Multi-stakeholder initiatives have been praised as vehicles for tackling complex sustainability issues, but their success relies on the reconciliation of stakeholders’ divergent perspectives. We yet lack a thorough understanding of the micro-level mechanisms by which stakeholders can deal with these differences. To develop such understanding, we examine what frames—i.e., mental schemata for making sense of the world—members of MSIs use during their discussions on sustainability questions and how these frames are deliberated through social interactions. Whilst prior framing research has focussed (...) on between-frame conflicts, we offer a different perspective by examining how and under what conditions actors use shared frames to tackle ‘within-frame conflicts’ on views that stand in the way of joint decisions. Observations of a deliberative environmental valuation workshop and interviews in an MSI on the protection of peatlands—ecosystems that contribute to carbon retention on a global scale—demonstrated how the application and deliberation of shared frames during micro-level interactions resulted in increased salience, elaboration, and adjustment of shared frames. We interpret our findings to identify characteristics of deliberation mechanisms in the case of within-frame conflicts where shared frames dominate the discussions, and to delineate conditions for such dominance. Our findings contribute to an understanding of collaborations in MSIs and other organisational settings by demonstrating the utility of shared frames for dealing with conflicting views and suggesting how shared frames can be activated, fostered and strengthened. (shrink)

As forms of private self-regulation, multi-stakeholder initiatives have emerged as an important empirical phenomenon in global governance processes. At the same time, MSIs are also theoretically intriguing because of their inherent double nature. On the one hand, MSIs spell out CSR standards that define norms for corporate behavior. On the other hand, MSIs are also the result of corporate and stakeholder behavior. We combine the perspectives of institutional theory and club theory to conceptualize this double nature of MSIs. Based on (...) a stage model that looks at the interplay of actor and institutional dynamics, we generate insights into why actors join a voluntary MSI, how the various motivations and intentions of the actors influence the standard development, and how these as well as the MSI design are subsequently influenced by both external and internal dynamics. (shrink)

This article examines the legitimacy attached to different types of multi-stakeholder data partnerships occurring in the context of sustainable development. We develop a framework to assess the democratic legitimacy of two types of data partnerships: open data partnerships and closed data partnerships. Our framework specifies criteria for assessing the legitimacy of relevant partnerships with regard to their input legitimacy as well as their output legitimacy. We demonstrate which particular characteristics of open and closed partnerships can be expected to influence an (...) analysis of their input and output legitimacy. (shrink)

In this paper, we compare the two Global Reporting Initiative reporting standards, G3.1, and the most current version G4.0. We do this through the lens of political corporate social responsibility theory, which describes the broadened understanding of corporate responsibility in a globalized world building on Habermas’ notion of deliberative democracy and ethical discourse. As the regulatory power of nation states is fading, regulatory gaps occur as side effects of transnational business. As a result, corporations are also understood to play a (...) “political role” to fill regulatory gaps and contribute to a global governance system by voluntarily engaging in self-regulation. Such corporate political action, however, is not always legitimate as it suffers from a democratic deficit. Consistent with scholars in the field of political CSR, this paper argues that only by means of communication and discourse can this drawback be avoided. That is why CSR reporting and guidelines for standardizing the disclosed CSR information is key for political CSR. By comparing the GRI standards from a political CSR perspective, one can see whether these often-used reporting guidelines fulfill the communicative requirements and whether they are adequate tools to face the challenges of the twenty-first century. We present results from a theory-derived and criteria-driven comparison of the two guidelines. Indication of the effectiveness of voluntary self-regulation is, for example, important considering the 2014 directive of the European Union to make CSR reporting mandatory. We offer a guideline-based view on current CSR theory as well as CSR reporting practice. We discuss implications for CSR theory, particularly the appropriateness of deliberation in the Habermasian sense, which is the basis of political CSR theory. We do so by introducing the notion of “uncommitted deliberation” with regard to the refined concept of materiality in GRI 4.0, which induces subjectivity and reduces data-driven comparability. Finally, we address the limitations of this research as well as research questions for future studies. (shrink)

Earth’s life-support system is facing megaproblems of sustainability. One important way of how these problems can be addressed is through innovation. This paper argues that responsible innovation that contributes to sustainable development consists of three dimensions: innovations avoid harming people and the planet, innovations ‘do good’ by offering new products, services, or technologies that foster SD, and global governance schemes are in place that facilitate innovations that avoid harm and ‘do good.’ The paper discusses global governance schemes based on deliberation (...) as a means to foster such responsible innovation. These schemes can provide voluntary soft-law regulations that complement and extend national and international hard-law regulations and facilitate collective innovation that contributes to SD goals. The article addresses the facilitative role of governments and international organizations in overcoming problems of deliberation and offers illustrative examples of such governance schemes. (shrink)

The article discusses the role of the UN Global Compact in the emerging global corporate social responsibility infrastructure. It evaluates the debate around the effectiveness and legitimacy of the UNGC alongside the arguments of its supporters and critics and thereby introduces the Thematic Symposium contributions. The article further identifies three theoretical perspectives that are used by scholars to discuss the performance of the UNGC: economic, socio-historical, and normative. It proposes that these perspectives can serve as generic distinctions with direct relevance (...) for the evaluation of the UNGC. Once the perspective is chosen, it drives towards a certain purpose which implies assumptions and design features with regard to the UNGC. Finally, the article offers a future research agenda, emphasising the research needed on the UNGC in four areas: the identification of processes and influence mechanisms; legitimacy and effectiveness; local networks and regional development; and the interface of the UNGC and responsible leadership. (shrink)

