Accountability for corporate social responsibility (CSR) and its societal challenges is undetermined, and it is unclear whether business or society should carry these responsibilities. Despite severe criticism from some, many organizations continue to invest in and promote CSR. The purpose of this multiple-case study was to increase the understanding of the phenomenon from the perspective of a purposeful sample of participants who contribute to CSR execution and who were representatives of the 10 organizations identified as active promoters. The participant corporations (...) (case studies), in Europe and North America, were mainly in the telecommunications industry. Study data came from 11 face-to-face, semistructured interviews with chief executive officers (CEOs) and other CSR key participants, a review of corporate archival records, and a review of other sources regarding the effective implementation of CSR in these organizations. The conceptual framework consisted of Carroll’s constructs of CSR based on economic, legal, social, and discretionary elements. The constant comparative method was used to analyze the interview data and identify factors leading corporations to continue to engage in CSR. These factors were economic, social impact, legal compliance, or good reputation, sponsored by transformational or adaptive leaderships and endorsed by visionary CEOs. The findings may enlighten and motivate other organizations to engage in CSR programs and connect stakeholders’ contribution to a broadened positive social change. (shrink)

The few studies that analyze the impact of a combined strategy of innovation and corporate social responsibility on firm performance mostly focus on financial performance. In contrast, the current study considers the simultaneous impact of technological innovations and CSR on firm growth, which provides a measure of medium-term economic performance. With a sample of 213 firms and a two-step procedure, this study reveals the differentiated effects of strategic versus responsive CSR behavior on the two technological innovation types, as well as (...) the effects of the two innovation types on growth. The findings thus indicate that firms with strategic CSR achieve growth through both their product and their process innovations. (shrink)

Since it was first introduced 13 years ago in 2000, the UN Global Compact has become the world's largest voluntary corporate responsibility initiative. The benefits for companies that have voluntarily affiliated with the UN Global Compact have been little documented from an empirical perspective, especially regarding the integration of this information by capital markets. This study attempts to address this question, drawing on a sample of French companies listed on the SBF 250 index. Results suggest that, within the French context (...) at least, investors significantly value a firm's affiliation with the UN Global Compact. In addition, the firms affiliated are those that appear to present the least risk. (shrink)

Business Ethics: A European Review, EarlyView.

We draw upon the attention-based view of the firm to identify the conditions under which community influentials (CIs) on a board impact a firm’s corporate social performance (CSP). We test our hypotheses with a panel data set of Fortune 500 firms from 2004 to 2008, including 3,955 unique firm–director combinations (aggregated to the board level). Although CIs are often considered less powerful directors, we identify that when the firm is experiencing poor CSP, CIs have a positive effect on CSP. The (...) ability of CIs to influence CSP is also conditional on the access of CIs and other board members to socially oriented board ties. Our article points out that power and influence is contingent on the decision context and the relative knowledge of organizational players, and that players with relatively lower power may improve their status and command attention when they can offer exclusive insight into important issues. (shrink)

Social and environmental shocks associated with freshwater management are inherently tied with the lives and well-being of all global citizens. Thus, exploring key actors’ roles is a critical element of this grand challenge. Utilizing an inductive multiple case study, we explore sustainability leadership and subsequent organizational perspective-taking behaviours initiated by actors within freshwater management in response to the grand challenge. A vibrant inductive model elicited three main themes: identifying conditions for organizational perspective-taking, modifying organizational frames of reference and emergence of (...) multi-level influence. The discussion extracts critical insights for sustainability leadership and highlights complexities involved in facilitating effective decision-making among diverse actors. Fundamentally, this article contributes a distinct multi-level systems framework for sustainability leadership drawing from social–ecological systems theory and organizational resilience. We conclude by offering future research opportunities within sustainability leadership designed to bridge the gap between grand challenges and our abilities to solve them. (shrink)

