In 2000, Business and Society Review published a Special Issue of the journal to explore scholars’ ideas about how the practice of corporate citizenship would evolve in the 21st century. Contributors to the volume predicted a change in business motives for engaging in social initiatives, suggesting that managers would begin to see corporate citizenship as a strategic necessity to preserve organizational legitimacy in the face of changing social values. This article uses data from a study of corporate citizenship practices in (...) over 500 Norwegian companies to explore the validity of the Special Issue predictions. We begin by reviewing the foundations of organizational legitimacy theory and examine recent research documenting the growing importance of corporate citizenship for assessments of business legitimacy. We describe our study methods, present our results, and discuss the implications of our findings in this context. (shrink)

The practice of corporate social responsibility has often been described as a balance of profitability and social or societal responsibility by scholars as well as practitioners. It is assumed that regulations and guidelines of CSR practices link competitiveness and responsibility together. While recognising that formal CSR statements represent a goal-oriented managerial approach to CSR, we argue based on the description of a qualitative case study that the relationship between profitability and social or societal responsibility is not as clear and simple (...) as it is often described. Instead, CSR should be considered as a continuously negotiated process between companies and stakeholders. Hence, the creation of a constructive link between profitability and social or societal responsibility is dependent on the amount of effort that has been put into exploring the concerns of the stakeholders, vis-a-vis the company, while simultaneously accepting changes when they are necessary. (shrink)

‘Corporate Social Responsibility’ (‘CSR’) has gained popularity in corporate as well as academic debates, especially since the 2008 financial crisis (Okpara & Idowu, 2013). Although CSR as an idea has not failed, concerning gaps remain in the theory and practice of CSR. More particularly, in India, the legislature has adopted a ‘one size fits all’ approach which permits businesses to interpret and implement CSR based on their unique circumstances. This leads to persistent and escalating concerns regarding its implementation and limits. (...) The most basic of such concerns is the fact that CSR conceptually lacks a consistent understanding as scholars all around the world have defined it differently (Votaw & Sethi, 1973), which has an effect of conflating CSR with legal obligations or pre-existing moral obligations of the company. This work, limiting the study to Indian context, argues that the effectiveness of any policy or regulation is a direct result of express intention behind it and Indian law lacks such expression. It specifically argues that the framework in India is based on the misconceived idea of CSR resting on ‘neo-liberal’ principles meaning that a corporation’s primary responsibility is maximization of the profits of the shareholders and hence CSR is perceived merely as an add-on. There needs to be a change in this narrative to a ‘socio-economic’ one which could bring CSR within the core functions of corporations and which largely depends on the Corporate Governance ecosystem so in place. India although claims to have adopted the Stakeholder Model of Corporate Governance, in practice it still aligns with the Shareholder Model. It is only when the former is adopted in practice, can CSR be effectively implemented which can be further facilitated through a clear expression of legislative intent behind the provisions and regulations concerning CSR. In order to substantiate these arguments, this work adopts a doctrinal method of research which undergoes a thematic discourse analysis of the issue and its theoretical underpinnings, and also provides certain recommendations in this respect. (shrink)

This study provides preliminary empirical evidence that shareholder activists target companies because of their size as well as specific stakeholder-related practices. The data show that shareholder activists target companies with shareholder resolutions demanding changes in corporate behaviors for companies producing problematic products and where environmental concerns exist. Furthermore, companies in specific industries are targeted based on poor employee and community-related practices. Activists, that is, are selective in their targeting of companies, choosing the most visible (largest) companies and those whose practices (...) raise specific issues of interest to society. (shrink)

Multinational companies (MNCs) frequently adopt corporate social responsibility (CSR) activities that are aimed at providing ‘public goods’ and influencing the government in policymaking. Such political CSR (PCSR) activities have been determined to increase MNCs’ socio-political legitimacy and to be useful in building relationships with the state and other key external stakeholders. Although research on MNCs’ PCSR within the context of emerging economies is gaining momentum, only a limited number of studies have examined the firm-level variables that affect the extent to (...) which MNCs’ subsidiaries in emerging economies pursue PCSR. Using insights from resource dependence theory, institutional theory, and the social capital literature, we argue that MNCs’ subsidiaries that are critically dependent on local resources, have greater ties to managers of related businesses and to policymakers, and that those that are interdependent on the MNCs’ headquarters and other foreign subsidiaries, are more likely to be involved in PCSR. We obtain support for our hypotheses using a sample of 105 subsidiaries of foreign firms that operate in India. Our findings enhance our understanding of the factors that determine MNCs’ political CSR in emerging economies. (shrink)