Increased scrutiny of corporate legitimacy has sparked an interest in “historic corporate social responsibility”, or the mechanism through which firms take responsibility for past misdeeds. Extant theory on historic CSR implicitly treats corporate engagement with historical criticism as intentional and dichotomous, with firms choosing either a limited or a high engagement strategy. However, this conceptualization is puzzling because a firm’s engagement with historic claims involves organizational practices that managers don’t necessarily control; hence, it might materialize differently than anticipated. Furthermore, multiple (...) motivations could jointly affect managers’ approach to organizational history, especially when dealing with conflicting stakeholder demands, rendering it difficult to historicize consistently. Examining the relationship between the legitimacy of critical historic claims, corporate engagement with these claims and corporate legitimacy, the present paper performs a historical case study of the Hudson’s Bay Company’s (HBC) long term use of history in stakeholder relations. The data suggest that under conflicting internal and external pressures, the HBC’s engagement with historical criticism became “sedimented” over time, involving both open and stakeholder-inclusive practices of “history-as-sensemaking” and instrumental “history-as-rhetoric”. Enriching understanding of corporate-stakeholder interaction about the past, this finding may stimulate its generation of social value and corporate legitimacy. (shrink)

In this article, we build on the stakeholder-politics literature to investigate how corporate scandals transform political contexts and give impetus to the contentious movements of fringe stakeholders against multinational corporations (MNCs). Based on Adut’s scandal theory, we flesh out three scandal-related processes that directly affect political-opportunity structures (POSs) and the generation of social movements against MNCs: convergence of contention toward a single target, publicization of deviant practices, and contagion to other organizations. These processes reduce the obstacles to collective actions by (...) fringe stakeholders by pushing corporate elites to be more sensitive to their claims, by decreasing MNCs’ capability to repress contentious movements, by forcing the targeted MNCs to formalize a policy to monitor and eradicate the controversial practices, and by helping fringe stakeholders find internal and external allies to support their claims. This conceptual model of scandals as catalysts of contentious actions contributes to a better understanding of stakeholder politics by unveiling the role of the political context in the coordination of fringe stakeholders. (shrink)

The traditional understanding of corporate social responsibility (CSR) has largely been focused on its downstream performance implications, particularly its associations with firms’ customer market metrics such as customer loyalty, customer satisfaction and customer co-creation as well as financial ones such as firm value, return on assets etc. However, given the close relationship between CSR and marketing that literature has identified, it is surprising that the relationship between a focal upstream construct, i.e. the marketing function’s power within a firm and the (...) firm’s propensity toward CSR has not been addressed in the literature. Examining the link between marketing’s power (MP) in a firm’s top management team (TMT) and firm CSR levels, we investigate how this fundamental TMT configuration, i.e. the distribution of marketing power in the TMT, motivates the firm’s social endeavors. Further, we formulate this relationship in a contingency-based model that incorporates the moderating effects of firm size, firm age, service intensity, and resource slack across 1569 firms operating in 63 industries. In addition to their effect on CSR, this study shows how MP in TMT may influence corporate social irresponsibility (CSI) as well as CSR capability after controlling for industry type. The inclusion on these additional dimensions of CSR (CSI and CSR capability) complements our analyses of the effect that MP has on CSR. The research contributes to a deeper understanding of CSR’s fundamental corporate determinants as well as identifies the essential role of the marketing function in firms’ CSR strategy. In this process, it yields useful implications for multiple streams of theory as well as for business practices. (shrink)

The proliferation of public–private partnerships for development as an answer to many public challenges calls for careful evaluation. To this end, tailored frameworks are fundamental for helping understand the PPPs’ impact and for guiding corrective adjustment. Scholars have developed frameworks focusing on the partners’ relationships, the order of effects, and the distinction between outputs and outcomes. To capture a PPP’s complexity and multiple linkages with its environment, we argue that a thorough evaluation should adopt a stakeholder-oriented approach and consider the (...) costs and benefits that a PPP implies for them—especially as taxpayers’ money is involved. For this purpose, we build on a stakeholder-oriented evaluation framework from the nonprofit business partnership literature. In line with our broad evaluation conception, we extend it with the manifold ripple effects that PPPs for development have and include the time dimension for the links between different PPP stages and related outcomes to become clearer. Applying this framework to an illustrative case, we highlight important direct and especially indirect stakeholder outcomes, which a narrow evaluation would omit, point to the challenges involved in the evaluation endeavor, and identify interesting future research areas. (shrink)

Poor working conditions remain a serious problem in supplier facilities in developing countries. While previous research has explored this from the developed buyers’ side, we examine this phenomenon from the perspective of developing countries’ suppliers and subcontractors. Utilizing qualitative data from a major knitwear exporting cluster in India and a stakeholder management lens, we develop a framework that shows how the assumptions of conventional, buyer-driven voluntary governance break down in the dilution of buyer power and in the web of factors (...) rooted in suppliers’ traditions, beliefs, local demands and resource dependency. We reveal out how success in governing collaborative global supply chains often falls short within the subcontracting stage, where a stakeholder management mindset is elusive to most participants. We suggest that success in governing collaborative global supply chains is dependent on concepts of stakeholder utility and the presence of shared value that is often at odds with the realities of power, information asymmetry and compliance/reward systems inherent in the non-market coordination of global supply chains. Our findings offer important insights for delineating the concepts of value creation from CSR concepts and practices, and for modifying the basic assumptions of conventional supply chain governance. (shrink)

