This article studies the possibility of forming social policy, and in particular policies for social security, through the participation of domestic business. By taking on social responsibility, business can eventually, of own its own accord, offer the state and society its assistance in dealing with social problems. In Kazakhstan, a major part of business people see their responsibility as many-sided, consisting of duties to employees, consumers, business partners, the local community, (...) and the country as a whole. They acknowledge responsibility along three dimensions: financial, ecological, and social. (shrink)

Resolving the strongly polarised debate about whether or not business has social responsibilities may call for distinguishing more clearly between a business as a non‐moral agent with a purely financial raison d'être and its managers who may have wider and more complex commitments. The author worked as a financial manager in industry and taught at City University Business School for many years, and also served on the professional conduct appeal committee of the Institute of Chartered Accountants (...) in England and Wales. He is currently co‐writing his third book, a study on business strategy. (shrink)

The concept of corporate social responsibility is a relatively recent addition to the agenda in Germany, although the country has a long history of companies practicing social responsibilities. The expectations of society had remained stable for many years, encapsulated in laws, societal norms, and industrial relations agreements. But the past decade has seen significant changes in Germany, challenging established ways of treating the role of business in society. This contribution reviews and illustrates the development of diverse (...) forms of social responsibility in German corporations and analyzes how actors in business and society can build on traditional strengths to find new institutional arrangements for sharing tasks and responsibilities in the interests of achieving a better balance between societal, economic, and environmental needs. (shrink)

In this paper we examine many of the arguments contained in Milton Friedman’s classic essay, in the form of critiques linked with learning objectives forclassroom discussions.

The views of thirteenth century Catholic thinker Thomas Aquinas and twentieth century economist Milton Friedman on the social responsibility of business are contrasted by probing the foundations of their positions. The basis of Aquinas' normative stance in political economy is found in the metaphysical and moral realism of the classic tradition. The role Descartes and Hobbes played in overturning this philosophical starting point and ushering in an age of ideology is traced out. Friedman's commitment to Comte's vision (...) of positivism is revealed and what this entails for metaphysics, ethics, and economics is given. (shrink)

Three principles must be taken into account in assessing the social responsibilities of international business firms in developing areas. The first is an awareness of the historical and institutional dynamics of local communities. This influences the type and range of responsibilities the firm can be expected to assume; it also reveals the limitations of any universal codes of conduct. The second is the necessity of non-intimidating communication with local constituencies. This requires the firm to temper its power and (...) influence by recognizing and responding to local concerns in the pursuit of its own objectives. The third is the degree to which the firm's operations safeguard and indeed improve the social and economic assets of local communities. At issue is the question of adequate compensation for the inevitable disruptions that an international business brings to a local community. Beneficial returns must be shared and sustained over the long term in an equitable manner. The nine studies in this special edition illustrate in different ways the importance of these three principles. (shrink)

ABSTRACTThe social responsibility of business has been a prominent issue in the academic and practitioner literatures, as well as in the curricula of business schools, for many years. While Friedman's iconic defense of profit maximization as the responsibility of management has been widely and extensively assailed, emerging positions on the role of business in society offer little clear and practical guidance to current managers, as well as Masters of Business Administration students. I argue (...) in this article that the focus of the debate should shift to considering how the rules of the game surrounding business' behavior should be formulated and what the role of socially responsible managers should be in helping to establish those rules. My contention is that the goal of society should be to strengthen the linkage between the achievement of social objectives and profit maximization by business through “bright line” regulations and laws. Socially responsible managers will participate in setting the rules of the game by advising policymakers on how specific regulations and laws can be structured so that they most effectively condition the linkage between social objectives and profit maximization. If there is a unique social responsibility of managers beyond profit maximization, it is to participate in the policymaking process “honestly,” that is, without attempting to game the system through guile and opportunism. (shrink)

Professor Thomas Mulligan undertakes to discredit Milton Friedman's thesis that The Social Responsibility of Business Is to Increase Its Profits. He attempts to do this by moving from Friedman's paradigm characterizing a socially responsible executive as willful and disloyal to a different paradigm, i.e., one emphasizing the consultative and consensus-building role of a socially responsible executive. Mulligan's critique misses the point, first, because even consensus-building executives act contrary to the will of minority shareholders, but even more importantly, (...) because he assumes that the mandate of a shareholder majority brings legitimacy to efforts of corporate managers to utilize corporate wealth in solving social problems. It is the role of our democratic institutions to deal with national agenda issues such as inflation, unemployment, and pollution, not that of the private sector. Corporations and private individuals do have a role to play in enhancing the quality of the human environment, however, and the author suggests a coherent means of developing that role in an effort rescue corporate social responsibility from Mulligan no less than from Friedman. (shrink)

The main arguments of Milton Friedman's famous and influential essay are unsuccessful: He fails to prove that the exercise of social responsibility in business is by nature an unfair and socialist practice.Much of Friedman's case is based on a questionable paradigm; a key premise is false; and logical cogency is sometimes missing.

