Should CSR be approached only on a voluntary basis or should it be complemented with a compulsory regulatory framework? What type of government intervention is more effective in fostering CSR among companies? This paper is an attempt to answer these questions, reviewing the debate between proponents of the voluntary case and the obligatory case for CSR, and critically analysing current international government-led initiatives to foster CSR among companies, and national government-led initiatives in the EU area. Finally, the paper focuses on (...) the Spanish case, as an example of the failure of an exclusively voluntary approach. Despite the rapid uprise of CSR, Spain is still far behind late in CSR promotion strategies. Most action has been undertaken by companies themselves with no common guidelines, governmental support, or independent verification. The lack of a regulatory framework for CSR or ethical investment issues and the virtual absence of other indirect incentives, explains the misbalance between private, public and Third Sector initiatives. Based on the Spanish context which is quite similar to other non-OECD countries, the authors call for a more proactive government position in CSR related issues. The conclusions of the paper detail the features of this regulatory framework and other policies to promote CSR in Spain as well as in other OECD countries. (shrink)

Abstract:In this article we first review the development of the concept of global business citizenship and show how the libertarian political philosophy of free-market capitalism must give way to a communitarian view in order for the voluntaristic, local notion of “corporate citizenship” to take root. We then distinguish the concept of global business citizenship from “corporate citizenship” by showing how the former concept requires a transition from communitarian thinking to a position of universal human rights. In addition, we link global (...) business citizenship to global business strategy and to three analytical levels of ethical norms. Finally, we trace a process whereby global businesses can implement fundamental norms and learn to accommodate to legitimate cultural differences. (shrink)

This essay provides an overview of business ethics. I describe important issues, identify some of the normative considerations animating them, and offer a roadmap of references for those wishing to learn more. I focus on issues in normative business ethics, but discuss briefly the growing body of work in descriptive business ethics. I conclude with a comment on the changing nature of the field.

In the field of business and society, several complementary frameworks appear to be in competition for preeminence. Although debatable, the primary contenders appear to include (a) corporate social responsibility, (b) business ethics, (c) stakeholder management, (d) sustainability, and (e) corporate citizenship. Despite the prevalence of the five frameworks, difficulties remain in understanding what each construct really means, or should mean, and how each might relate to the others. To address the confusion, the authors propose three core concepts—value, balance, and accountability—that (...) might be used to better integrate the five frameworks and potentially provide the basis for further discussion and theoretical development of the business and society field. (shrink)

Most business ethicists maintain that corporate actors are subject to a variety of moral obligations. However, there is a persistent and underappreciated concern that the competitive pressures of the market somehow provide corporate actors with a far-reaching excuse from meeting these obligations. Here, we assess this concern. Blending resources from the history of philosophy and strategic management, we demonstrate the assumptions required for and limits of this excuse. Applying the idea of ‘the state of nature’ from Thomas Hobbes, we suggest (...) that corporate actors would be excused from duties if complying with them threatened their vital interests. We show how this excuse is not available for most individuals within firms; instead, it is an excuse perhaps available to firms themselves, but only given substantive assumptions about corporate personhood. For those willing to make these assumptions, we apply the competitive advantage construct to delimit the scope of this excuse. We suggest that firms are excused from fulfilling an obligation when complying leads to a competitive disadvantage, as this imperils the firm’s vital interests. After revealing why this excuse does not generalize, we conclude by considering when we should reform the market to avoid the legitimacy of this excuse. (shrink)

According to the Carbon Disclosure Project, the world's largest 100 companies are responsible for 71% of global greenhouse gas emissions since 1988. However, seven years after the adoption of the Paris Agreement, these companies' efforts remain insufficient as they have not significantly altered the dangerous trajectory of greenhouse gas emissions. Current methods used to quantify company‐level emissions offer limited insights, often providing overall scores or evaluating CSR's impact on performance. To address this, we developed a refined methodology focusing on the (...) carbon footprint within the environmental dimension. Our methodology, which is extendable to other companies and regions like the London Stock Exchange or S&P 500, assesses the evolution of CAC 40 companies' carbon footprints relative to their revenues. Comparing their progress to sector peers between 2016 and 2020 allows us to track performance, benchmark against industry standards, and identify areas for improvement. Based on their carbon emissions, we categorized companies as leaders, laggards, or non‐reporters, enabling actionable recommendations. Our findings indicate decreased direct emissions but a concerning trend of increasing indirect emissions, suggesting outsourced carbon footprints within the value chain. This raises suspicions of greenwashing practices, warranting further investigation. (shrink)