ABSTRACT:Global multi-stakeholder initiatives are important instruments that have the potential to improve the social and environmental sustainability of global supply chains. However, they often fail to comprehensively address the needs and interests of various supply-chain participants. While voluntary in nature, MSIs have most often been implemented through coercive approaches, resulting in friction among their participants and in systemic problems with decoupling. Additionally, in those cases in which deliberation was constrained between and amongst participants, collaborative approaches have often failed to materialize. (...) Our framework focuses on two key aspects of these breakdowns: assumptions about the orientation of MSI participants, and the deliberation processes that participants use to engage with each other to create these initiatives and sustain them over time. Drawing from stakeholder and deliberation theories, we revisit the concept of MSIs and show how their deliberative capacity may be enhanced in order to encourage participants to collaborate voluntarily. (shrink)

Previous research on reactivity—defined as changing organizational behaviour to better conform to the criteria of measurement in response to being measured—has found significant variation in company responses toward sustainability metrics. We propose that reactivity is driven by dialogue, motivation, and capacity in a configurational way. Empirically, we use fuzzy set qualitative comparative analysis to analyze company responses to the sustainability index FTSE4Good. We find evidence of complementary and substitute effects between motivation and capacity. Based on these effects, we develop a (...) typology of reactivity to sustainability metrics, which also theorizes the use of metrics as tools for performance feedback and the building of calculative capacity. We show that when reactivity is studied configurationally, we can identify previously underacknowledged types of responses. We discuss the theoretical and practical implications for studying and using sustainability metrics as governance tools for responsible behaviour. (shrink)

Addressing the critique that communication activities with regard to CSR are often merely instrumental marketing or public relation tools, this paper develops a toolbox of CSR communication that takes into account a deliberative notion. We derive this toolbox classification from the political approach of CSR that is based on Habermasian discourse ethics and show that it has a communicative core. Therefore, we embed CSR communication within political CSR theory and extend it by Habermasian communication theory, particularly the four validity claims (...) of communication. Given this communicative basis, we localize CSR communication as a main means to receive moral legitimacy within political CSR theory. A typology of CSR communication tools is advanced and substantiated by a review of case studies supporting the categories. Thus, we differentiate between instrumental and deliberative, as well as published and unpublished tools. Practical examples for the literature-derived tool categories are provided and their limitations are discussed. (shrink)

Key accomplishments of political corporate social responsibility scholarship have been the identification of global governance gaps and a proposal how to tackle them. Political CSR scholarship assumes that the traditional roles of state and business have eroded, with states losing power and business gaining power in a globalized world. Consequently, the future of CSR lies in political CSR with new global governance forms which are organized by mainly non-state actors. The objective of the paper is to deepen our understanding of (...) political CSR and reintegrate notions of state power into political CSR scholarship by highlighting how states set the context within which business takes place, regulate offshore business practices, and play pivotal roles in new global governance mechanisms. (shrink)

The proliferation of multistakeholder initiatives (MSIs) over the past years has sparked an intense debate on the political role of corporations in the governance of global business conduct. To gain a better understanding of corporate political behavior in multistakeholder governance, this article investigates how firms construct a political identity when participating in MSIs. Based on an in-depth case study of the Accord on Fire and Building Safety in Bangladesh—an MSI established after the collapse of the Rana Plaza garment factory complex (...) in 2013 to improve working conditions in the Bangladeshi garment industry—we introduce the construct of a political CSR (corporate social responsibility) identity (PCSRI) and explore how firms construct their PCSRIs in MSIs. Employing a qualitative, inductive theory-building method, we analyze interviews and archival data to develop a framework that elucidates how companies construct their PCSRIs within a continuum ranging from conservative to progressive. We show that constructing a PCSRI involves enacting specific, yet interrelated, political strategies that are themselves shaped by several forces over time. This article contributes to the literature by providing a political perspective on organizational identity construction that extends the emerging integrative perspective in political corporate social responsibility (PCSR) research. We suggest that MSIs should be conceptualized as inherently political governance mechanisms that are driven by multidirectional and dynamic political processes of identity construction. Our study shows that corporate political engagement in MSIs is a more nuanced and complex phenomenon than presently theorized. (shrink)

ABSTRACTThe question of how to engage with stakeholders in situations of value conflict to create value that includes a plurality of conflicting stakeholder value perspectives represents one of the crucial current challenges of stakeholder engagement as well as of value creation stakeholder theory. To address this challenge, we conceptualize a discursive sharing process between affected stakeholders that is oriented toward discursive justification involving multiple procedural steps. This sharing process provides procedural guidance for firms and stakeholders to create pluralistic stakeholder value (...) through the discursive accommodation of diverging stakeholder value perspectives. The outcomes of such a discursive value-sharing process range from stakeholder value dissensus to low and increasing levels of stakeholder value congruence to stakeholder value consensus. Hence, this article contributes to the emerging literature on integrative stakeholder engagement by conceptualizing a procedural framework that is neither overly oriented towards dissensus nor consensus. (shrink)