In this paper we examine many of the arguments contained in Milton Friedman’s classic essay, in the form of critiques linked with learning objectives forclassroom discussions.

This perspectives article seeks to comment and reflect on my 1999 BAS article titled “Corporate Social Responsibility: Evolution of a Definitional Construct,” and subsequent writings addressing these same topics. First, perspectives on the 1950-1999 period are offered. Second, reflections on the 2000-2020 period are presented. Finally, thoughts about the future and the new normal for CSR are set forth. Hopefully, the observations presented will stimulate further thinking on this important concept. And, it will be interesting to all of (...) us to see where the dust settles when the pandemic ends and organizations have had a chance to re-imagine or reset their missions, goals, and processes with respect to CSR. (shrink)

The separation thesis states that business and moral decision making should and can be differentiated clearly. This study provides empirical support for the competing view that the separation thesis is impossible through a case study of the Rotary Club, which fosters an ethical orientation among its global business and professional membership. The study focuses attention on the Club in the early to middle 20th century. Based on a reading of their service doctrine, the four objects of Rotary and (...) the Four Way Test, the author argues that the example of the Rotary Club undermines the separation thesis. The Rotary message was conceptually ambiguous: it did not clearly differentiate business roles from social activities; rather both fed into each other, with the business tools developed by members and disseminated by Rotary, utilized in nonbusiness contexts with a view to enhancing societal well-being. (shrink)

마이크로소프트사의 창업자인 빌 게이츠는 각국 정부 및 비영리 단체들과 협력해 가난한 사람들을 돕는 ‘창조적 자본주의’가 필요하다고 주장하였다. 이미 세계 곳곳에서는 더 나은 미래를 위해 인간을 위한 경제, 사람 중심의 시스템을 정립하려는 움직임이 가시화되고 있다. 이러한 차원에서 비영리를 전제로 한 다양한 기업의 형태가 생겨나고 있고, 기존의 기업들도 사회적 책임과 기업윤리를 강조하면서 변화와 혁신을 시도하고 있다. 또한 국가와 정부가 하기 어려운 많은 일들을 비영리 단체들이 실천하기도 한다. 현대 사회에 있어서 기업의 사회공헌 활동은 의무화되고 있는 추세이다. 특히 기업의 사회공헌 활동과 윤리 경영은 기업의 (...) 브랜드 가치와 이미지를 제고하고, 소비자의 신뢰를 얻는데 중요한 영향을 미친다. 이제 사회적 기업은 더 이상 고립된 실험적인 개념이 아니라, 전 세계적으로 지배적인 흐름이 되었다. 기업윤리는 도덕적 가치를 지니고 의사 결정과 행동을 하는 기업의 구성원들에 관심을 두는데, 최근에는 단순한 사회공헌 활동을 뛰어넘어 ‘착한 기업’ 육성 등을 놓고 치열한 경쟁이 벌어지기도 한다. 착한 기업은 한마디로 수익 창출과 사회적 목적을 동시에 추구하는 기업이라고 할 수 있는데, 시장의 원리에 기초하여 사회적 가치를 달성하려는 자본주의의 새로운 시도이기도 하다. 착한 기업은 사회적 기업, 혹은 사회적 벤처(social venture) 등으로 불리기도 하는데, 취약 계층을 위한 공공 서비스를 제공하지만 영리를 목적으로 한다는 점에서 사회복지 법인과 다르고, 벌어들인 이익을 다시 사회적 목적을 위해 재투자한다는 점에서 기존의 순수 민간기업과도 다른 제3의 부문이다. 또한 일반적인 기부가 대부분 일회성인 반면, 착한 기업은 지속 가능한 사회공헌 활동을 한다는 점에서 차이가 있다. 아직도 기업의 사회적 책임이나 기업윤리와 관련하여, 기업의 사회공헌을 단편적인 기부와 직원들의 자원봉사 활동 정도로 국한시켜 생각하는 기업이 다수인 것이 현실이다. 앞으로는 기업이 사회공헌 활동을 통해 실제로 사회 발전에 어떠한 기여를 하고 있는지를 보다 정확하게 증명할 필요가 있는데, 이를 위해서는 기업이 사회공헌 활동 기획단계에서부터 윤리적, 전략적으로 접근해 나가는 것이 중요하다. (shrink)

This chapter contains sections titled: Corporate social responsibility Corporate social responsiveness Public policy The development of business ethics New developments in business ethics Conclusion.