A salient if under researched feature of the new age of global inequalities is the rise to prominence of entrepreneurial philanthropy, the pursuit of transformational social goals through philanthropic investment in projects animated by entrepreneurial principles. Super-wealthy entrepreneurs in this way extend their suzerainty from the domain of the economic to the domains of the social and political. We explore the ethics and ethical implications of entrepreneurial philanthropy through systematic comparison with what we call customary philanthropy, which preferences support for (...) established institutions and social practices. We analyse the ethical statements made at interview by 24 elite UK philanthropists, 12 customary and 12 entrepreneurial, to reveal the co-existence of two ethically charged narratives of elite philanthropic motivations, each instrumental in maintaining the established socio-economic order. We conclude that entrepreneurial philanthropy, as an ostensibly efficacious instrument of social justice, is ethically flawed by its unremitting impulse toward ideological purity. (shrink)

Corporate social responsibility (CSR) has become indispensable in modern business discourse; yet identifying and defining what CSR means is open to contest. Although such contestation is not uncommon with concepts found in the social sciences, for CSR it presents some difficulty for theoretical and empirical analysis, especially with regards to verifying that diverse application of the concept is consistent or concomitant. On the other hand, it seems unfeasible that the diversity of issues addressed under the CSR umbrella would yield to (...) a singular universal definition. Gallie, an eminent philosophical scholar, proposed the essentially contested concepts (ECC) theory in 1956 to address concepts that by their very nature engender perpetual disputes. He pointed out that there are certain concepts which by their very nature are inevitably contested and prescribed seven criteria for evaluating such concepts. This article examines these criteria to discover if CSR is an essentially contested concept and in that case, to construe if such a change in perception will resolve the definitional crisis. The analysis suggests that CSR is an ECC and this explains the potential for several conceptions of CSR, however, it does not totally obviate the need for a definition of its core or common reference point, if only to ensure that the contestants are dealing with an identical subject matter. (shrink)

Modern society is challenged by a loss of efficiency in national governance systems values, and lifestyles. Corporate social responsibility (CSR) discourse builds upon a conception of organizational legitimacy that does not appropriately reflect these changes. The problems arise from the a-political role of the corporation in the concepts of cognitive and pragmatic legitimacy, which are based on compliance to national law and on relatively homogeneous and stable societal expectations on the one hand and widely accepted rhetoric assuming that all members (...) of society benefit from capitalist production on the other. We therefore propose a fundamental shift to moral legitimacy, from an output and power oriented approach to an input related and discursive concept of legitimacy. This shift creates a new basis of legitimacy and involves organizations in processes of active justification vis-à-vis society rather than simply responding to the demands of powerful groups. We consider this a step towards the politicization of the corporation and attempt to re-embed the debate on corporate legitimacy into its broader context of political theory, while reflecting the recent turn from a liberal to a deliberative concept of democracy. (shrink)

Scandinavia is routinely cited as a global leader in corporate social responsibility and sustainability. In this article, we explore the foundation for this claim while also exploring potential contributing factors. We consider the deep-seated traditions of stakeholder engagement across Scandinavia including the claim that the recent concept of “creating shared value” has Scandinavian origins, institutional and cultural factors that encourage strong CSR and sustainability performances, and the recent phenomenon of movement from implicit to explicit CSR in a Scandinavian context and (...) what this may entail. In sum, we depict the state of the art in CSR and sustainability in Scandinavia. We intend for this to serve as a basis to help establish a globally recognized research paradigm dedicated to considering CSR and sustainability in a Scandinavian context. (shrink)

This article addresses four hypotheses: (a) that corporate social responsibility (CSR) in Asia is not homogeneous but varies among countries, (b) that the variation is explained by stages of development, (c) that globalization enhances the adoption of CSR in Asia, and (d) that national business systems structure the profile of multinational corporations’ CSR. These hypotheses are investigated through analysis of Web site reporting of 50 companies in seven Asian countries: India, Indonesia, Malaysia, the Philippines, South Korea, Singapore, and Thailand. The (...) article concludes that CSR does vary considerably among Asian countries but that this variation is not explained by development but by factors in the respective national business systems. It also concludes that multinational companies are more likely to adopt CSR than those operating solely in their home country but that the profile of their CSR tends to reflect the profile of the country of operation rather than the country of origin. (shrink)

A disconnect remains between theories about responsible management and application in real-life organizations. Part of the reason is due to the complexity and holistic nature of the field, and the fact that many of the benefits of aligning business objectives with changing societal conditions are of an intangible nature. Human resource management is an increasingly important part of the field with benefits including talent retention, higher levels of motivation, and improvements in organizational cohesion. This paper sets out an experiment run (...) at a large Spanish university to try to analyze the impact on worker productivity of a responsible management stance by an employer. Based on the Corporate Social Performance model, the paper examines the issue from the point of view of responsibilities, responsiveness, and outcomes, and considers the cost/benefit effect of incorporating a social responsibility variable into the wage structure to measure the impact on productivity. (shrink)