Heeding the call for a deeper understanding of how cross-sector social partnerships can be managed across different contexts, this article integrates ideas from institutional theory with current debate on cross-boundary collaboration. Adopting the point of view of business actors interested in forming a CSSP to address complex social problems, we suggest that “appropriateness” needs shape business approaches toward partnering for social change, exerting an impact on the benefits that can be gained from it. A theoretical framework is proposed that identifies (...) and frames four CSSP styles, as resulting from combinations of dominant institutional orientations in a field and its general level of coherence. We show how, depending on prevailing institutional logics, intervention models underlying the CSSP have to emphasize either the business soundness of the initiative or its social value, together with a consistent leadership style. Moreover, while directive approaches based on concentrated governance structures aimed at setting the rules of the game are shown to prevail in fields characterized by low level of institutional coherence, participative models emerge in more established fields, with CSSP’s promoter playing an integrative role through distributed governance structures. The article concludes with a summary and implications of an institutional-based view of CSSPs. (shrink)

Corporate social responsibility (CSR) continues to gain attention atop the corporate agenda and is by now an important component of the dialogue between companies and their stakeholders. Nevertheless, there is still little guidance as to how companies can implement CSR activity in order to maximize returns to CSR investment. Theorists have identified many company-favoring outcomes of CSR; yet there is a dearth of research on the psychological mechanisms that drive stakeholder responses to CSR activity. Borrowing from the literatures on meansend (...) chains and relationship marketing, we propose a conceptual model that explains how CSR provides individual stakeholders with numerous benefits (functional, psychosocial, and values) and how the type and extent to which a stakeholder derives these benefits from CSR initiatives influences the quality of the relationship between the stakeholder and the company. The paper discusses the implications of these insights and highlights a number of areas for future research. (shrink)

This paper examines how corporate social responsibility (CSR) is implemented through social partnerships. Drawing on previous literature and case study research, it presents a conceptual model of the process of implementation. An exploratory case study of the social responsibility partnership programme at the Union of European Football Associations (UEFA) has been conducted. The case study draws on interview data and documentary sources of evidence gathered from UEFA and the six partner organisations that comprise its CSR portfolio. The conceptual model identifies (...) three stages of the implementation process (selection, design, management), with partnership evaluation being an ongoing process during all three. The latter consists of two elements, namely project and process evaluation. A key finding is the lack of process evaluation due to a high degree of inter‐personal trust. The conceptual model adds to the growing body of research on the implementation of social partnerships and CSR. This paper is also the first to empirically explore the process of CSR implementation through social partnerships in the football sector. (shrink)

The stakeholder approach has become a popular perspective in mainstream management and the corporate social responsibility (CSR) literature. However, it remains an open question as to how real-life managers actually view stakeholders and what rationales and logics are used for explaining the relationship between the firm and its constituencies. This article examines whom managers in multinational corporations (MNCs) consider to be their important stakeholders, and how they describe the societal responsibilities towards these groups and individuals. It is concluded that managers (...) still tend to hold a rather narrow (managerial) view of the firm and generally give priority to stakeholder groups who are directly involved in the firm's core transformation system. The conclusions are derived from interview and survey data from 647 managers in four MNCs. The paper is based on data collected as part of project RESPONSE: a European Union- and corporate-funded initiative on CSR. (shrink)

In the December 2006 edition of Harvard Business Review, Michael Porter and Mark Kramer argue that by approaching corporate social responsibility (CSR) based on corporate priorities, strengths and abilities, firms can develop socially and fiscally responsible solutions to current CSR issues, which will provide operational and competitive advantages. We agree that an effective approach to CSR includes a mapping of strategy, risk and opportunity. However, we also caution that the identification of these to the exclusion of societal input may not (...) be to the corporation's advantage. Instead, an investment in both strategic analysis and social capital can pay off from a social and an organizational standpoint. Compared with their larger counterparts, small‐ and medium‐sized enterprises (SMEs) frequently have stronger relationships with their internal and external stakeholders that foster the development of social capital. As such, we believe that the sector offers a unique opportunity to identify additional models and frameworks in order to approach a strategic CSR model as espoused by Porter and Kramer. This paper explores a case study of one Canadian SME that uses a community development framework called Asset Based Community Development (ABCD) for its CSR programming. Because ABCD relies heavily on the development and maintenance of social capital and can be utilized to attain set objectives, we propose that it provides a supplementary framework through which the arguments of Porter and Kramer can be expanded. In applying the ABCD framework for CSR, we can begin to establish a programme that supports strategy, integrates employees and stakeholders towards a common vision, and creates unique and sustainable alternatives towards the resolution of social and corporate goals. (shrink)

