In Sandra Waddock’s article “Taking Stock of SIM” in this journal, she identifies key issues in the work of the Social Issues in Management (SIM) Division of the Academy of Management. This article challenges her analysis of SIM scholarship and her arguments of what is necessary for the division to progress. Scholarship in SIM should emphasize two key streams: First, scholars in SIM should seek to develop a science of social forensics, design, and social repair—in essence, develop a method of (...) problem diagnosis, an approach to practical solution design, and a systematic understanding of the selection and implementation of social repair—in other words, seek to understand how to systematically troubleshoot and engineer solutions to fundamental issues in the business and society interface. The second stream, which informs the first, involves the development of original, core, transferable systematics that can “travel”—be the source of understanding-generating analysis—in other disciplines, including the topical regions of the Academy of Management. The article argues that laying claim to and developing true normative theory applicable across disciplines should be a distinctive identifier of work in SIM. The article concludes with an illustration of how systematics can be applied to address the literature’s failure to even seek to understand the logic underlying the standard ethical theories. These theories are properly seen as complements rather than substitutes. We need to ask and answer the “fundamental question of business ethics”: What should I do?.We suggest an approach labeled “integrative ethics,” employing ethical frames/injunctive formats, framed contexts for action, and the distribution of desires. (shrink)

In recent years, the fight against money laundering has emerged as a key issue of financial regulation. The Wolfsberg Group is an important multistakeholder agreement establishing corporate responsibility principles against money laundering in a domain where international coordination remains otherwise difficult. The fact that 10 out of the 25 top private banking institutions joined this initiative opens up an interesting puzzle concerning the conditions for the participation of key industry players in the Wolfsberg Group. The article presents a fuzzy-set analysis (...) of seven hypotheses based on firm-level organizational factors, the macro-institutional context, and the regulatory framework. Results from the analysis of these 25 financial institutions show that public ownership of the bank and the existence of a code of conduct are necessary conditions for participation in the Wolfsberg Group, whereas factors related to the type of financial institution, combined with the existence of a black list, are sufficient for explaining participation. (shrink)

Instrumental CSR perspectives suggest that selective investments in prosocial, voluntary behaviors are largely profit-driven, whereas institutional theory emphasizes legitimacy-seeking as a significant mechanism for explicit CSR disclosure. We test both profit-seeking and legitimacy-seeking mechanisms, derived from empirical findings of Western-oriented firms, in a unique setting to understand voluntary CSR disclosure in an Eastern context: South Korea. By examining voluntary disclosure of the 500 largest South Korean firms’ social contributions from 2006 to 2012, a time period purposefully encompassing the global financial (...) crisis, we highlight the limitations of corporate social responsibility theorizing when East meets West. Our findings suggest profitability is not significantly related to voluntary disclosure as predicted by Western, instrumental CSR literature. Overall, we found support for legitimacy-seeking mechanisms as the likelihood of disclosure increased for publicly listed firms and those employing a larger number of workers for all years between 2006 and 2012. Further, firms affiliated with chaebols are more likely to disclose prosocial behaviors prior to, and after, the GFC compared to firms that are not affiliated with chaebols regardless of profitability further suggesting that legitimacy-seeking mechanisms may underlie CSR reporting in Korean firms. (shrink)