This research aims to explore the relationship between corporate governance and CSR: What are the major factors that play a direct role in the establishment of this relationship? How does context and institutional background impact upon the relationship between CSR and Governance? Using in-depth semi-structured interviews from two types of governance systems in three countries over three years, this study has demonstrated that in practice, within different settings, CSR is being used both as a strategy as well as a reaction (...) to different drivers. We call this adaptive governance where governance can be defined as a flexible system of action incorporating strategic and monitoring activities that determines the way a company enacts its responsibilities to its shareholders and stakeholders and which is determined at any given time by the interrelationship of institutional drivers and behavioural norms. Governance systems and their interrelationships with CSR are demonstrated as fluid according to the national and institutional context, economic situation and industry impact. In the eyes of practitioners corporate governance includes both structural and behavioural factors as well as responsibilities and actions towards shareholders and stakeholders. Contextual factors that this research highlights to be important to the incorporation of CSR into governance include the economic environment, national governance system, regulation and soft law, shareholders, national culture, behavioural norms and industry impacts. Hypotheses on the impact of institutional contexts, industry impacts and economic situations on different types of CSR actions are proposed for further research. (shrink)

Over the past 10 years the sales of Fair Trade goods - particularly those carrying the Fair Trade Labelling Organizations International (FLO) certification mark - have grown exponentially. Academic interest in Fair Trade has also grown significantly over the past decade with researchers analysing the model from a wide range of theoretical perspectives. Whilst Fair Trade is generally acknowledged as a new supply chain model, it has tended to be studied at the micro/organisational level rather than at the macro/systems level. (...) As a consequence, its wider impact as institutional innovation at the field level appears to have been under-theorised so far. In order to address this research gap, this article uses a neo-institutionalist perspective to analyse Fair Trade not simply as a new exchange model working within existing organisational and economic structures, but rather as an agent of institutional entrepreneurship at, and beyond, the field level. From this latter perspective, Fair Trade brings a new set of transformational meanings to extant exchange and consumption models and reforms fields of economic exchange by disrupting and then re-assembling key institutional elements around modern consumption to roll back commodity fetishism and reconnect consumers and producers. The type of institutional change driven by Fair Trade can be seen as a form of social entrepreneurship. (shrink)

Sustainability is increasingly a matter of concern in the corporate world. Many business scholars have analyzed the phenomenon from institutional and cultural perspectives, addressing the key questions of what drives the spread of sustainability principles, and also why sustainability adoption varies so widely among organizations and cultures. In this article, we propose that sustainability adoption can be better explained by integrating the insights from the institutional and cultural perspectives. This would break the current practice of choosing one approach or the (...) other, a trend that has estranged these fields despite their obvious overlap in questions, core constructs, and theoretic arguments. We therefore introduce a model that emphasizes a dual-effect of culture—namely, culture plays a role in "norming" the proliferation of sustainability-relevant institutions, while also influencing the "conforming" to pressures for sustainability emanating from these institutions. We offer theoretic insights not only for explaining sustainability adoption but also for addressing the recognized challenge of bringing culture back into institutional theory. (shrink)

The impact of contextual influences on human resource management and management more generally has been the focus of much scholarly interest. However, we still know very little about how context impacts on the practice of ethical HRM specifically. Therefore, drawing on 59 in-depth interviews with HR practitioners in Brazil, Colombia and the UK, this paper theorizes how they perceive the ethical dimensions of their roles within their respective national contexts and how the way they act in relation to them is (...) informed, shaped and directed by the institutional context. In doing so it provides an important insight into three key themes: first, the views of HRM practitioners and managers about ethical HRM and how they articulate what it means to be ethical; second, how they respond to perceived ethical dilemmas; and third, how their responses are influenced by institutional forces and associated beliefs, values and scripts. In addition to providing an ‘emic’ perspective of this increasingly important topic and theorizing the experience and practice of ethical HRM, the paper answers calls for more international comparisons of ethical HRM practice in contemporary organizations. (shrink)

