Despite ample research on corporate governance (CG) and corporate social responsibility (CSR), there is a lack of consensus on the nature of the relationship between these two concepts and on how this relationship manifests across institutional contexts. Drawing on the national business systems approach, this article systematically reviews 218 research articles published over a 27-year period to map how CG–CSR research has evolved and progressed theoretically and methodologically across different institutional contexts. To shed light on the full gamut of the (...) CG–CSR relationship, we categorize and explore the nature of this relationship along two strands: (a) CSR as a function of CG and (b) CG as a function of CSR. Through this review, we identify key themes where CG–CSR research has lagged and account for under-explored contexts in this domain. Finally, we put forth a comprehensive agenda for progressing future research in the field. (shrink)

Business and Society Review, Volume 127, Issue 1, Page 127-143, Spring 2022.

Business and Society Review, Volume 126, Issue 4, Page 479-511, Winter 2021.

Robert King Merton’s article published in Science popularized the Matthew Effect: “For to everyone who has, more will be given and he will grow rich; but from the one who has not, even what he has will be taken away”. The Matthew Effect prevails at the individual, organization-industry, and country-global levels. This interdisciplinary review connects the Holy Bible with agency theory, tournament theory, corporate social responsibility, prospect theory, behavioral economics, the psychology of money, and business ethics in the literature. I (...) expand the Matthew Effect, incorporate prospect theory and the love of money, and develop a multi-level theory of the Matthew Effect in Monetary Wisdoms: Individual decision-makers apply their deep-rooted values as a lens, frame the critical concerns in the immediate and omnibus contexts, and maximize expected utility and ultimate serenity-happiness across people, context, and time at the individual, organization-industry, and country-global levels. The rich serve God, enjoying the ultimate joy and happiness. The poor serve mammon, destroying their lives. The rich get richer. The poor get poorer. Scholars of business ethics and CSR must explore this phenomenon in future studies. (shrink)

This article discusses the ethics and drivers of philanthropic foundations in emerging markets. A foundation organizes assets to invest in philanthropic initiatives. Previous scholarship has largely focused on developed countries, especially the United States, and has questioned the ethics behind the activities of foundations, particularly for strategic motives that served wider corporate purposes. We argue that philanthropic foundations in emerging markets have distinctive characteristics that merit separate examination. We scrutinize the ethics behind the longitudinal activity of such foundations using 70 (...) oral history interviews with business leaders in 18 countries in Africa, Asia, Latin America, and the Middle East. We find that 55 out of 70 foundations associated with these leaders have been used as vehicles for a specific type of philanthropic ethics defined as “spiritual philanthropy”. These foundations often embodied personal or family traditions, culture, and religious values, which emphasized charitable giving and social responsibility. As in the case of many of the industrial foundations in Europe, these foundations also carried founding family names and provided a structure to maintain family control and enhance corporate reputation. We argue that, as business leaders in emerging markets are more directly exposed to dire social, educational and health deprivation than their counterparts in developed countries, they are less inclined toward grandiose world-making, and their foundations are more focused on delivering immediate benefits to communities in their home countries, motivated by implicit or explicit spirituality. (shrink)

This study contributes to the burgeoning research on corporate social responsibility (CSR) at the individual level of analysis, in a hitherto largely neglected developing country context. Using survey information collected from 297 employees in public and private enterprises in Kosovo, this study examines how and to what extent employees’ perceptions of their employer's CSR activities are associated with their intention to emigrate. Applying a needs‐based framework, this research provides evidence that employees’ perceptions of CSR are positively related to the meaningfulness (...) of their work and job satisfaction and negatively related to intention to emigrate. Additionally, results confirm that the association between CSR perceptions and emigration intention is mediated by the meaningfulness of work and job satisfaction. From a practical point of view, this research should encourage private and public enterprises in developing countries to enhance and extend their CSR engagement. (shrink)

This study examines CSR engagement by Zimbabwean SMEs through their practices and procedures. A qualitative approach was adopted, involving 16 in-depth interviews with key decision makers of ICT SMES in Zimbabwe. The study makes finds that Understanding of CSR by SMEs is patchy, their approach to selecting and executing CSR activities is ad hoc, unstructured and not supported by dedicated budgets while decision making rests solely with the CEO who values and upbringing plays a defining role in this process. The (...) study presents useful insights from a developing world context on CSR characteristics by SMEs. (shrink)

