The aim of our research is to analyze how different religions influence business ethics. We develop an index of practices in the field of business ethics, made up of 19 items containing practices related to workers, consumers, products, human rights, management of ethical conflicts, and crime prevention. Also, we consider a wide range of religion affiliations. To undertake this research, we use a panel data sample composed of 11,956 firm‐year observations from 18 countries. Drawing on stakeholder theory, we posit some (...) hypotheses based on the religions considered. The results obtained show that a higher percentage of religious adherents in the country where a company does business usually involve the implementation of more ethical practices in the corporate field. These findings are obtained for Christian, Islamic, Jewish, and Hindu religions. In contrast, this does not stand for Buddhist and folk religions. Also, countries where there is no predominant religion do not show a confluence between religion and ethical corporate practices. (shrink)

This paper examines whether and to what extent the overall business strategy influences the firm’s mismanagement of sustainability. Specifically, an empirical measure for the mismanagement of sustainability is developed by exploiting the newly available materiality guidelines for US firms to define industry-specific material sustainability issues. Using this measure, this paper shows that mismanagement of sustainability can represent unethical business behavior when firms intentionally perform better on immaterial issues than on material issues by diverting stakeholders’ attention from the firm’s low overall (...) sustainability performance. This paper assumes that the right business strategy can prevent such unethical actions. Based on Miles and Snow’s organizational theory, this paper distinguishes between Prospector and Defender business strategies. By employing multiple firm-level panel regressions, the findings suggest that Prospector-type firms are more likely to mismanage sustainability issues compared to Defender-type firms intentionally. The results give implications for researchers, regulators and standard setters, auditors, sustainability practitioners, and scholars. (shrink)

This article offers an in-depth case study of a global high tech manufacturer that aligned its ethics and compliance, corporate social responsibility, and sustainability practices. Few large companies organize their responsible business practices this way, despite conceptual relevance and calls to manage them comprehensively. A communities of practice theoretical lens suggests that intentional effort would be needed to bridge meaning between the relevant managers and practices in order to achieve alignment. The findings call attention to the important role played by (...) employees who broker understanding between managers and practices, and the boundary objects used to create shared meaning and engagement. They also highlight that an organizing logic is necessary but not sufficient to align practices. This study describes the dynamics of alignment and provides a practical road map for scholars and managers interested in understanding how responsible business practices may be collectively organized. (shrink)

While sustainability is largely associated with do-gooders, this article discusses whether and how fraud might also be an issue in sustainability departments. More specifically, transferring the concept of the fraud triangle to sustainability departments I discuss possible pressures/incentives, opportunities, and rationalizations/attitudes for sustainability managers to commit fraud. Based on interviews with sustainability and forensic practitioners, my findings suggest that sustainability managers face mounting pressure and have opportunities to manipulate due to an immature control environment. Whether a presumably morality-driven attitude may (...) prevent them from committing and easily rationalizing fraud remains controversial. Even though cases of fraud happening in sustainability departments are still widely unknown, the interview analysis reveals that sustainability fraud is likely to occur at least to some extent—and presumably remains undetected. The study brings to light the importance of a clear commitment from executives to sustainability to prevent sustainability fraud and demonstrates adverse developments driven by external stakeholders, specifically the bonus relevancy of sustainability index scores. In particular, the study shows a lack of awareness for potential fraud in sustainability departments. (shrink)

In this article, we first provide evidence that Scandinavian contributions to stakeholder theory over the past 50 years play a much larger role in its development than is presently acknowledged. These contributions include the first publication and description of the term “stakeholder”, the first stakeholder map, and the development of three fundamental tenets of stakeholder theory: jointness of interests, cooperative strategic posture, and rejection of a narrowly economic view of the firm. We then explore the current practices of Scandinavian companies (...) through which we identify the evidence of relationships to these historical contributions. Thus, we propose that Scandinavia offers a particularly promising context from which to draw inspiration regarding effective company-stakeholder cooperation and where ample of examples of what is more recently referred to as “creating shared value” can be found. We conclude by endorsing the expression “Scandinavian cooperative advantage” in an effort to draw attention to the Scandinavian context and encourage the field of strategic management to shift its focus from achieving a competitive advantage toward achieving a cooperative advantage. (shrink)

Scandinavia is routinely cited as a global leader in corporate social responsibility and sustainability. In this article, we explore the foundation for this claim while also exploring potential contributing factors. We consider the deep-seated traditions of stakeholder engagement across Scandinavia including the claim that the recent concept of “creating shared value” has Scandinavian origins, institutional and cultural factors that encourage strong CSR and sustainability performances, and the recent phenomenon of movement from implicit to explicit CSR in a Scandinavian context and (...) what this may entail. In sum, we depict the state of the art in CSR and sustainability in Scandinavia. We intend for this to serve as a basis to help establish a globally recognized research paradigm dedicated to considering CSR and sustainability in a Scandinavian context. (shrink)

