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)

One of the older questions in the debate about Corporate Social Responsibility (CSR) is whether it is worthwhile for organizations to pay attention to societal demands. This debate was emotionally, normatively, and ideologically loaded. Up to the present, this question has been an important trigger for empirical research in CSR. However, the answer to the question has apparently not been found yet, at least that is what many researchers state. This apparent ambivalence in CSR consequences invites a literature study that (...) can clarify the debate and allow for the drawing of conclusions. The results of the literature study performed here reveal that there is indeed clear empirical evidence for a positive correlation between corporate social and financial performance. Voices that state the opposite refer to outdated material. Since the beginnings of the CSR debate, societies have changed. We can therefore clearly state that, for the present Western society, "Good Ethics is Good Business.". (shrink)

In his invited essay for Business & Society’s 60th anniversary, Archie B. Carroll (2021, p. 16) refers to human rights as “a topic that holds considerable promise for CSR [corporate social responsibility] researchers in the future.” The objective of this article is to unpack this promise. We (a) discuss the momentum of business and human rights (BHR) in international policy, national regulation, and corporate practice, (b) review how and why BHR scholarship has been thriving, (c) provide a conceptual framework to (...) analyze how BHR and corporate social responsibility (CSR) relate to each other, and (d) provide a research agenda outlining how BHR can expand business and society scholarship in general and one of its foundational constructs, CSR, in particular, beyond the current confines of the business and society field. (shrink)

This research note presents data concerning the community engagement activities of 2,096 Swiss companies as reported by a single company respondent in an online survey. Switzerland affords an interesting opportunity to compare engagement activities in a single country with multiple culture systems across companies varying in size from large to small and medium enterprises. Study results show that 78% of the surveyed firms pursue some community engagement activities. While engagement is mostly practiced in traditional forms, more active forms are not (...) uncommon. The main motivating factor is a concern for the communities in which the firms operate. Engagement activities are mostly employed independent of financial considerations and are conducted flexibly to serve personal interests of the firms’ decision makers. Swiss firms’ reported environmental assessment activities show no specific patterning. Perceiving engagement to be on the rise globally and in Switzerland is associated with a greater likelihood to be involved. Accordingly, knowing other engagement pursuing firms increases the individual firm engagement probability. The German speaking part of Switzerland is more active in engagement than the French and Italian speaking parts. Bigger companies pursue engagement activities more intensively and strategically than do SMEs. (shrink)

Stakeholder theory has gained currency in the business and society literature in recent years in light␣of its practicality from the perspective of managers and scholars. In accounting for the recent ascendancy of␣stakeholder theory, this article presents an overview of␣two traditional conceptualizations of corporate social␣responsibility (CSR) (Carroll: 1979, ‹A Three-Dimensional Conceptual Model of Corporate Performance', The Academy of Management Review 4(4), 497–505 and Wood: 1991, ‹Corporate Social Performance Revisited', The Academy of Management Review 16(4), 691–717), highlighting their predominant inclination toward providing (...) static taxonomic CSR descriptions. The article then makes the case for a stakeholder approach to CSR, reviewing its rationale and outlining how it has␣been integrated into recent empirical studies. In light of this review, the article adopts a stakeholder framework – the Ethical Performance Scorecard (EPS) proposed by Spiller (2000, ‹Ethical Business and Investment: A Model For Business and Society', Journal of Business Ethics 27, 149–160) – to examine the CSR approach of a sample of␣Lebanese and Syrian firms with an interest in CSR␣and␣test relevant hypotheses derived from the CSR/stakeholder literature. The findings are analyzed and implications drawn regarding the usefulness of a stakeholder approach to CSR. (shrink)

In this single industry study, the authors examine relationships between forest products companies in Maine and their stakeholders. The research question, why do firms work with stakeholders, is examined from both instrumental and normative perspectives. Specifically, it is hypothesized that stakeholder power and corporate social responsiveness affect the degree to which firms have working relationships with stakeholders. The study found support for the impact of the firm’s perception of stakeholder power on the strength of its relationships with stakeholders. Most notably, (...) it also found support for the firm’s corporate social responsiveness on the strength of its stakeholder relations, indicating that firms do work with stakeholders from both instrumental and normative bases. (shrink)