This study investigates potential differences in attitudes towards corporate social responsibility between Saudis and Muslims from other predominately Islamic countries. We propose that Saudi Arabia’s unique rentier-state welfare and higher education systems account for these distinctions. In evaluating our propositions, we replicate Brammer et al. :229–243, 2007) survey on attitudes towards CSR using a sample of Saudi undergraduate and graduate business students and compare the results against data from subjects in other majority Muslim countries. In addition, this work examines possible (...) differences within the Saudi sample with respect to sex and academic level. Our results indicate that our Saudi subjects maintain higher expectations for corporations’ social responsibility within their supply chain than the Brammer et al.’s sample. In contrast, Muslims in the Brammer et al.’s sample hold higher expectations for corporations in supporting societal development and poverty alleviation in comparison to the Saudi sample. We also find within the Saudi sample that females and subjects at higher academic levels are more inclined to hold corporations responsible for social issues related to CSR than males and subjects in lower academic levels. We examine these findings, explore their implications, and propose areas for future research. (shrink)

This article examines multinational banks’ approaches to corporate social responsibility in developing countries’ subsidiaries, particularly in Latin America. Building on in-depth case studies of two MNBs that are based in Europe and market leaders in Latin America, we analyze their CSR motivations and outcomes in host countries. We examine institutional environments by applying the national business system framework, and we suggest missing categories in its financial and educational dimensions. We theorize how institutional necessity determines MNBs' CSR in developing countries. Finally, (...) we examine the CSR outcomes in Latin America, where banks’ responsible conduct has led to major improvements in educational levels and financial inclusion. These improvements alleviate poverty and enhance both country's social wellbeing and MNBs’ legitimacy, leading to mutual prosperity. (shrink)

This study develops an internal–external institutional framework that explains why firms act in socially responsible ways in the emerging country context of China. Utilizing a mixed method of in-depth interviews and a survey study of 225 Chinese firms, the author found that internal institutional factors, including ethical corporate culture and top management commitment, and external institutional factors, including globalization pressure, political embeddedness, and normative social pressure, will affect the likelihood of firms to act in socially responsible ways. In particular, implicit (...) ethical corporate culture plays a key role in predicting different aspects of corporate social responsibility, while external institutional mechanisms mainly predict market-oriented CSR initiatives. This study contributes to the research on CSR antecedents by showing that in the emerging economy of China, CSR toward nonmarket stakeholders is more closely intertwined with corporate tradition and values, while legitimacy-seeking CSR activities are still limitedly rewarded. (shrink)

This study explores why and how firms respond to social demands through philanthropic giving in the context of a severe natural disaster. Drawing on Marquis and Qian's organizational response model to government signals, we integrate resource dependence theory and institutional theory to build a two-step model of organizational response to social needs, in situations of disaster relief. We argue that firms depending more on the government for support are more likely to donate in disaster relief, while firms who receive more (...) scrutiny from the government and the general public and firms having more slack resources are likely to donate more. Evidence from Chinese listed companies' donations to the 2008 Sichuan earthquake largely supports our predictions. This study provides a more precise understanding of the corporate philanthropic decision process, decoupling the drivers of philanthropic giving, and those determining the amount given. Theoretical and practical implications are suggested. (shrink)

Most research studying the corporate social performance –corporate financial performance link has utilized developed country samples. Also, this literature has generally focused on a wide variety of industries, ignoring the fact that certain sectors – such as controversial industries – have graver social and environmental issues. Hence, a gap exists in this tradition when it comes to emerging markets and controversial industries. This paper attempts to fill this void by providing preliminary evidence and insight on the matter. Based on an (...) exploration in six Latin American countries and five controversial industries, we find a negative bidirectional association between CSP and CFP. These results tend to contradict the mainstream conclusion of a positive bidirectional link, suggesting that institutional and market-level forces play a major role in shaping this relationship. (shrink)

Developing countries have recently experienced a burgeoning of small-scale individual entrepreneurs (SIEs) – who range from petty traders to personal service workers like small street vendors, barbers and owners of small shops – as a result of market-based reforms, rapid urbanisation, unemployment, landlessness and poverty. While SIEs form a major part of the informal workforce in developing countries and contribute significantly to economic growth, their potential is being undermined when they engage in irresponsible and deceptive business practices such as overpricing, (...) sale of underweight or substandard products, or attempts to hoard goods, to name a few. Despite the growing interest in corporate social responsibility (CSR) initiatives of small businesses in developing countries, the SIEs have received almost no attention. To address this void in the literature, we explore the reasons for the less than optimal level of social responsibility demonstrated by some SIEs in developing countries. We do so by drawing upon the existing literature to develop a comprehensive framework of social responsibility of SIEs highlighting their unique characteristics and the different contextual factors that they encounter in developing countries. Based on this framework, we then present a set of propositions specifying the influence of these contextual factors such as business environment, cultural traditions, socio-economic conditions, and both international and domestic pressures on the business practices of SIEs. The framework offers an explanation for the lack of responsible entrepreneurship of SIEs and has important implications for promoting sustainable business practices in developing countries where businesses are striving hard to survive and compete. (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)