A critique of Milton Friedman's thesis that corporate executives have a fiduciary responsibility not to pursue socially desirable goals at the expense of profitability. The author argues that even under a libertarian conception of the nature of corporate property, Friedman's thesis does not follow. In particular, an executive's decision to prize "socially responsible behavior" above profit maximization does not necessarily violate the contractual rights of dissenting stockholders. Whether executives have obligations to refrain from such behavior depends entirely on the (...) content of the contract which actually exists between stockholders and executives. After an examination of the body of legal precedent which informs the content of that contract, the author concludes that there are clearly recognizable circumstances in which executives may legitimately pursue corporate altruism at the expense of profits, stockholder protestations notwithstanding. Since this contractual relationship with management is one in which stockholders have voluntarily engaged, libertarians have no grounds for complaining that the behavior of such executives constitutes a form of theft of the stockholders' property. (shrink)

The subject of the article is social responsibility of business and the role of social responsibility in the daily activity of companies as reliable partners in business.The paper consists of two parts: the theoretical one and the empirical one. In the theoretical part the author describes the areas of social responsibility and the examples of socially responsible actions. In the empirical part the author presents the research study carried out in the following (...) groups of respondents: managerial staff and employees of Polish and French medium—sized companies.The results of the study show that both in Poland and in France there is awareness of the importance and the rank of the phenomenon in question. In Poland, however, socially irresponsible actions are usually ignored as “natural”. (shrink)

The paper explores how the concepts of corporate social responsibility (CSR) and business ethics are perceived by business managers and business school professors/administrators in China, using interviews. The findings suggest that the perceptions of both concepts are tinged with cultural nuances. The study has implications for further developing business ethics research programs in the Chinese context and for crosscultural communications and management.

To date, the value of corporate social responsibility (CSR) activities has primarily been measured through the company’s reputation, with little attention given to exploring whether there are internal influences between CSR and other management practices. We argue that the efficacy of CSR extends beyond a company’s reputation for managing social and environmental concerns; in particular, it can influence other business practices such as risk management. Our results suggest that (a) overall, firms with better CSR performance are (...) more likely to adopt integrated risk management practices and (b) CSR activities that target both primary stakeholders and secondary stakeholders are equally important in facilitating the adoption of such risk management practices. Theoretically, we contribute to the CSR literature by providing a possible mechanism for risk reduction and insurance-like effects of CSR. Practically, we provide managerial implications demonstrating that the efficacy of CSR should not be viewed in isolation of other business practices. (shrink)

In the current era of post-liberalization, privatization, and globalization (LPG), questions relating to business ethics and corporate social responsibility (CSR) have surfaced, affecting Indian economy, society, and polity. The main aim of this study is to understand the emergence of the new market in India. Not only has the structure and functioning of the market changed since the advent of globalization, but new norms, regulations, and actors have come into play. In a way, a completely new situation (...) has occurred, characterized by an altogether new work culture. As an off-shoot of globalization there is emergence of a new middle class, but there is hardly any cognition among common customers and functionaries of the shopping malls about business ethics and CSR. There is no transparency regarding functioning of the malls. Pricing and profit-making are kept as secrets by the top management. Functionaries are working as cogs in the machine and, due to this, alienation of the staff from their creative-selves needs to be studied. This present study focuses on the understanding of business ethics and corporate social responsibility as guiding principles and practices in business transactions. Further exploration is needed to understand business ethics, CSR, and transparency vis-a-vis the organized retail trade in India. [Subject: Business Management, Sociology]. (shrink)

This paper provides a case study of an unique initiative in corporate (SME) social responsibility which is too often overlooked in the academic study of “socialresponsibility of business in society” This case focuses on three specific points, 1) the role of an SME in social responsibility, 2) the role of a non-business trained entrepreneur and 3) the adaptation of social responsibility to a new and different socio-economic culture. This case presents the hypothesis (...) that “a good socially responsible initiative provides an excellent insurance policy for the health of a business venture in a new culture internationally. (shrink)