Stakeholder theory advocates that firms bear responsibility for the implications of their actions. However, while a firm affects or can affect stakeholders, stakeholders can also affect the corporation. Previous stakeholder theorising has neglected the reciprocal nature of responsibility. The question can be asked whether—in a spirit of reciprocity, loyalty and fairness—stakeholders should treat the corporation in a fair and responsible way. This study based on different definitions of stakeholders argues that various stakeholder attributes differ for different categories of stakeholders. This (...) analysis presumes that the attribute of stakeholder reciprocity can probably be restricted to real stakeholders, labelled stakeowners: genuine stakeholders with a legitimate stake, the loyal partners who strive for mutual benefits. Stakeowners own and deserve a stake in the firm. Stakeholder reciprocity could be an innovative criterion in the corporate governance debate as to who should be accorded representation on the board. Corporate social responsibility should imply corporate stakeholder responsibility. (shrink)

In light of the many corporate scandals, social and ethical commitment of society has increased considerably, which puts pressure on companies to communicate information related to corporate social responsibility (CSR). The reasons underlying the decision by management teams to engage in ethical communication are scarcely focussed on. Thus, grounded on legitimacy and stakeholder theory, this study analyses the views management teams in large listed companies have on communication of CSR. The focus is on aspects on interest, motives/reasons, users and problems (...) related to corporate communication of CSR information. A questionnaire survey and in-depth interviews confirm that there is a distinct trend shift: towards more focus on CSR in corporate communication. Whilst this trend shift started as a reactive approach initiated by the many corporate scandals, the trend shift is now argued to be of a proactive nature focussed at preventing legitimacy concerns to arise. These findings are significant and interesting, implying that we are witnessing a transit period between two legitimacy strategies. Furthermore, the findings suggest that the way respondents argue when it comes to CSR activities coincides with consequentialism or utilitarianism, i. e. companies engage in CSR activities to avoid negative impacts instead of being driven by a will to make a social betterment or acting in accordance with what is fundamentally believed to be right to do. This provides new input to the ongoing debate about business ethics. The findings should alert national and international policy makers to the need both to increase the vigilance and capacity of the regulatory and judicial systems in the CSR context and to increase institutional pressure to enhance CSR adoption and CSR communication. Furthermore, stakeholders need to be careful in assuming that CSR communication is an evidence of a CSR commitment influencing corporate behaviour and increasing business ethics. (shrink)

After providing an overview of Corporate Social Responsibility research in different contexts, and noting the varied methodologies adopted, two robust CSR conceptualizations - one by Carroll, 497-505) and the other by Wood, 691-717) - have been adopted for this research and their integration explored. Using this newly synthesized framework, the research critically examines the CSR approach and philosophy of eight companies that are considered active in CSR in the Lebanese context. The findings suggest the lack of a systematic, focused, and (...) institutionalized approach to CSR and that the understanding and practice of CSR in Lebanon are still grounded in the context of philanthropic action. The findings are qualified within the framework of existing contextual realities and relevant implications drawn accordingly. (shrink)

As a criterion of a good firm, a lucrative and growing business has been said to be important. Recently, however, high profitability and high growth potential are insufficient for the criteria, because social influences exerted by recent firms have been extremely significant. In this paper, high social relationship is added to the list of the criteria. Empirical corporate social performance versus corporate financial performance (CSP–CFP) relationship studies that consider social relationship are very limited in Japan, and there are no definite (...) conclusions for the studies in the world, because of scant data and the inappropriate methods, especially for supporting linear hypothesis which these studies are based on. In this paper, the CSP–CFP relationship is analyzed by an artificial neural networks model, which can deal with a non-linear relationship, using 10-year follow-up survey data. (shrink)

This research examines the relationship between corporate social responsibility (CSR) and company stock valuation across three regions of the world. After a brief introduction, the article gives an overview of the evolving definition of CSR as well as a discussion of the ways in which this construct has been operationalized. Presentation of the potential impact of corporate social performance on firm financial performance follows, including investor characteristics, the rationale behind their choices, and their influence on the marketplace for securities worldwide. (...) The unique method used to select socially responsible investments is then provided that also includes a description of the quantitative techniques employed in the analyses. Results are offered subsequently, and the close describes implications for global enterprises as socially responsible investments. (shrink)

The work of Lee Preston and James Post helped to lay the foundation for one career in the field of business and public policy. They provided a theoretical framework for a more comprehensive understanding of the relationship of the corporation and society and those who are charged with its management.