This study provides evidence on the governance of CSR policies and activities by Indian central government-owned companies [i.e. Central Public Sector Enterprises ] within a unique mandatory regulatory setting. We utilise the multi-level ‘Logic of governance’ conceptual framework and draw upon interview data collected from 25 senior managers in 21 CPSEs to assess the dynamics of CSR implementation within CPSEs. Our findings indicate most managers believe that a mandatory policy has enhanced the accountability and commitment of governing boards and senior (...) management to CSR. However, CSR policy implementation within Indian CPSEs is still nascent, fraught with bureaucratic hurdles, insufficient human and knowledge resources, limited stakeholder analysis and over-emphasis on CSR budget utilisation as an outcome. Several key areas for improvements include the need for better translation of national CSR policy goals to firm-level strategies, more formal assessment of stakeholder needs, clearer communication lines with external service providers, such as NGOs and local government agencies, and the better evaluation of CSR outcomes. The findings of this study have implications for both theory and policy development. (shrink)

Many existing studies postulate that in developing economies philanthropy tends to dominate in the CSR orientation delivered by organizations and expected by local populations. To assess this in the emerging economy of Dubai in the United Arab Emirates, we conducted a preliminary investigation of how locals are responding to the growing number of CSR initiatives that are being implemented in the Emirate. Moreover, given that scholars have argued that Islamic principles of philanthropy should guide CSR initiatives in Muslim countries, we (...) also consider if our Emirati respondents connect CSR with Islamic philanthropy. Results from our survey of 267 local Muslim consumers in Dubai indicate that CSR is not typically equated with philanthropy. In addition, respondents displayed an appreciation of the economic benefits that CSR can generate. The implication is that organizations in Dubai no longer need to base their CSR on the platform of Islamic philanthropy as many scholars have argued. Our findings are significant for the wider Gulf region in that they suggest that in wealthy emerging nations, CSR may not be predominantly interpreted as the corporate philanthropy which is needed in poorer developing economies for the provision of infrastructure, schools, hospitals, and housing, and which in some Muslim contexts is also implemented because of local religious values. (shrink)

This study examines the effects of corporate governance mechanisms on CSR performance in an emerging economy, China. Because of the need of gaining legitimacy in the new institutional context, Chinese firms have to adopt global CSR practices in order to remain competitive. Using the corporate governance framework, this study examines how board composition, ownership, and TMT composition influence corporate social performance. The propositions are tested using data gathered from 471 firms in China. By and large, empirical findings supported the hypothesized (...) relationships. (shrink)

The convergence of corporate social responsibility (CSR) and corporate governance (CG) has changed the corporate accountability mechanism. This has developed a socially responsible ‘corporate self-regulation’, a synthesis of governance and responsibility in the companies of strong economies. However, unlike in the strong economies, this convergence has not been visible in the companies of weak economies, where the civil society groups are unorganised, regulatory agencies are either ineffective or corrupt and the media and non-governmental organisations do not mirror the corporate conscience. (...) Using the case of Bangladesh, this article investigates the convergence between CSR and CG in the self-regulation of companies in a less vigilant environment. (shrink)

Corporate social responsibility (CSR) is a concept that has acquired a new resonance in the global economy. With the advent of globalization, managers in different contexts have been exposed to the notion of CSR and are being pressured to adopt CSR initiatives. Yet in view of vastly differing national cultures and institutional realities, mixed orientations to CSR continue to be salient in different contexts, oscillating between the classical perspective which considers CSR as a burden on competitiveness and the modern perspective (...) that views CSR as instrumental for business success. Capitalizing on the two‐dimensional CSR model developed by Quazi and O’Brien, Journal of Business Ethics, 25, 33–51 (2000), this article attempts to gauge managerial perspectives toward CSR in Lebanon. An empirical study of 119 Lebanese managers reveals that the majority of respondents (83 percent) are favorably inclined toward CSR with about 20 percent adhering to the modern paradigm, more than 50 percent adhering to a philanthropic view and 18 percent fitting into the classical camp. The findings are discussed and cross‐cultural implications drawn accordingly. (shrink)

With the advent of globalization, the track record of multinational corporations (MNCs) has been mixed at best in relation to their Corporate Social Responsibility (CSR) involvement in developing countries. This article attempts to cross-fertilize insights from the business-society and international business political behavior literature streams to identify relevant dimensions and contingencies that can be used to analyze the CSR of MNCs in developing countries and the extent of standardization or localization of their strategies. The article makes use of the new (...) theoretical framework in the context of an interpretive research methodology to examine the CSR orientations of a sample of MNC subsidiaries in Lebanon. The findings reveal patterns of global CSR being diffused to developing countries, but also being diluted along the way in view of specific subsidiary endowments and host market characteristics. (shrink)

