In this research, we develop a reporting framework based on an ethical account of the Australian live sheep export industry’s current operations. We demonstrate that LSE operates within a legitimacy vacuum constituted by a repeated cycle of events that we characterize as scandal-response-obduracy with a constant factor being animal cruelty on an industrial scale. The lack of legitimacy is facilitated by an obdurate regulatory context, an absence of consumer awareness of industry practices, jurisdictional impediments to enforcement of animal cruelty laws (...) and foundational epistemic vices upon which the industry calculates an unethical cost benefit analysis of current practice. While legitimacy theory would expect demise of the LSE industry, its prolonged continuation is more than a curiosity. It presents an opportunity to understand how focus on vice epistemics and reporting of animal welfare may contribute to emancipatory change in the form of improved animal welfare in agricultural industries. (shrink)

Environmental, social, and governance (ESG) investing is synonymous with sustainable investment for socially responsible investors. Unfortunately, the diversity of ESG investing remains unattended amidst the growth in ESG literature, as the academic literature focuses dominantly on measuring performance. An understanding of a wide range of subjects entailing ESG is required before future research on ESG investing is performed. To overcome the challenge, this systematic literature review uses bibliometric mapping to reveal four significant research themes within the ESG investing literature: investor (...) behavior and motivations for ESG investing; cost and risk mitigation in ESG investing; portfolio screening and ESG investing; and ESG performance. The review critically examines each theme and broadens the research agenda for future studies. In addition to the significant themes, this paper also discusses theoretical and recent research trends in the ESG investing literature. The review identifies clashes and crossovers between these themes to appropriately interpret one theme using another and emphasizes the heterogeneity in ESG investing. Lastly, discussion over concerns and criticisms of ESG investing highlights greenwashing as a major cause of concern for investors. (shrink)

AbstractEnduring unethical behavior in trading has generated much research interest, and scholars disagree on the reasons for this situation. According to MacIntyre (2015), this has to do with the personal traits of traders, whereas Rocchi and Thunder (2019) argue this is due to permissive work environment that can potentially be changed to favoring ethical trading. We contribute to this debate by exploring how interactions between organizational culture and management control systems (MCSs) may affect the enduring unethical behaviors of traders. We (...) conceptualize this with the concepts of organized hypocrisy (Brunsson 1986, 1989, 1993) and decoupling (Meyer and Rowan 1977). An in-depth case study of fraud (Jerome Kerviel at Societe Generale), informs the empirical inquiry. We develop the concept of organized decoupling to characterize how the MCSs are articulated with the organizational culture favoring unethical behavior, while being used as a ‘safety mechanism’ to manage the legal and reputational risk of the bank. The analysis highlights three key features of the organized decoupling of MCS: physical distance, technical distance and social distance. The study contribution lies in showing that decoupling is not only emergent but might be intended and therefore organized. The findings also raise doubts on the role of MCSs in monitoring trading activities as presented by investment banking institutions and regulators, suggesting more organized hypocrisy, and raising significant concerns regarding the creation of tolerable work environment welcoming ethical behaviors in the investment banking sector. (shrink)

This article addresses intraorganizational pressures for organizational transformation toward more responsible business practices by exploring the role of internal activists. Building on the interactive framing perspective, I ask how internal activists develop a framing of their company’s responsibilities as they attempt to transform its business practices from the inside out. I explore this question in the context of a Danish pharmaceutical company’s responsibilities regarding the rising diabetes problem. Grounded in an inductive, interpretive analysis, I show how internal activists developed a (...) framing of the company’s responsibility over time and eventually instigated new ways of thinking about and doing business in their organization. I theorize the constitutive processes that strengthened frame alignment and allowed the internal activists to shape business practices. My study contributes to the literature on corporate social responsibility (CSR) communication by explaining how intraorganizational processes of meaning making may constitute more responsible business practices and by explicating the distinct role of internal activists as agents of organizational transformation. (shrink)

While corporate social responsibility is recognized as taking on various national meanings and practices, research has not sufficiently investigated how multinational companies simultaneously achieve global CSR integration and local CSR adaptation. Building on a qualitative case study carried out at ASICS, an MNC headquartered in Japan, we show how this organizational dilemma may be solved through hybridization work, a form of institutional work performed by CSR managers in subsidiaries to combine and adapt different institutional approaches to CSR. By developing the (...) notion of hybridization work, we contribute by revealing a set of practices that contribute to institutional change within organizations and enriching the study of CSR organizational change and international business by showing how hybridization Work leads to a greater organizational integration between core and periphery, and by identifying the triggering factors for subsidiary initiative in CSR. (shrink)