In a departure from the traditional studies of corporate philanthropy that focus on board composition, advertising, and social networks, the authors investigate the financial correlates of corporate philanthropy. The research design controls for firm size and industry while observing firms from a variety of industries. The sample contains matched pairs of generous and less generous corporate givers. The authors find, as hypothesized, a positive relationship between a firm''s cash resources available and cash donations, but no significant relationship between corporate philanthropy (...) and firm financial performance, regardless of whether corporate philanthropy is measured as cash payouts or the aggregate contributions that charities actually receive, and regardless of whether financial performance is gauged using accounting measures or market measures. Whereas the link between available resources and corporate philanthropy is well accepted in the literature on corporate social responsibility, it has been rarely tested and never so definitively found as in this research. (shrink)

Jones (1991) has proposed an issue-contingent model of ethical decision making by individuals in organizations. The distinguishing feature of the issue was identified as its moral intensity, which determines the moral imperative in the situation. In this study, we adapted three scenarios from the literature in order to examine the issue-contingent model. Findings, based on a student sample, suggest that (1) the perceived and actual dimensions of moral intensity often differed; (2) perceived moral intensity variables, in the aggregate, significantly affected (...) an individual''s moral judgments; and (3) some dimensions of moral intensity (namely, perceived social consensus and perceived magnitude of consequences) mattered more than others. (shrink)

Stakeholder management devices (SMDs) are the mechanisms through which organizations respond to stakeholder concerns. Given that SMDs serve as organizational control systems for employees and managers, this research investigates the internal rather than the external effects of a firm's SMDs. Unlike most previous research, I examined the effects of these formal structures, processes, and procedures in the aggregate, rather than focusing attention on a single type of device. The study investigates the effects of a firm's stakeholder management devices, in the (...) aggregate, on three factors that influence individual behavior in organizations: expectations, attitudes, and perceived organizational climates. Respondents were managers in 112 for-profit businesses located throughout the United States. Results suggest that a firm's stakeholder management devices affect the perceived moral climates in the firm, and affect managers' expectations about the consequences of good corporate social performance, but do not affect organization members' attitudes about corporate social responsibility. (shrink)

This study examines social issues shareholder resolutions filed at S&P 500 companies in 2007. These firms received 86% of all social issues resolutions filed. Findings indicate that green resolutions were the most common single type (30% of social issues resolutions), but nearly one third (32%) of resolutions contained non-traditional content. Firms were more likely to be targeted if they were large in size and demonstrated poor treatment of employees and customers. As might be expected, the primary sponsors of social issues (...) resolutions were socially responsible investment funds, religious groups, and pension funds. Surprisingly, over half (52%) of resolutions made it onto proxy ballots in 2007, while there was sufficient dialogue between the target companies and shareholder activists for filers to withdraw only 29% of the resolutions (although 41% of green resolutions were withdrawn). Resolution content and firm response differed by type of filer. (shrink)

This is an exploratory study of corporate social performance in firms with family members in executive, governance, or strong ownership positions. Family firmsdominate the economy in most countries, including the United States, and families are thought to be more concerned with personal wealth creation and risk avoidance than social performance. Although such firms have been shown to have superior financial performance, I found no evidence of superior (or inferior) social performance among family firms in the S&P 500. In a departure (...) from the methodological norm in business and society, I used KLD data as dependent variables instead of independent variables. I was able to predict KLD scores from firm size, industry, and strategy variables, but family firm status rarely played a role. (shrink)