During the last years, there has been an increasing discussion on the role of business in human rights violations and an increase in human rights litigation against companies. The result of human rights litigation has been rather disillusioning because no corporation has been found guilty and most cases have been dismissed. We argue that it may nevertheless be a useful instrument for the advancement of the business and human rights agenda. We examine the determinants of successful human rights litigation in (...) terms of judicial, educational, and regulatory effects. This article reviews more than 40 corporate foreign direct liability cases and their effects on corporate human rights policies and conduct. The review shows that most corporations adjusted their human rights policies and adopted additional measures to cope with human rights issues during or shortly after the legal proceedings. Opening legal channels for human rights litigation may be one way for governments to incentivize firms to respect human rights. These findings have implications for the United Nations Guiding Principles on Business and Human Rights as well as on our interpretation of the most recent U.S. Supreme Court decision in Kiobel v. Shell. (shrink)

Multinational enterprises dominate the governance of global value chains, such that according to the concept of political corporate social responsibility, they are responsible to address governance gaps throughout the chains, even at the level of their independent suppliers. In practice, MNEs often struggle to cope with the complexity of these governance gaps, and PCSR does not provide a clear definition nor offer guidance for how to analyze and address them. By adopting the notion of governance mechanisms from GVC literature, this (...) study proposes a more nuanced view, in which governance gaps result from inactive, ineffective, or inequitable governance mechanisms adopted by relevant actors, rather than a complete absence of governance. MNEs, through their governance mechanisms, commonly create governance gaps. This study distinguishes different types of governance mechanisms to create a typology of governance gaps, such that it contributes to the literature on PCSR by offering a more refined understanding of governance gaps, along with a means to identify mechanisms to address them. Furthermore, it contributes to the literature on GVCs by defining governance-related terms and adding an ethical perspective on MNEs’ global business conduct. To illustrate the typology, this article presents the case of low wages for workers in the textile industry and efforts by H&M to deal with this governance gap. (shrink)

Multinational enterprises dominate the governance of global value chains, such that according to the concept of political corporate social responsibility, they are responsible to address governance gaps throughout the chains, even at the level of their independent suppliers. In practice, MNEs often struggle to cope with the complexity of these governance gaps, and PCSR does not provide a clear definition nor offer guidance for how to analyze and address them. By adopting the notion of governance mechanisms from GVC literature, this (...) study proposes a more nuanced view, in which governance gaps result from inactive, ineffective, or inequitable governance mechanisms adopted by relevant actors, rather than a complete absence of governance. MNEs, through their governance mechanisms, commonly create governance gaps. This study distinguishes different types of governance mechanisms to create a typology of governance gaps, such that it contributes to the literature on PCSR by offering a more refined understanding of governance gaps, along with a means to identify mechanisms to address them. Furthermore, it contributes to the literature on GVCs by defining governance-related terms and adding an ethical perspective on MNEs’ global business conduct. To illustrate the typology, this article presents the case of low wages for workers in the textile industry and efforts by H&M to deal with this governance gap. (shrink)

Organisations increasingly use digital nudges to influence their workforces’ behaviour without coercion or incentives. This can expose employees to arbitrary domination by infringing on their autonomy through manipulation and indoctrination. Nudges might furthermore give rise to the phenomenon of “organised immaturity.” Adopting a balanced approach between overly optimistic and dystopian standpoints, I propose a framework for determining the moral permissibility of digital nudging in the workplace. In this regard, I argue that not only should organisations provide pre-discursive justification of nudges (...) but they should also ensure that employees can challenge their implementation whenever necessary through legitimation procedures. Building on Rainer Forst’s concept of the right to justification, this article offers a way to combine contract- and deliberation-based theories for addressing questions in business ethics. I further introduce the concept of meta-autonomy as a capacity that employees can acquire to counter threats of arbitrary domination and to mitigate organised immaturity. (shrink)

Businesses increasingly assume political roles, despite issues of legitimacy. The presented two case studies illustrate how businesses harness their political influence in Corporate Social Responsibility (CSR) practices through collaboration and dialog with stakeholders and civil society actors. These cases are set around issues arising in global supply chains in sourcing activities where the core problem is associated with businesses managing extended responsibilities under conflicting institutional conditions. The article seeks to provide empirical examples of Political CSR and illustrates the role of (...) deliberative democracy in contemporary business behavior. It adopts a Western business perspective, more specifically from an end-producer and retailer’s standpoint. Findings suggest that civil society is influential in driving these businesses to act responsibly. Joint collaboration is understood as key to strive toward holistic solutions. Political CSR theory remains an ideal, but offers fruitful grounds for speculating on what the political role of business is or could be and how this translates into pragmatic implications for businesses. (shrink)

Why and how have supply chain codes of conduct diffused among lead firms around the globe? Prior research has drawn on both institutional and stakeholder theories to explain the adoption of codes, but no study has modeled adoption as a temporally dynamic process of diffusion. We propose that the drivers of adoption shift over time, from exclusively nonmarket to eventually market-based mechanisms as well. In an analysis of an original data set of more than 1,800 firms between the years 2006 (...) and 2015, we find that strong nonmarket labor institutions in a firm’s home country are critical to initiating and sustaining the diffusion process. Market mechanisms, such as investor scrutiny and brand risk, emerge as important later. Contrary to prior research, we did not find a significant effect from nongovernmental organization (NGO) pressure. We conclude that markets for corporate social responsibility can and do arise, but only after they are effectuated by nonmarket institutions. (shrink)

