Responsible Artificial Intelligence (RAI) is a subset of the ethics associated with the use of artificial intelligence, which will only increase with the recent advent of new regulatory frameworks. However, if many firms have announced the establishment of AI governance rules, there is currently an important gap in understanding whether and why these announcements are being implemented or remain “decoupled” from operations. We assess how large global firms have so far implemented RAI, and the antecedents to RAI implementation across a (...) wide range of RAI initiatives. We find that the operationalization of RAI practices is scattered across firms, with only a fringe of companies extensively industrializing RAI. Social pressure pushes RAI design (”saying”) rather than implementation but the reverse is true for competitive pressure. AI capabilities as a bundle of data quality AI architecture, and talents are strongly associated with RAI design to scaling. (shrink)

While previous authors have broadly examined the motivations and outcomes of the philanthropic activities of organizations, the present study extends Miska et al.’s rationalistic approach to examine the degree to which managerial philanthropic decision-making behaviour is dominated by morality. This study also tackles the question of whether this relationship is moderated by the strength of the geographical proximity and amount of the donation within an agency framework. To probe the radical agency problem and the effect of intervention, an alternative heuristic (...) scenario is also developed to provide evidence that managers under the same moral level show significant differences in donation intention under a variety of agency conditions. The results indicate a significant difference between the existence and non-existence of agency problems in charitable decision-making by managers high in idealism and relativism; however, at the same time, philanthropic behaviour is intertwined with various dilemma-related contexts. These findings bridge the gap in the literature on ethics and corporate social responsibility, and challenge current thinking on corporate governance mechanisms in this area by offering researchers and practitioners an integrated model that responds to a strong sceptical bias or a high premium placed on morality. (shrink)

Drawing a framework from institutional and legitimacy theory, supplemented by concepts from the accounting literature, this study uses longitudinal crosssectional and cross-national data on over 500 firms listed in the Dow Jones Sustainability Index (DJSI) to empirically test whether these firms are strategic in their philanthropy as indicated by their measurement of the impact of their philanthropic activities along three dimensions -society, business, and reputation and stakeholder satisfaction. It is predicted that the variables' company size, amount of philanthropic expenditure, region (...) and industry influence the extent to which the various impact dimensions of philanthropy are measured. Though unexpected considering the lack of common practice in impact measurement, it is found that between 62 and 76% of the DJSI firms measure some sort of impact of their philanthropic activities, mostly impact on society and impact on reputation and stakeholder satisfaction. The number of firms that measure impact increases over the years and so does the number of firms that measure multiple dimensions of impact. Consist with our predictions, we find that larger firms and firms with relatively higher philanthropic expenditures are more likely to measure impact. Moreover, firms in the financial sector and firms from Europe and North America are also more likely to measure impact of their philanthropic activities. (shrink)

This paper examines the strategic use of corporate philanthropy in the 1990s by UK building societies faced with an intensification of societal pressure to change legal form from mutual to corporate status. While the economic case for mutuality has been made elsewhere, this paper examines the observation that community relationships were thought by management to be capable of assisting in the strategic positioning of mutual societies with regard to their legal form. By increasing charitable giving to respond to the level (...) of societal scrutiny and discussion on the issue of mutuality, this paper argues that charitable giving, as one proxy for community involvement, was used as a strategic tool to deflect calls for demutualisation, thereby preserving the existing mutual status of building societies. (shrink)

Business Ethics: A European Review, EarlyView.

It has been claimed that ‘virtuous structures’ can foster moral agency in organisations. We investigate this in the context of employee involvement in corporate philanthropy, an activity whose moral status has been disputed. Employing Alasdair MacIntyre’s account of moral agency, we analyse the results of eight focus groups with employees engaged in corporate philanthropy in an employee-owned retailer, the John Lewis Partnership. Within this organisational context, Employee–Partners’ moral agency was evidenced in narrative accounts of their engagement in philanthropic activities and (...) in their disputes about the moral status of corporate philanthropy. (shrink)

We review some 30 years of academic research on corporate philanthropy, taking stock of the current state of research about this rising practice and identifying gaps and puzzles that deserve further investigation. To do so, we examine a total of 162 academic papers in the fields of management, economics, sociology, and public policy, and analyze their content in a systematic fashion. We distinguish four main lines of inquiry within the literature: the essence of corporate philanthropy, its different drivers, the way (...) it is organized, and its likely outcomes. After reviewing the main findings of the literature, we build on several research gaps to highlight directions for future research on corporate philanthropy with an interest in strengthening our understanding of this fascinating phenomenon at the crossroads of business and society. (shrink)

This study examines whether penalties issued to Chinese listed companies by securities regulators for violations of corporate law affect the cost of debt, and the moderating role of corporate social responsibility fulfillment on this relationship. Our sample consists of firms listed on Shanghai and Shenzhen stock exchanges from 2011 to 2017 and the data are collected from the announcements of China Securities Regulatory Commission. The findings are as follows: punishment announcements by regulatory authorities increase the cost of debt; and the (...) effect of punishment announcements on the cost of debt is partially offset by prior CSR performance. These findings are shown to be robust. The reputation insurance effect of CSR is more pronounced in state-owned enterprises and in an institutional environment with low marketization, a weak legal environment, and low information transparency. The findings support the reputation insurance hypothesis of CSR and employ the cost of debt as a governance mechanism. (shrink)