The creation of a specialized executive position that oversees sustainability activities represents a distinct shift in the structure of top management teams and their approach for addressing sustainability concerns. However, little is known about these management team members, namely the corporate sustainability officers or CSOs. We examine CSO appointments and their association with subsequent sustainability performance. Our results indicate that the creation of a CSO position may represent more of a symbolic versus substantive governance mechanism. Further tests suggest that CSO (...) expertise and the firm’s existing sustainability performance affect the association between the CSO and post-appointment sustainability performance. We find no association between CSO appointments and subsequent sustainability performance for firms that were already poor performers, while firms possessing relatively higher levels of prior sustainability performance appointing a CSO begin to experience significant improvements to performance after 3 years. We further find that CSOs with prior sustainability expertise are associated with increases in sustainability performance in firms that were already strong performers, but not in firms with poor sustainability performance. Non-expert CSOs, on the other hand, are associated with initial decreases in performance for poor performing firms, whereas better performing firms hiring non-expert CSOs are able to rely on other sustainability attributes of the firm and benefit from improvements in performance in the long term. We discuss the potential importance of these positions as it relates to symbolic versus substantive governance mechanisms through the lens of top management team literature streams. (shrink)

Based on a survey and content analysis of 462 peer-reviewed academic articles over the period 1990–2014, this article reviews theories related to the external drivers of corporate social responsibility and the internal drivers of CSR that have been utilized to explain CSR. The article discusses the main tenets of the principal theoretical perspectives and their application in CSR research. Going beyond previous reviews that have largely failed to investigate theory applications in CSR scholarship, this article stresses the importance of theory-driven (...) explanations of CSR and the complementarity of different theories. The article demonstrates that the current mainstream theorizing of CSR is dominated by theories related to the external drivers of CSR and is less developed with regard to the internal dynamics. The article outlines several productive avenues for future research: the need for multi-theory studies and more research at multiple levels of analysis, particularly at the individual level of analysis. It suggests that CSR scholarship can benefit from combining theoretical insights from a range of established theoretical lenses such as institutional theory and RBV, and can gain new insights from theoretical lenses such as Austrian economics and micro-level psychological theories. (shrink)

This paper examines the market response to the events leading up to the passage of Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act to explore whether investors value mandatory human rights disclosures of conflict mineral usage. Using a sample of 3639 US registrants from January 1, 2008 to September 30, 2014, we document a significant negative stock market reaction to the passage of the Act. Using a sample of 1206 filers, we also find a negative market (...) reaction to conflict mineral disclosures under the Act. The market reaction is more negative and limited to companies that source their minerals from the DRC and adjoining countries, companies with prior records of human rights violations, and companies with ambiguous disclosures. However, the market appears to reward firms that use risk-mitigation strategies. This paper provides preliminary evidence that the mandatory disclosure of conflict mineral information on Form SD poses a threat to firms’ legitimacy, resulting in a net cost to investors. The results of this study provide economic justification for companies with poor records of conflict mineral sourcing to improve their practices for the purpose of avoiding the high costs that will arise if they are forced to disclose human rights abuses related to conflict mineral use. (shrink)

We use an event study to capture the investor reaction to the first Newsweek Green Rankings in September 2009, a notable, multi-dimensional recent development in the rating of corporate environmental CSR performance. Drawing on stakeholder theory, we develop hypotheses about market investor reaction to the disclosure of new, relevant corporate environmental performance in both the short and longer term, whether market investors’ reaction reflects industry context, and whether firm-level contextual variables representing firm size, and market legitimacy significantly impacts the investor (...) reaction. We find that, for the sample of the largest 500 US firms ranked by Newsweek, investors react positively both to the raw and within-industry rankings of green performance in terms of both short-term and longer-term returns. Moreover, the investor reaction is significantly influenced by contextual variables such as firm size and firm market legitimacy. Our results are compatible with the inference that rating agencies like Newsweek serve a valuable information dissemination function such that investors in better ranked firms anticipate larger future cash flows due to more positive reactions from key stakeholders such as environmentally-conscious customers, employees, NGOs, regulators, and thus reward these firms with stock price increases. Finally, larger, more visible firms benefit more, while firms which have more market legitimacy benefit less. We believe these findings will be of considerable interest to scholars of environmental corporate social responsibility. (shrink)