Much attention in the meaningful work literature has been devoted to calling as an orientation toward work characterized by a strong sense of purpose and a prosocial motivation beyond self-gain. Nonetheless, debate remains as to whether individuals change or maintain their calling, and especially whether they live their calling differently in different occupational stages. In this article, we respond to this conundrum through an analysis of the corporate social responsibility (CSR) occupation—substantiated by interviews with 57 CSR practitioners from Swedish international (...) companies who are living their calling. We demonstrate that social/commercial tensions affect these CSR practitioners, fueled by a divide between their social aspirations and the commercial goals, and prompt them to respond in a way that impacts how they construct the purpose of their work. Subsequently, we induce three stages of the CSR occupation—_early-, mid- and late-stage_—and conceptualize three types of purpose in each stage—_activistic_, _win–win_ and _corporate purpose_. By uncovering how and why CSR practitioners respond to social/commercial tensions and construct different types of purpose in each stage of the CSR occupation, we show that individuals can live the same calling in multiple ways. Hence, our article advances the meaningful work literature as well as studies of micro-CSR. (shrink)

The role of the Sustainability Manager (SM) is expanding. Whether SMs are turning into a new profession is under debate. Pointing to the need for a distinct professional logic to qualify as a profession, we identify what is contained within a professional logic of SMs. Through analyzing ambiguities present in the role of the SMs, we show that there is no specific distinct professional logic of SMs, but rather a meta-construct building on market, bureaucratic, and sustainability logics. In addition, we (...) point to the complex configurations of and relationships between these underlying logics. The complexities also explain why the SMs differ from traditional professions and why it is problematic to talk about a ‘SM profession’. Rather, SMs are ‘organizational professionals’. The article builds on 21 interviews with SMs working for Swedish companies. (shrink)

Business sustainability aims to combine market logic with social welfare logic. In literature, it is commonly assumed that sustainability and the social welfare logic associated with it are characterized by a long-term orientation. However, this assumption is problematic because this principle may not apply in certain contexts. This qualitative study challenges this assumption and focuses on the mechanisms by which time affects the adoption of sustainability practices in the context of socially responsible investing (SRI) practices in Swiss banks and insurance (...) companies. The article provides insights into the mechanisms associated with different time horizons and investigates their effects on the adoption of SRI in financial intermediaries. It also shows how the dimension of time shapes interactions between the two institutional logics underlying SRI in business organizations through specific mechanisms. (shrink)

Recent years have seen a significant increase in stakeholder pressure on firms to be not only economically sustainable but also from an environmental and social perspective. Besides operational changes in practices and products companies have reacted toward this increased pressure from a strategic perspective through structural changes of their top management team. A recent addition to the TMT has been the appointment of the chief officer of corporate social responsibility. In this paper, we take a behavioral perspective and investigate how (...) the employment of a chief officer of CSR to the TMT impact on firm performance. Specifically, we explore how certain characteristics of the newly appointed chief executive of CSR impact on a firm’s financial performance. We collected secondary, longitudinal data of listed companies in the United States. Results indicate that appointing a chief executive of CSR does under certain conditions and characteristics result in financial performance benefits. Furthermore, the greatest financial performance benefits can be achieved if the appointee is female and has a CSR functional background. (shrink)

Following resource-based and complementary asset perspectives, this paper examines the effects of board and management resources on corporate social responsibility in a sample of large Australian public firms. Specifically, this study posits that outside directors and women on boards are complementary in that their multiplicative effect incrementally influences CSR above their individual, independent effects. The hypothesis is confirmed. Further, the study tests the interactive effect of a senior CSR manager, determining the independent and complementary effects of managerial resources upon board (...) resources. The results suggest that a senior CSR manager has both an independent and complementary effect, offering support for the hypotheses. The findings offer some confirmation of resource-based theory, demonstrating that board resources can be complementary within the boardroom context and complementary to management in positively affecting firm outcomes. (shrink)