ABSTRACT:Business networks, which include joint ventures, supply chains, industry and trade associations, industrial districts, and community business associations, are considered the signature organizational form of the global economy. However, little is known about how they affect the social performance of their members. We utilize institutional theory to develop the position that business social performance has collectivist roots that deserve at least as much scholarly attention as owner/manager characteristics and business attributes. Hypotheses are tested using multilevel analysis on data gathered from (...) 898 members of twenty-nine business associations. Support is provided for institutional theory’s explanation for business social performance. Members of business associations are likely to conform to the pattern of social performance prevailing in their association, but not necessarily to the articulated values of the association. The potential of business associations to influence members’ social performance should be considered by agencies that start and support them as mechanisms for regional and local economic development. (shrink)

We draw from resource dependence and institutional theories to explore how board characteristics associated with directors’ capacities to provide resources and legitimacy (i.e., board size, the number of non-executive, interlocking, and female directors) along with regulative, normative, and cultural-cognitive institutional conditions combine to shape firm environmental, social, and governance (ESG) performance. Using a process of configurational theorizing with fuzzy set qualitative comparative analysis and data from firms in 32 countries, we identify multiple equifinal configurations that are associated with high and (...) low ESG performance. We find that high and low ESG performance have different drivers due to complementarities among the presence and absence of board characteristics. Our results also show that the effectiveness (or not) of the bundles of boards’ characteristics for ESG performance varies across institutional contexts. By leveraging these findings to construct a typology of board archetypes that lead to high and low ESG performance, we offer novel theoretical and empirical insights to scholars as well as implications for practice. (shrink)

Corruption is a word used loosely to describe many kinds of action that people find distasteful. We prefer to reserve it for the intentional misuse of the good offices of an established social entity for private benefit, posing as fair trading. The currency of corruption is not always material or financial. Moral corruption is all too familiar within churches and other ostensibly beneficent institutions, and it happens within medicine and the pharmaceutical industries. Corrupt behavior reduces trust, costs money, causes injustice, (...) and arouses anger. Yet it persists, despite all efforts since the beginnings of societies. People who act corruptly may lack conscience and empathy in the same way as those with some personality disorders. Finding ways to prevent corruption from contaminating beneficent organizations is therefore likely to be frustratingly difficult. Transparency and accountability may go some way, but the determined corruptor is unlikely to feel constrained by moral and reporting requirements of this kind. Punishment and redress are complicated issues, unlikely to satisfy victims and society at large. Both perhaps should deal in the same currency—material or social—in which the corrupt dealing took place. (shrink)

This article examines intersectoral partnerships formed to promote sustainable cotton production and the extent to which such partnerships are facilitated or constrained by their institutional environment. Based on an analysis of five partnerships in sub-Saharan Africa, this article shows that institutional factors create both opportunities and obstacles for partnership implementation which are inextricably linked to their adoption of particular farming strategies and sustainability standards. In general, these institutional factors tend to facilitate the implementation of partnerships using contract farming and mainstream (...) sustainability standards, and hinder those adopting cooperative farming methods and organic standards. (shrink)

ABSTRACT:Business networks, which include joint ventures, supply chains, industry and trade associations, industrial districts, and community business associations, are considered the signature organizational form of the global economy. However, little is known about how they affect the social performance of their members. We utilize institutional theory to develop the position that business social performance has collectivist roots that deserve at least as much scholarly attention as owner/manager characteristics and business attributes. Hypotheses are tested using multilevel analysis on data gathered from (...) 898 members of twenty-nine business associations. Support is provided for institutional theory’s explanation for business social performance. Members of business associations are likely to conform to the pattern of social performance prevailing in their association, but not necessarily to the articulated values of the association. The potential of business associations to influence members’ social performance should be considered by agencies that start and support them as mechanisms for regional and local economic development. (shrink)