In this article, we offer an approach of how participative stakeholder innovation can be evaluated in complex multistakeholder settings that address wicked issues. Based on the principle of mutual value creation, we present an evaluation framework that accounts for the social interaction process during which stakeholders integrate their resources and capabilities to develop innovative products and services. To assess this evaluation framework, we collected multiple data from the case study of the Swiss Cardiovascular Network, which represents a multistakeholder setting related (...) to the prevention of cardiovascular disease. Our findings indicate that the evaluation dimensions of the stakeholders’ mindsets, the process and context of the stakeholder interactions, as well as the outcomes are useful concepts to account for a cooperative process of innovation in a multistakeholder setting. We discuss both the theoretical and practical insights of our analysis for participative stakeholder innovation. (shrink)

This article explores the substitution and complementary effects between political and social strategies on firm performance in the context of an emerging market (EM). Using in‐depth, historical case‐study approach, the article investigates how companies integrate political and social resources in this market. Corporate performance includes traditional measures, such as accounting performance and nonfinancial measures like the ease of doing business. The study finds that social strategies are stronger enablers of firm long‐term performance than political strategies. The latter have a short‐term (...) impact on performance, but their success over time is limited. The main drawback of reliance on political resources in EMs is the lack of political stability, fragmented polity, and weak political coalitions. We identify rather limited evidence of firms using these two strategies as complements. Thus, we suggest that firms should employ both these strategies in the EM. (shrink)

Multi-stakeholder initiatives (MSIs)—private governance mechanisms involving firms, civil society organizations, and other actors deliberating to set rules, such as standards or codes of conduct, with which firms comply voluntarily—have become important tools for governing global business activities and the social and environmental consequences of these activities. Yet, this growth is paralleled with concerns about MSIs’ deliberative capacity, including the limited inclusion of some marginalized stakeholders, bias toward corporate interests, and, ultimately, ineffectiveness in their role as regulators. In this article, we (...) conceptualize MSIs as deliberative systems to open the black box of the different elements that make up the MSI polity and better understand how their deliberative capacity hinges on problems in different elements. On the basis of this conceptualization, we examine how deliberative mini-publics—forums in which a randomly selected group of individuals from a particular population engage in learning and facilitated deliberations about a topic—can improve the deliberative capacity of MSIs. (shrink)

To achieve effective stakeholder governance in the context of international social accountability certification requires constructing a network of agreement. In a case study of a small-to-medium-sized enterprise, we examine managers’ attempts at enrolling participants in the supply chain to investigate how they strive to engage these stakeholders. We adopt actor-network theory and sensemaking theory to develop a novel approach to understanding social accountability standards’ certification in stakeholder networks. We argue that the design and operation of any SA standard across a (...) network requires not only attempts at enrolling other participants in the supply chain but management contextualizing and problematizing the terms of their involvement. (shrink)

Voluntary sustainability standards (VSS) aim to encourage ethical behaviors of organizations, yet studies show that many VSS adopters do not live up to these promises. Existing literature typically attributes the reason for this ineffectiveness to either policy–practice decoupling, owing to a lack of adhering to VSS requirements, or means–ends decoupling, owing to a lack of adapting to the local context. However, little is known about how the contradictory needs of adherence and adaptation evolve throughout VSS implementation. Building on the knowledge (...) transfer literature, we develop a dynamic conceptual framework that distinguishes two phases of VSS implementation. Specifically, we theorize how tensions emerge in the transition between phases since the first phase primarily calls for adherence, whereas the second calls for adaptation. Applying this framework, we develop propositions to illustrate how these tensions relate to different VSS characteristics: stringency, enforcement, and scope. The article concludes with implications and future research directions for VSS scholarship. (shrink)

Collaborative governance (CG) is becoming the common currency of decision‐making, able to surmount existing institutional constraints to effectively address challenges related to sustainability and social and environmental corporate behavior. CG approaches may however result in institutional complexity. As an illustration of CG in the domain of corporate social responsibility (CSR), the ISO 26000 standard is a legitimate point of reference for organizations worldwide. The standard represents a pluralistic institutional logic that resonates several tensions arising from the domain it tries to (...) standardize, the nature of its development process, its interpretation of CSR and the type of standard it represents. This article aims to identify and examine strategic responses to ISO 26000 by various standards‐related organizations (including national standardization institutes, certification organizations, and service providers) and to contribute to the understanding of strategic responses of organizations to pluralistic institutional logics that result from CG. (shrink)

This article discusses how cross-sector partnerships (CSPs) for sustainability manage the paradoxical tension between stakeholder inclusiveness and administrative efficiency. Drawing on qualitative data from a case study of a CSP focused on urban sustainability, we show how the inclusiveness–efficiency paradox unfolded throughout the studied collaboration. We discuss how the paradox reemerged in a different guise within each phase of the partnership and how three practices of paradox management helped actors to cope with the tension: “customized inviting” (during the formation phase), (...) “sequential including” (during the preparation phase), and “tailored instructing” (during the implementation phase). On the basis of these findings, we argue that (a) the paradox reoccurred throughout the phases of the CSP because the three paradox management practices accentuated boundaries, thereby helping to resolve the paradox temporarily while at the same time creating grounds for the paradox to resurface, and (b) that the three paradox management practices can be theorized as a special type of boundary work that “plays up” relevant differences between actor groups and thereby ensures collaboration. (shrink)

This paper addresses recent calls to study the role of the state in private regulation. Integrating current scholarship on the state as a catalyst of private regulatory regimes with prior literature on regulatory failure and self-regulation, it identifies and problematizes unsettled assumptions used as a starting point by this growing body of research. The case study traces the evolution of public debates and the interaction of different regulatory initiatives dealing with corporate social responsibility issues in Canada’s mining industry. Findings reveal (...) the conditions under which the state is more likely to encourage firm-level, fragmented initiatives than facilitate and promote industry-wide regulatory strengthening and consolidation. I discuss the need for greater analytical precision regarding the variation in regulatory policy preferences across time and branches of government and the interaction between public and private regulatory initiatives. The conclusion outlines suggested areas for future research as well as the likely outcome of Canada’s current CSR policy framework. (shrink)

