Entry of new organizations, including multinational enterprises from emerging markets, raises the ethical question of will they benefit society. The concept of legitimacy answers this question because it is the overall assessment of the appropriateness of organizational ends and means. Moreover, gaining legitimacy enables EMNEs to succeed in new host countries. Past work examined collective level indicators of the legitimacy of MNEs, but recent research recognizes the importance of individuals’ perceptions as the micro-foundation of legitimacy. This study first uses new (...) pragmatism, deontology, and utilitarianism to demonstrate that legitimacy is fundamentally an ethical concept—a perspective that has been overlooked in management research. Second, this study uses a seven-step procedure to develop and validate a measure of individuals’ perceptions of the legitimacy of Chinese EMNEs operating in The Netherlands, a developed country. Six dimensions of legitimacy were identified. The study also finds support for this legitimacy judgment process linking the dimensions: validating knowledge → propriety judgments → generalized judgment. This work provides additional micro-foundations to research on legitimacy and contributes to the ongoing process of construct validation. Future research could use the validated measure in other settings and use specific ethical theories in depth to refine the concept of legitimacy. (shrink)

Media has paid more attention recently on environmental issues caused by construction companies which imposes public opinion pressure on construction companies and could potentially impact their decision-making processes for green innovations. However, research on the relationship between public opinions pressure and construction company green innovation behavior is still limited. To understand how such public opinions pressure can impact construction companies' green transition and formulate advice accordingly, it is necessary to use empirical data to find the correlations. Therefore, this research has (...) gathered questionnaire data of the construction companies in Chengdu-Chongqing economic circle of China to study the influencing mechanism of environmental public opinion pressure on enterprise green innovation behavior, analyzes the realization path of leaders' environmental intention as a mediating variable in the impact of environmental public opinion pressure on enterprise green innovation behavior, and reveals the role boundary of environmental regulation as a moderating variable in the impact of environmental public opinion pressure on enterprise green innovation behavior. The results show that environmental public opinion pressure has a significant positive impact on enterprise green innovation behavior. More specifically, enterprise green innovation behavior is affected by leaders' environmental intention and the latter plays a partial mediating role between environmental public opinion pressure and enterprise green innovation behavior. Environmental regulation also enhances the sensitivity of companies to environmental public opinion pressure, and therefore can significantly strengthen the relationship between environmental public opinion pressure and enterprise green innovation behavior. Further research find that, compared with incentive-based environmental regulations, mandatory environmental regulations make companies more sensitive to environmental public opinion pressure and has a more significant positive moderating effect. The research conclusions could be used to provide theoretical reference with empirical data for accelerating the green innovation transformation and promoting the high-quality development in the construction industry. (shrink)

In this article, we build on the stakeholder-politics literature to investigate how corporate scandals transform political contexts and give impetus to the contentious movements of fringe stakeholders against multinational corporations (MNCs). Based on Adut’s scandal theory, we flesh out three scandal-related processes that directly affect political-opportunity structures (POSs) and the generation of social movements against MNCs: convergence of contention toward a single target, publicization of deviant practices, and contagion to other organizations. These processes reduce the obstacles to collective actions by (...) fringe stakeholders by pushing corporate elites to be more sensitive to their claims, by decreasing MNCs’ capability to repress contentious movements, by forcing the targeted MNCs to formalize a policy to monitor and eradicate the controversial practices, and by helping fringe stakeholders find internal and external allies to support their claims. This conceptual model of scandals as catalysts of contentious actions contributes to a better understanding of stakeholder politics by unveiling the role of the political context in the coordination of fringe stakeholders. (shrink)

We examine the interface of entrepreneurship and society by considering a novel source of gender bias (public opinion) and a novel expression of it (affective evaluations). We posit that women-led teams displaying success will trigger a “penalty for success” bias, and this will be inhibited if the team receives a “stamp of approval” from a gender congruent individual (i.e., an investor who is a man). Analysis from our first study, based on archival data, indicated that other mechanisms might be at (...) play that we could not tease apart in our archival data, so we conducted a follow-up experimental study to further examine our initial findings. Results jointly indicate that women are viewed unfavorably unless either (a) they are validated by success or endorsement from a man, or (b) they fail but are “warm and accommodating” about it. We also find that while men benefit from being validated by success or endorsement of an opposite-gender investor, they do not face a similarly steep penalty absent that validation. (shrink)