In this paper, we examine the relation between corporate social responsibility (CSR) and firm risk in controversial industry sectors. We develop and test two competing hypotheses of risk reduction and window dressing. Employing an extensive U.S. sample during the 1991-2010 period from controversial industry firms, such as alcohol, tobacco, gambling, and others, we find that CSR engagement inversely affects firm risk after controlling for various firm characteristics. To deal with endogeneity issue, we adopt a system equation approach and difference regressions (...) and continue to find that CSR engagement of firms in controversial industry sectors negatively affects firm risk. To examine the premise that firm risk is more of an issue for controversial firms, we further examine the difference between non-controversial and controversial firm samples, and find that the effect of risk reduction through CSR engagement is more economically and statistically significant in controversial industry firms than in non-controversial industry firms. These findings support the risk-reduction hypothesis, but not the window-dressing hypothesis, and the notion that the top management of U.S. firms in controversial industries is, in general, risk averse and that their CSR engagement helps their risk management efforts. (shrink)

This paper reviews and analyses the implications of citizenship thinking for building ethical institutional arrangements for business. The paper looks at various stakeholder groups whose relation with the company changes quite significantly when one starts to conceptualize it in terms of citizenship. Rather than being simply stakeholders, we could see those groups either as citizens, or as other constituencies participating in the administration of citizenship for others, or in societal governance more broadly. This raises crucial questions about accountability and democracy (...) in stakeholder relations with the corporation. We sketch out the main currents informing and emerging from the citizenship perspective on firm-stakeholder relations; analyze specific stakeholder groups and their particular relevance in the context of a citizenship perspective; and conclude with a discussion of the broader implications in terms of building ethical institutions. (shrink)

In this perspectives article, we maintain that the current local to global sustainable development predicaments we face are the result of humanity's impact on the Earth System (ES)—that is to say, on the very systemic fabric of the ES (i.e., its functioning and configuration), combined with an insufficiently coherent application of sustainable development policy to address and resolve this systemic problem. In response to what is an urgent crisis, we propose four foundational guiding principles, which we contend provide an overarching (...) framing that, if implemented, would offer an approach to steer global sustainable development policy in a manner that would be to the benefit of the ES and the securing of a flourishing future for all. Our principles are applicable at the levels from a local business ecosystem, national‐regional networks, to global policy. (shrink)

Interest in corporate citizenship has been burgeoning in the academic and managerial realms for decades. While a psychological CC climate has been conceptualized and has received empirical support for its relationship with employee outcomes, the organizational climate perspective of CC has not yet been explored. In the present study, we develop and examine a mediated moderation model that elaborates the underlying psychological process and the contingency of organizational CC climate and its individual outcomes. We follow 539 employees in 26 firms (...) for approximately one year in Taiwan. We find that organizational CC climate is positively related to employees’ organizational identification and that the firm’s high-commitment work system can augment the effect of CC on employees’ OI. In addition, employees’ OI plays a psychological process role in mediating the interactive effect of the firm’s CC and HCWS on employees’ workplace outcomes, including their job satisfaction and turnover intention. The findings shed light on the alignment of CC and human resource functions and argue that the Confucian Asian context may act as a stepping stone for the impact of CC on employees’ attitudes. The study offers valuable implications for both researchers and practitioners. (shrink)

This research investigates various firm motives for practicing corporate social responsibility (CSR). More precisely, it examines whether a firm's primary motive for undertaking CSR is related to the type of actions performed. Such exploratory research is overdue following more than 40 years of scholarly contention on the financial rewards of doing (and looking) good. By uncovering and measuring specific aspects of CSR, I offer an initial understanding of interactions within firm CSR operations. Theory on types of CSR have surfaced, yet (...) empirical studies are few. In this research, I address this disparity by using original quantitative measures of both motive and type. The outcomes of this investigation challenge certain extant notions of CSR, while introducing a measure of objectivity in some long‐standing debates among scholars and corporate stakeholders. (shrink)

