accounting Horizons, 18(3), 185–196.

    Article  Google Scholar 

  • Milgrom, P., & Roberts, J. (1986). Price and advertising signals of product quality. Journal of Political Economy, 94(4), 796–821.

    Article  Google Scholar 

  • Miller, S. R. (1998). Shortcut: High school grades as a signal of human capital. Educational Evaluation and Policy Analysis, 20(4), 299–311.

    Article  Google Scholar 

  • Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review, 22(4), 853–886.

    Google Scholar 

  • Moorthy, S., & Srinivasan, K. (1995). Signaling quality with a money-back guarantee: The role of transaction costs. Marketing Science, 14(4), 442.

    Article  Google Scholar 

  • Nelson, P. (1974). Advertising as information. The Journal of Political Economy, 82(4), 729–754.

    Article  Google Scholar 

  • Neu, D., Warsame, H., & Pedwell, K. (1998). Managing public impressions: Environmental disclosures in annual reports. Accounting, Organizations and Society, 23(3), 265–282.

    Article  Google Scholar 

  • Neville, B. A., & Menguc, B. (2006). Stakeholder multiplicity: Toward an understanding of the interactions between stakeholders. Journal of Business Ethics, 66(4), 377–391.

    Article  Google Scholar 

  • Noe, T. H., & Rebello, M. J. (1994). The dynamics of business ethics and economic activity. The American Economic Review, 531–547.

  • O’Higgins, E. R. (2006). Corruption, Underdevelopment, and Extractive Resource Industries. Business Ethics Quarterly, 16(2), 235–254.

    Google Scholar 

  • Ofer, A. R., & Thakor, A. V. (1987). A theory of stock price responses to alternative corporate cash disbursement methods: Stock repurchases and dividends. The Journal of Finance, 42(2), 365–394.

    Article  Google Scholar 

  • Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate social and financial performance: A meta-analysis. Organization studies, 24(3), 403–441.

    Article  Google Scholar 

  • Pae, S. (2002). Discretionary disclosure, efficiency, and signal informativeness. Journal of Accounting and Economics, 33(3), 279–311.

    Article  Google Scholar 

  • Parguel, B., Benoît-Moreau, F., & Larceneux, F. (2011). How sustainability ratings might deter ‘greenwashing’: A closer look at ethical corporate communication. Journal of Business Ethics, 102(1), 15–28.

    Article  Google Scholar 

  • Park, B. I., Chidlow, A., & Choi, J. (2014). Corporate social responsibility: Stakeholders influence on MNEs’ activities. International Business Review, 23(5), 966–980.

    Article  Google Scholar 

  • Patten, D. (2008). Does the market value corporate philanthropy? Evidence from the response to the 2004 tsunami relief effort. Journal of Business Ethics, 81(3), 599–607.

    Article  Google Scholar 

  • Pek-Hooi, S., Mahmood, I. P., & Mitchell, W. (2004). Dynamic inducements in R&D investment: market signals and network locations. Academy of Management Journal, 47(6), 907–917.

    Article  Google Scholar 

  • Peloza, J. (2009). The challenge of measuring financial impacts from investments in corporate social performance. Journal of Management, 35(6), 1518–1541.

    Article  Google Scholar 

  • Perego, P., & Kolk, A. (2012). Multinationals’ accountability on sustainability: The evolution of third-party assurance of sustainability reports. Journal of Business Ethics, 110(2), 173–190.

    Article  Google Scholar 

  • Peteraf, M. A. (1993). The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal, 14(3), 179–191.

    Article  Google Scholar 

  • Philippe, D., & Durand, R. (2011). The impact of norm-conforming behaviors on firm reputation. Strategic Management Journal, 32(9), 969–993.

    Article  Google Scholar 

  • Pirsch, J., Gupta, S., & Grau, S. L. (2007). A framework for understanding corporate social responsibility programs as a continuum: An exploratory study. Journal of Business Ethics, 70(2), 125–140.

    Article  Google Scholar 

  • Pollock, T. G., & Rindova, V. P. (2003). Media legitimation effects in the market for initial public offerings. Academy of Management Journal, 46(5), 631–642.

    Article  Google Scholar 

  • Powell, G. E., & Weaver, D. G. (1995). Do investors price social responsibility? Business & Professional Ethics Journal, 14(3), 61–77.