In this article, the co-editors of the corporate responsibility: quantitative issues section of the journal provide an overview of the quantitative CSR field and offer some new perspectives on where the field is going. They highlight key issues in developing impactful, theory-driven, and ethically grounded research and call for research that examines complex problems facing businesses and the society (e.g., big data and artificial intelligence, political polarization, and the role of CSR in generating social impact). By examining topics that are (...) under-researched, forward-looking, and socially oriented, scholars can expand the boundary of CSR’s substantive domain and produce research that helps businesses act in a long-term, socially responsible way in this quickly evolving, turbulent environment. They also discuss ways to enhance the methodological rigor of quantitative CSR research and encourage scholars to employ cutting-edge, innovative methods to shed light on the micro-level mechanisms of CSR and reveal patterns and relationships hidden in unstructured big data. (shrink)

The importance of digital technologies for social and economic developments and a growing focus on data collection and privacy concerns have made the Internet a salient and visible issue in global politics. Recent developments have increased the awareness that the current approach of governments and business to the governance of the Internet and the adjacent technological spaces raises a host of ethical issues. The significance and challenges of the digital age have been further accentuated by a string of highly exposed (...) cases of surveillance and a growing concern about issues of privacy and the power of this new industry. This special issue explores what some have referred to as the “Internet-industrial complex”—the intersections between business, states, and other actors in the shaping, development, and governance of the Internet. (shrink)

Can citizens impact the broader discourse about an organization and its legitimacy? While social media have empowered citizens to publicly question firms through large volumes of online evaluations, the high heterogeneity of their evaluations dilutes their impact. Our empirical study applying a threshold vector autoregressive model (TVAR) analysis of 2.5 million tweets and 1,786 news media articles tests the condition by which the heterogeneity of online evaluations converges and influences the broader media discourse. Although social media evaluations do not initially (...) influence media legitimacy, they become influential after reaching a tipping point of refracted attention, which is created by high volume and convergence of individual evaluations around few aggregative frames. Thus, social media storms may influence the broader discourse about an organization when this discourse converges and reaches a tipping point, rather than merely through the massive participation of citizens. (shrink)

According to surveys of companies, branding is one of the main objectives of their corporate social responsibility. With advantageous data from Brand Finance, we address three contextual factors that may condition the relationship between CSR and brand value. First, we hypothesize that the relationship between CSR and brand value obtains across major world regions and industrial sectors. Second, we hypothesize that the relationship has weakened with time, as companies have had increasing difficulty using CSR to differentiate their brands in a (...) sea of CSR-espousing competitors. Third, we hypothesize that the relationship between CSR and brand value is weaker where a brand’s identity is different from that of its corporate owner, which may make it difficult for observers to readily link CSR with its potential brand beneficiaries. We support these hypotheses with random-effects, fixed-effects, and instrumental-variable regressions before ending with contributions, limitations, implications, and potential next steps. (shrink)

Business & Society’s 60th anniversary affords an opportunity to reflect on the journal’s achievements in the context of the wider field. We analyze editorial commentaries to map the evolving mission of the journal, assess the achievement of the journal’s mission through a thematic analysis of published articles, and examine Business & Society’s distinctiveness relative to peer journals using a machine learning approach. Our analysis highlights subtle shifts in Business & Society’s mission and content over time, reflecting variation in the relative (...) emphasis on scholarly quality versus policy/practice relevance, and building the journal and its academic community versus addressing issues of concern to wider society. While Business & Society’s intended missions have been substantially and sequentially achieved, an increased emphasis on the society-business nexus and a critical approach to interdisciplinarity could further enhance Business & Society’s leading role within business and society research and attract new generations of contributors and readers. (shrink)

Business and society research has increasingly moved from the margins to the mainstream. Although this progression has benefited from advances in empirical research, the field continues to suffer from considerable methodological challenges that hamper its development. In this introductory article to the special issue, we review how far our field has come in advancing methods and methodologies in business and society research. We also highlight the methods and methodologies covered by the contributors to this special issue and how they help (...) address key shortcomings in our field. Finally, we suggest some promising research methodologies that can address important business and society research challenges going forward. (shrink)

The sharing economy has transformed economic transactions, created new organizational forms, and contributed to changes in consumer culture. Started as a movement with promises of a more sustainable, democratic, and inclusive economy, the sharing economy, and its impact on issues such as privacy, discrimination, worker rights, and regulation, is now the subject of heated debate. Many of these issues root in the changes that digital technologies have brought and the unresolved moral and ethical questions emerging therefrom. This special issue contributes (...) to this ongoing debate with five articles that develop theoretical frameworks and conduct empirical investigations, providing fine-grained analyses of urgent issues in the sharing economy. In this article, we highlight these and other issues that we believe deserve further attention from business ethics scholarship. (shrink)

