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)

This study investigates whether employees attribute different motives to their organization's corporate social responsibility efforts and if these motives influence employee performance. Specifically, we investigate whether employees could distinguish between intrinsic and extrinsic CSR motives by surveying 229 employee–supervisor dyads from various industries , and the impact of these perceptions on in-role and extra-role performance of subordinates. We found that employee task performance increases when employees attribute both intrinsic and extrinsic motives for CSR. Moreover, when employees perceive that their organization (...) invests in a CSR practice that is both intrinsic and extrinsic, they also tend to exert extra effort in their work. Theoretical and practical implications are also discussed alongside future research directions. (shrink)

The increasing centrality of business firms in contemporary societies calls for a renewed attention to the democratization of these actors. This paper sheds new light on the possibility of democratizing business firms by bridging recent scholarship in two fields—deliberative democracy and business ethics. To date, deliberative democracy has largely neglected the role of business firms in democratic societies. While business ethics scholarship has given more attention to these issues, it has overlooked the possibility of deliberation within firms. As argued in (...) the paper, a combination of reforms based on the ideas of workplace deliberation and business deliberation is necessary in order to promote the prospect of deliberation in different business contexts. The paper also discusses the importance of more democratic firms for deliberative democracy at large and, in particular, for the recent debate on deliberative systems. Finally, the paper suggests new areas of investigation to better understand the prospect of democratic deliberation in business firms. (shrink)

This paper examines the impact on firm value created by investor reaction to same day news of corporate social responsibility and corporate social irresponsibility activities. First, using trading volume, the authors establish that the perceived value of moral capital generated by news involving institutional stakeholders is less clear to investors than that of the news involving technical stakeholders. Subsequently, the authors analyze abnormal returns from 565 unique firm events—each comprising at least one positive and one negative stakeholder news item. Using (...) signaling theory, the authors demonstrate that news of the number of CSR activities involving institutional groups counteracts the effects of same day CSiR news in an inverted U-shaped fashion. In contrast, they find that news of the number of CSR activities involving technical groups mitigates the effects of same day CSiR news in a U-shaped fashion. (shrink)

As past research has identified frontline employees as the primary communicators of a company’s CSR, this paper reports on a large-scale quasi-field experiment aimed at gaining a deeper understanding of the levers of successful in-store, point-of-sale, CSR communication. In cooperation with a large international retailer, the authors analyzed the effects of varying in-store CSR communication strategies in 48 unique stores, combining data from a customer survey, company records of customers’ real visits and purchases, and interviews with store managers. Taking into (...) account the nested structure of the data, the authors reveal that CSR-related training of frontline employees bestows its favorable effect on customers and customer behavior only if it is accompanied by the store managers’ personal support for CSR. (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)

Although the ethical aspects of transformational leadership have attracted considerable attention, very little is known about followers’ reactions to the moral and immoral conduct of transformational leaders. Against this background, this study examined whether and how transformational leadership interacts with moral and authoritarian leadership behaviors in predicting followers’ in-role and extra-role efforts. Building on attribution theory, we hypothesized that the positive and negative effects of these leadership behaviors would be particularly pronounced for highly transformational leaders given that this leadership style (...) elicits strong attention and sense-making efforts among followers. We tested our model in a sample of 228 individuals comprising 114 leader–follower dyads from a wide range of organizations and industries. In line with our hypotheses, results revealed that for highly transformational leaders, moral leadership behaviors related positively to employees’ in-role and extra-role efforts whereas authoritarian leadership behaviors related negatively to employees’ in-role and extra-role efforts. In contrast, moral and authoritarian leadership behaviors did not significantly affect followers’ reactions to leaders low in transformational leadership. Taken together, these findings suggest that transformational leadership, contrary to its largely positive perception in the literature, can be a rather mixed blessing. Implications for theory, future research, and managerial practice are discussed. (shrink)

For nearly as long as the topic of sustainable business has been taught and researched in business schools, proponents have warned about barriers to genuine integration in business school practices. This article examines how academic sustainability centres try to overcome barriers to integration by achieving technical, cultural and political fit with their environment :67–92; Ansari et al., Academy of Management Review 35:67–92, 2010). Based on survey and interview data, we theorise that technical, cultural and political fit are intricately related, and (...) that these interrelations involve legitimacy, resources and collaboration effects. Our findings about sustainability centres offer novel insights on integrating sustainable business education given the interrelated nature of different types of fit and misfit. We further contribute to the literature on fit by highlighting that incompatibility between strategies to achieve different types of fit may act as a source of dynamism. (shrink)