There is little doubt that Corporate Social Responsibility (CSR) is now a global concept and a prominent feature of international business, with its practice localised and differing across countries. Despite the growing body of research focussing on CSR in developing countries, there is dearth research on CSR institutionalisation in African countries. Drawing on institutional theory (IT), this article examines the focus and form of CSR practice of companies in Kenya. It is evident from our findings that the nature and orientation (...) of CSR differ across companies with operations only in Kenya and those headquartered abroad or with international operations. Significantly, firm-related drivers such as public relations and performance, as well as global institutional pressures explain the focus and form of CSR in Kenya. This article concludes that for the institutionalisation of CSR in Kenya, attention must be paid to conditions that stifle CSR uptake such as lack of government regulations, and the government's capacity and commitment to enforce regulation. The establishment of functional CSR institutions and a vibrant civil society that advance civil regulation ought to be encouraged. (shrink)

This study identifies unique corporate social responsibility (CSR) dimensions and develops a framework to analyze different levels of institutional dynamics in understanding CSR in China. Based on multiple case studies of 16 firms, the article examines the CSR philosophy and approach in China's emerging market. The findings suggest that Chinese CSR understanding is largely grounded in the context of ethical and discretionary actions. This focus is mainly attributed to the dominant role of ethical leadership, governmental dependency, and cultural traditions in (...) Chinese CSR. Moreover, the weakness or the absence of conducive social normative environment and positive peer pressure, and misalignment between CSR and organizational design further contribute to a lack of systemic and institutionalized approach to CSR in China. Our study implies that CSR is still evolving at a preliminary stage in China, and institutional infrastructure and cultural ethics are exerting abiding influence on CSR approach in the emerging economies. The article also suggests the implications for practice and policy making. (shrink)

This article examines corporate social disclosures (CSD) in an African developing economy (Mauritius) as provided in the annual reports of listed companies from 2004 to 2007. Informed by the country’s social, political and economic context and legitimacy theory, we hypothesise that the extent and variety of CSD themes (social, ethics, environment and health and safety) will be enhanced post-2004 and will be influenced by profitability, size, leverage and industry affiliation. We find a significant increase in the volume and variety of (...) CSD, although information in relation to social activities remains the most prominent form of disclosure. This is in contrast to previous studies which reported on the primacy of employee disclosures in developing countries. Using a pooled regression analysis, we also observe that size does explain variations in overall CSD and social disclosures, whilst leverage is positively related to changes in environmental and health and safety disclosures. There is no profitability relationship, and the effects of industry affiliation on CSD are non-significant or contrary to expectations. Overall, we assert that legitimacy, as a strategic and managerially driven approach favouring symbolic actions, is the prevailing motivation underlying the progression of CSD in Mauritius. (shrink)

This article introduces a theoretical framework that combines institutional and stakeholder theories to explain how firms choose their corporate social responsibility (CSR) strategy. Organizational researchers have identified several distinct CSR strategies (e.g., obstructionist, defensive, accommodative, and proactive), but did not explain the sources of divergence. This article argues that the divergence comes from the variability in the configuration of external influences that consists of institutional and stakeholder pressures. While institutions affect firms’ social behavior by shaping the macro-level incentive structure and (...) sources of legitimacy (distal mechanisms), firms’ stakeholders can amplify or buffer the institutional forces by acting as mediators (proximate mechanisms). The two dimensions are interdependent in that stakeholders draw legitimacy and power from institutions, and institutions are often actualized through stakeholder mechanisms. Together, they form a particular configuration of external influences that shapes how focal firms construct their CSR strategy. (shrink)

Given that personal source of information is preferred by the customers over company-generated marketing communications, promoting advocacy behavior among customers is of much importance for every organization. Literature suggests that an organization's corporate social responsibility (CSR) activities significantly influence individual behavior. However, the advocacy behavior of customers (ADB), from a CSR perspective, did not receive due attention. To address this literature gap, the current study attempts to explore the relationship among CSR and ADB with the intervening role of brand admiration (...) (BA). To collect the data, customers of a large fast-food service organization in Pakistan were approached. The proposed relationships were tested through the structural equation modeling (SEM) technique. The statistical evidence verifies a positive link between CSR and ADB, while BA mediated this relationship. These findings will be supportive to the fast-food business to realize the critical role of CSR for a meaningful customer-company relationship in the face of competition. (shrink)