The number and scale of business associations focused on corporate responsibility and sustainability has grown dramatically in recent decades and they are becoming influential actors in both national and international governance. Yet surprisingly little research exists on such organizations and recognition of the organizational lineage they share with special interest groups is yet to be examined—are industry business associations merely lobbies for their members’ own interests or are they viable self-regulatory institutions capable of addressing contemporary social and sustainability issues? This (...) paper identifies and reviews fragmented insights from literatures that address this question. Drawing on various streams of research within the political science, economics and management disciplines that provide diverse lenses on the phenomenon of business associations, it juxtaposes and groups them into two broad perspectives: business associations as special interest groups that are detrimental to society ; business associations as self-regulatory institutions capable of addressing contemporary challenges. (shrink)

Since its inception in 2006, the United Nations-backed Principles for Responsible Investment have grown to over 1300 signatories representing over $45 trillion. This growth is not slowing down. In this paper, we argue that there is a set of attributes which make the PRI salient as a stakeholder and its claim to sign the six PRI important to institutional investors. We use Mitchell et al.’s theoretical framework of stakeholder salience, as extended by Gifford. We use as evidence confidential data from (...) the annual survey of signatories carried out by the PRI in a 5-year period between 2007 and 2011. The findings highlight pragmatic and organizational legitimacy, normative and utilitarian power, and management values as the attributes that contribute most to the salience of the PRI as a stakeholder. (shrink)

Extant literature on Political CSR and the role of governments in the governance of business conduct tends to neglect key implications of the political-institutional macro-context for public deliberation. Contextual assumptions often remain rather implicit, leading to the need for a more nuanced, explicit and context-sensitive exploration of the theoretical and practical boundary conditions of Political CSR. In non-democratic political-institutional contexts, political pluralism and participation are limited, and governmental agencies continue to play the most central role in regulation and its enforcement. (...) Drawing on a qualitative case study on a nuclear energy project in the Hashemite Kingdom of Jordan, we show how both governments and MNCs co-create a context hostile to socially responsible business conduct in the sense of Political CSR. Utilizing rich qualitative data derived from interviews, public documents, and participant observation between 2008 and 2018, we specifically illuminate how—through which interactions and strategies—the multiple governmental and corporate actors involved counter civil society demands for public deliberation, indicating the limitations of Political CSR in non-democratic political-institutional contexts. We particularly contribute to the development of Political CSR by analysing the role of coercive and discursive forms of power. We thus offer a more nuanced perspective on the role of governments in constraining the room for public deliberation in the sense of Political CSR. (shrink)

Using the political corporate social responsibility lens of parentalism, this paper investigates the more subtle and less-visible interactional dynamics and strategies of power, resistance and justification that manifest between a multi-stakeholder-governed foundation and victims of a mining corporation’s dam collapse. The Renova Foundation was established to provide remedy through a deliberative approach to hundreds of thousands of victims from Brazil’s worst socio-environmental disaster—the collapse of Samarco Mining Corporation’s Fundão tailings dam. Data were collected from a combination of fieldwork and archival (...) analysis to assess the perceptions of victims, their defenders and foundation executives. The findings reveal 12 dialectical tensions from Renova’s attempts to remedy the victim’s injustices. The case analysis contributes through proposing a dialectical process model of stakeholder resistance and subversion to parentalist PCSR. The case reveals the pivotal use of time via the act of stalling as a strategic resource to exhaust victims and reach settlements. Furthermore, organizations justify their parentalism by blaming delays on the bureaucracy and shared responsibility of multi-stakeholder deliberation. Ultimately, I contend that victims must have an equal voice in the outcome of their remediation and that businesses responsible for causing harm should not decide these matters. (shrink)

Animal welfare in livestock farming is a general concept that involves many concrete ethical issues for which solutions need to be developed. To avoid disturbing the internal market, the European Union encourages market players to develop harmonized solutions to such issues. One issue is the castration of piglets without pain relief, the practice of which causes pain to piglets. Although scientists have found alternatives to replace castration without pain relief, the process of solving the castration issue has stagnated. Questions remain (...) as to why this painful castration practice has still not been addressed after three decades, how it is likely to develop in the near future, and whether it will lead to a single harmonized solution for the EU. To answer these questions, this study examines the development of the castration issue using in-depth interviews and desk research. The results show that different countries have developed different solutions at different stages of the issue’s development. For a long period, the developments did not set a course toward a single solution; most EU pork producers waited for a castration ban in Germany. Such a situation was turbulent in solving the issue because the heterogeneous EU was unlikely to agree upon on a single alternative. With the EU now taking a market-based orientation, however, solving the issue now seems more likely. More attention is needed to understand market opportunities and chain integration in this area. (shrink)