This article examines the major contributions made by Preston and Post in Private Management and Public Policy from the dual perspectives of a doctoral student in the late 1970s and midcareer professor in the mid-1990s. It also identifies the roots of contemporary issues and concepts in the business and society field in this early book, published in 1975. Finally, four questions are raised about what is missing, unforeseen, and subject to further scrutiny. The author's assessment is that the book is (...) both a classic in the evolution of the field and highly relevant to contemporary analyses of corporate social performance. (shrink)

This article proposes a theoretical re-conceptualization of power dynamics and their legitimation in contemporary business–society relations using the prism and metaphor of parentalism. The paper develops a typology of forms of parentalism along two structuring dimensions: care and control. Specifically, four ideal-types of parentalism are introduced with their associated practices and power-legitimation mechanisms. As we consider current private governance and authority through this analytical framework, we are able to provide a new perspective on the nature of the moral legitimation of (...) power dynamics in contemporary business–society relations. And we weave the threads between this conceptual frame and historical antecedents, suggesting that business ethicists need to revive old debates on paternalism in light of the current pervasive trend of modernized and subtler forms of parentalism. Implications for business ethics and political CSR are discussed. (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)

The corporate social responsibility literature has emphasized the importance of both economic and ethical domains of corporate behavior. Analyzing unprecedented survey data from investors in a socially responsible mutual fund, this article considers how economic and ethical concerns shape shareholder investment behavior. In particular, this article analyzes levels of investor fund loyalty, defined as the continued investment in a mutual fund despite the belief that one is earning a lower return on investment. Building upon existing research that shows SR fund (...) assets are more stable than conventional fund assets, this article leverages within respondent comparisons to clarify that dual investors are more loyal to their SR fund than to their conventional fund. This suggests that a corporation’s ethical behavior attracts more patient investment capital, an important consideration for any corporation that is deciding to what degree it should engage in corporate social responsibility. In addition, this article empirically demonstrates that economic motivations reduce SR fund loyalty and that ethical motivations induce SR fund loyalty. This evidence that ethical motivation is associated with fund loyalty advances research on morality in the market by yielding empirical evidence to a largely theoretical debate. (shrink)

This article examines the theoretical status of the three CSR models of William C. Frederick. Using the method of systematics, it disaggregates the elements of the three models and suggests one integrative means of re-sorting them. The article argues the need to develop a theoretical logic to understand behavior in this area and supplies one in the form of the beginnings of an explicit theory of normative referencing. The processes of normative referencing, including normative selection, normative commitment, normative instruction, normative (...) implementation, normative administration, normative outcomes production, normative accounting, and normative adjustment are described. (shrink)

This article focuses on the association between the beliefs of small business owners and managers and their support for the community. Qualitative and quantitative data are utilized in an exploratory examination of two rationales for socially responsible behavior and of two kinds of support. Analyses show that the belief in strengthening the community as an important strategy for business success is positively associated with the provision of nonrisky and risky support. Risky support may threaten short-term business success. However, the belief (...) that a good public image is important for business success is negatively or not significantly associated with either risky or nonrisky support for the community. Findings uphold the position that there are significant variations in enlightened self-interest rationales that are differentially associated with business social performance among small business operators and demonstrate the usefulness of disaggregating social performance into risky and nonrisky variations. (shrink)

The ethical behaviour and social responsibility of private companies, and in particular large corporations, is an important area of enquiry in contemporary social, economic and political thinking. In the past, a company's behaviour would be considered responsible as long as it stayed within the law of the society in which it operated or existed. Although this may be necessary, it is no longer sufficient. In this paper, we examine an energy company's response to an ethical incident in New Zealand which (...) prompted different responses across the country about the role of business in society. Thus, we argue that when a corporation is accused of unethical behaviour, executives of the company are usually compelled to offer responses to defend their actions and corporate image. Further, we use communicative response model, social issue life cycle theory, and organisational learning, to analyse the incident and how the company responded. Using social issues life cycle theory and organisational learning theory, we demonstrate that sustained pressure can potentially trigger a change of strategy that may serve to improve the ethical posture of a corporation and thereby improve the corporate image long term. We conclude that, although corporations may understand the significance of social issues to the performance and success of their business, this same understanding does not always translate into meaningful social action. (shrink)

Interest in Corporate Social Responsibility (CSR) has proliferated in academic and business circles alike. In the context of CSR, the spotlight has traditionally focused on the role of the private sector particularly in view of its wealth and global reach. Other actors have recently begun to assume more visible roles in the context of CSR, including Non-governmental organizations (NGOs) which have acquired increasing prominence on the socio-economic landscape. This article examines five partnerships between businesses and NGOs in a developing country (...) context that fall in the realm of CSR. The article starts with a literature review, delineating foundational underpinnings that have to be carefully designed and crafted to promote the success of collaborative ventures. An empirical study of five selected partnerships between businesses and NGOs in Lebanon is then presented, allowing to derive interesting insights into types of existing alliances, their relational characteristics as well as salient factors considered most determinant of success or failure in this regard. (shrink)