Customers are increasingly talking positively about brands that are socially responsible and authentic. However, little empirical research has related corporate social responsibility (CSR) to brand authenticity and brand authenticity to customers’ positive word-of-mouth. Moreover, although highly attractive alternative brands are increasingly appearing in the marketplace, there is a lack of research examining the role of alternative attractiveness in the relationship between CSR and brand authenticity. We address these shortcomings in the literature drawing on data from 1,101 customers of insurance services (...) brands and analyze them using structural equation modeling. The findings show that CSR is positively related to customers’ positive word-of-mouth, both directly and indirectly, through brand authenticity. Moreover, alternative attractiveness positively moderates the effect of CSR on brand authenticity. This implies that CSR can act as a differentiation mechanism to further enhance the focal brand’s authenticity, when an alternative brand is perceived as highly attractive. (shrink)

Corporate social responsibility strategy hinges largely on the CEO characteristics in the context of an emerging market. Based on a sample of 16,144 firm-year observations obtained from 1,370 unique Chinese-listed firms, which whether voluntarily issue CSR reports over the period 2008–2019, this paper empirically examined the impact of CEO characteristics on the likelihood of issuing CSR reports. We find that CEO age, MBA education, international experience and political ideology consciousness are positively associated with the possibility of issuing CSR reports, while (...) a newly appointed CEO will decrease the likelihood of issuing CSR reports. Moreover, we consider a contingent factor, namely CEO power over the board, can significantly enhance the relationship between CEO age, political ideology consciousness, and the likelihood of issuing CSR reports. Furthermore, there’s no significant evidence indicating that CEO power can moderate the relationship between MBA education, international experience, and the likelihood of issuing CSR reports. Nonetheless, CEO power moderates the negative relationship between a newly appointed CEO and CSR reporting initiatives. This study attaches understandings to the extant literature that how top management characteristics can shape firm CSR strategies. (shrink)

The sizeable theoretical and empirical literature on corporate social responsibility and business ethics in Western, developed economies indicates that the topic has attracted significant interest from academics and practitioners. There is, however, less evidence of the practice of CSR and business ethics in non-Western, transition economies, as insufficient attention is paid to the contextual specifications and underlying processes that may lead to different versions of CSR. Therefore, this paper examines the practice and sense-making of CSR and business ethics from the (...) perspective of the fertile and under researched post-communist context of Central and Eastern Europe, to join the growing academic debate about the impact of cultural and historical traditions on the practice and sense-making of CSR and business ethics in non-Western contexts. The study adopts a particular focus on the post-communist and under researched context of Bulgaria where CSR is still a relatively new phenomenon. By following an exploratory research design and by collecting qualitative data from 34 executives employed by public and private sector organisations in Bulgaria, the study finds that the local business environment is composed of a complex mix of various institutionalised pressures and challenges that predispose organisations to adopt a particular approach to CSR, ethical misconduct and CSR-washing. Apart from the significant contributions related to the practice, understanding and contextualisation of CSR in non-Western countries, the study also identifies challenges of business ethics in transition economies and adds depth to the emerging literature on CSR-washing by proposing a model for neo-communist CSR-washing. The study also offers contributions for practitioners and policy-makers. (shrink)

Theoretical evidence suggests that corporate social irresponsibility (CSI) should produce long-lasting negative influences on firm performance. Yet, little empirical evidence exists in the literature to support this time-embedded research frame. This research was conducted by collecting a large set of firm data and by employing a series of vector autoregressive models to map out the longitudinal dynamic relationships between CSI and firm value under high versus low levels of two external factors, environmental dynamism and competition intensity, and one internal factor, (...) firm capability. The results show that CSI’s negative influences endure in scenarios such as high dynamism, high competition intensity, and low capability, but it has only a short-term impact on low-dynamism markets and does not produce significant effects on firm value under low-competition or high-capability conditions. These findings yield useful implications for CSI, resource-based theory, and environment theories as well as for managerial effectiveness of coping with social negativities. (shrink)

Business Ethics: A European Review, EarlyView.

Academic research suggests that variances in contextual dynamics, and more specifically religion, may lead to disparate perceptions and practices of corporate social responsibility. Driven by the increased geopolitical and economic importance of the Middle East and identified gaps in knowledge, the study aims to examine if indeed there is a divergent form of CSR exercised in the region. The study identifies unique CSR dimensions and constructs presented through an empirical framework in order to outline the practice and perception of CSR (...) in a context with strong Islamic beliefs. The framework goes beyond the platform of mere Islamic philanthropy and is based on CSR-stakeholder management practices. Following an exploratory research design and collecting interview data from representatives of 63 organisations from Saudi Arabia, the United Arab Emirates and Oman, the study offers a snapshot of the CSR reality from the perspective of those living the phenomenon. The results suggest that the practice and perception of CSR in the examined context are largely grounded in the areas of social and altruistic actions but they cannot be examined in isolation from the religious context of CSR operation. This focus is mainly attributed to the dominant role of Islam in the examined sample, which leads to forms of non-structured or semi-structured approaches to CSR. Apart from the theoretical advancements offered to the CSR literature, the study also provides contributions for practitioners and policy makers. (shrink)