This study investigated whether employee perceptions of corporate social responsibility (CSR) were associated with the presence of Corporate Psychopaths in corporations. The article states that, as psychopaths are 1% of the population, it is logical to assume that every large corporation has psychopaths working within it. To differentiate these people from the common perception of psychopaths as being criminals, they have been called “Corporate Psychopaths” in this research. The article presents quantitative empirical research into the influence of Corporate Psychopaths on (...) four perceptual measures of CSR and three further measures of organizational commitment to employees. The article explains who Corporate Psychopaths are and delineates the measures of CSR and organizational commitment to employees that were used. It then outlines the research conducted among 346 corporate employees in Australia in 2008. The reliability of the instrument used is commented on favorably in terms of its statistical reliability and its face and external validity. Results of the research are described showing the highly significant and negative influence of Corporate Psychopaths on all of the measures of CSR and of organizational commitment to employees used in the research. When Corporate Psychopaths are present in leadership positions within organizations, employees are less likely to agree with views that: the organization does business in a socially desirable manner; does business in an environmentally friendly manner and that the organization does business in a way that benefits the local community. Also, when Corporate Psychopaths are present in leadership positions within organizations, employees are significantly less likely to agree that the corporation does business in a way that shows commitment to employees, significantly less likely to feel that they receive due recognition for doing a good job, to feel that their work was appreciated and to feel that their efforts were properly rewarded. The article argues that academics and researchers in the area of CSR cannot ignore the influence of individual managers. This is particularly the case when those managers have dysfunctional personalities, or are actually psychopaths. The article further argues that the existence of Corporate Psychopaths should be of interest to those involved in corporate management and corporate governance because their presence influences the way corporations are run and how corporations affect society and the environment. (shrink)

ABSTRACT:There is considerable overlap between the interests of business ethicists and those of political philosophers. Questions about the moral justifiability of the capitalist system, the basis of property rights, and the problem of inequality in the distribution of income have been of central importance in both fields. However, political philosophers have developed, especially over the past four decades, a set of tools and concepts for addressing these questions that are in many ways quite distinctive. Most business ethicists, on the other (...) hand, consider their field to be primarily a domain of applied ethics, and so adopt methods and conceptual frameworks developed by moral philosophers. In this paper, we discuss some of the salient differences between these two approaches, and suggest some ways in which business ethicists could benefit from taking a more “political philosophy” approach to these questions. Throughout, we underline the importance of seeking greater compatibility among the principles used in normative theorizing about markets, regulations, corporate governance, and business practices. (shrink)

Corporate social responsibility (CSR) is an area of great interest, yet little is known about how CSR is perceived and practiced in the professional sport industry. This study employs a mixed-methods approach, including a survey, and a qualitative content analysis of responses to open-ended questions, to explore how professional sport executives define CSR, and what priorities teams have regarding their CSR activities. Findings from this study indicate that sport executives placed different emphases on elements of CSR including a focus on (...) philanthropic activities and ethical behaviors. The data suggest that professional sport executives view CSR as a strategic imperative for their business. Sport executives indicated that a number of factors influenced the practice of their CSR including: philanthropy (altruistic giving), an emphasis on the local community, partnerships, and ethical concerns. We also examine important organizational variables for sport (winning, revenues, and team value) and highlight their relationship with reported CSR involvement. We discuss the implications of the findings and propose recommendations for both theory and practice. (shrink)

The findings of this article increase our understanding of corporate social responsibility from the consumers' perspective in a Chinese setting. Based on primary data collected via a self-administered survey in Shanghai and Hong Kong and results of similar studies conducted in Europe and the United States, we provide evidence to show that Chinese consumers are more supportive of CSR. We also show that Carroll's pyramid of responsibilities can be applied in China. We evaluated the importance placed by Chinese consumers on (...) the four responsibilities of firms - economic, legal, ethical and philanthropic - and find that economic responsibilities are most important while philanthropic responsibilities are of least importance. The nature of these differences is important for firms intending to use corporate social responsibility for strategic purposes. (shrink)

Recent research suggests that corporate social responsibility is institutionalised amongst multinational corporations. Yet CSR scholarship faces considerable challenges. An agreed definition is lacking, even amongst researchers adopting aligned approaches. Studies remain heavily focused on making a business case for CSR, despite its widespread acceptance into business practice. Few studies examine CSR’s on-ground implications for the communities it purports to help, favouring instead a macro-level focus. And concerns about CSR’s sincerity, motivations and ethics perpetuate questions about its integrity. This article argues (...) that new institutionalism is well placed to respond to these core challenges for CSR, and that new institutionalist perspectives can complement and enrich other common theoretical approaches. It contributes a social mechanism-based framework for CSR, identifying and exploring the key social mechanisms that institutionalise it; namely, discourse, mimesis, normative learning and coercion. Understanding CSR as an institution facilitates new and different explorations of its causes and effects and opens new avenues for scholarly inquiry. Illustrative examples from a 3.5-year study of CSR in the global mining industry are presented to explore the implications of CSR as an institution and to suggest pathways for innovative research. (shrink)

