This article addresses the question whether companies benefit from their commitment to corporate social responsibility. The authors argue that firms which score high on CSR activities build investor confidence and find evidence that they benefit from lower information asymmetry. The authors measure information asymmetry by insider trading, which is defined as the trading of a company’s shares by corporate insiders who have an information advantage with the aim to reap gains or avoid losses. Using a sample of U.S. firms listed (...) in the MSCI World Index during the period 2004 to 2013 and the firm- and industry-level CSR rating from Global Engagement Service, the authors show that insider transactions in firms with a high score on CSR activities lead to lower abnormal returns. This investigation extends current literature on the business case for CSR by explaining the influence of CSR activities on asymmetric information. (shrink)

Over the past four decades, stakeholder research has united a chorus of voices from different disciplines using different terminology for different audiences all related to a seemingly similar topic: those that affect and are affected by business. By juxtaposing a comprehensive review of the early years of stakeholder research against more recent stakeholder research, we identify areas of common convergence as well as emergent scholarship. We develop an organizing framework consisting of three stakeholder-related themes: who or what is a stakeholder; (...) mechanisms underlying stakeholder relationships; and outcomes-oriented stakeholder research. Future research opportunities include: simultaneously examining multiple stakeholders at multiple levels; multiplier effects along the value chain and across geographies; and net impacts. We conclude by identifying how stakeholder research can “move the needle” on important business issues such as: income inequality and CEO pay; human rights and building community inclusion; disease alleviation; and food security in firms’ continuous quest to create value. (shrink)

The corporate social responsibility literature devotes relatively little attention to the strategic role played by employee voluntary activities (EVAs) in social alliances. Using the resource-based perspective of the organization to frame the data collection and the analyses, this article investigates: (1) the role of EVAs in the development of corporate and non-profit organizations (NPOs) competitive assets and (2) the management approaches to how both parties can develop their own resources by combining them with the shared resources with the purpose of (...) enhancing its competitive advantage in its own sector. The database is composed of 70 specifically designed interviews with managers of UK-based firms and NPOs. The analyses suggest, among other things, that the majority of corporate and non-profit managers find that EVAs generate substantial tangible and intangible benefits for their respective organisations, creating genuine synergies. We also find evidence of a general preference for the management approaches of such programmes in both types of organisation. (shrink)

Drawing from the varieties of capitalism theoretical framework, the study explores the home country influences of multinational corporations on their corporate social responsibility practices when they operate outside their national/regional institutional contexts. The study focusses on a particular CSR practice of seven MNCs from three varieties of capitalism – coordinated, mixed and liberal market economies – operating in the oil and gas sector of the Nigerian economy. The study concludes that the corporate codes of conduct of these MNCs operating in (...) Nigeria, to a large extent, reflect the characteristics of their home countries' model of capitalism, respectively, albeit with certain degree of modifications. The home countries' model of capitalism is also found to have implications for the degree of adaptability of these MNCs' CSR practices to the Nigerian institutional context – with the mixed market economy model of capitalism adapting more flexibly than the liberal and coordinated market economies, respectively. The findings of this study will contribute to the emerging literature on the institutional embeddedness of CSR practices in transnational social spaces, understanding of varieties of capitalism, and CSR in developing economies. (shrink)