‘Corporate Social Responsibility’ (‘CSR’) has gained popularity in corporate as well as academic debates, especially since the 2008 financial crisis (Okpara & Idowu, 2013). Although CSR as an idea has not failed, concerning gaps remain in the theory and practice of CSR. More particularly, in India, the legislature has adopted a ‘one size fits all’ approach which permits businesses to interpret and implement CSR based on their unique circumstances. This leads to persistent and escalating concerns regarding its implementation and limits. (...) The most basic of such concerns is the fact that CSR conceptually lacks a consistent understanding as scholars all around the world have defined it differently (Votaw & Sethi, 1973), which has an effect of conflating CSR with legal obligations or pre-existing moral obligations of the company. This work, limiting the study to Indian context, argues that the effectiveness of any policy or regulation is a direct result of express intention behind it and Indian law lacks such expression. It specifically argues that the framework in India is based on the misconceived idea of CSR resting on ‘neo-liberal’ principles meaning that a corporation’s primary responsibility is maximization of the profits of the shareholders and hence CSR is perceived merely as an add-on. There needs to be a change in this narrative to a ‘socio-economic’ one which could bring CSR within the core functions of corporations and which largely depends on the Corporate Governance ecosystem so in place. India although claims to have adopted the Stakeholder Model of Corporate Governance, in practice it still aligns with the Shareholder Model. It is only when the former is adopted in practice, can CSR be effectively implemented which can be further facilitated through a clear expression of legislative intent behind the provisions and regulations concerning CSR. In order to substantiate these arguments, this work adopts a doctrinal method of research which undergoes a thematic discourse analysis of the issue and its theoretical underpinnings, and also provides certain recommendations in this respect. (shrink)

This study explores why and how firms respond to social demands through philanthropic giving in the context of a severe natural disaster. Drawing on Marquis and Qian's organizational response model to government signals, we integrate resource dependence theory and institutional theory to build a two-step model of organizational response to social needs, in situations of disaster relief. We argue that firms depending more on the government for support are more likely to donate in disaster relief, while firms who receive more (...) scrutiny from the government and the general public and firms having more slack resources are likely to donate more. Evidence from Chinese listed companies' donations to the 2008 Sichuan earthquake largely supports our predictions. This study provides a more precise understanding of the corporate philanthropic decision process, decoupling the drivers of philanthropic giving, and those determining the amount given. Theoretical and practical implications are suggested. (shrink)

A British coffee chain’s fundraising practices constitute a background for this study to examine ideological discourses behind British charitable giving. The charity executes projects in coffee growing communities by providing education for children in disadvantaged neighbourhoods. The study takes a critical stance from a discursive paradigmatic perspective to analyse visual contents used by the charity. The applied visual critical discourse analysis was inspired by Barthes’ semiotic theory. Findings suggest that the adverts’ interpretative repertoires can serve ideologies that sustain the donors’ (...) social-cultural dominance over the recipients by justifying group-based social hierarchies. The chains of signifiers do not question the spectators’ moral position but rationalise status quo and maintain undisturbed consumption. Findings suggest the possibility that the discourses of prosocial behaviour incited under consuming conditions do not challenge but may even justify global inequality. This finding presents challenges facing charitable organisations balancing their work within wider commercial and cultural contexts. (shrink)

The dynamic organisational processes in businesses dilute the boundaries between the individual, organisational, and societal drivers of corporate philanthropy. This creates a complex framework in which charitable project selection occurs. Using the example of European tour operators, this study investigates the mechanisms through which companies invest in charitable projects in overseas destinations. Inextricably linked to this is the increasing contestation by local communities as to how they are able to engage effectively with tourism in order to realise the benefits tourism (...) development can bring. This research furthers such debates by exploring the processes through which tour operators facilitate community development through charitable giving. Findings show, with no formal frameworks in existence, project selection depends upon emergent strategies that connect the professional with the personal, with trust being positioned as a central driver of these informal processes. Discretionary responsibilities are reworked through business leaders’ commitment to responsible business practises and the ethical subjectivity guiding these processes. (shrink)

This article investigates the influence of innovation on the relationship between corporate strategy and social issues. Specifically, we employ firm-level data for a large sample of U.K. companies drawn from a diverse range of industrial sectors to investigate, given innovation, the determinants of both the probability that the innovation brings reduced environmental impacts and/or improved health and safety, and the strength of this effect. In this connection, we find evidence of a dichotomy between product and process innovations, and roles for (...) firm size, industrial sector, a foreign market presence, access to various information sources (e.g. universities and government research organisations) and the extent to which activities are constrained by regulation. Furthermore, we find a tendency for the influences of many of these factors to vary between older and newer firms. (shrink)