This paper examines how it is possible for firms in controversial sectors, which are often marked by social taboos and moral debates, to act in socially responsible ways, and whether a firm can be socially responsible if it produces products harmful to society or individuals. It contends that a utilitarian justification can be used to support the legal and regulated provision of goods and services in these areas, and the regulated and legal provision of these areas produces less harm than (...) the real alternative—illegal and unregulated supply. Utilitarianism is concerned as much with harm minimisation as good maximisation, and both are equally important when it comes to maximising welfare (Bentham 1789, 1970; Mill [1863] 1964). Any adequate theory of CSR must, therefore, have the capacity to handle a business that minimises harm as well as those that more straightforwardly maximise good. In this paper we therefore attempt two tasks. First, we argue that the legal but regulated provision of products and services may be better from an overall utilitarian perspective than a situation in which these harmful or immoral goods and services are illegal but procurable via a black market. Porter and Kramer’s (2006) strategic CSR framework is then presented to describe how firms in these controversial sectors can act in socially responsible ways. This model highlights the importance of firm strategy in selecting areas of socially responsible behaviours that can be acted upon by firms in each industry. (shrink)

This paper presents a study that identifies a stakeholder-defined concept of Corporate Responsibility (CR) in the context of a UK financial service organisation in the immediate pre-credit crunch era. From qualitative analysis of interviews and focus groups with employees and customers, we identify, in a wide-ranging stakeholder-defined concept of CR, six themes that together imply two necessary conditions for a firm to be regarded as responsible—both corporate actions and character must be consonant with CR. This provides both empirical support for (...) a notable, recent theoretical contribution by Godfrey (in Acad Manag Rev 30:777–798, 2005 ) and novel lessons for reputation management practice. (shrink)

Abstract:In this article we first review the development of the concept of global business citizenship and show how the libertarian political philosophy of free-market capitalism must give way to a communitarian view in order for the voluntaristic, local notion of “corporate citizenship” to take root. We then distinguish the concept of global business citizenship from “corporate citizenship” by showing how the former concept requires a transition from communitarian thinking to a position of universal human rights. In addition, we link global (...) business citizenship to global business strategy and to three analytical levels of ethical norms. Finally, we trace a process whereby global businesses can implement fundamental norms and learn to accommodate to legitimate cultural differences. (shrink)

This article explores the possible convergence between the capabilities approach and utilitarianism to specify CSR. It defends the idea that this key issue is related to the anthropological perspective that underpins both theories and demonstrates that a relational conception of individual freedoms and rights present in both traditions gives adequate criteria for CSR toward the company's stakeholders. I therefore defend "relational capability" as a means of providing a common paradigm, a shared vision of a core component of human development. This (...) could further lead to a set of indicators aimed at assessing corporate social performance as the maximization of the relational capability of people impacted by the activities of companies. In particular, I suggest a way of evaluating the contribution of extractive companies to the communities close to their industrial sites in extremely poor areas, not from the viewpoint of material resources and growth, but from the viewpoint of the quality of the social environment and empowerment. (shrink)

Is being responsible good enough? Stone (1975) argued that we need corporate moral responsibility because neither law nor market is adequate to forestall harmful effects of business activities. However, it is not possible for businesses to become responsible for all forms of foreseeable, preventable harm that they produce. This is illustrated here by cases from insurance, television programming, automobiles and weapons production. Reflection on these examples leads to the formulation of a new conception of unintended harms as moral externalities of (...) business activities. Although one might argue that these (negative) moral external effects are outweighed by the desirable end products of business activities, three reasons not to accept the results of such a moral subtraction(or double effect) argument are presented. Instead, the article concludes by offering four techniques for a qualitative, ethical analysis of produced artefacts and their consequences; intended not to displace but to supplement the study of moral responsibility in business. (shrink)

Through a convenience sample of 260 employees, the study shows how employees’ perceptions about corporate citizenship (CC) predict their affective commitment. The study was carried out in Portugal, a high in-group and low societal collectivistic culture. Maignan et al.’s (1999, Journal of the Academy of Marketing Science27(4), 455–469) construct, including economic, legal, ethical, and discretionary responsibilities was used. The main findings are: (a) contrary to what has been presumed in the literature, the discretionary dimension includes two factors: CC toward employees (...) and toward community; (b) perceptions of CC explain 35% of unique variance of affective commitment; (c) the best predictors are perceptions of economic and legal CC and, mainly, perceptions of discretionary CC toward employees; (d) the perceptions of discretionary CC toward employees are significantly better predictors of affective commitment than are perceptions of economic, ethical, and discretionary CC toward the community; (e) perceived inconsistency of the several CC dimensions is detrimental to employees’ affective commitment. The study questions the four-dimensional model of the CC construct as operationalized by Maignan et al., suggests that culture should be included as a moderating variable in future research, and stresses that affective commitment may decrease when employees perceive that their organizations act upon the several areas of CC inconsistently. (shrink)

This research documents consumers’ potential to monitor corporations’ License to Operate through their consumption responses to corporate social responsibility failures. The premise is that the type of social contracts or standards in place may determine how consumers, through their individual and collective behaviors, can play a direct role in influencing corporate behavior, when corporations fail to meet social responsibility standards. An experiment conducted with a large sample of consumers in the United States shows that consumers respond differently to a company’s (...) failure in its social responsibilities depending on whether the violated standard is a government mandate or a voluntary commitment and depending on the consumers’ own environmental consciousness. The findings highlight the potential power of individual consumers and consumer collectives in narrowing the governance gaps relative to social and environmental issues and reducing the likelihood of CSR failures. (shrink)

