This paper investigates the corporate social responsibility (CSR) structures of U.S. listed firms. We find evidence of a general tendency towards CSR specialization with almost three-quarters (73.91%) of these firms focusing on a single CSR dimension. The degree of specialization varies across industries and the single CSR dimension focused on also varies for industries with similar degrees of specialization. We find that firms with higher exposures to CSR concerns, international activities, larger size, and higher financial slack tend to diversify across (...) multiple CSR dimensions. More importantly, we find evidence that diversified CSR structures positively affect a firm’s value relative to a control group before and during the 2008 financial crisis. Our findings have important implications for corporate and portfolio managers, investors, and policy makers. (shrink)

Although CSR scholarship has highlighted how tensions in CSR implementation are negotiated, little is known about its normative and moral dimension at a micro-level. Drawing upon the economies of worth framework, we explore how spirituality influences the negotiation of CSR tensions at an individual level, and what types of justification work they engage in when experiencing tensions. Our analysis of semi-structured interview data from individuals who described themselves as Buddhist and were in charge of CSR implementations for their organizations shows (...) that spirituality influences how they compromise among competing moral values by identifying two forms of justification work: compartmentalizing work and contextualizing work, which help spiritual practitioners minimize moral dissonance. (shrink)

We draw from upper echelons theory to investigate whether the presence of a chief sustainability officer (CSO) is associated with better corporate environmental performance in highly polluting industries. Such firms are under strong pressure to remediate environmental damage, to comply with regulations, and to even exceed environmental standards. CSOs in these firms are likely to be hired as legitimate agents to lead and successfully implement environmental strategy aimed at reducing pollution levels. Interestingly and contrary to our expectations, we found that (...) the presence of a CSO is associated with higher levels of pollution emissions. Nonetheless, we found that the CSO has a positive influence on a firm’s environmental performance if faced with strict environmental regulations. We argue that the enforcement of environmental regulations enhances monitoring and accountability of pollution emissions. The sample for this study comprised all the S&P 500 firms required by the Environmental Protection Agency to annually report their toxic emissions to the Toxic Release Inventory. Data were collected for a 6-year period from 2006 to 2011. We used a panel data regression and employed propensity score matching to correct for potential endogeneity problems. (shrink)

In this study, we examine the influence of senior leadership on firms’ corporate social responsibility. We integrate upper echelons research that has investigated either the influence of the CEO or the top management team on CSR. We contend that functional experience complementarity between CEOs and TMTs in formulating and implementing CSR strategy may underlie differentiated strategies in CSR. We find that when CEOs who have predominant experience in output functions are complemented by TMTs with a lower proportion of members who (...) have experience in output functions, there is a pronounced effect on the community, product, and diversity dimensions of CSR. In turn, when output-oriented CEOs are complemented by output-oriented TMTs, we observe an effect on the employee relations dimension of CSR. Interestingly, we find no influence of CEO-TMT complementarity on the environment dimension of CSR. In general, our empirical results support the relevance of the interaction between CEOs and their TMTs in defining their firms’ CSR profile. (shrink)

As implied by executive job demands theory, intensified job demands of a firm’s top executives limit their cognitive capacity and centralize the locus of decision-making, which may undermine corporate sustainability performance. The current study tests this effect, along with the impact of two contextual factors, to reveal that the negative influence of executive job demands is weaker if firms feature greater functional diversity and average tenure in their top management teams. In an extension of upper echelon theory, this study also (...) outlines the influence of task challenges that confront strategic leaders on corporate sustainability performance. (shrink)

Although the concept of corporate social responsibility is fundamentally multidimensional, most studies use composite scores to assess corporate social performance. How relevant are such composite scores? How the CSR dimensions are weighted? Should the weighting scheme be the same across sectors? This article proposes an original weighting scheme of CSR strengths and concerns, at the sector level, which is proportional to media and nongovernmental organizations scrutiny. The authors show that previous CSP assessments underweight environmental and corporate governance concerns. Moreover, findings (...) suggest that firms that are exposed to the closest scrutiny are usually criticized on one single dimension: for instance, banks for bad corporate governance, and basic-resource firms for environmental damage. Composite scores based on equal weights hence misrepresent CSP and the difference in CSR between sectors. (shrink)

In this article, we explore how sense of time and sense of place shape the development of organizational sustainability frames (OSFs). Time and place are fundamental cultural assumptions that influence the way organizations form these frames. Given that globalization and digitalization have fundamentally altered how organizations experience and value time and place, we develop a typology of OSF development and theorize how an organization’s sense of time and sense of place interact to shape the content and structure of OSFs. In (...) so doing, we offer a spatiotemporal perspective to the sustainability literature by bringing together previously disconnected research streams on time and place. We also highlight the importance of understanding the origins, not just the outcomes, of OSFs. (shrink)