    Article  Google Scholar 

  • Priem, R. L., & Butler, J. E. (2001). Is the resource-based “view” a useful perspective for strategic management research? Academy of Management Review, 26(1), 22–40.

    Article  Google Scholar 

  • Ramchander, S., Schwebach, R. G., & Staking, K. (2012). The informational relevance of corporate social responsibility: Evidence from DS400 index reconstitutions. Strategic Management Journal, 33(3), 303–314.

    Article  Google Scholar 

  • Ramus, C. A., & Montiel, I. (2005). When are corporate environmental policies a form of greenwashing? Business and Society, 44(4), 377–414.

    Article  Google Scholar 

  • Rao, A. R., Lu, Q., & Ruekert, R. (1999). Signaling unobservable product quality through a brand ally. Journal of Marketing Research (JMR), 36(2), 258–268.

    Article  Google Scholar 

  • Rao, A. R., & Monroe, K. B. (1989). The effect of price, brand name, and store name on buyers’ perceptions of product quality: An integrative review. Journal of Marketing Research (JMR), 26(3), 351–357.

    Article  Google Scholar 

  • Ravid, S. A., & Sarig, O. H. (1991). Financial signalling by committing to cash outflows. Journal of financial and Quantitative Analysis, 26(02), 165–180.

    Article  Google Scholar 

  • Reinhardt, F. L. (1998). Environmental product differentiation: Implications for corporate strategy. California Management Review, 40(4), 43.

    Article  Google Scholar 

  • Reuer, J. J., Tong, T. W., & Wu, C.-W. (2012). A signaling theory of acquisition premiums: Evidence from IPO targets. Academy of Management Journal, 55(3), 667–683.

    Article  Google Scholar 

  • Rindfleisch, A., & Moorman, C. (2001). The acquisition and utilization of information in new product alliances: A strength-of-ties perspective. Journal of Marketing, 65(2), 1–18.

    Article  Google Scholar 

  • Ritter, J. R., & Welch, I. (2002). A review of IPO activity, pricing, and allocations. The Journal of Finance, 57(4), 1795–1828.

    Article  Google Scholar 

  • Roberts, P. W., & Dowling, G. R. (2002). Corporate reputation and sustained superior financial performance. Strategic Management Journal, 23(12), 1077–1093.

    Article  Google Scholar 

  • Robertson, T. S., Eliashberg, J., & Rymon, T. (1995). New product announcement signals and incumbent reactions. Journal of Marketing, 59(3), 1.

    Article  Google Scholar 

  • Robinson, M., Kleffner, A., & Bertels, S. (2011). Signaling sustainability leadership: Empirical evidence of the value of DJSI membership. Journal of Business Ethics, 101(3), 493–505.

    Article  Google Scholar 

  • Ross, S. A. (1977). The determination of financial structure: the incentive-signalling approach. The Bell Journal of Economics, 8(1), 23–40.

    Article  Google Scholar 

  • Roulin, N., & Bangerter, A. (2013). Social networking websites in personnel selection: A signaling perspective on recruiters’ and applicants’ perceptions. Journal of Personnel Psychology, 12(3), 143–151.

    Article  Google Scholar 

  • Rowley, T. J. (1997). Moving beyond dyadic ties: A network theory of stakeholder influences. Academy of Management Review, 22(4), 887–910.

    Google Scholar 

  • Russo, M. V., & Fouts, P. A. (1997). A resource-based perspective on corporate environmental performance and profitability. Academy of Management Journal, 40(3), 534–559.

    Article  Google Scholar 

  • Schwartz, M. (2001). The nature of the relationship between corporate codes of ethics and behaviour. Journal of Business Ethics, 32(3), 247–262.

    Article  Google Scholar 

  • Scitovsky, T. (1954). Two concepts of external economies. The Journal of Political Economy, 62(2), 143–151.

    Article  Google Scholar 

  • Scott, W. R. (1995). Institutions and organizations. Thousand Oaks, CA: Sage.

    Google Scholar 

  • Sharma, S. (2000). Managerial interpretations and organizational context as predictors of corporate choice of environmental strategy. Academy of Management Journal, 43(4), 681–697.

    Article  Google Scholar 

  • Siegel, D. S., & Vitaliano, D. F. (2007). An empirical analysis of the strategic use of corporate social responsibility. Journal of Economics & Management Strategy, 16(3), 773–792.

    Article  Google Scholar 

  • Simaens, A., & Koster, M. (2013). Reporting on sustainable operations by third sector organizations: A signalling approach. Public Management Review, 15(7), 1–23.