This paper aims to examine the role that the various vehicles of marketing communications can play with respect to communicating, publicising and highlighting organisational CSR policies to its various stakeholders. It will further endeavour to evaluate the impact of such communications on an organisation's corporate reputation and brand image. The proliferation of unsubstantiated ethical claims and so-called 'green washing' by some companies has resulted in increasing consumer cynicism and mistrust. This has made the task of communicating with, and more importantly (...) convincing, an organisation's stakeholders vis-à-vis its CSR credentials even more difficult. This paper argues that marketing communications tools can play a major role in conveying a company's CSR messages and communicating a more socially responsible image. (shrink)

This article explores the nature of corporate social responsibility (CSR) and corporate reputation using qualitative research approach. Specifically, the relationship between CSR and corporate reputation is examined from the viewpoint of value theory. This paper brings up for discussion the various value priorities lying in the background of CSR actions. The aim is to form categories of value priorities around CSR and reputation, based on qualitative research approach. The main concepts in this paper – CSR, reputation and value – are (...) also defined. This paper further discusses the theory of value structure and content, which identifies certain principal values among different cultures. The data consist of eight interviews with employees of a newspaper company. The results suggest that value priorities play an influential role in CSR actions, influencing to the essence of certain reputation stories in the corporate context. (shrink)

In this study, we examine the relation between corporate environmental responsibility and risk in U.S. public firms. We develop and test the risk-reduction, resource-constraint, and cross-industry variation hypotheses. Using an extensive U.S. sample during the 1991–2012 period, we find that for U.S. industries as a whole, CER engagement inversely affects firm risk after controlling for various firm characteristics. The result remains robust when we use firm fixed effect or an alternative measure of CER using principal component analysis or downside risk (...) measures. To address the concern of endogeneity bias, we use a system equations approach and dynamic system generalized methods of moment regressions, and continue to find that environmentally responsible firms experience lower risk. These findings support the risk-reduction hypothesis, but not the resource-constraint hypothesis, along with the notion that the top management in U.S. firms is generally risk averse and that their CER engagement facilitates their risk management efforts. Our cross-industry analysis further reveals that the inverse CER-risk association mainly comes from the manufacturing sector, whereas in the service sector, CER tends to increase firm risk. (shrink)

To make a business case for corporate sustainability, firms must be able to sell their sustainable products. The influence that firm engagement with non-governmental organizations may have on consumer adoption of sustainable products has been neglected in previous research. We address this by embedding corporate sustainability in a cosmopolitan framework that connects firms, consumers, and civil society organizations based on the understanding of responsibility for global humanity that underlies both the sustainability and cosmopolitanism concepts. We hypothesize that firms’ sustainability engagement (...) and their NGO engagement influence consumer adoption of sustainable products. Empirically, we investigate the adoption of sustainable Eco-circle products made from recycled fibers marketed by Li Ning, a China-based global sportswear brand. We apply a stepwise regression approach to test our hypotheses with paper-and-pencil survey data from 217 Chinese consumers. We find adoption to be positively associated with consumers’ sustainability attitude but not with firms’ sustainability engagement. For firm–NGO engagement, these relationships are reversed: Adoption is positively associated with firm–NGO engagement, but not with consumers’ related attitude. Our results present a picture of the Chinese context in which there is a business case for corporate sustainability if firms’ words about sustainable product strategies are supported by signals from civil society about firm deeds. The results imply that in a Chinese context, firms need to be particularly aware of the role of NGOs when hoping to be rewarded for sustainability. (shrink)

ABSTRACT:Globalization has brought increased attention to the notion that labor rights such asfreedom of association—the right of workers to organize a union—are fundamental human rights. However, the vigorous opposition to freedom of association by US firms is largely ignored in the business ethics literature and exacerbated by compensatory corporate citizenship rating mechanisms that tend to mask labor rights deficiencies. I argue that because freedom of association is a hypernorm, instrumental to fully realizing basic human rights, labor rights and human rights (...) are largely inseparable. Thus, respect for labor rights is a non-substitutable requisite of corporate citizenship. I conclude by providing examples of corporate labor relations strategies that respect freedom of association and business firms that are leading the way. (shrink)

Abstract:In this article we first review the development of the concept of global business citizenship and show how the libertarian political philosophy of free-market capitalism must give way to a communitarian view in order for the voluntaristic, local notion of “corporate citizenship” to take root. We then distinguish the concept of global business citizenship from “corporate citizenship” by showing how the former concept requires a transition from communitarian thinking to a position of universal human rights. In addition, we link global (...) business citizenship to global business strategy and to three analytical levels of ethical norms. Finally, we trace a process whereby global businesses can implement fundamental norms and learn to accommodate to legitimate cultural differences. (shrink)

We introduce the concept of “organizational terrorism” to describe dysfunctional leaders who are abusive and who treat organizational members with contempt and disregard. After identifying the moral duties of leaders in organizations, we explain how organization members respond to their dissatisfaction with organizations through Exit, Voice, Loyalty, or Neglect. We explain why exercising voice is the most effective moral choice in dealing with dysfunctional leaders.