In this article, we propose an adaption to stakeholder theory whereby stakeholders are conceptualized on the basis of their social identity. We begin by offering a critical review of both traditional and more recent developments in stakeholder theory, focusing in particular on the way in which stakeholder categories are identified. By identifying critical weaknesses in the existing approach, as well as important points of strength, we outline an alternative approach that refines our understanding of stakeholders in important ways. To do (...) so, we draw on notions of social identity as the fundamental basis for group cohesion, mobilization, and action. A new form of cross-mapping as a basis for stakeholder identification is advanced and key research questions are set out. (shrink)

The practice of corporate social responsibility has often been described as a balance of profitability and social or societal responsibility by scholars as well as practitioners. It is assumed that regulations and guidelines of CSR practices link competitiveness and responsibility together. While recognising that formal CSR statements represent a goal-oriented managerial approach to CSR, we argue based on the description of a qualitative case study that the relationship between profitability and social or societal responsibility is not as clear and simple (...) as it is often described. Instead, CSR should be considered as a continuously negotiated process between companies and stakeholders. Hence, the creation of a constructive link between profitability and social or societal responsibility is dependent on the amount of effort that has been put into exploring the concerns of the stakeholders, vis-a-vis the company, while simultaneously accepting changes when they are necessary. (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)

Public procurement provides an excellent window into the shaping of corporate social responsibility of companies contracted by the government. To this emerging scholarly realization, we want to add that public procurement provides also the opportunity to examine corporate social responsibility as practiced by public sector organizations. This opportunity enables the investigation of the conditions under which public sector organizations endorse CSR guidelines, adherence to which demonstrates accountability for their service providers’ legal, employment-related practices. Our study examined the possibility that public (...) sector organizations’ CSR is enhanced by maintenance managers’ role dissonance emerging in response to an ethical mismatch between them and their organizations’ official stance concerning whether unethical employment practices of service providers should be sanctioned. We analyzed interviews with 13 managers in charge of contract administration in the area of cleaning and maintenance. Our findings suggest that the role dissonance that emerges in cases of mismatch in ethical orientation rarely enhances more responsible treatment of cleaning employees. We introduce a model indicating the conditions supporting this incident. (shrink)

ABSTRACT:In response to criticism of empirical or “positive” approaches to corporate social responsibility (CSR), we defend the importance of these approaches for any CSR theory that seeks to have practical impact. Although we acknowledge limitations to positive approaches, we unpack the neglected but crucial relationships between positive knowledge on the one hand and normative knowledge on the other in the implementation of CSR principles. Using the structure of a practical syllogism, we construct a model that displays the key role of (...) empirical knowledge in fulfilling a firm’s responsibility to society, paying special attention to the implications of the “ought implies can” dictum. We also defend the importance of one particular class of empirical claims; namely, claims from the field of economics. Even positive economic theory, which is often criticized for endorsing profits rather than values, can cooperate in intriguing ways with non-economic concepts in the implementation of CSR goals. (shrink)

Employing Porter and Kramer’s corporate social responsibility framework, we explored the strategic CSR programs of two Korean and two Japanese electronics multinational enterprises in Indonesia. We observed that the sample MNEs engage in strategic CSR either through investment in competitive context or the transformation of value chain activities. In addition, these firms strongly favor strategic CSR over responsive CSR, not just because of the economic benefits offered by the former, but also its advantages in managing the programs and communicating with (...) stakeholders. Furthermore, they have developed varied organizational methods and tend to manage their key CSR programs centrally to effectively link them to the competitive strategy. Lastly, the results of our analysis suggest that Korean MNEs have customized their strategic CSR programs for emerging countries more actively than Japanese MNEs. In sum, our analysis elucidates several important features of strategic CSR employed by the MNEs in emerging countries. (shrink)