As environmental issues have become increasingly prominent around the world, corporate environmental responsibility has begun to attract more attention. As the decision-makers of firms, top executives play an important role in the environmentally ethical behavior of their corporations. Few studies, however, have explored the motivations behind corporations’ environmentally responsible behavior from the perspective of how CEOs’ early experiences shape their decisions. This paper explores the impact that CEOs who experienced the Send-down movement have on their companies’ environmentally responsible behavior and (...) the boundary conditions of this impact from the perspective of the imprinting theory. Based on the data of listed Chinese companies from 2009 to 2020, we have found that CEOs who were themselves “Sent-down youth” have a positive impact on corporate environmental responsibility. For firms with a higher proportion of state ownership and CEOs with Chinese Communist Party membership, the relationship between experience with the Send-down movement and corporate environmental responsibility is strengthened, whereas a higher level of market competition weakens the relationship. This article enriches and deepens the research on the imprinting theory, and it also has certain practical implications for firms that hire top executives with unique types of early experiences to promote business ethics improvement. (shrink)

Will stakeholder theory continue to transform how we think about business and society? On the occasion of this journal’s 60th anniversary, this review article examines the journal’s role in shaping stakeholder theory to date and suggests that it still has transformative potential. We conducted a bibliometric analysis of co-citations in the literature from 1984 to 2020. Reporting these results, we examine the field’s evolving structure. Contextualized theoretically as an accomplishment of institutional work—the creation of a meaningful and innovative field ideology—this (...) structure is remarkable for how it integrates ethical and behavioral arguments, invites engagement from adjacent domains, and arrives at important insights for business and society. We advance a research agenda consistent with this larger institutional project. (shrink)

This article analyzes the dual process occurring in the field of Fair Trade organizations (FTOs) in Belgium. On the one hand, there has been a gradual diversification of the organizational landscape over time from pioneering volunteer-based non-profit organizations to a broader array including cooperatives, group structures, businesses and individual entrepreneurs exclusively devoted to FT. On the other hand, a process of networking is currently taking place among the various types of FTOs in the context of the creation of a Belgian (...) Fair Trade Federation (BFTF). Drawing on neo-institutional theory, including institutional entrepreneurship, this article examines how and why these two processes have taken place. A qualitative field study in the Belgian FT sector, including interviews with 15 FTOs, offers rich empirical material which illustrates the diverse patterns of these organizations. Based on the observed combinations of different variables among Belgian FTOs, a taxonomy reflecting diverse means of conceiving and organizing FT activity is suggested. The different categories of FTOs and the evolution of these categories over time seem linked to the broader institutional evolutions of FT at the international as well as at the Belgian level. Finally, several factors are reviewed to explain why the diversity among Belgian FTOs has not been an obstacle to their collaboration. (shrink)

This study explores the ways in which trust deficit undermines anti-corruption initiatives in a context with systemic corruption. Anti-corruption measures as panacea to systemic corruption are not new, but their effectiveness is debatable. Whilst understanding the causal relationship between corruption and trust remains germane to fighting corruption, a growing number of recent studies advocate better context sensitivity in developing anti-corruption initiatives. Consistent with this, we unpack the perceptions of a significant section of the population in which corruption is rampant to (...) identify factors that could enhance trust in the effectiveness of anti-corruption measures. Using commentaries from Nigerian Netizens on two critical corruption incidents that are significant to corporations, we uncover poignant narratives of perception of incompetence, dishonesty and confusion that undermine the anti-corruption measures in the context. We argue that donors, international organisations and businesses must encourage and support beneficiaries’ governments to secure and sustain trust in the anti-corruption initiatives as a condition for better results. (shrink)