This study explores corporate social responsibility (CSR) by conducting a cross-cultural analysis of communication of CSR activities in a total of 16 U.S. and European corporations. Drawing on previous research contrasting two major approaches to CSR initiatives, it was proposed that U.S. companies would tend to communicate about and justify CSR using economic or bottom-line terms and arguments whereas European companies would rely more heavily on language or theories of citizenship, corporate accountability, or moral commitment. Results supported this expectation of (...) difference, with some modification. Specifically, results indicated that EU companies do not value sustainability to the exclusion of financial elements, but instead project sustainability commitments in addition to financial commitments. Further, U.S.-based companies focused more heavily on financial justifications whereas EU-based companies incorporated both financial and sustainability elements in justifying their CSR activities. In addition, wide variance was found in both the prevalence and use of specific CSR-related terminology. Cross-cultural distinctions in this use create implications with regard to measurability and evidence of both strategic and bottom-line impact. Directions for further research are discussed. (shrink)

Several studies have focused on the effects of corporate social responsibility fit on external stakeholders’ evaluations of CSR activities, attitudes towards companies or brands, and behaviors. The results so far have been contradictory. A possible reason may be that the concept of CSR fit is more complicated than previously assumed. Researchers suggest that there may be different types of CSR fit, but so far no empirical research has focused on a typology of CSR fit. This study fills this gap, describing (...) a qualitative content analysis of the congruence between six organizations and their various CSR activities. Ten annual reports and CSR reports were analyzed, and 102 specific CSR activities were identified. The results show that two levels of fit must be distinguished: based on the means for and the intended ends of the CSR activity. Furthermore, six different types of fit were found, focusing on products and services, production processes, environmental impact, employees, suppliers, and geographical location. Considering the above variety of fit possibilities, the findings emphasize the role of CSR communication as a means of creating fit perceptions. (shrink)

ABSTRACT:Globalization has brought increased attention to the notion that labor rights such asfreedom of association—the right of workers to organize a union—are fundamental human rights. However, the vigorous opposition to freedom of association by US firms is largely ignored in the business ethics literature and exacerbated by compensatory corporate citizenship rating mechanisms that tend to mask labor rights deficiencies. I argue that because freedom of association is a hypernorm, instrumental to fully realizing basic human rights, labor rights and human rights (...) are largely inseparable. Thus, respect for labor rights is a non-substitutable requisite of corporate citizenship. I conclude by providing examples of corporate labor relations strategies that respect freedom of association and business firms that are leading the way. (shrink)

This paper explores the relationship between attitudes to corporate social responsibility (CSR) and the cultural dimensions of business activity identified by Hofstede & Hofstede using a sample of nearly 90,000 stakeholders drawn from 28 countries. We develop five general propositions relating attitudes to CSR to aspects of culture. We show that the propensity of consumers to punish firms for bad behaviour varies in ways that appear to relate closely to the cultural characteristics identified by Hofstede. Furthermore, this variation appears to (...) be understandable in terms of the standard interpretation of the Hofstede dimensions, suggesting that cultural variation in the attitudes of consumers may play an important role in helping us to understand variations in CSR across countries. This in turn has implications for how managers of multinational companies should implement CSR strategies in different cultural contexts. (shrink)

In this article I provide a critical perspective on governing the global corporation. While the papers in the 2009 special issue of Business Ethics Quarterly explore the political role of corporations I argue that they lack a sophisticated analysis of power acrossinstitutional and actor networks. The argument that corporate engagement with deliberative democracy can enhance the legitimacy of corporations does not take into account the effects of institutional, material and discursive forms of power that determine legitimacycriteria. As a result corporate (...) versions of citizenship mediate versions of social responsibility and morality, which are reflected in the institutional and political economic norms that are produced by this power/knowledge. In order to overcome the limits of corporate social responsibility there is a need to develop more democratic forms of global governance of corporations. A radical revisioning of democratic governance would also need to overcome the limits posed by sovereignty and would require new forms of multi-actor and multi-level translocal governance arrangements in an attempt to create forms of power that are more compatible with the principles of economic democracy. (shrink)