Islamic finance is gaining greater attention in the finance industry, and this paper analyses how Islamic financial institutions are responding to the welfare needs of society. Using interview data with managers and content analysis of the disclosures, this study attempts to understand management perceptions of corporate social responsibility in IFIs. A thorough understanding of CSR by managers, as evident in the interviews, has not been translated fully into practice. The partial use of IFIs’ potential role in social welfare would add (...) further challenges in the era of financialisation. (shrink)

Multinational enterprises are often accused of taking advantage of lax environmental regulations in developing countries. However, no quantitative analysis of the impact of doing business in nations of different income levels on environmental corporate social responsibility has been done prior to this study. Incorporating institutional factors in our approach, we argue that endoisomorphic and exoisomorphic pressures relating to ECSR impact MNEs differently according to the MNEs' level of activity in low-, lower-middle-, upper-middle-, and high-income nations. We predict and, using data (...) from 113 companies, find that selling in poorer nations is positively associated with increased levels of ECSR. Our research suggests that MNEs may not be participating in a “race to the bottom” but may instead be responding to global institutional pressure by exceeding local norms for environmental stewardship. Alternative interpretations of our findings are discussed. (shrink)

Local supplier corporate social responsibility in developing countries represents a powerful tool to improve labour conditions. This paper pursues an inter-organizational network approach to the global value chain literature to understand the influence of suppliers’ collective behaviour on their CSR engagement. This exploratory study of 30 export-oriented and first-tier apparel suppliers in Bangladesh, a developing country, makes three relevant contributions to GVC scholarship. First, we show that suppliers are interlinked in a horizontal network that restricts unilateral CSR engagement. This is (...) justified in that unilateral CSR engagement is a source of heterogeneity in labour practices; consequently, it triggers worker unrest. Second, we present and discuss an exploratory framework based on four scenarios of how suppliers currently engage in CSR given their network’s pressure toward collective behaviour: unofficial CSR engagement, geographic isolation, size and competitive differentiation, and external pressure. Finally, we show the need to spread CSR homogeneously among suppliers and to reconceptualize the meaning of CSR in developing countries, encouraging more scrutiny toward horizontal dynamics. (shrink)

Whilst considerable research exists on determining consumer responses to pre-determined statements within numerous ad ethics contexts, our understanding of consumer thoughts regarding ad ethics in general remains lacking. The purpose of our study therefore is to provide a first illustration of an emic and informant-based derivation of perceived ad ethics. The authors use multi-dimensional scaling as an approach enabling the emic, or locally derived deconstruction of perceived ad ethics. Given recent calls to develop our understanding of ad ethics in different (...) cultural contexts, and in particular within the Middle East and North Africa region, we use Lebanon—the most ethically charged advertising environment within MENA—as an illustrative context for our study. Results confirm the multi-faceted and pluralistic nature of ad ethics as comprising a number of dimensional themes already salient in the existing literature but in addition, we also find evidence for a bipolar relationship between individual themes. The specific pattern of inductively derived relationships is culturally bound. Implications of the findings are discussed, followed by limitations of the study and recommendations for further research. (shrink)

We examine the role of socio-demographic factors on consumers’ pro-environmental behavior (PEB)–a subset of ethical behavior and analyze its implications in an emerging market, with a sample study from India. Multivariate analysis of variance (MANOVA) was performed as research method. Results show that males display higher PEB than their female counterparts. Married consumers score more on PEB than single. Mid-age consumers (36–50) also score high on PEB than young and old-age consumers. Furthermore, highly educated consumers are more pro-environmentalist than graduates (...) and post-graduates. The novelty of this study is that centers on the use of demographic variables interactively in order to form microsegments. For instance, married men score more on PEB scale than unmarried men and women and prefer green channels even more (i.e., public transportation). On the contrary, unmarried women display no hesitation in paying more for energy-efficient goods compared to married men and unmarried men. Marketers may aim in setting such PEBs as the moral standards among consumers being an easily identifiable segment as their prime target. (shrink)

The paper aims at investigating external factors influencing organizational corporate social responsibility -related decision making. Two theoretical perspectives—stakeholder theory and institutional theory—have been applied to compile a list of external factors that might affect a company's CSR choices. As a result, a framework built on the government-related, society-related, and business-related groups of external factors is being suggested. This framework is used in the paper to answer to what extent do different external factors influence CSR-related decisions in large Danish companies and (...) how has that influence changed over the years. The research takes a qualitative approach and is designed as a multiple-case study. Empirically, the paper relies on data collected from semi-structured interviews with CSR specialists and managers and presents a dynamic perspective on the pressure exercised by the external factors on CSR decisions and choices. (shrink)