This paper seeks to analyse small‐ and medium‐sized enterprise (SME) managers' representations of corporate social responsibility (CSR) and CSR communication in a corporate communication perspective. The basic question is: how strategic is CSR communication in SMEs? Corporate communication and CSR theories are used to establish an ideal typology of CSR concepts informing an analysis of qualitative data in the form of interviews with three middle managers in two Danish SMEs. A CSR communication model published earlier by the authors is challenged (...) from a SME perspective. Results from an Internet‐based questionnaire survey of 1071 SMEs pave the way for the analysis. Our analysis shows that SME managers clearly have an inside‐out approach to CSR, with a strong emphasis on the internal (corporate culture) dimension. However, SMEs and/or SME managers tend not to communicate externally about the CSR activities of the company. Based on these findings, the paper argues that CSR communication in SMEs is challenged by the global economy and is under revision. The contribution of the paper is to provide an insight into SMEs' present stage in relation to a possible future approach to strategic CSR communication. The paper also reminds us that SMEs have no interest in turning their local and authentic practice into a forced marketing and branding exercise, leaving them with an artificial picture of who they are and strive to be in the future. They should keep on acting locally but force themselves to think globally. (shrink)

The popular view of shareholder activism focuses on shareholder resolutions and the shareholder vote via proxy statements at the annual meeting, which is treated as a "David vs. Goliath" showdown between the small group of socially responsible investors and the powerful corporation. This article goes beyond the popular view to examine where the real action typically occurs-in the Dialogue process where corporations and shareholder activist groups mutually agree to ongoing communications to deal with a serious social issue. Use of the (...) capitalized word "Dialogue" is intended to distinguish this formal process between corporations and shareholders from all the other forms of dialogue or twoway communication exchanged between a corporation and its stakeholders. The phenomenon of Dialogue between a corporation and dissident shareholders has not been analyzed in the academic literature or in the popular press because it occurs behind the scenes and out of sight from media scrutiny. Yet this is where a great deal of social change initiated by shareholder activists is negotiated. This article contributes both theoretically and empirically to the study of Dialogues between shareholder activists and corporations. We explain how Dialogues occur in the context of the shareholder resolution process and examine two Dialogues that focus on international labor issues in two industries. Then data on Dialogues during the period, 1999-2005, from the Interfaith Center on Corporate Responsibility are analyzed. This research contributes to knowledge about the Dialogue process and the emerging literature on corporation-stakeholder engagement. (shrink)

In this study, we examine whether corporate environmental responsibility plays a role in enhancing operating performance in the financial services sector. Because achieving success with CER investing is often a long-term process, we maintain that by effectively investing in CER, executives can decrease their firms’ environmental costs, thereby enhancing operating performance. By employing a unique environmental dataset covering 29 countries, we find that the reducing of environmental costs takes at least 1 or 2 years before enhancing return on assets. We (...) also find that reducing environmental costs has a more immediate and substantial effect on the performance of financial services firms in well-developed financial markets than in less-developed financial markets. These results are economically and statistically significant and robust even after alleviating endogeneity and using an additional performance measure. We interpret our empirical results as supporting the social impact and reputation-building hypothesis. Our findings also suggest that policy makers dealing with corporate sustainability management should pursue an environment-centered industry policy not only at the manufacturing sector but also at the financial services sector, as firms in both sectors with lower environmental costs perform better. (shrink)

Defining and implementing Corporate Responsibility can be a challenge for many businesses. The identification of patterns in the processes of adoption and implementation of Corporate Responsibility practices can help managers to administer these processes more ably. In this research note, the authors identify four factors influencing the adoption and implementation of Corporate Responsibility practices: internal drivers; organizational structures; attributes of practice; and formal processes. Results indicate that there is also a continuous improvement component, meaning that the adoption and implementation of (...) Corporate Responsibility practices are cyclical, rather than linear, processes. (shrink)

This paper explores the relationship between the Islamic religion and the level of socially responsible business conduct (SRBC) of Islamic entrepreneurs. The authors find that the common ideas of SRBC correspond with the view of business in Islam, although there are also some notable differences. They also find that Muslim entrepreneurs attach a higher weight to specific elements of SRBC than do non‐Muslims. However, they also find that Muslims are less involved with applying SRBC in practice than non‐Muslim managers.

The purpose of this article is to investigate to what extent is business and society literature idealistic as it advocates the adoption of high moral norms for business performance. The author discusses the central theses of mainstream themes in this literature—corporate social responsibility, corporate social responsiveness, social issues, corporate social performance, stakeholder management, corporate citizenship, business ethics, sustainable development, and corporate sustainability—and evaluates their descriptive accuracy, normative validity, and instrumental power. Poor description of reality, underdeveloped business logic, and questionable prescriptions (...) are indicative of the idealism of these themes. This study reveals many realistic and achievable propositions, which dilute the concern that business and society literature is idealistic. However, three elements in the field—its (rhetorical) criticism of corporate conduct, the predominantly normative notions of its concepts, and its underdeveloped instrumental ideas—underline its idealistic orientation. (shrink)