Cause-related marketing has risen to become a popular strategy to increase business value through profit-motivated giving. Despite the growing number of articles published in the last decade, no comprehensive analysis of the most discussed constructs of cause-related marketing is available. This paper uses an advanced Text Mining methodology to conduct a comprehensive analysis of 246 articles published in 40 different journals between 1988 and 2013 on the subject of cause-related marketing. Text Mining also allows quantitative analyses to be performed on (...) the literature. For instance, it is shown that the most prominent long-term topics discussed since 1988 on the subject are “brand-cause fit”, “law and Ethics”, and “corporate and social identification”, while the most actively discussed topic presently is “sectors raising social taboos and moral debates”. The paper has two goals: first, it introduces the technique of CTM to the Marketing area, illustrating how Text Mining may guide, simplify, and enhance review processes while providing objective building blocks to be used in a review; second, it applies CTM to the C-RM field, uncovering and summarizing the most discussed topics. Mining text, however, is not aimed at replacing all subjective decisions that must be taken as part of literature review methodologies. (shrink)

The objective of this paper is to explore how the various stages of consciousness development of top managers can influence, in practical terms, their abilities in and commitment to environmental leadership in different types of SMEs. A case study based on 63 interviews carried out in 15 industrial SMEs showed that the organizations that displayed the most environmental management practices were mostly run by managers at a post-conventional stage of consciousness development. Conversely, the SMEs that displayed less sustainable environmental management (...) practices were all run by managers at conventional stages of development. Drawing upon diverse examples of environmental leadership, this paper analyzes the reasons why the stages of post-conventional consciousness development of top managers seem to foster corporate greening in SMEs. The study also sheds light on the key values and abilities associated with both environmental leadership and the upper-stages of consciousness development, which include a broader and systemic perspective, long-range focus, integration of conflicting goals, collaboration with stakeholders, complexity management, collaborative learning, among others. (shrink)

This study via the sensemaking perspective examines whether spiritual leadership can influence employee workplace spirituality and employee corporate social responsibility (CSR) participation. We also examine the joint effects of spiritual leadership and employee Machiavellianism on employee workplace spirituality. Using a sample of 556 employees from four commercial banks in China, analyses demonstrate that employee workplace spirituality mediates the relationship between spiritual leadership and employee CSR participation and that the indirect effect of spiritual leadership on employee CSR participation is dependent on (...) the level of employee Machiavellianism. These results shed light on how and why spiritual leadership and employee Machiavellianism influence employee workplace spirituality and employee CSR participation. The theoretical and practical implications of these finding are discussed along with directions for future research. (shrink)

The growing body of literature on partnerships has paid most attention to their implications at the macro level, for society, as well as the meso level, for the partnering organisations. While generating many valuable insights, what has remained underexposed is the micro level, i.e. the role of managers and employees in partnerships, and how their actions and interactions can have an effect on the spread and potential effectiveness of collaborative efforts. This article uses a case-study approach to empirically explore the (...) patterns and potential boundary conditions of so-called ‘trickle effects’ of partnerships among individual actors within and outside partnering companies, which have thus far only been proposed conceptually. Based on interviews with employees from three different companies, we found an evidence of trickle-down and trickle-up effects with higher and lower management, as well as trickle-round effects with colleagues, family, friends and customers. The article discusses several partnership characteristics that seem to play a role, and notes implications for research and practice. (shrink)

This article explores the emergence of leadership during implementation of a water saving initiative in the rural community surrounding Barren Box Swamp in the Murray Darling Basin, Australia. Qualitative data analysis indicated that the system elements affecting the type of leadership to emerge included the extent to which the groups were engaged in the process, the level of access to resources, and the level of investment in the outcomes of the project. Although these results reinforced key aspects of complex problem-solving (...) through collaboration, they demonstrated varying degrees and types of both engagement and leadership within the case community. Given the current finding that these varying elements can coincide within one system, this case suggests that each community’s characteristics, resources and context will determine the optimal combination of leadership style and level of collaboration needed to facilitate sustainable community development. (shrink)

Chief Executive Officers and other organizational leaders can affect how corporate social responsibility initiatives are perceived in their organizations. However, in order to be successful with regard to promoting CSR, leaders need to have strong network competencies and to move beyond charismatic leadership. In this paper we offer a critique of charismatic leadership as it relates to CSR, posit that the intellectual stimulation brought about by transformational leadership is more important in this regard, propose that internal and networking is a (...) leadership competence highly relevant to CSR, and emphasize the importance of working through highly credible opinion leaders in promoting CSR. (shrink)

