To date, the value of corporate social responsibility (CSR) activities has primarily been measured through the company’s reputation, with little attention given to exploring whether there are internal influences between CSR and other management practices. We argue that the efficacy of CSR extends beyond a company’s reputation for managing social and environmental concerns; in particular, it can influence other business practices such as risk management. Our results suggest that (a) overall, firms with better CSR performance are more likely to adopt (...) integrated risk management practices and (b) CSR activities that target both primary stakeholders and secondary stakeholders are equally important in facilitating the adoption of such risk management practices. Theoretically, we contribute to the CSR literature by providing a possible mechanism for risk reduction and insurance-like effects of CSR. Practically, we provide managerial implications demonstrating that the efficacy of CSR should not be viewed in isolation of other business practices. (shrink)

This study focuses on CEO hubris and its effect on corporate unethical behaviour—pollution in particular, and in addition examines critical institutional contingencies [state ownership, political connection and industrial competition] which may moderate this effect. With data from over-polluting listed firms based on the real-time pollution monitoring system in transitional China from 2015 to 2017, we find that CEO hubris is significantly positively related to firm pollution, and that the moderating role of SO is not significant, that PC positively moderates the (...) hubris–pollution relationship and that industrial competition negatively moderates this relationship. These findings contribute to research on the upper echelon theory, institutional theory and the growing literature on emerging economies. (shrink)

We theoretically discuss and empirically show how CEO power based on environmental expertise and formal influence over executives and directors, in the absence and presence of shareholder activism, spurs firms toward greener strategies. Our results support the idea that CEOs with informal power, grounded in expertise, reduce corporate environmental impact and this relationship is amplified when the CEO also enjoys formal power over the board of directors. Additionally, we found that any source of CEO power, whether informal or formal, is (...) a good catalyst for transforming shareholder activism into corporate greening. However, in the absence of such activism, only CEOs’ informal environmental expert power acts as a determinant of firm environmental performance. (shrink)

While most studies on stakeholder engagement focus on high-power stakeholders (typically, employees), limited attention has been devoted to the engagement of low-power stakeholders. These have been defined as vulnerable stakeholders for their low capacity to influence corporations. Our research is framed around the engagement of low-power stakeholders in the coffee industry who are, paradoxically, critical resource providers for the major roasters. Through the case study of Lavazza—the leading Italian roaster—we investigate empowerment actions addressed to smallholder farmers located in Brazil, India, (...) East Africa, Haiti, and the Dominican Republic. We contribute to the theoretical discussion around engagement and empowerment by developing a framework linking together areas of empowerment (defined in the literature) and specific empowerment actions (emerging from our interviews). Our insights shed light on how organizations can design empowerment strategies leading to more effective stakeholder engagement and how empowerment actions can contribute to turn low-power stakeholders into active business partners. We demonstrate that moving from a traditional competitive view of corporate–stakeholder relationships to a stakeholder theory view based on a logic of cooperative partnerships reinforces the idea that stakeholder engagement and empowerment are both entangled with the value creation process. (shrink)

Despite the growing importance of stakeholder management, few studies have empirically examined the influence of stakeholder relationship capability on firm innovation, especially in emerging economies. This study investigates how SRC relates to firm innovation in the presence of governmental intervention and in combination with firm-level characteristics. Using a survey and multiple secondary datasets on the listed Chinese firms, our findings indicate that SRC is positively associated with firm innovation. Moreover, advanced legal development and high-tech status strengthen the positive link between (...) SRC and innovation, whereas state ownership and firm age weaken this relationship. These findings provide novel insights into how firms use stakeholder management to enhance innovation that is beneficial for economic growth. (shrink)

The purpose of this study is to explore the extent and nature of sustainability disclosure practices of companies from environmentally sensitive industries in India. It further investigates the influence of potential determinants on sustainability information disclosure of the companies. The study analyzed the data of 57 energy and mining companies included in NIFTY500 index at National Stock Exchange of India (NSE) for the period 2016 to 2019. In the present study, environment, social, and governance (ESG) parameters were considered to measure (...) the corporate sustainability disclosure practices. Panel data analysis was conducted to investigate the impact of possible determinants on sustainability reporting. The results indicate that variables, such as firm size, market capitalization, and a standalone sustainability reporting, are positively associated with the sustainability information disclosure of companies. The finding also suggests that policymakers should promote a standalone sustainability reporting based on Global Reporting Initiative (GRI) standards and also broaden the existing scope of business responsibility reporting in India. Overall findings should help the policymakers and regulators to assess and advance the disclosure reforms to improve sustainability reporting in India. (shrink)