The study contributes to building an understanding of the impact of political forces on the information environment of listed firms in a developing economy. Specifically, it investigates the tensions between politico-institutional factors and accounting regulation on the prolonged and incomplete implementation of the International Financial Reporting Standards in Bangladesh from 1998 to 2010. Two phases of interviews were conducted in 2010–2011 and IFRS-related enforcement documents from 1998 to 2010 were evaluated. The study contributes that IFRSs are being diffused to developing (...) countries like Bangladesh, but they invariably interact with local institutions, with variable outcomes. Coercive, normative and mimetic isomorphisms are low in Bangladesh. Notably, political forces have been undermining mimetic isomorphism because of the high level of government intervention and the high level of political lobbying. Political institutional pressures stand in the way of mimetic isomorphism and constitute negative forces that add further tension to accounting regulation in Bangladesh. Regarding the low level of normative isomorphism, there is evidence of a ‘blame culture’, with state institutions and professional accountancy institutions in the country blaming each other for the poor progress in IFRS implementation. Although the study focuses on Bangladesh, its results have implications for international policy makers, as well as the governments and regulators of other developing economies facing similar challenges in implementing IFRS. (shrink)

Business Ethics: A European Review, EarlyView.

The implementation of socially sustainable practices in suppliers situated in challenging institutional contexts is examined using institutional theory, both in terms of how institutional pressures affect implementation and what explains the decoupling of practices from the day-to-day reality. A multi-case study approach is employed based on seven apparel industry suppliers in Bangladesh. Cross-case analysis highlights the coercive, mimetic, and normative pressures on suppliers to implement socially sustainable practices. A key pressure identified that has not previously been highlighted in the literature (...) is horizontal collaboration between buyers, which intensifies coercive pressure on suppliers and increases the consequences of non-compliance. The factors that contribute to decoupling are categorized into firm-, supply chain-, and environment-related factors. Further, six propositions are developed on how specific forms of institutional pressure can tackle particular decoupling factors to support implementation. The paper responds to recent calls for greater scrutiny of why and how firms decouple ethical practices and supports the development of the literature specifically on social sustainability, which lags behind that on environmental sustainability and has been largely focused on the Western buyer perspective. The findings have implications for the diffusion of ethical practices into supply chains, especially distant suppliers in very different and challenging institutional contexts. (shrink)

Virtue ethics has a rich history; yet, its application in health ethics has been minimal compared to other major ethical frameworks. Even more, its application to health policy and population-level questions has been almost nonexistent. A new concept in moral theology, structures of virtue, provides impetus for ethicists to consider how virtue ethics can be a valuable addition to existing frameworks in public health ethics. This article offers a basic overview of virtue ethics and its value for analysis of social (...) structures in public health. It does so by explaining how virtue can be seen not only in the process of public health—the promotion of habituated behavior—but also in the content of public health—values such as temperance, fortitude and prudence. It concludes with two extended applications of virtue ethics: vaccination policy and healthy eating. (shrink)

The pharmaceutical industry has been criticised for pervasive misconduct. These concerns have generally resulted in increasing regulation. While such regulation is no doubt necessary, it tends to assume that everyone working for pharmaceutical companies is equally motivated by commerce, without much understanding of the specific views and experiences of those who work in different parts of the industry. In order to gain a more nuanced picture of the work that goes on in the “medical affairs” departments of pharmaceutical companies, we (...) conducted 15 semi-structured interviews with professionals working in medical departments of companies in Sydney, Australia. We show that this group of pharmaceutical professionals are committed to their responsibilities both to patients, research participants, and the public and to their companies. Despite the discrepancies between these commitments, our participants did not express much cognitive dissonance, and this appeared to stem from their use of two dialectically related strategies, one of which embraces commerce and the other of which resists the commercial imperative. We interpret these findings through the lens of institutional theory and consider their implications for pharmaceutical ethics and governance. (shrink)