    Article  Google Scholar 

  • Simnett, R., Vanstraelen, A., & Chua, W. F. (2009). Assurance on sustainability reports: An international comparison. The Accounting Review, 84(3), 937–967.

    Article  Google Scholar 

  • Sims, R. R. (1991). The institutionalization of organizational ethics. Journal of Business Ethics, 10(7), 493–506.

    Article  Google Scholar 

  • Sims, R. R., & Brinkmann, J. (2003). Enron ethics (or: Culture matters more than codes). Journal of Business Ethics, 45(3), 243–256.

    Article  Google Scholar 

  • Slater, M. D., & Rasinski, K. A. (2005). Media exposure and attention as mediating variables influencing social risk judgments. Journal of Communication, 55(4), 810–827.

    Article  Google Scholar 

  • Soberman, D. A. (2003). Simultaneous signaling and screening with warranties. Journal of Marketing Research, 40(2), 176–192.

    Article  Google Scholar 

  • Sorescu, A., Shankar, V., & Kushwaha, T. (2007). New product preannouncements and shareholder value: Don’t make promises you can’t keep. Journal of Marketing Research (JMR), 44(3), 468–489.

    Article  Google Scholar 

  • Spence, M. (1973). Job market signaling. Quarterly Journal of Economics, 87(3), 355–374.

    Article  Google Scholar 

  • Spence, M. (1976). Informational aspects of market structure: An introduction. The Quarterly Journal of Economics, 90(4), 591–597.

    Article  Google Scholar 

  • Spence, M. (2002). Signaling in retrospect and the informational structure of markets. American Economic Review, 92(3), 434–459.

    Article  Google Scholar 

  • Spicer, B. H. (1978). Investors, corporate social performance and information disclosure: An empirical study. Accounting Review, 53(1), 94–111.

    Google Scholar 

  • Stansbury, J., & Barry, B. (2007). Ethics programs and the paradox of control. Business Ethics Quarterly, 17(2), 239–261.

    Article  Google Scholar 

  • Stevens, B. (2008). Corporate ethical codes: Effective instruments for influencing behavior. Journal of Business Ethics, 78(4), 601–609.

    Article  Google Scholar 

  • Stevens, J. M., Kevin Steensma, H., Harrison, D. A., & Cochran, P. L. (2005). Symbolic or substantive document? The influence of ethics codes on financial executives’ decisions. Strategic Management Journal, 26(2), 181–195.

    Article  Google Scholar 

  • Strike, V. M., Gao, J., & Bansal, P. (2006). Being good while being bad: Social responsibility and the international diversification of US firms. Journal of International Business Studies, 37(6), 850–862.

    Article  Google Scholar 

  • Stubbs, W., Higgins, C., & Milne, M. (2013). Why do companies not produce sustainability reports? Business Strategy and the Environment, 22(7), 456–470.

    Article  Google Scholar 

  • Surroca, J., Tribó, J. A., & Waddock, S. (2010). Corporate responsibility and financial performance: The role of intangible resources. Strategic Management Journal, 31(5), 463–490.

    Article  Google Scholar 

  • Tang, Z., Hull, C. E., & Rothenberg, S. (2012). How corporate social responsibility engagement strategy moderates the CSR–financial performance relationship. Journal of Management Studies, 49(7), 1274–1303.

    Article  Google Scholar 

  • Tashiro, K., Tada, H., Heilker, R., Shirozu, M., Nakano, T., & Honjo, T. (1993). Signal sequence trap—A cloning strategy for secreted proteins and type-I membrane-proteins. Science, 261(5121), 600–603.

    Article  Google Scholar 

  • Terlaak, A., & King, A. A. (2006). The effect of certification with the ISO 9000 Quality Management Standard: A signaling approach. Journal of Economic Behavior & Organization, 60(4), 579–602.

    Article  Google Scholar 

  • Terlaak, A., & King, A. A. (2007). Follow the small? Information-revealing adoption bandwagons when observers expect larger firms to benefit more from adoption. Strategic Management Journal, 28(12), 1167–1185.

    Article  Google Scholar 

  • Treviño, L. K., den Nieuwenboer, N. A., Kreiner, G. E., & Bishop, D. G. (2014). Legitimating the legitimate: A grounded theory study of legitimacy work among Ethics and Compliance Officers. Organizational Behavior and Human Decision Processes, 123(2), 186–205.