The current economic crisis, unsustainable growth, and financial scandals invite reflection on the role of universities in professional training, particularly those who have to manage businesses. This study analyzes the main factors that might determine the extent to which Spanish organizational management educators use corporate social responsibility (CSR) or business ethics stand-alone subjects to equip students with alternative views on business. A web content analysis and non-parametric mean comparison statistics of the curricula of undergraduate degrees in (...) all universities in Spain were conducted. The main conclusion of this paper is related to the Bologna effect in Spanish universities. Comparing our results with prior research in this matter, it is demonstrated that the main reason that explains the increase of CSR and ethical education in Spain is the Bologna process and its adaptation to the European Higher Education Area. Also, private universities in Spain are more likely to require an ethics course than public universities. Other factors, such as size, political orientation, or related to CSR chairs are not statistically explanatory of CSR and ethical education. (shrink)

Drawing on institutional and signaling theories, this study examines how environmental corporate social responsibility affects firm performance in a dysfunctional institutional environment. We extend the ECSR literature by suggesting that ECSR indirectly influences firm performance through the mediating effects of business and political legitimacy. Based on a dataset of 238 firms in China, we find that ECSR affects business and political legitimacy followed by firm performance. Moreover, legal incompleteness weakens and legal inefficiency strengthens the effects of (...) ECSR on business and political legitimacy. (shrink)

Examination of the application of virtue ethics to business has only recently started to grapple with the measurement of virtue frameworks in a practical context. This paper furthers this agenda by measuring the impact of virtue at the level of the organisation and examining the extent to which organisational virtue impacts on moral attentiveness and the perceived role of ethics and social responsibility in creating organisational effectiveness. It is argued that people who operate in more virtuous organisational (...) contexts will be expected to be more attentive to ethical issues and in turn perceive a greater role for ethics and social responsibility in business. Analysis of results based on a sample of 137 HR professionals shows that where people report that their organisation provides meaningful work, they are more likely to display reflective MA and the belief that ethics and social responsibility are compatible with business objectives, suggesting that organisations who are interested in promoting an ethical culture should focus on their work structures and practices. More generally, OV is shown to have a more complex relationship with PRESOR than hypothesised pointing towards a more nuanced view of OV. The paper examines the implications of the results for organisations and research. (shrink)

This study examines the moderating effects of corporate social responsibility (CSR) on the association between market orientation and firm performance in the context of an emerging economy. The results from a sample of firms that operate in Dubai indicate that CSR has a synergistic effect on the impact of market orientation on business performance. The results of our research on the moderating effects of CSR on market orientation subsets reveal that although CSR moderates the association between customer (...) orientation and business performance, it does not moderate the association between competitive orientation and interfunctional coordination and performance. The results of this study are discussed, and implications for practitioners and researchers are presented. (shrink)

Recent years have seen a significant increase in stakeholder pressure on firms to be not only economically sustainable but also from an environmental and social perspective. Besides operational changes in practices and products companies have reacted toward this increased pressure from a strategic perspective through structural changes of their top management team. A recent addition to the TMT has been the appointment of the chief officer of corporate social responsibility. In this paper, we take a behavioral perspective (...) and investigate how the employment of a chief officer of CSR to the TMT impact on firm performance. Specifically, we explore how certain characteristics of the newly appointed chief executive of CSR impact on a firm’s financial performance. We collected secondary, longitudinal data of listed companies in the United States. Results indicate that appointing a chief executive of CSR does under certain conditions and characteristics result in financial performance benefits. Furthermore, the greatest financial performance benefits can be achieved if the appointee is female and has a CSR functional background. (shrink)

The public support of corporations is continuously declining. The view that the system of free enterprise and profit-making are at odds with societal interests isbecoming more and more prevalent. Business’s associated loss of social acceptance poses a serious threat to the future viability of the system of free enterprise. Thus, corporate leaders face the task of regaining and sustainably securing the social acceptance of business. This paper presents three interrelated business ethics competencies which corporate leaders (...) require to be able to accomplish this task: (1) the ability to prove that business and profit-making do have a societal function, (2) the knowledge of what defines responsible business, and (3) the ability to organize responsible decisionmaking within their corporations. (shrink)