As we transition to the 21st century, it is useful to think about some of the most important challenges business and other organizations will face as the new millennium begins. What will constitute “business as usual” in the business ethics arena as we start and move into the new century? My overall thought is that we will pulsate into the future on our current trajectory and that the new century will not cause cataclysmic changes, at least not immediately. Rather, the (...) problems and challenges we face now we will face then. Undoubtedly, new issues will arise but they will more likely be extensions of the present than discontinuities with the past. (shrink)

Information technology and the Internet have added a new stakeholder concern to the corporate social responsibility (CSR) agenda: online privacy. While theory suggests that online privacy is a CSR, only very few studies in the business ethics literature have connected these two. Based on a study of CSR disclosures, this article contributes to the existing literature by exploring whether and how the largest IT companies embrace online privacy as a CSR. The findings indicate that only a small proportion of the (...) companies have comprehensive privacy programs, although more than half of them voice moral or relational motives for addressing online privacy. The privacy measures they have taken are primarily compliance measures, while measures that stimulate a stakeholder dialogue are rare. Overall, a wide variety of approaches to addressing privacy was found, which suggests that no institutionalization of privacy practices has taken place as yet. The study therefore indicates that online privacy is rather new on the CSR agenda, currently playing only a minor role. (shrink)

ABSTRACT:Business networks, which include joint ventures, supply chains, industry and trade associations, industrial districts, and community business associations, are considered the signature organizational form of the global economy. However, little is known about how they affect the social performance of their members. We utilize institutional theory to develop the position that business social performance has collectivist roots that deserve at least as much scholarly attention as owner/manager characteristics and business attributes. Hypotheses are tested using multilevel analysis on data gathered from (...) 898 members of twenty-nine business associations. Support is provided for institutional theory’s explanation for business social performance. Members of business associations are likely to conform to the pattern of social performance prevailing in their association, but not necessarily to the articulated values of the association. The potential of business associations to influence members’ social performance should be considered by agencies that start and support them as mechanisms for regional and local economic development. (shrink)

Business ethics in Africa, as a field of research, practice, and teaching, has grown rapidly over the last two decades or so, covering a wide variety of topical issues, including corporate social responsibility, governance, and social entrepreneurship. Building on this progress, and to further advance the field, this special issue addresses four broad areas that cover important, under-researched or newly emerging phenomena in Africa: culture, ethics and leadership; business, society and institutions; corruption, anti-corruption and governance; and philanthropy, social entrepreneurship and (...) impact investing. In addition to advancing research by addressing some of the imbalances and gaps in the extant literature, this special issue draws attention to indigenous African theories, models and firms. Some challenges facing business ethics, as a field of practice and teaching in Africa, are also highlighted. The paper concludes with a summary of the eight articles in this special issue. (shrink)

The purpose of this paper is to investigate the nature of rhetoric and rhetorical strategies that are implicit in the standalone sustainability reporting of the top 24 companies of the Fortune 500 Global. We adopt Bormann’s :396–407, 1972) SCT framework to study the rhetorical situation and how corporate sustainability reporting messages can be communicated to the audience. The SCT concepts in the sustainability reporting’s communication are subject to different types of legitimacy strategies that are used by corporations as a validity (...) and legitimacy claim in the reports. A content analysis has been conducted and structural coding schemes have been developed based on the literature. The schemes are applied to the SCT model which recognizes the symbolic convergent processes of fantasy among communicators in a Society. The study reveals that most of the sample companies communicate fantasy type and rhetorical vision in their corporate sustainability reporting. However, the disclosure or messages are different across locations and other taxonomies of the SCT framework. This study contributes to the current CSR literature about how symbolic or fantasy understandings can be interpreted by the users. It also discusses the persuasion styles that are adopted by the companies for communication purposes. This study is the theoretical extension of the SCT. Researchers may be interested in further investigating other online communication paths, such as human rights reports and director’s reports. (shrink)

It is often assumed that corporate social responsibility is a very promising way for corporations to improve their reputations, and a positive link between practicing CSR and corporate reputation is supported by empirical evidence. However, little is known about the mechanisms that underlie this relationship. In addition, the effects of not practicing CSR on corporate reputation have received little attention thus far. This paper contributes to the literature by analyzing the cause-and-effect relationships between practicing CSR and corporate reputation. To this (...) end, the paper draws on a psychological framework, in particular, on insights from expectancy violations theory and attribution theory. Building on the ideal-type distinction between CSR in terms of voluntary engagement for society and the prevention of irresponsible behavior, the paper develops four propositions that unveil some fundamental cause-and-effect relationships between practicing CSR, irresponsible behavior, and corporate reputation. In doing so, it also addresses the question under which conditions CSR leads to a buffering or backfiring effect on corporate reputation in the event of irresponsible behavior. (shrink)