The relationship between a chief executive officer’s childhood experience of family decline and his or her firm’s social responsibility rating was explored using data on more than 1000 Chinese listed firms. Such childhood experience is shown to predict better CSR ratings. This may be because adversity in childhood shifts the cognitive map through accommodation process, and further fosters cognitive processing ability and a long-term orientation. Career variety and education level are shown to moderate the imprinting effect by altering its strength. (...) Career variety weakens the relationship whereas education level strengthens it. (shrink)

Business Ethics, the Environment &Responsibility, Volume 31, Issue 4, Page 1040-1052, October 2022.

The relationship between corporate social responsibility (CSR) and leadership has received considerable research attention in recent decades. While there have been several qualitative reviews, quantitative and systematic reviews of CSR–leadership links remain absent. The current paper seeks to address this gap by using a bibliometric method to analyze and visualize the evolution and research trends within the CSR–leadership domain. Drawing from a sample of 1432 peer-reviewed articles, we map the landscape of the CSR–leadership research domain and identify key developments and (...) patterns over the period 1994–2020. In addition to highlighting a range of publication trends including key theoretical influences, the findings also reveal an acceleration in the volume and breadth of CSR–leadership research. Seven subdomains (or clusters) are further identified (i.e., board characteristics, responsible leadership, emerging country context, team efficacy, CEO pay fairness, shareholder wealth, and cross-sector social partnership) and discussed based on the keywords using the log-likelihood ratio clustering algorithm. The analysis is further divided into three stages: namely, the initial stage (1991–2003), the rapid development stage (2004–2011), and the maturation stage (2012–present). These stages are used to present more fine-grained insights into the research patterns over time. We conclude by discussing implications of the bibliometric analysis and presenting several opportunities for future research. (shrink)

Despite receiving a great deal of research attention, the effect of corporate philanthropy on shareholder value remains inconclusive. To address this issue, the present paper examines emotionality as an important factor based on which investors infer about the firm’s motive as well as the beneficiary’s worthiness and react accordingly. Consistent with attribution theory, our event study shows that announcements with more emotional expressions are associated with higher cumulative abnormal stock returns and the effect is stronger when investor attention is greater. (...) We further find that the positive interaction effect between emotionality and investor attention is more pronounced for scandal-free firms than for firms with corporate social irresponsibility (CSI). The empirical evidence remains consistent under various robustness tests. The paper concludes with implications for future research and managerial practices. (shrink)

Accountability for corporate social responsibility (CSR) and its societal challenges is undetermined, and it is unclear whether business or society should carry these responsibilities. Despite severe criticism from some, many organizations continue to invest in and promote CSR. The purpose of this multiple-case study was to increase the understanding of the phenomenon from the perspective of a purposeful sample of participants who contribute to CSR execution and who were representatives of the 10 organizations identified as active promoters. The participant corporations (...) (case studies), in Europe and North America, were mainly in the telecommunications industry. Study data came from 11 face-to-face, semistructured interviews with chief executive officers (CEOs) and other CSR key participants, a review of corporate archival records, and a review of other sources regarding the effective implementation of CSR in these organizations. The conceptual framework consisted of Carroll’s constructs of CSR based on economic, legal, social, and discretionary elements. The constant comparative method was used to analyze the interview data and identify factors leading corporations to continue to engage in CSR. These factors were economic, social impact, legal compliance, or good reputation, sponsored by transformational or adaptive leaderships and endorsed by visionary CEOs. The findings may enlighten and motivate other organizations to engage in CSR programs and connect stakeholders’ contribution to a broadened positive social change. (shrink)

Organizations and their leaders are challenged to assume a responsible behavior given the increase of corporate scandals and the deterioration of employee commitment. However, relatively few studies have investigated the impact of responsible leadership on employee commitment and the effect of corporate social responsibility in this relationship. Using the social identity theory this article examined the mediating effect of CSR practices in the relationship between RL and affective organizational commitment. Data collection was done through a paper survey completed by 309 (...) full-time Colombian employees. Structural equation modeling was used to analyze the data. The results showed that CSR fully mediated the influence of RL on AOC. Thus, RL is an effective mechanism to develop CSR practices that in turn increase the levels of AOC of employees. (shrink)