Using a large sample of 3,040 U.S. firms and 16,606 firm-year observations over the 1991–2010 period, we find strong evidence that firm internationalization is positively related to the firm’s corporate social responsibility rating. This finding persists when we use alternative estimation methods, samples, and proxies for internationalization and when we address endogeneity concerns. We also provide evidence that the positive relation between internationalization and CSR rating holds for a large sample of firms from 44 countries. Finally, we offer (...) novel evidence that firms with extensive foreign subsidiaries in countries with well-functioning political and legal institutions have better CSR ratings. Our findings shed light on the role of internationalization in influencing multinational firms’ CSR activities in the U.S. and around the world. (shrink)

This article reviews the responsibilities of businesses in relation to the ongoing debates with respect to ethical issues related to economic development. The article addresses four questions: (1) What are the most appropriate ways of thinking about economic development and its relation to human development? (2) What policies are most likely to foster fitting forms of development? (3) What are the best ways of managing the inevitable social disruptions that accompany economic development? And (4) what roles should governments play (...) in fostering and managing development? In relation to each question the articles considers the practical implications for business practices in developing areas. (shrink)

In 1992, I sent Milton Friedman a draft of my 1993 paper “Friedman's Theory of Corporate Social Responsibility.” He and I corresponded at length. My 1993 paper argues that Friedman's published formulations of his theory are not equivalent and that they prescribe different courses of action in many possible cases. In our correspondence, Friedman conceded that his two formulations of his theory are inconsistent and, at my suggestion, he endorsed a modified version of the view he presented in (...) Capitalism and Freedom as the preferred version of his theory. This modified theory is an important formulation of his position. In one of his letters to me, Friedman writes: “I agree that corporate executives might have duties to the general public which sometimes outweigh their duties to the shareholders.” I argue that this creates major problems for his theory. I also answer Friedman's published response to one of my criticisms. (shrink)

The purpose of this paper is to analyze the meaning and scope of social responsibility in a state-owned enterprise. Is corporate social responsibility (CSR) a meaningful concept for a state-owned enterprise, as opposed to a privately-owned corporation, given that it is created with social as well as economic aims? To try to answer to this question, the case of Sonatrach, an Algerian oil company, is examined. The lack of statistical data does not allow an assessment (...) of CSR actions undertaken by this company since 2004. The analysis identifies two main obstacles to the effectiveness of CSR in state-owned enterprises: (a) the system of internal governance ischaracterized by a lack of control; (b) the competitive and social environment is characterized by a partial application of the logic of the market, which does not allow the optimal allocation of means. (shrink)

This research investigates the interlinkage between corporate social responsibility and ethical leadership in inducing employees’ socially responsible behaviors. Specifically, building on organizational identification theory and cue consistency theory, we develop and test an integrated moderated mediation framework in which employees’ perception of ethical leadership moderates the mediating mechanism between their perceptions of CSR, organizational identification, and SRBs. The findings highlight the need for consistency between employees’ perceptions of CSR and ethical leadership to foster their propensity to further (...) class='Hi'>social good through relationship-building activities with their organization. The results, which largely verify the theoretical framework, contribute to and have implications for both research and practice. (shrink)

We outline the drivers, main features, and conceptual underpinnings of the compliance paradigm. We then use a similar structure to investigate the drivers, main features, and conceptual underpinnings of the cooperative paradigm for working with CSR in global value chains. We argue that the measures proposed in the new cooperation paradigm are unlikely to alter power relationships in global value chains and bring about sustained improvements in workers’ conditions in developing country export industries. After that, we provide a critical appraisal (...) of the potential and limits of the cooperative paradigm, we summarize our findings, and we outline avenues for research: purchasing practices and labor standard noncompliance, CSR capacity building among local suppliers, and improved CSR monitoring by local resources in the developing world. (shrink)

Boards of directors affect corporate strategy and decision-making through monitoring of management and resource provision. Recently, an increasing number of studies have examined the relationships between board characteristics and corporate social responsibility (CSR). These studies have yielded inconsistent findings. This article therefore reports the results of a study applying meta-analytical techniques to a sample of 82 empirical studies to help clarify the relationships between board characteristics and CSR. Although prior research has tended to apply relatively simplistic models investigating (...) the impact of individual board characteristics independently and only directly, we adopt a more complex perspective to shed new light on the board characteristics–CSR nexus. Specifically, we use a meta-analytic path model that accounts for the potential interplay between board characteristics in determining CSR and tests whether the presence of a CSR committee plays a meditating role. Our findings suggest that board size, board independence, and female board representation are partially interrelated with each other and jointly influence CSR directly as well as indirectly via the presence of a CSR committee. In addition, we find that country-level institutional factors act as moderators and that the relationships differ with regard to the specific dimension of CSR (i.e., social, environmental, or aggregate). (shrink)