When firms face crisis, the instant and open channels of social media communication create a double-edged sword. While corporations can more quickly communicate with stakeholders, any missteps will have drastic and nearly immediate repercussions. What are the relationships among social media, subjective norms, attitudes, and intentions during corporate crisis? We explore this phenomenon via a study of a crisis faced by Lowe’s, an international home improvement store, and how current and potential customers reacted. By utilizing a structural equations model to (...) examine an integrated model of multiple constructs, we find that Facebook usage is associated with behavioral intent, perceptions of ethicality, and attitudes toward the organization. Counter intuitively, we find that an increase in participant Facebook usage is negatively related to felt subjective norms. Our findings indicate that beyond the traditional relationships examined by the Theory of Reasoned Action (e.g., norms, attitudes, and behavioral intent), that social media and subjective norms have a strong relationship with general attitudes and ethical attitudes toward an organization. (shrink)

Social media platforms have been vested with hope for their potential to enable ‘ordinary citizens’ to make their judgments public and contribute to pluralized discussions about organizations and their perceived legitimacy :60–97, 2018). This raises questions about how ordinary citizens make judgements and voice them in online spaces. This paper addresses these questions by examining how Western citizens ascribe responsibility and action in relation to corporate misconduct. Empirically, it focuses on modern slavery and analyses online debates in Denmark on child (...) slavery in the cocoa industry. Conceptually, it introduces the notion of cosmopolitanism as a general disposition of care and responsibility towards distant others, conceived as a prerequisite for the critical evaluation of corporate responsibility in the Global South. The analysis of online debates shows that citizens debate child slavery in terms of individual consumer responsibility rather than corporate responsibility. Corporations are not considered potential agents of change. As a consequence, online citizen debates did not reflect a legitimacy crisis for the cocoa industry, as debates over responsibility were overwhelmingly concerned with the agency of the Western individual, the individual agency of the speakers themselves. Participants in debates understood their agency strictly as consumer agency. (shrink)

Recent research has damped initial promises for democratic deliberation in social media arenas. Empirical studies find only low degrees of direct reciprocal interaction among participants, a lack of consensus orientation, and accelerated forms of communication that fail to meet traditional ideals of deliberation. In line with recent literature, we argue that traditional deliberative ideals are too narrow to embrace the potential contribution of social media for deliberation about (ir-)responsible business conduct. Instead, we propose to conceptualize social media as arenas for (...) everyday talk, that is, everyday communication practices through which participants informally discuss and express opinions about current issues, thereby contributing to a broader deliberative system. In adopting this lens, we ask: How can everyday talk in social media contribute to deliberation about (ir-)responsible business conduct? Drawing on the latest insights from online deliberation studies, we develop a framework for evaluating everyday talk and propose that its deliberative quality depends on social media appropriate forms of justification, interactivity, equality, and civility. We apply this framework with an analysis of 260,224 tweets about the role of business in climate change. Based on our findings, we critically discuss how everyday talk in social media can contribute to deliberation at the intersection of business and society. (shrink)

This paper examines whether firms strategically legitimize large labor dismissals by performing ex-ante downward earnings management. We further assess whether the effect is larger under stakeholder pressure and whether these practices influence the external perception of firms’ behavior. As laying off employees without an economic reason is perceived as a breach of the social contract, stakeholders pressure firms to provide economic justification for LLDs. We argue that firms strategically legitimize LLDs by artificially worsening their financial performance through downward earnings management. (...) From a sample of European listed firms for the period 1998–2014, using a propensity score matching model to control for differences in observable characteristics between LLD and non-LLD firms, we find that firms manage their earnings downward in the year prior to LLDs. These results are more pronounced in the presence of high stakeholder pressure. As such, firms with stronger trade unions, higher visibility, stricter employment protection legislation, and more stakeholder-oriented legal environments have stronger incentives to manage earnings downward before LLDs. Finally, we document that downward earnings management prior to LLDs is effective at legitimizing LLDs, offsetting the negative external perceptions of firms in the aftermath of LLDs. This study contributes to the business ethics literature by identifying unintended consequences of stakeholder pressure around LLDs. It also brings important empirical insights into how ethically questionable decisions are strategically legitimized through further unethical practices. (shrink)