This case study discusses the scope of responsibilities and the basis of legitimacy of multinational corporations in a complex operating environment. In January 2013 a precedent was set when Shell was held liable in The Hague for oil pollution in the Niger Delta. The landmark ruling climaxed the ongoing dispute over the scope of Shell’s responsibilities for both the company’s positive and negative impact. Shell’s was considered a forerunner in corporate social responsibility and had even assumed public responsibilities in a (...) context of a public responsibility void. However, the company remained a regular target of civil society activism and legal proceedings concerned with malpractice. The court case attracted international attention for its novelty and increasing media and civil society pressure required immediate action. How can Shell respond to this negative publicity to keep its license to operate? What is the scope of the company’s responsibilities in such a controversial human rights context? Students are expected to discuss these questions going beyond a simple moralistic or liability thinking. They are encouraged to take into account the complex structural processes that connect persons and institutions in very different social and geographical positions. The experiences of Shell are an excellent case in point since attention is drawn to the background conditions of globally operating companies, in which the isolation of perpetrators based on causality is not realistic. The case also reveals the particular challenges, which MNCs face in the context of increasing demands to take on public responsibilities while respecting their economic mandate. (shrink)

This article develops an integrative perspective on corporate responsibility by synthesising competing perspectives on the responsibility of the corporation at the organisational and societal levels of analysis. We review three major corporate responsibility perspectives, which we refer to as economic, critical, and politico-ethical. We analyse the major potential uses and pitfalls of the perspectives, and integrate the debate on these two levels. Our synthesis concludes that when a society has a robust division of moral labour in place, the responsibility of (...) a corporation may be economic without jeopardising democracy and sustainability. Moreover, the economic role of corporations neither signifies the absence of deliberative democratic mechanisms nor business practices extending beyond compliance. The study underscores the value of integrating different perspectives and multiple levels of analysis to present comprehensive descriptions and prescriptions of the responsibility phenomenon. (shrink)

Although some scholars propagate cross-sector partnerships (CSPs) as a panacea for addressing the grand challenges of the 21st century, scholars also acknowledge that this type of collaboration faces significant barriers since the institutional logics of partners such as business, civil society, and government potentially have contradicting interests and future visions. This inductive longitudinal case study on integrating skilled migrants into the German labor market examines the institutional work by which CSP members, particularly government actors, deliberately rein in contradictory logics to (...) reproduce the dominant government logic, and in doing so, establish a high level of institutional coherence. In disclosing the processes by which the dominant logic maintains its hegemony, I contribute new insight into the institutional dynamics within government-sponsored CSPs. I identify various actions and I illuminate CSP tensions and dark sides. (shrink)

Supply chains are an indispensable element of any global economy. At the same time such supply chains create a societal and environmental burden. Drastic actions are required to mitigate these effects. Supply chains should become responsible and sustainable (where responsibility and sustainability are understood in a broad sense) addressing economic, political, societal, legal, human rights, ethical and environmental concerns. This research shifts from the question of why companies should implement responsibility and sustainability into supply chains, to how they should do (...) so effectively. Illustrated by a case study of Sedex, a collaborative platform for buyers and suppliers, this paper proposes three solutions for responsible and sustainable supply chain management (SCM). Firstly, supply chains have to be supported by research and innovation (R&I). Secondly, supply chains should be based on multi-stakeholder efforts of industry, governmental and non-governmental organisations. Thirdly, the responsibility should lie not only with an individual company and its employees, but also with organisations of companies (supra-agency). As a result, responsible and sustainable supply chains require technological, political and ethical solutions involving the development of sound, multi-stakeholder business and governance models. These models should be based on the equal consideration of all three dimensions of sustainability (economic, environmental and social), the cooperation of the partners in the chain, strengthening long-term relationships and legitimate requirements of the stakeholders of a supply chain. (shrink)

Deliberation has faced criticism with regard to its application to business, on the basis that it can be misused to disseminate an ideology, divert attention from genuine debates, or strengthen the power of certain people. We suggest that Aristotle’s notion of deliberation can mitigate these ethical risks and help companies strengthen their deliberative practices. A comprehensive perspective based on Aristotelian deliberation reveals the relevance of (a) individual and collective deliberation, promoting a virtuous and meaningful reflection, free from ideological conditioning; (b) (...) deliberation on ends and means that facilitates a transcendental and rooted reflection, thereby avoiding artificial debates; and (c) deliberation that is decisive and cooperative and thus prevents instrumentalization of deliberation by the strongest. We contribute to the discussion of the relationship between business and society by identifying the different steps in the deliberative process and promoting a dynamic perspective on deliberation. (shrink)

Multi-stakeholder initiatives involve actors from several spheres of society in collaborative arrangements to reach objectives typically related to sustainable development. In political CSR literature, these arrangements have been framed as improvements to transnational governance and as being somehow democratic. We draw on Mouffe’s works on agonistic pluralism to problematize the notion that consensus-led multi-stakeholder initiatives bring more democratic control on corporate power. We examine two initiatives which address two very different issue areas: the Roundtable on Sustainable Palm Oil and the (...) Bangladesh Accord on Fire and Building Safety. We map the different kinds of adversarial relations involved in connection with the issues meant to be governed by the two initiatives, and find those adversarial relations to take six main shapes, affecting the initiatives in different ways: competing regulatory initiatives; pressure-response relations within multi-stakeholder initiatives; pressure-response relations between NGOs and states through multi-stakeholder initiatives; collaboration and competition between multi-stakeholder initiatives and states; pressure-response relations between civil society actors and multi-stakeholder initiatives; and counter-hegemonic movements against multi-stakeholder initiatives as hegemonic projects. We conclude that multi-stakeholder initiatives cannot be democratic by themselves, and we argue that business and society researchers should not look at democracy or politics only internally to these initiatives, but rather study how issue areas are regulated through interactions between a variety of actors—both within and without the multi-stakeholder initiatives—who get to have a legitimate voice in this regulation. (shrink)