Corporate management is torn between either focusing solely on the interests of stockholders or taking into account the interests of a wide spectrum of stakeholders. Of course, there need be no conflict where taking the wider view is also consistent with maximising stockholder wealth. In this paper, we examine the extent to which a conflict actually exists by examining the relationship between a company's positive and negative corporate social responsibility activities and equity performance. In general, we find little (...) evidence to suggest that managers taking a wider stakeholder perspective will jeopardise the interest of its stockholders. However, our findings do suggest that the market is not only influenced by the independent CSR activities, but also the totality of these activities and that the facets that they value do vary over time. It seems that most recently, the market has valued most firms that satisfied minimum requirements in the areas of diversity and environmental protection but were most proactive in the area of employee-relations. (shrink)

Existing research on the financial implications of corporate social responsibility (CSR) for firms has predominantly focused on positive aspects of CSR, overlooking that firms also undertake actions and initiatives that qualify as negative CSR. Moreover, studies in this area have not investigated how both positive and negative CSR affect the financial risk of firms. As such, in this research, the authors provide a framework linking both positive and negative CSR to idiosyncratic risk of firms. While investigating these relationships, (...) the authors also analyze the moderating role of financial leverage of firms. Overall, analysis of secondary information for firms from multiple industries over the years 2000–2009 shows that CSR has a significant effect on the idiosyncratic risk of firms, with positive CSR reducing risk and negative CSR increasing it. Results also show that the reduction in risk from positive CSR is not guaranteed, with firms having high levels of financial leverage witnessing lower idiosyncratic risk reduction. (shrink)

Using a sample of 21,030 US firm-year observations that represents more than 3000 individual firms over the 1998–2012 period, we investigate the relationship between Corporate Social Responsibility (CSR) and investment efficiency. We provide strong and robust evidence that high CSR involvement decreases investment inefficiency and consequently increases investment efficiency. This result is consistent with our expectations that high CSR firms enjoy low information asymmetry and high stakeholder solidarity (stakeholder theory). Moreover, our findings suggest that CSR components that are (...) directly related to firms’ primary stakeholders (e.g. employee relations, product characteristics, environment, and diversity) are more relevant in reducing investment inefficiency compared with those related to secondary stakeholders (e.g. human rights and community involvement). Finally, additional results show that the effect of CSR on investment efficiency is more pronounced during the subprime crisis. Taken together, our results highlight the important role that CSR plays in shaping firms’ investment behaviour and efficiency. (shrink)

This paper examines how progress on gender equality in the field of corporate social responsibility (CSR) might contribute to broader EU gender and sustainability objectives. It focuses on corporations and citizenship, and on company stakeholder relations (SR) in particular. While the literature on SR has previously engaged with scholarship on feminist ethics, and in particular the ‘ethics of care’, this paper draws upon the feminist citizenship and feminist ethics literature, and upon gender mainstreaming strategy to suggest a more (...) comprehensive approach to gender equality within SR. The aim is to extend our understanding of CSR as a potential policy instrument to advance gender equality. (shrink)

This study examines the association between corporate social responsibility and management forecast accuracy. Using data from 1995 to 2009, we find that firms provide more accurate earnings forecasts in the face of CSR activities. We also find that the positive association between CSR and management forecast accuracy is only present for the post-regulation period of 2001–2009, after the introduction of disclosure regulations intended to mitigate managers’ opportunistic behavior. These findings are consistent with the notion that managers strive to (...) improve the quality of financial disclosure following superior CSR performance in the recent period. (shrink)

Research on employees’ responses to corporate social responsibility has recently accelerated and begun appearing in top-tier academic journals. However, existing findings are still largely fragmented, and this stream of research lacks theoretical consolidation. This article integrates the diffuse and multi-disciplinary literature on CSR micro-level influences in a theoretically driven conceptual framework that contributes to explain and predict when, why, and how employees might react to CSR activity in a way that influences organizations’ economic and social performance. Drawing (...) on social identity theory and social exchange theory, we delineate the different but interdependent psychological mechanisms that explain how CSR can strengthen the employee–organization relationship and subsequently foster employee-related, micro-level outcomes. Contributions of our framework to extant literature and potential extensions for future research are then discussed. (shrink)