Management and business literature affirm the role played by stakeholders in corporate social responsibility practices as crucial, but what constitutes a true business–society partnership remains relatively unexplored. This paper aims to improve scholarly and management understanding beyond the usual managers’ perceptions on salience attributes, to include how stakeholders can acquire missing attributes to inform a meaningful partnership. In doing this, a model is proposed which conceptualises CSR practices and outcomes within the frameworks of stakeholder salience via empowerment, sustainable corporate social (...) performances and partnership quality. A holistic discussion leads to generation of propositions on stakeholder salience management, corporate social performance, corporate–community partnership systems and CSR practices, which have both academic and management implications. (shrink)

Recent research suggests that corporate social responsibility is institutionalised amongst multinational corporations. Yet CSR scholarship faces considerable challenges. An agreed definition is lacking, even amongst researchers adopting aligned approaches. Studies remain heavily focused on making a business case for CSR, despite its widespread acceptance into business practice. Few studies examine CSR’s on-ground implications for the communities it purports to help, favouring instead a macro-level focus. And concerns about CSR’s sincerity, motivations and ethics perpetuate questions about its integrity. This article argues (...) that new institutionalism is well placed to respond to these core challenges for CSR, and that new institutionalist perspectives can complement and enrich other common theoretical approaches. It contributes a social mechanism-based framework for CSR, identifying and exploring the key social mechanisms that institutionalise it; namely, discourse, mimesis, normative learning and coercion. Understanding CSR as an institution facilitates new and different explorations of its causes and effects and opens new avenues for scholarly inquiry. Illustrative examples from a 3.5-year study of CSR in the global mining industry are presented to explore the implications of CSR as an institution and to suggest pathways for innovative research. (shrink)

Employing Porter and Kramer’s corporate social responsibility framework, we explored the strategic CSR programs of two Korean and two Japanese electronics multinational enterprises in Indonesia. We observed that the sample MNEs engage in strategic CSR either through investment in competitive context or the transformation of value chain activities. In addition, these firms strongly favor strategic CSR over responsive CSR, not just because of the economic benefits offered by the former, but also its advantages in managing the programs and communicating with (...) stakeholders. Furthermore, they have developed varied organizational methods and tend to manage their key CSR programs centrally to effectively link them to the competitive strategy. Lastly, the results of our analysis suggest that Korean MNEs have customized their strategic CSR programs for emerging countries more actively than Japanese MNEs. In sum, our analysis elucidates several important features of strategic CSR employed by the MNEs in emerging countries. (shrink)

The purpose of this article is to investigate to what extent is business and society literature idealistic as it advocates the adoption of high moral norms for business performance. The author discusses the central theses of mainstream themes in this literature—corporate social responsibility, corporate social responsiveness, social issues, corporate social performance, stakeholder management, corporate citizenship, business ethics, sustainable development, and corporate sustainability—and evaluates their descriptive accuracy, normative validity, and instrumental power. Poor description of reality, underdeveloped business logic, and questionable prescriptions (...) are indicative of the idealism of these themes. This study reveals many realistic and achievable propositions, which dilute the concern that business and society literature is idealistic. However, three elements in the field—its (rhetorical) criticism of corporate conduct, the predominantly normative notions of its concepts, and its underdeveloped instrumental ideas—underline its idealistic orientation. (shrink)

Theoretical and practical trends of corporate citizenship indicate a deepening partnership between business and community. Following these developments, the article develops a model for the participation of businesses in decision-making processes as part of policy making and social-economic planning in the community. The article focuses on three levels: It examines the benefits and risks of such participation; identifies the typical dimensions of the participation processes; and finally, provides guidelines on how to develop a participation strategy based on the unique conditions (...) of each business and community. (shrink)

Increasingly, stories are emerging about businesses that engage in ethical behaviors above and beyond mere compliance with regulations. These positive deviations along the ethical continuum provide an opportunity to explore how some companies’ business philosophy leads them to pursue an array of outcomes beyond the bottom line. This paper presents a case study of Green Mountain Coffee Roasters, the leading ethical company in the United States as rated by Forbes magazine, exploring the company culture and operating philosophy from a perspective (...) of conscientious capitalism. The three underlying assumptions of conscientious capitalism are: (1) interconnectedness between individuals, businesses, and global society; (2) wealth as a holistically understood state rather than solely a financial status; and (3) relevant time spanning multiple generations. Implications are offered for commerce, business practitioners, and educators. (shrink)