Using empirical evidence gathered from Chinese listed companies, this article explores the relationship between micro-governance mechanisms and corporate philanthropy from a corporate governance perspective. In China’s emerging market, ultimate controlling shareholders of state-owned enterprises are reluctant to donate their assets or resources to charitable organizations; in private enterprises marked by more deviation in voting and cash flow rights, such donations tend to be more likely. However, the ultimate controllers in PEs refuse to donate assets or resources they control or own, (...) which implies that corporate philanthropy by PEs comes at the cost of others, through assets or resources owned by minority shareholders. Even after devastating natural disasters such as the 2008 Wenchuan Earthquake, the controlling shareholders continue to express reluctance to donate any assets they control. Despite widespread evidence that corporate philanthropy boosts corporate growth and profitability, these ultimate controllers indicate no intention to donate their own money as a means to improve corporate performance. (shrink)

While previous studies have discussed how much should be given by firms, less is known about how firms would spend these investments, such as strategically allocating these philanthropy activities across geographic markets. This study examines the impact of multimarket contact on corporate philanthropy in different geographic markets. Using Chinese property insurance firms from 2007 to 2015 as samples, the results show that firms are less likely to initiate philanthropy activities in geographic markets with high multimarket contact. We also found that (...) the negative impact of multimarket competition on corporate philanthropy is stronger in highly concentrated markets. Moreover, this negative relationship is stronger when institutional distance at a firm level is low. Our study contributes to the literature on corporate philanthropy and multimarket contact. (shrink)

This paper examines the strategic use of corporate philanthropy in the 1990s by UK building societies faced with an intensification of societal pressure to change legal form from mutual to corporate status. While the economic case for mutuality has been made elsewhere, this paper examines the observation that community relationships were thought by management to be capable of assisting in the strategic positioning of mutual societies with regard to their legal form. By increasing charitable giving to respond to the level (...) of societal scrutiny and discussion on the issue of mutuality, this paper argues that charitable giving, as one proxy for community involvement, was used as a strategic tool to deflect calls for demutualisation, thereby preserving the existing mutual status of building societies. (shrink)

Because it promises to benefit business and society simultaneously, strategic philanthropy might be characterized as a “happy marriage” of corporate social responsibility behavior and corporate financial performance. However, as evidence so far has been mostly anecdotal, it is important to understand to what extent empirics support the actual practice as well as value of a strategic approach, which creates both business and social impacts through corporate philanthropic activities. Utilizing data from the years 2006 to 2009 for a sample of the (...) Dow Jones Sustainability Index, which monitors the world’s most sustainable companies, the authors test a model of strategic philanthropy in which the dependent variable is evidence that a firm does or does not measure business and social impacts simultaneously. From the DJSI data, the authors find a proposed measure of overall corporate social performance to be the most important explanatory factor for engagement in strategic philanthropy. Moreover, this measure of CSP has a mediating effect on the relations between certain independent variables and strategic philanthropy. Other important findings provide support for the influence of the institutional factors industry and region on the likelihood that companies are practicing strategic philanthropy, but little effect of the business characteristics company size and profitability on that likelihood. (shrink)

How to measure performance in charitable organisations continues to excite interest among academics and practitioners. Despite the intellectual interest, little consensus has emerged as to what are the best measures of performance in charities. This is against the backdrop of an increased demand by donors and other stakeholders on charities to provide information on their performance. Building on prior studies, this paper examines the measures of performance in charities using a hybrid methodological approach which consists of 14 exploratory interviews and (...) a quantitative survey of 105 chief executive officers/board of trustees of large British charities. The results of factor analysis and internal reliability produced five broad measures of performance of charities: financial measures; client satisfaction; management effectiveness; stakeholder involvement; and benchmarking, indicating that the overall performance of charities is best measured by a set of factors that reflect the multiple and diverse stakeholders associated with charities. Further analysis using structural equation modelling corroborates the results that non-financial measures such as management effectiveness, stakeholder involvement and benchmarking are important to the performance of charities. (shrink)

We investigate corporate giving behaviors of prestigious business award winners in Korea. In particular, we examine whether firms strategically use corporate giving to enhance corporate reputation. We find that award winners generally make more charitable contributions than nonwinners prior to winning awards and maintain significant charitable contributions after winning awards; multiple award winners make even more charitable contributions than single-award winners; and an increase in charitable contributions does not raise the probability of winning awards in the year after the increase. (...) The results suggest that CEOs of award-winning firms do not use corporate giving opportunistically to enhance their status and reputation. Rather, significant charitable contributions by award winners may be indicative of a sound business strategy to maximize long-term firm value. (shrink)

Although many studies have found a positive relationship between corporate social performance and employer attractiveness, few have examined how different forms of responsibility might mediate that attraction, particularly when those social practices afford different degrees of employee participation. The current study undertook this line of inquiry by examining prospective employees’ attraction to three common approaches to corporate social performance (CSP) that offer increasing levels of participation: donation, volunteerism, and operational integration. Unexpectedly, findings from an empirical investigation challenged the study's main (...) hypothesis; that is, prospective employees were least attracted to firms that integrated their social and financial goals. Consequently, important implications and questions remain for both employers and business educators. (shrink)