This paper aims to investigate the extent of anti-corruption reporting by ASEAN companies and examine whether coercive factors influence the level of disclosure. The authors adopt indicators from the Global Reporting Initiative version 4.0 to measure the extent of anti-corruption disclosures in 117 companies’ reports. Informed by a coercive isomorphism tenet drawn from the institutional theory, the authors propose that several institutional factors influence the extent of their voluntary disclosures. The findings reveal that a large degree of variability difference between (...) the average levels of anti-corruption disclosure in Thailand and the Philippines. The dependence on government tenders and foreign ownership are associated with the level of disclosure. Surprisingly, the United Nation Global Compact membership is not a significant determinant of anti-corruption reporting. This signifies that the membership in the international initiative does not correspond to individual company’s commitment to disclose anti-corruption information. In spite of significant efforts undertaken by global organizations to combat corruption, the level of anti-corruption disclosure is significantly different among the four countries under study. The disclosure of sensitive information such as the confirmed incidences of corruption cases requires careful consideration by the top management as it is subjected to legal implications and reputational risks. Thus, impression management can complement the coercive pressure in explaining the level of anti-corruption reporting. This study is among the first studies which explores the association between coercive factors and the level of anti-corruption disclosure in ASEAN region. (shrink)

In this study, we performed a comparative analysis to examine the extent to which local governments (LGs) in two Mediterranean countries – Spain and Italy – use their websites to disclose information related to Sustainable Development Goals (SDGs) in response to the launch of the United Nations' (UN) 2030 Agenda. We performed a manual content analysis of the official websites of all Italian and Spanish LGs with more than 100,000 inhabitants, constructing different disclosure indexes. We then used a non-parametric statistical (...) test to assess differences in disclosure behaviours between countries. Our findings show that the extent to which the investigated LGs disclose SDG-related information online remains limited. Based on Oliver's (1991) strategic responses framework, we postulate that Italian and Spanish LGs have responded to the launch of the SDGs by adopting compromise and avoidance strategies. (shrink)

This study investigates how adoption of advisory governance policy encourages firms to become more responsive to their shareholders over time. Although shareholder activism is costly and often viewed as unable to drive meaningful change, we identify increasing shareholder voice as an underlying mechanism to explain how advisory policy adoption ultimately reshapes board–shareholder relations. Drawing on signaling theory and behavioral views of board–shareholder dynamics, we test our predictions following the broad shift in corporate board voting policies from plurality to majority vote (...) standards. While prior research shows that majority vote adoption has little to no direct impact on director elections, empirical results from 2,390 firm-year observations provide support for our hypotheses that adoption of this advisory electoral standard signals a willingness to hear shareholder concerns, leading to increased shareholder activism and, in turn, board responsiveness to shareholder proposals. Overall, our results help explain why some firms continue to fight the purely advisory policy and why an era of shareholder empowerment followed the majority vote campaign. (shrink)

Business and Society Review, Volume 127, Issue 1, Page 127-143, Spring 2022.

The article examines the effects of non-financial disclosure on corporate social responsibility. We conceptualise trade-offs between two ideal types in relation to CSR. Whereas self-regulation is associated with greater flexibility for businesses to develop best practices, it can also lead to complacency if firms feel no external pressure to engage with CSR. In contrast, government regulation is associated with greater stringency around minimum standards, but can also result in rigidity owing to a ‘one-size-fits-all’ approach. Given these potential trade-offs, we ask (...) how mandatory non-financial disclosure has been shaping CSR practices and examine its potential effectiveness as a regulatory instrument. Our analysis of 24 OECD countries using the Asset4 database shows that firms in countries that require non-financial disclosure adopt significantly more CSR activities. However, we also find that NFD regulation does not lead to lower levels of corporate irresponsibility. Furthermore, our analysis demonstrates that, over time, the variation in CSR activities declines as firms adopt increasingly similar practices. Our study thereby contributes to understanding the impact of government regulation on CSR at firm level. We also discuss the limits of mandatory NFD in addressing regulatory trade-offs between stringency and flexibility in the field of corporate social responsibility. (shrink)