Recent calls in the corporate social reporting literature have emphasized the importance of giving voice to non-managerial stakeholder groups in the social reporting process. The research, presented in this paper, employs recent work in stakeholder theory and CSRep to examine the perceptions of a diverse set of non-managerial stakeholders in the context of a developing country, Bangladesh. A series of semi-structured interviews were conducted with individuals who identify with various non-managerial stakeholder groups. Interviewees generally believed that the motivation and practice (...) of CSRep in Bangladesh is developing in response to pressures from international markets and is producing largely cosmetic responses. Also, they expressed concerns that, given the economic, political, and social conditions in Bangladesh, premature adoption of strict CSRep standards may lead to increased corruption and other unintended consequences. Whilst some of the interviewees sharply criticized the current process of imposing social accounting codes/standards on developing countries which fail to consider the important local socio-economic context, the findings suggest that there is overwhelming support for mandatory externally verified CSRep based on the principles of peoples’ right to know, full disclosure/completeness, and relevance, which are anchored in the broader principles of transparency and stakeholder accountability. (shrink)

Based on a contest analysis of the official websites of top 100 companies in China in 2007, the paper reports the social performance of large Chinese companies. We try to focus on and answer the following three questions about CSP of large companies in China: (1) how is their overall social performance?; (2) what are the social issues they addressed?; and (3) what are the stakeholders they addressed? The results are also compared among different ownership companies and among different industrial (...) companies. The findings indicate that CSR/CSP in China is still in the beginning stage, and␣CSR/CSP is different among different industrial companies. (shrink)

The spotlight in the CSR discourse has traditionally been focused on multinational corporations (MNCs). This paper builds on a burgeoning stream of literature that has accorded recent attention to the relevance and importance of integrating small and medium enterprises (SMEs) in the CSR debate. The paper begins by an overview of the CSR literature and a synthesis of relevant evidence pertaining to the peculiarities and special relational attributes of SMEs in the context of CSR. Noting the thin theoretical grounding in (...) the literature on offer, the paper then presents relevant CSR theoretical perspectives that could be useful in conducting further research on SMEs. In light of this framework, the paper outlines the findings of an empirical study highlighting the peculiar CSR orientations of SMEs in a developing country context in comparison to some of their MNC counterparts. The study is qualitative in nature, capitalizing on a comparative research design to highlight differences in CSR orientations between SMEs and MNCs. The findings are presented and implications are drawn regarding the peculiar relational attributes of SMEs in the context of CSR generally, and developing countries more specifically, and how this inclination can be further nurtured and leveraged. (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)

The study contributes to building an understanding of the impact of political forces on the information environment of listed firms in a developing economy. Specifically, it investigates the tensions between politico-institutional factors and accounting regulation on the prolonged and incomplete implementation of the International Financial Reporting Standards in Bangladesh from 1998 to 2010. Two phases of interviews were conducted in 2010–2011 and IFRS-related enforcement documents from 1998 to 2010 were evaluated. The study contributes that IFRSs are being diffused to developing (...) countries like Bangladesh, but they invariably interact with local institutions, with variable outcomes. Coercive, normative and mimetic isomorphisms are low in Bangladesh. Notably, political forces have been undermining mimetic isomorphism because of the high level of government intervention and the high level of political lobbying. Political institutional pressures stand in the way of mimetic isomorphism and constitute negative forces that add further tension to accounting regulation in Bangladesh. Regarding the low level of normative isomorphism, there is evidence of a ‘blame culture’, with state institutions and professional accountancy institutions in the country blaming each other for the poor progress in IFRS implementation. Although the study focuses on Bangladesh, its results have implications for international policy makers, as well as the governments and regulators of other developing economies facing similar challenges in implementing IFRS. (shrink)

Corporate Social Responsibility amongst Small and Medium Enterprises is often characterised in the literature as unstructured, informal and ad hoc discretionary philanthropic activities. Drawing insights from recent theoretical/analytical frameworks :52–78, 2010), and on empirical data collected from both Nigeria and Tanzania, we found that CSR practices in SMEs are much more nuanced than previously presented. In addition, SMEs undertake their CSR practices to varying degrees in multiple spaces—i.e. the workplace, marketplace, community and the ecological environment. These CSR practices go beyond (...) philanthropy and in some instances involve institutional works aimed at addressing some of the institutional gaps in the environments where these SMEs operate. The paper makes a contribution by drawing attention to the multiple spaces of CSR practices amongst SMEs, and the institutional works they do, which are often taken for granted in the extant literature. We provide a unique perspective—by arguing that what is frequently conceptualised as philanthropic CSR in Africa is ‘institutional works’. (shrink)