The United Nations (UN) 2030 Agenda for Sustainable Development has considerable potential for achieving a more sustainable future. However, the concrete realisation of Sustainable Development Goals (SDGs) is impeded by how they are implemented by a diverse set of competent agents. This conceptual paper draws on social impact theory to investigate how businesses can utilise the SDG framework to achieve positive social outcomes. We identify two pathways that can guide businesses to improve their SDGs interventions, which entail considering the _interconnections_ (...) between the goals that are directly or indirectly affected by the initiative at stake and the _inclusiveness_ of the actors affected by the SDGs. Building on the literature on hybrid organising (to frame interconnectedness) and the literature on multi-stakeholder partnerships and deliberative governance (to frame inclusiveness), we discuss a set of organisational mechanisms and transformations that can help businesses ensure that their SDGs interventions are more socially impactful. By doing so, this paper extends the literature on the role of companies for sustainable development and provides some practical implications. (shrink)

This article proposes a theoretical re-conceptualization of power dynamics and their legitimation in contemporary business–society relations using the prism and metaphor of parentalism. The paper develops a typology of forms of parentalism along two structuring dimensions: care and control. Specifically, four ideal-types of parentalism are introduced with their associated practices and power-legitimation mechanisms. As we consider current private governance and authority through this analytical framework, we are able to provide a new perspective on the nature of the moral legitimation of (...) power dynamics in contemporary business–society relations. And we weave the threads between this conceptual frame and historical antecedents, suggesting that business ethicists need to revive old debates on paternalism in light of the current pervasive trend of modernized and subtler forms of parentalism. Implications for business ethics and political CSR are discussed. (shrink)

Flagging labor governance in far-flung supply networks has prompted greater scrutiny of instrumental CSR and calls for models that are tethered more closely to accountability, constraint, and oversight. Political CSR is an apt response, but this paper seeks to buttress its deliberative moorings by arguing that the agonist notion of ‘domesticated conflict’ provides a necessary foundation for substantive deliberation. Because deliberation is more viable and effective when coupled with some means of coercion, a concept of CSR solely premised on reciprocal (...) corporate-stakeholder engagement is pre-mature; efforts should first be directed toward the antecedents of reciprocity and how it is to be achieved, and only then does deliberation become a reliably substantive exercise. The resulting account of agonistic CSR is generated through agonistic principles of realism, pro-action, contestation, and countervailence, and illustrated by the Bangladesh Accord. (shrink)

The concept of sustainable and responsible (SR) investments expresses that every investment should be based on the SR investor’s code of ethics. To a large extent the allocation of SR investments to more sustainable companies and ethical practices is based on the environmental, social, and corporate governance (ESG) scores provided by rating agencies. However, a thorough investigation of ESG scores is a neglected topic in the literature. This paper uses Thomson Reuters ASSET4 ESG ratings to analyze the influence of firm (...) size, a company’s available resources for providing ESG data, and the availability of a company’s ESG data on the company’s sustainability performance. We find a significant positive correlation between the stated variables, which can be explained by organizational legitimacy. The results raise the question of whether the way the ESG score measures corporate sustainability gives an advantage to larger firms with more resources while not providing SR investors with the information needed to make decisions based on their beliefs. Due to our results, SR investors and scholars should reopen the discussion about: what sustainability rating agencies measure with ESG scores, what exactly needs to be measured, and if the sustainable finance community can reach their self-imposed objectives with this measurement. (shrink)

This article provides a historical contextualization of Corporate Social Responsibility and its political role. CSR, we propose, is one form of business–society interactions reflecting a unique ideological framing. To make that argument, we compare contemporary CSR with two historical ideal-types. We explore in turn paternalism in nineteenth century Europe and managerial trusteeship in early twentieth century US. We outline how the political responsibilities of business were constructed, negotiated, and practiced in both cases. This historical contextualization shows that the frontier between (...) economy and polity has always been blurry and shifting and that firms have played a political role for a very long time. It also allows us to show how the nature, extent, and impact of that political role changed through history and co-evolved in particular with shifts in dominant ideologies. Globalization, in that context, is not the driver of the political role of the firm but a moderating phenomenon contributing significantly to the dynamics of this shift. The comparison between paternalism, trusteeship, and contemporary CSR points to what can be seen as functional equivalents—alternative patterns of business–society interactions that each correspond, historically, to unique and distinct ideological frames. We conclude by drawing implications for future theorizing on CSR and stakeholder democracy. (shrink)

Despite the burgeoning literature on the governance and impact of cross-sector partnerships in the past two decades, the debate on how and when these collaborative arrangements address globally relevant problems and contribute to systemic change remains open. Building upon the notion of wicked problems and the literature on governing such wicked problems, this paper defines harnessing problems in multi-stakeholder partnerships as the approach of taking into account the nature of the problem and of organizing governance processes accordingly. The paper develops (...) an innovative analytical framework that conceptualizes MSPs in terms of three governance processes harnessing three key dimensions of wicked problems. The Roundtable on Sustainable Palm Oil provides an illustrative case study on how this analytical framework describes and explains organizational change in partnerships from a problem-based perspective. The framework can be used to better understand and predict the complex relationships between MSP governance processes, systemic change and societal problems, but also as a guiding tool in organizing governance processes to continuously re-assess the problems over time and address them accordingly. (shrink)