    Article  Google Scholar 

  • Trevino, L. K., & Weaver, G. R. (2001). Organizational justice and ethics program “follow-through”: Influences on employees’ harmful and helpful behavior. Business Ethics Quarterly, 11(4), 651–671.

    Article  Google Scholar 

  • Turban, D. B., & Greening, D. W. (1997). Corporate social performance and organizational attractiveness to prospective employees. Academy of Management Journal, 40(3), 658–672.

    Article  Google Scholar 

  • Ullmann, A. A. (1985). Data in search of a theory: A critical examination of the relationships among social performance, social disclosure, and economic performance of US firms. Academy of Management Review, 10(3), 540–557.

    Google Scholar 

  • Vitell, S. J., Nwachukwu, S. L., & Barnes, J. H. (1993). The effects of culture on ethical decision-making: An application of Hofstede’s typology. Journal of Business Ethics, 12(10), 753–760.

    Article  Google Scholar 

  • Wanderley, L. S. O., Lucian, R., Farache, F., & de Sousa Filho, J. M. (2008). CSR information disclosure on the web: a context-based approach analysing the influence of country of origin and industry sector. Journal of Business Ethics, 82(2), 369–378.

    Article  Google Scholar 

  • Wang, S., Beatty, S. E., & Foxx, W. (2004). Signaling the trustworthiness of small online retailers. Journal of interactive marketing, 18(1), 53–69.

    Article  Google Scholar 

  • Weaver, G. R., Trevino, L. K., & Cochran, P. L. (1999a). Corporate ethics programs as control systems: Influences of executive commitment and environmental factors. Academy of Management Journal, 42(1), 41–57.

    Article  Google Scholar 

  • Weaver, G. R., Trevino, L. K., & Cochran, P. L. (1999b). Integrated and decoupled corporate social performance: Management commitments, external pressures, and corporate ethics practices. Academy of Management Journal, 42(5), 539–552.

    Article  Google Scholar 

  • Weber, J., & Wasieleski, D. (2013). Corporate ethics and compliance programs: A report, analysis and critique. Journal of Business Ethics, 112(4), 609–626.

    Article  Google Scholar 

  • Wells, J. D., Valacich, J. S., & Hess, T. J. (2011). What signal are you sending? How website quality influences perceptions of product quality and purchase intentions. MIS Quarterly, 35(2), 373–396.

    Google Scholar 

  • White, K., MacDonnell, R., & Ellard, J. H. (2012). Belief in a just world: Consumer intentions and behaviors toward ethical products. Journal of Marketing, 76(1), 103–118.

    Article  Google Scholar 

  • Willis, A. (2003). The role of the global reporting initiative’s sustainability reporting guidelines in the social screening of investments. Journal of Business Ethics, 43(3), 233–237.

    Article  Google Scholar 

  • Wright, P., & Ferris, S. P. (1997). Agency conflict and corporate strategy: The effect of divestment on corporate value. Strategic Management Journal, 18(1), 77–83.

    Article  Google Scholar 

  • Wright, C., & Rwabizambuga, A. (2006). Institutional pressures, corporate reputation, and voluntary codes of conduct: An examination of the equator principles. Business and Society Review, 111(1), 89–117.

    Article  Google Scholar 

  • Xie, G.-X., & Kronrod, A. (2012). Is the devil in the details? The signaling effect of numerical precision in environmental advertising claims. Journal of Advertising, 41(4), 103–117.

    Article  Google Scholar 

  • Zhang, Y., & Wiersema, M. F. (2009). Stock market reaction to CEO certification: the signaling role of CEO background. Strategic Management Journal, 30(7), 693–710.

    Article  Google Scholar 

Download references

Acknowledgments

The author is grateful to Jill Brown and the panelists who participated in the 2014 AOM Roundtable Discussion for their comments on prior versions of this paper; He also thanks the anonymous referees for their insightful comments during the revision process.

Author information

Authors and Affiliations

  1. ESCP Europe, 79, Av. de la République, 75543, Paris Cedex 11, France

    Fabrizio Zerbini

Authors
  1. Fabrizio Zerbini
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Fabrizio Zerbini.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Zerbini, F. CSR Initiatives as Market Signals: A Review and Research Agenda. J Bus Ethics 146, 1–23 (2017). https://doi.org/10.1007/s10551-015-2922-8

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-015-2922-8

Keywords

Search

Navigation