The implementation of corporate social responsibility objectives within companies is often managed by a CSR leader or a small team of CSR leaders. The effectiveness of these CSR leaders depends to a large extent on their competencies. Previous studies have identified the competencies these professionals need, yet it remains unclear how these competencies can be developed. Therefore, the aim of this survey study was to reveal how CSR leaders develop their competencies and to explore which learning activities CSR leaders engage (...) in. The results showed that informal learning activities that center on learning with and from peers outside the company are particularly emphasized. In addition, this study examines whether and how dimensions of companies’ learning climates and CSR leaders’ learning goal orientation affect the competence of CSR leaders. We found significant interaction effects between the learning climate dimensions. Furthermore, we found an even stronger and positive connection between LGO and CSR competence, highlighting the importance of attracting CSR leaders with a strong LGO for driving the CSR implementation process. Moreover, a supportive learning climate further stimulates CSR leaders’ engagement in continuous learning, which is necessary for coping with the complexities associated with implementing CSR. (shrink)

To mitigate risk, should companies signal a broad range of environmental, social, and governance initiatives or instead focus on only a few ESG issues? Drawing on signaling theory, we propose that a broad array of ESG initiatives generates not only signal consistency but also accelerating signal costs. Our empirical results support the resultant hypothesis of a curvilinear relationship between ESG scope and equity risk. In addition, this U-shaped curve seems to become steeper when firms face multiple media-reported ESG controversies. Overall, (...) our study qualifies the conventional wisdom that firms can reduce equity risk by attending to a wide variety of stakeholders and highlights the moderating impact of the firm’s media environment. (shrink)

While the notion that CEOs have a general influence over their firms’ stakeholder strategies is well accepted, little attention has been given to how CEOs can actively and performatively manage social activism in and around their firms. I seek to develop an initial understanding of this phenomenon by examining some of the critical consequences of CEOs’ public responses to social activist challenges. Drawing on instrumental stakeholder theory and social movement theory, I recognize the dualistic nature of CEOs’ public responses to (...) social activist challenges; that is, a single response can influence both the direct pressure received from the focal social activists confronting the firm as well as the potential pressure the firm could face in the form of additional challenges. I argue that a CEO’s accommodative public response—seen by social activists as a sign that the CEO and firm are aligned with their beliefs, values, and motivations—will be negatively associated with the focal social activists’ willingness to punish the firm. At the same time, however, a CEO’s accommodative public response sends a broader signal—reflective of the CEO and firm’s relative openness to social activism and social issues—that will be positively associated with the perceived attractiveness of the firm’s corporate opportunity structure for social activism, increasing the potential for the firm to receive additional social activist challenges. I conduct a laboratory experiment based on a real-life case and find support for my arguments. The results yield important implications for research on strategic leadership, stakeholder strategy, and social movements. (shrink)

This study investigates whether and how the corporate social responsibility (CSR) profile of a company transfers to another company when an executive leaves a firm. We integrate upper echelon and institutional theories, and develop a novel measure of CSR profiles to explore this issue with a longitudinal data set of executive migrations over a 14-year period. We find that migrated executives assimilate elements of their old firms’ CSR profiles into their new firms (i.e., narrowing the distance between the two firms’ (...) CSR profiles), and this is true for both CSR and corporate social irresponsibility (CSiR). This relationship is stronger when the migrating executive comes from a bigger firm with better social and financial performance than that of the new firm. We also find that the potential for improvement in CSR profiles in migration holds true for CSiR, but not CSR. Our findings have import for upper echelon theory and the managerial discretion afforded to executives regarding CSR decisions. (shrink)

In this study, we examine the influence of senior leadership on firms’ corporate social responsibility. We integrate upper echelons research that has investigated either the influence of the CEO or the top management team on CSR. We contend that functional experience complementarity between CEOs and TMTs in formulating and implementing CSR strategy may underlie differentiated strategies in CSR. We find that when CEOs who have predominant experience in output functions are complemented by TMTs with a lower proportion of members who (...) have experience in output functions, there is a pronounced effect on the community, product, and diversity dimensions of CSR. In turn, when output-oriented CEOs are complemented by output-oriented TMTs, we observe an effect on the employee relations dimension of CSR. Interestingly, we find no influence of CEO-TMT complementarity on the environment dimension of CSR. In general, our empirical results support the relevance of the interaction between CEOs and their TMTs in defining their firms’ CSR profile. (shrink)

In this longitudinal study, we explore the co-evolution of the cognitive complexity of the CEO of Puma, Jochen Zeitz, and his view and initiatives on sustainability. Our purpose was to explore how the changes in a leader’s mindset relate to his/her views and actions on sustainability. In contrast to previous studies, we adopt an in-depth longitudinal case study approach to capture the role of leaders’ cognitive complexity in the context of corporate sustainability. By understanding the cognitive development of Zeitz as (...) leader of Puma, we provide an important step toward understanding the co-evolution of leaders’ cognitive complexity and proactive corporate sustainability initiatives over time. Our findings show that as he developed a more complex mindset that also included non-business lenses, Zeitz developed a more inclusive understanding of sustainability and adopted proactive initiatives that went beyond business-as-usual. Our study also demonstrates that a longitudinal perspective can offer valuable insights for a better understanding of how individuals and their interactions affect and are affected by an organization’s strategies and performance, in corporate sustainability and beyond. (shrink)