The management of cross-sector social partnerships (CSSPs) among government, business, and not-for-profit entities can be complex and difficult. This article considers the importance of organizational experience and learning for the successful development of CSSPs. By analyzing the Manchester Super Casino, this research emphasizes the significant benefits of prior experience with CSSPs that enable partners to learn and develop relationships, skills, and capabilities over time, which then have positive influences on future performance. The result is a refined learning model of the (...) CSSP process that includes key variables for CSSP success. As such, these findings provide a template for managing complex CSSPs from the perspective of the different partner organizations. (shrink)

Cross-sector social partnerships (CSSPs) can produce benefits at individual, organizational, sectoral and societal levels. In this article, we argue that the distribution of benefits depends in part on the cognitive frames held by partnership participants. Based on Selsky and Parker's (J Manage 31(6):849-873, 2005) review of CSSPs, we identify three analytic "platforms" for social partnerships — the resource-dependence platform, the social-issue platform, and the societal-sector platform. We situate platforms as prospective sensemaking devices that help project managers make sense of partnerships (...) by calling attention to certain desired features or downplaying other features. We describe the three platforms and contrast them on factors that influence social benefit, including orientation, learning, and power. We provide illustrations of each platform and demonstrate how the choice of platform is consequential for practice, such as how a partnership project gets started, evolves and produces social benefits. (shrink)

This paper examines how corporate social responsibility (CSR) is implemented through social partnerships. Drawing on previous literature and case study research, it presents a conceptual model of the process of implementation. An exploratory case study of the social responsibility partnership programme at the Union of European Football Associations (UEFA) has been conducted. The case study draws on interview data and documentary sources of evidence gathered from UEFA and the six partner organisations that comprise its CSR portfolio. The conceptual model identifies (...) three stages of the implementation process (selection, design, management), with partnership evaluation being an ongoing process during all three. The latter consists of two elements, namely project and process evaluation. A key finding is the lack of process evaluation due to a high degree of inter-personal trust. The conceptual model adds to the growing body of research on the implementation of social partnerships and CSR. This paper is also the first to empirically explore the process of CSR implementation through social partnerships in the football sector. (shrink)

Previous research on corporate community involvement (CCI) initiatives indicates that such behaviour is critical for building neighbourhood relationships and extending corporate influence in the community, but there is little theoretical work that provides a clear picture of managing the nature of the initiatives from different stakeholder management approaches. Drawing from theoretical insights of stakeholder theory and the concept of social capital, this article proposes nine strategic directions for CCI initiatives, and concludes by discussing the management implications of the proposed strategic (...) directions. Our proposed approaches have the potential to improve current understanding and practice of corporations and their CCI initiatives. (shrink)

Corporate community involvement is often regarded as means of development in developing countries. However, CCI is often criticised for patronage and insensitivity both to context and local priorities. A key concern is the extent of 'community participation' in corporate social decision-making. Community participation in CCI offers an opportunity for these criticisms to be addressed. This paper presents findings of research examining community participation in CCI governance undertaken by Magadi Soda Company in Kenya. We draw on socio-political governance and interaction theories (...) to examine the institutionalisation of participatory decision-making and its impact on changing governing roles and social action in CCI over time. (shrink)

Today's sweatshops violate our notions of justice, yet they continue to flourish. This is so because we have not settled on criteria that would allow us to condemn and do away with them and because the poor working conditions in certain places are preferable to the alternative of no job at all. In this paper, we examine these phenomena. We consider the definitional dilemmas posed by sweatshops by routing a standard definition of sweatshops through the precepts put forward in the (...) literature on justice and virtue ethics. We conclude that fixing on definitions is pointless and misleading and that we are better off looking at whether or not a workplace violates the basic human rights of workers and whether or not the working conditions there cohere with situations on which we have already rendered judgments. In the end, we suggest guidelines for businesses that operate in the global workplace to help them avoid charges of running sweatshops. These recommendations account for the harsh living conditions in certain developing and emerging countries as well as the norms of societies in developed countries. (shrink)

A number of international organizations have identified eliminating gender inequality as a critical element in poverty reduction and development. Given that the Global Compact (GC) was launched, in part, to work toward the achievement of these goals, this article argues that the GC should pay significant attention to gender inequality in its learning network. The article discusses the findings of a review of the GC learning network, which reveals that the issue of gender inequality was missing from its agenda in (...) its first decade. The author suggests explanations for this finding, including the lack of participation by women’s organizations in the GC learning network, the lack of a gender discourse in corporate social responsibility initiatives generally, and the GC’s focus on the business case, which may deflect attention from gender inequality where no clear business case can be made. (shrink)