In the last two decades, there has been a pronounced growth of CSR rating agencies that assess corporations based on their social and environmental performance. This article investigates the impact of CSR ratings on the behavior of individual corporations. To what extent do corporations adjust their behavior based on how they rank? Our primary finding is that being dropped from a CSR ranking appears to do little to encourage firms to acknowledge and address problems related to their social and environmental (...) performance. Specific rankings appear not to have a widespread effect of influencing firms to acknowledge negative CSR events and publicly present plans and actions to address them. Whether firms are well or poorly ranked, they appear to focus on and publicly discuss their “positive” CSR activities. We discuss the wider significance of these results as well as the overall significance of CSR rankings for a global economy. (shrink)

This article studies the idea of Corporate Social Performance (CSP) from a critical perspective using empirical elements derived from analysis of year 2000 ARESE data. ARESE is the French first mover social rating agency providing quantified data about the Social Performance of French companies. The paper starts out by reviewing leading CSP models and discussing problems inherent to the measurement of this construct before going on to present and analyse ARESE data - whose suitability for existing models will be discussed.

The vast majority of extant empirical research examining the relationship between corporate social performance and financial performance selects samples of only those firms which are observed engaging in CSP. In this study, the authors assert that firms’ efforts to pursue CSP and subsequently their appearance in social-choice investment advisory firms’ ranking databases are non-random. Studying the CSP–FP link using selected samples of only those firms whose social performance is ranked by SIA firms introduces a sample-selection bias which limits generalization of (...) results to a population of all firms, and at worst provides alternate explanations for observed relationships. The authors test these assertions on a large sample of public corporations in the United States over 6 years and find a sample-selection bias. Upon correction of this bias, this study confirms the positive impact of CSP on FP. (shrink)

Corporate social performance (CSP) has been a prominent concept in the management literature dealing with the social role and impacts of the corporation; it has been promulgated as a unifying paradigm for the field. However, the concept of CSP is still lacking strong theoretical foundations and empirical validity, suggesting that the paradigmatic status of CSP might be lost. In this paper, the authors draw on Hirsch and Levin’s (1999) life cycle approach to explore the development of CSP as a concept, (...) explain why it has so recurrently failed to deliver on these dimensions, and offer possible routes for future research that may potentially ameliorate this problem. (shrink)

We examine three business-related initiatives designed to achieve peace positive impacts in the Cape Town township of Langa. Each was seemingly straightforward in its purpose, logic, and implementation. However, their positive intent was frustrated and their impacts ultimately harmful to their articulated goals. Understanding why this is so can be difficult in violent, turbulent, and information-poor environments such as Langa, confounding progress even by actors with ethical intentions. To aid in sense making and to provide insight for more positive future (...) action, we develop from 125 interviews conducted for this study causal loop models for these initiatives within their conflict subsystems. These explain the perverse impacts of these initiatives by illuminating their (lack of) salience to key conflict factors, their (in)sufficiency to effect positive change in light of competing systems dynamics, and their (in)attentiveness to interdependencies with the intentions and actions of others. We thus contribute to understanding of the factors required to achieve positive social outcomes in more extreme contexts. More generally, we demonstrate the value of systems analysis both for scholarship related to business and peace and for reducing blind spots that can inhibit sound planning for ethical business action amidst complexity. (shrink)