Companies disclosing negative aspects in sustainability reports often employ legitimation strategies to present mishaps in a favorable light. In incentivized experiments, we find that nonprofessional investors divest from companies with a negative sustainability-related incident, and that symbolic legitimation (which only evasively explains a negative incident) is not a strong enough signal to counter this divestment behavior. Even substantial legitimation (which reports on measures and behavioral change) mitigates the divestment decisions only if the company reports on concrete remediation actions in morally (...) charged situations, such as social or environmental incidents. We elaborate these results in light of signaling and screening theory, and suggest the conceptual extension of “costly signals” to what we call “valuable signals.” We argue that valuable signals need be not only costly for the sender from an economic perspective but also perceived as appropriate by the receiver from a noneconomic perspective. (shrink)

In order to gain greater insight into the nature of corporate social responsibility (CSR) during a time of crisis, the study examines the commitment of firms to continue to engage in CSR activity despite financial pressures to divert their slack resources elsewhere. The setting of the study is CSR activity during the perhaps unprecedented global crisis associated with the COVID-19 pandemic. Based on a qualitative research method approach, both a variety of media sources and the relevant academic literature are reviewed (...) in order to identify examples of CSR activity related specifically to COVID-19. The examples are then categorized and situated according to Professor Archie Carroll’s well-known CSR Pyramid framework describing the economic, legal, ethical, and philanthropic domains of CSR. As such, this study is the first to extend the rich literature stream utilizing Carroll’s CSR Pyramid within the unique context of a global pandemic. (shrink)

Focusing on the corporate social responsibility (CSR) implementation process, we analyze how institutional complexity that arises from tensions between social and environmental elements and economic and technical concerns is managed by CSR managers. We further question how these micro-level processes interact with organizational-level processes over time. Our research is a 24-month qualitative process study in which we followed CSR managers. The study’s results allow us to distinguish between four strategies that CSR managers use to promote CSR implementation and to cope (...) with tensions. Our results further indicate that organizational characteristics influence the intensity with which these strategies are applied and that the intensity of strategy application affects organizational behavior in the course of time. Through the discussion of these findings, our study contributes to the research on micro-level processes that occur in response to complex institutional demands as well as to the development of a comprehensive, multilevel approach to CSR implementation. (shrink)

This study revisits the relation between corporate performance and corporate social responsibility in the context of a major shift in firms’ credit risk status. Relying on corporate credit rating as a performance indicator, we examine whether firms under the scrutiny of rating agencies trade-off CSR engagement for credit quality improvement. To explore whether firms adjust their CSR engagement after a focal rating change, we focus on the investment–speculative grade threshold because of its importance in accessing the public debt market. We (...) find that firms that lose the investment grade rating subsequently increase CSR engagement. We also uncover that improving CSR engagement helps firms restore their credit ratings ex post. Our findings support the view of CSR engagement as a valuable risk management strategy. (shrink)

Research on the implementation of corporate social responsibility (CSR) has revealed the critical role of CSR departments vis-à-vis functional departments. While both CSR and functional departments influence CSR implementation, the question of how they work together remains underexamined. We address this question by mobilizing and merging two complementary yet separate perspectives on CSR implementation: “coordination” and “enactment.” Building on a comparative case study involving seven large Swiss financial institutions that have established CSR departments and implemented CSR to varying extents, we (...) inductively derive six courses of actions conducing to CSR implementation, involving both coordination and enactment. We distinguish between four courses of actions in the CSR departments ( centralizing, coalescing, orchestrating, and consulting) and two courses of actions in the functional departments ( decentralizing and tailoring). As our data suggest that coordination and enactment work in tandem, we capture these insights in a model of CSR implementation as coordinated enactment. Our research contributes to the literature by explaining how CSR departments and functional departments enact and simultaneously coordinate CSR at a particular implementation stage, thus illuminating how and why the variance in CSR implementation occurs. (shrink)

Refugee concerns may be perceived as controversial or outside the business domain, yet some corporations publicly engage these issues in corporate social responsibility (CSR) initiatives. This article relies on institutional and constitutive approaches to CSR to explore why organizations might declare their engagement in refugee issues, and utilizes decoupling to explore the relationship between reported CSR policy and CSR activity. We utilize a mixed-method, content analysis approach to draw on Fortune Global 500 CSR reports between 2012 and 2019, a period (...) in which refugee activity increased around the world. Our research suggests that few corporations offer refugee programming and fewer still feature programs that are “coupled” with either CSR policies or impacts. We introduce a typology that depicts these corporations as reactionary, recurring, relevant, or revelatory, and offer constitutive implications for CSR programming in response to other emerging social issues. (shrink)