Using two firm-level datasets in Korea, we analyzed the effects of corporate social responsibility on employment relations. We propose that participation in corporate social activity may not necessarily reflect an ethical commitment to do “the right thing,” but instead can be associated with mobilizing internal resources to offset the costs imposed by external CSR involvement undertaken because of social pressure. Analysis of the two datasets showed similar results. The results demonstrate that socially responsible actions facilitate employer tendency to use performance-based (...) pay and efficiency-based work practices. We also find that CSR has a negative association with employment growth and increased labor flexibility through contingent employment. These findings shed light on the internal impact of CSR involvement on a firm’s employment policies with respect to resource allocation. (shrink)

This paper analyzes how national institutions impact corporate social responsibility practices for small- and medium-sized enterprises in the food-processing industries of France and Morocco. In this study, CSR practices are defined around two main dimensions: corporate performance and the CSR approach. Qualitative data were collected during semi-structured interviews with SME managers in charge of CSR issues. We then performed a content analysis. Our study shows that there is a distinct difference between the CSR practices adopted by SMEs in France and (...) Morocco. Indeed, the findings suggest that under the rule-based governance system of France, most SMEs view CSR as an economic tool and it is adopted as an opportunity-seeking perspective anchored in the search for global performance. The findings also show that under the relationship-based governance system of Morocco, SMEs mainly see CSR from a constraint-reducing perspective. However, some Moroccan SMEs have begun to see the economic opportunities of CSR, especially in accessing foreign markets. (shrink)

Despite a plethora of empirical evidence on the potential role of senior management in the success of corporate social responsibility in Western-dominated organizational contexts, little attempt has been made to document the various managerial mindsets toward CSR in organizations in Muslim-dominated countries in the Middle East region. To address this existing lacuna of theoretical and empirical research in CSR management, this paper offers a qualitative case study of CSR in three manufacturing firms operating in Iran’s auto industry. Based on an (...) inductive analysis of the qualitative data, three types of managerial mindset toward CSR are identified: conformist, self-seeker, and satisfier. While it is evident that these different mindsets of Iranian managers seek to serve managerial ends and short-term self-interests, they fall short of core values of Islamic ethics and CSR. (shrink)

We review some 30 years of academic research on corporate philanthropy, taking stock of the current state of research about this rising practice and identifying gaps and puzzles that deserve further investigation. To do so, we examine a total of 162 academic papers in the fields of management, economics, sociology, and public policy, and analyze their content in a systematic fashion. We distinguish four main lines of inquiry within the literature: the essence of corporate philanthropy, its different drivers, the way (...) it is organized, and its likely outcomes. After reviewing the main findings of the literature, we build on several research gaps to highlight directions for future research on corporate philanthropy with an interest in strengthening our understanding of this fascinating phenomenon at the crossroads of business and society. (shrink)

This article theoretically proposes and empirically verifies an understudied issue in the business ethics and corporate social responsibility literature—how moral degradation in a society influences the relationship between BE or CSR and firm performance. Building on strategic choice theory, we propose that both BE and CSR become more important in enhancing business success when the perceived MD is heightened. Our analysis of 300 firms operating in China statistically confirms our hypotheses: first, under high MD, firms’ engagement in CSR results in (...) higher corporate legitimacy and competitive advantage, and second, their adherence to ethical business codes leads to higher corporate legitimacy. We conclude the article by outlining the implications for both theory and practice. (shrink)

The conceptual literature increasingly portrays corporate philanthropy (CP) as an old-fashioned and ineffective operationalization of a firm’s corporate social responsibility. In contrast, empirical research indicates that corporations of all sizes, and both in developed and emerging economies, actively practice CP. This disadvantaged status of the concept, and research, on CP, complicates the advancement of our knowledge about the topic. In a systematic review of the literature containing 122 journal articles on CP, we show that this business practice is loaded with (...) unique characteristics, strengths, and weaknesses, and both conceptual and practical challenges that require renewed attention. We identify six interrelated but distinctive research themes in the literature: concept, motives, determinants, practices, business outcomes, and social outcomes. Dividing the literature on CP into six research themes creates an insightful comprehensive map of this intellectual terrain. Moreover, we distinguish among the level at which CP is analyzed: individual, organizational, institutional, or any combination of these levels. The review reveals significant gaps in the knowledge on CP. Most importantly we find that the conceptualization is limited, the research is mostly quantitative, the effects of CP on society are severely under-researched, and there is a lack of multilevel analyses. A detailed future research agenda is offered, including specific suggestions for research designs and measurements. (shrink)