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)

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)

As companies increasingly communicate CSR initiatives through social media, viral message propagation has become a crucial prerequisite for CSR success. Evidence from two experimental studies, one based on a national representative online sample, shows that social media peers’ endorsement of a CSR message in terms of number of shares, likes and positive replies contributes to an individual’s intention to share it on the social network and thereby participate in message propagation, and that this process can be explained by normative influences (...) exerted by the social media community through the activation of injunctive and descriptive norms, as well as social identity motives. Findings further confirmed that the norm-activating effects of social media endorsement are moderated by the empowering qualities of the CSR message, the sharing source of the message by affecting CSR credibility, and the recipient’s interdependent self-construal. Corporate communication managers are advised to achieve a high degree of initial social media endorsement of their CSR message, for recipients of the message to perceive social pressure motivating message sharing with their social media peers. (shrink)

Dual organizational identification (DOI) is generally considered beneficial to multinational corporations (MNCs) and their employees. However, this study challenges this consensus by exploring the potential negative impacts of DOI in the ethical controversy context when MNCs and host countries have conflicting views on a business decision and both feel that they are ethically correct. Integrating role identity theory, we propose that the DOI of host country nationals (HCNs) may create conflict in their work-related perceptions and behaviors amid an ethical controversy. (...) In Study 1, we interviewed 51 HCNs from MNCs’ Chinese subsidiaries and found that HCNs’ DOI caused their role conflict during ethical controversies, which in turn affected their perceptions (i.e., perceived isolation, ethical pressure) and behaviors (i.e., procrastination, exit, voice, headquarters (HQ)–subsidiary cooperation). We also found that the job level of HCNs played a key role in moderating the above relationship. In Study 2, we tested the theoretical framework developed in Study 1 using a multi-wave survey from a sample of 300 HCNs working in MNCs’ Chinese subsidiaries. The results generally validated the Study 1 model. Theoretical and practical implications are discussed. (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)

Despite enthusiastic claims around the benefits of corporate volunteering for the workplace and its widespread implementation, the impact of such programs for beneficiaries and non-profit organizations remains uncertain, particularly when employees’ participation is one-off. Previous research suggests that the benefits of CV for employees, businesses, and society are more likely to occur if employees internalize a volunteer identity—that is, if being a volunteer becomes a part of their self. This leads them to sustain their participation in CV over time, maximizing (...) CV’s positive effects on all stakeholders. This study explores the factors explaining why employees internalize a volunteer identity in a corporate context. We do so by empirically testing Grant’s :589-615, 2012) volunteer work design theoretical model with a sample of 619 employees involved in CV programs, and by comparing its relevance with an alternative, extended model relying on insights from self-determination theory. Whereas we find only partial and weak empirical support for the VWD model, our SDT-extended model is supported empirically. These results show that the quality of motivation that employees experience while volunteering plays a more important role than repeated participation, as it illuminates the process of how factors such as the quality of the projects, organizational support for CV, as well as the causes targeted affect the internalization of a volunteer identity. In particular, we show that employees are more likely to internalize a volunteer identity if they can choose what cause to engage for and if they feel that the projects they participate in are meaningful. Surprisingly, we also show that a prestigious cause as well as recognition and managerial support foster a controlled form of motivation for employees, which are then unlikely to internalize a volunteer identity. In doing so, we contribute to a better understanding of how CV can have lasting benefits for both business and society, and provide business leaders with actionable insights about how to design impactful CV programs. (shrink)

The purpose of this study is to examine the motivations andoverarching criteria behind employee participation in corporate volunteering.This participation is extremely limited. It seems appropriate toenhance it, both due to the internal benefits entailed for the companyitself, and the external impact it exhibits. With that being said, we stumbleupon several problems set out in literature that are confirmed throughour research. Ignorance of the precise causes and true decisive factors thatguide employee participation in corporate volunteering programmesprevents the development of suitable strategies (...) that help boost the percentagesof employee participation. We have conducted an empirical and qualitative study with the aimof being able to construct a model to gain greater knowledge of this phenomenonand to grasp the social significance of this problem. Participantobservation was applied as an ethnographic method for data collection.Thus, we have accompanied and interacted with the employees under study. This approach represents a less intrusive method to avoid selfservingand politically-correct responses that do not reflect employees’true stimuli. (shrink)

In order to be competitive in an era of ethical consumerism, brands are facing an ever-increasing pressure to integrate ethical values into their identities and to display their ethical commitment at a corporate level. Nevertheless, studies that relate business ethics to corporate brands are either theoretical or have predominantly been developed empirically in goods contexts. This is surprising, because corporate brands are more relevant in services settings, given the nature of services, and the fact that services settings comprise a greater (...) number of customer–brand interactions and touch points than goods contexts. Accordingly, the purpose of this article is to empirically examine the effects of customer perceived ethicality of corporate brands that operate in the services sector. Based on data collected for eight service categories using a panel of 2179 customers, the hypothesized structural model is tested using path analysis. The generalizability theory is applied to test for measurement equivalence between these categories. The results of the hypothesized model show that, in addition to a direct impact, customer perceived ethicality has a positive and indirect impact on brand equity, through the mediators of recognition benefits and brand image. Moreover, brand heritage negatively influences the impact of customer perceived ethicality on brand image. The main implication is that managers need to be aware of the need to reinforce brand image and recognition benefits, as this can facilitate the translation of customer perceived ethicality into brand equity. (shrink)