This paper examines the influence of CEO career horizon problems on corporate social responsibility. We assume that as CEOs are getting older, they tend to disengage in CSR due to their shorter career horizons. We further argue that high levels of industry-level discretion and blockholder ownership amplify the negative effects of CEO age on CSR. Using a panel sample of US-based firms over 2004–2009, we do not find the main effect of CEO age on CSR, but find support (...) for the moderating effects, such that CEO age is negatively associated with CSR when there are high levels of ILD and blockholder ownership. Therefore, results suggest that CEO career horizon problems matter for CSR when CEOs have sufficient discretion over the firm’s strategic decisions and outside blockholders put more pressure on CEOs to engage in financial earning management. (shrink)

This paper focuses on social responsibilities of small- and medium-sized enterprises (SMEs). The objective of the paper is to define propositions in order totest if and how the behavior of small companies depends on managerial tasks, and general environmental threats and opportunities. Broadly speaking, we try toanswer to the following questions. Is there a way to connect small companies’ attitudes towards social responsibility to the models of the businesses they run?Does socially responsible behavior depend on the specific (...) industry or the local economic environment, more than on firm size? (shrink)

A unique dataset is exploited to provide insight into the impact of management quality practices on corporate social responsibility for a sample of US manufacturing firms. Our results suggest that MQPs are positively and significantly related to a firm’s CSR rating. This confirms that intangible assets affect corporate outcomes. We also show that superior MQPs matter more in explaining the CSR dimensions that are related directly to the firm’s primary stakeholders.

The extent to which people identify with an organization is dependent on the attractiveness of the organizational identity, which helps individuals satisfy one or more important self-definitional needs. However, little is known about the antecedents of company identity attractiveness (IA) in a consumer–company context. Drawing on theories of social identity and organizational identification, a model of the antecedents of IA is developed and tested. The findings provide empirical validation of the relationship between IA and corporate associations perceived by consumers. (...) Our results demonstrate that the Corporate Social Responsibility (CSR) contribution to company IA is much stronger than that of Corporate Ability (CA). This may be linked to increasing competition and of decreasing CA-based variation in the marketplace. (shrink)

This study examines the effects of corporate governance mechanisms on CSR performance in an emerging economy, China. Because of the need of gaining legitimacy in the new institutional context, Chinese firms have to adopt global CSR practices in order to remain competitive. Using the corporate governance framework, this study examines how board composition, ownership, and TMT composition influence corporate social performance. The propositions are tested using data gathered from 471 firms in China. By and large, empirical findings supported the (...) hypothesized relationships. (shrink)

The objective of this article is double: first, to analyze, using a descriptive analysis, the main differences in the level and components of social behaviour between European and North American firms and, second, to contrast empirically, using a multiple linear regression model, whether the motives behind corporate social behaviour are different depending on the region or country of the firm. With this aim, an indicator of social behaviour (termed effort in sustainability) has been constructed by aggregating the (...) firm's social effort with customers, employees, community and environment for a sample of the 40 European and North American companies most highly reputed in the years 2003 and 2004. The results obtained indicate that the region or country of the firm influences the level, components and motivation of its social behaviour. (shrink)

Most work to date seeking to link CSR level and performance has treated CSR as a strictly firm level variable. It is the argument of this author that any investigation of CSR that fails to incorporate industry level realities, particularly of an economic nature, will be fatally deficient. Hypotheses are proposed, building off the work of James Post, the gravamen of which is that CSR level depends significantly on industrial and economic status. The hypotheses are tested against a currently popular (...) database and receive moderate support. (shrink)

Companies offer ethics codes and training to increase employees' ethical conduct. These programs can also enhance individual work attitudes because ethical organizations are typically valued. Socially responsible companies are likely viewed as ethical organizations and should therefore prompt similar employee job responses. Using survey information collected from 313 business professionals, this exploratory study proposed that perceived corporate social responsibility would mediate the positive relationships between ethics codes/training and job satisfaction. Results indicated that corporate social responsibility (...) fully or partially mediated the positive associations between four ethics program variables and individual job satisfaction, suggesting that companies might better manage employees' ethical perceptions and work attitudes with multiple policies, an approach endorsed in the ethics literature. (shrink)