Most research studying the corporate social performance –corporate financial performance link has utilized developed country samples. Also, this literature has generally focused on a wide variety of industries, ignoring the fact that certain sectors – such as controversial industries – have graver social and environmental issues. Hence, a gap exists in this tradition when it comes to emerging markets and controversial industries. This paper attempts to fill this void by providing preliminary evidence and insight on the matter. Based on an (...) exploration in six Latin American countries and five controversial industries, we find a negative bidirectional association between CSP and CFP. These results tend to contradict the mainstream conclusion of a positive bidirectional link, suggesting that institutional and market-level forces play a major role in shaping this relationship. (shrink)

A number of high-profile mislabeling incidents have led to many studies exploring the decision-making processes that firms make around performing illegal acts. However, it remains unclear why the proportion of firms conducting these acts constantly fluctuates and never disappears. Therefore, this study investigated this by carrying out a longitudinal analysis of food labeling in the Taiwanese rice industry. Drawing on the institutional isomorphism theory, it was found that the degree of mislabeling is negatively correlated with both the level of control (...) of inspection regulations and public attention toward food regulations, and positively correlated with the previous proportion of firms mislabeling their products. Thus, there is a feedback loop between regulatory control, public attention, and the amount of mislabeling, with the amount of mislabeling not only being affected by the former degree of regulatory control, public attention, and mislabeling, but also modifying the future status of each of these. These findings further our understanding of the causal effects of illegal actions in the institutional agricultural environment. (shrink)

This study examines corporate stakeholder orientation across industries and over time prior to the introduction of mandatory CSR. We argue that CSO is a legitimacy signal consciously employed by firms to demonstrate their shareholder and specific non-shareholder orientations in the midst of institutional pressures emerging from country and industry contexts. Using a 7-code index of CSO on CEO–shareholder communications from India, we find that in general large firms in India exhibit a pre-dominant, significant and rising trend of pro-shareholder orientation in (...) the six-year period immediately preceding the CSR law. Yet, we uncover significant industry differences in CSO potentially driven by four key factors: the degree of competitive dynamics, nature of products and services, extent of negative externalities and social activism, and exposure to international markets. Our findings support the view that while some minimum threshold of regulatory intervention is required to balance the interests of business with society, legislation raises questions in relation to the usefulness of a uniform one-size-fits-all CSR across all industries. (shrink)

The study reported in this paper sought to examine the extent to which organisational leadership support and organisational culture explain the effect of regulation on sustainable procurement practice, as insights into this relationship is lacking in the extant literature. Useable survey data from 322 Ghanaian organisations were analysed using descriptive statistics, and structural equation modelling techniques. The analysis examined the nature of sustainable procurement practice in an African context, and the potential mediating effects of organisational leadership support and organisational culture (...) on regulation’s relationship with sustainable procurement. The findings reveal a moderate sustainable procurement practice in Ghanaian organisations, a significantly positive effect of regulation on related practices, and a mediation effect of organisational leadership support on regulation’s relationship with sustainable procurement. There was, however, no mediation effect relative to organisational culture. Potential relevance and implications of the study for theory and practice are explored in the discussion and conclusion sections. (shrink)

Business and Society Review, Volume 127, Issue 1, Page 127-143, Spring 2022.

The institutional change literature has predominantly focused on successful changes and sparsely on failed changes, but the idea of institutional fields reverting to their pre-change or near pre-change state, after change attempts, remains underexplored. Although recent studies have explored similar phenomenon from the perspective of actors resisting change and trying to restore status quo, a field-level understanding of the processes and the dynamics associated with it remains underexamined. The present study, using the case of reforms in the field of petroleum (...) exploration and production in India, examines an institutional change where the institution, once modified, gradually reverted near to its prechange state. We suggest the concept of institutional elasticity to explain such reverting of institutions, and elaborate on three boundary conditions—scope of change, pace of change, and field-level actor constellations—which have implications for the relationship between institutional elasticity and reverting of institutions. (shrink)

This conceptual paper explores whether the normative legitimacy of International Sports Associations such as Fédération Internationale de Football Association and Fédération Internati...