The attention to ethics has gradually become a concurrent topic of modern companies’ management. In the last years Social Responsibility has become a key issue in the strategic agenda of competitive agriculture cooperatives. However, reputation management has not been a visible strength in the cooperative enterprises. First of all, this work theoretically analyzes the relationship between Social Responsibility and reputation in cooperatives. Later, from a practical point of view, we carry on an empirical analysis focused on the olive oil cooperatives (...) in the south of Spain, in the province of Jaén. With respect to the previous studies on the topic, this work reveals a main reason of interest reinforcing the role of research in addressing real problems of cooperatives. The article points out the characteristics of this kind of agribusiness and shows the importance of the adoption of a responsible orientation in fostering reputation for creating sustainable competitive advantages. (shrink)

There is a rapidly growing interest in the topic of sustainability as it relates to long‐term business performance that optimizes the “triple bottom line”: economic, environmental, and social outcomes. This article articulates a multilevel conceptual model for executing a business strategy for sustainability primarily through the design and implementation of human resource management practices. The model builds on open systems theory, the resource based view of the firm, and the concept of line of sight to identify certain key organizational capabilities, (...) group competencies, and individual abilities and other characteristics that combine to drive organizational performance when pursuing a sustainability strategy. The article concludes with a discussion of implications of the model for theory, research, and practice. (shrink)

In this paper, we consider the relationships among corporate accountability, reputation, and tax behavior as a corporate social responsibility issue. As part of our investigation, we provide empirical examples of corporate reputation and corporate tax behaviors using a sample of large, U.S.-based multinational companies. In addition, we utilize corporate tax controversies to illustrate possibilities for aggressive corporate tax behaviors of high-profile multinationals to become a reputation threat. Finally, we consider whether reputation serves as an accountability mechanism for corporate tax behaviors (...) among other mechanisms for holding firms accountable for corporate tax behaviors. Our conceptual work points to a complicated relationship among shareholder, stakeholder, and civic responsibilities in the development and execution of firm’s corporate tax strategies. Building on those insights, our empirical illustration considers corporate reputation data alongside data which reflects corporate tax behavior. Based on this work, we find no clear trend or pattern indicating that reputation is associated with or affected by certain types of corporate tax behaviors. That is, our exploratory empirical illustration suggests that corporate tax behavior does not produce broad reputational consequences that would motivate a change in firm behavior. Drawing from celebrity and strategic silence research, we then suggest that reputation may not be a well-functioning mechanism for holding corporations to account for contributing their fair share of the resources used by government for the benefit of society and offer-related theoretical insights. (shrink)

Within the corporate social responsibility research field, the construct of organizational reputation has been extensively scrutinized as a crucial mediator between the firm CSR engagement and valuable organizational outcomes. Yet, the existing literature on organizational reputation suffers from substantive divergence between the studies in terms of defining the construct’s domain, dimensional structure, and the methodological operationalization. The current study aims to refine the organizational reputation construct by reconciling varying theoretical perspectives within the construct’s definitional landscape, suggesting a holistic but parsimonious (...) triadic view on the organizational reputation construct for customer stakeholders. Based on commonly used extant organizational reputation measures, we theoretically and empirically develop the customer-based triadic organizational reputation scale and position it as a superordinate multidimensional construct influencing three distinct first-order dimensions: product and service efficacy, societal ethicality, and market prominence. Results show that the proposed triadic conceptualization of organizational reputation is theoretically defensible, and the resulting scale is cross-culturally generalizable and performs well compared with existing, longer measures of organizational reputation. Together, the organizational reputation model developed here suggests that, for cognitive economy and functional efficiency, customers will access a second-order reflective model of organizational reputation as the default implicit attitude, which in turn will activate reflections of the implicit attitude in the form of first-order dimensions. (shrink)