Strategic leadership and corporate sustainability have recently come together in conspicuously explicit fashion through the emergence of top management team positions with dedicated corporate sustainability responsibilities. These TMT positions, commonly referred to as “Chief Sustainability Officers,” have found their way into the upper echelons of many of the world’s largest corporations alongside more traditional TMT positions including the CEO and CFO. We explore this phenomenon and consider the following two questions: Why are corporate sustainability positions being installed to the TMT?What (...) effects do corporate sustainability TMT positions have at their organizations? We consider these questions through strategic leadership and neoinstitutional theoretical frameworks. Through the latter, we also engage with Weberian considerations of bureaucracy. We find that the reasons why corporate sustainability TMT positions are installed can be in response to a crisis at the corporation for which its legitimacy is challenged. We also find the corporate sustainability TMT position can be installed proactively in an effort to realize external opportunities that may have otherwise gone unrealized without concerted attention and coordination afforded by a strategic level position. Regarding effects, we determine the position can relate to the establishment of bureaucratic structures dedicated to corporate sustainability within the corporation through which formalized processes and key performance indicators to drive corporate sustainability performances are established. In the face of our finding that many corporate sustainability TMT positions are being removed despite having only relatively recently been introduced to their respective TMTs, we find that the successful implementation of bureaucratic machinery can help considerations to sustainability extend beyond the tenure of a corporate sustainability position within the TMT. (shrink)

This paper describes an exploratory study of corporate responsibility, corporate reputation, and stakeholder support in Norway, Sweden and Denmark—countries recognized worldwide as providing an institutional climate uniquely conducive to responsible business practice. Conducting a secondary analysis of Scandinavian data from Reputation Institute’s extensive global research on corporate reputation and responsibility, we examine four key questions: First, do Scandinavians agree with external observers that firms in their countries demonstrate superior levels of corporate responsibility? Second, relative to other reputation drivers, to what (...) extent does corporate responsibility predict corporate reputation for the countries in our dataset? Third, to what extent does corporate responsibility predict stakeholder intent in these countries to engage in supportive behavior toward the firm? Finally, are stakeholder perceptions of and responses to corporate responsibility sufficiently similar across Norway, Sweden, and Denmark to justify claims for a monolithic “Scandinavian approach” to CSR? Previous research examining the relationship of corporate responsibility to corporate reputation and stakeholder support is reviewed, analytical methods are described, results presented, and implications discussed. The article concludes with analysis of study limitations and directions for future research. (shrink)

We develop a framework for understanding how lack of clarity in business press coverage of corporate social responsibility functions as a mediated and emergent form of strategic ambiguity. Many stakeholders expect CSR to exhibit clarity, consistency, and discursive closure. But stakeholders also expect CSR to conform to varying degrees of both formal and substantive rationality. These diverse expectations conflict with each other and change over time. A content analysis of press coverage in Denmark suggests that the business media reflect and (...) amplify the ambiguity generated by these shifting demands. We propose that this very public lack of discursive closure provides strategic advantages to CSR stakeholders by rendering the concept of CSR adaptable, resilient, and meaningful to diverse interests. From this perspective, strategic ambiguity emerges from a relational and mediated process, not from the direct intentions of individual stakeholders. Our framework suggests that CSR is best understood not as a clear or consistent agenda, but rather as a forum for sensemaking, diversity of opinion, and debate over the conflicting social norms and expectations attached to corporate activity. (shrink)

In this article, we first provide evidence that Scandinavian contributions to stakeholder theory over the past 50 years play a much larger role in its development than is presently acknowledged. These contributions include the first publication and description of the term “stakeholder”, the first stakeholder map, and the development of three fundamental tenets of stakeholder theory: jointness of interests, cooperative strategic posture, and rejection of a narrowly economic view of the firm. We then explore the current practices of Scandinavian companies (...) through which we identify the evidence of relationships to these historical contributions. Thus, we propose that Scandinavia offers a particularly promising context from which to draw inspiration regarding effective company-stakeholder cooperation and where ample of examples of what is more recently referred to as “creating shared value” can be found. We conclude by endorsing the expression “Scandinavian cooperative advantage” in an effort to draw attention to the Scandinavian context and encourage the field of strategic management to shift its focus from achieving a competitive advantage toward achieving a cooperative advantage. (shrink)

The creation of a specialized executive position that oversees sustainability activities represents a distinct shift in the structure of top management teams and their approach for addressing sustainability concerns. However, little is known about these management team members, namely the corporate sustainability officers or CSOs. We examine CSO appointments and their association with subsequent sustainability performance. Our results indicate that the creation of a CSO position may represent more of a symbolic versus substantive governance mechanism. Further tests suggest that CSO (...) expertise and the firm’s existing sustainability performance affect the association between the CSO and post-appointment sustainability performance. We find no association between CSO appointments and subsequent sustainability performance for firms that were already poor performers, while firms possessing relatively higher levels of prior sustainability performance appointing a CSO begin to experience significant improvements to performance after 3 years. We further find that CSOs with prior sustainability expertise are associated with increases in sustainability performance in firms that were already strong performers, but not in firms with poor sustainability performance. Non-expert CSOs, on the other hand, are associated with initial decreases in performance for poor performing firms, whereas better performing firms hiring non-expert CSOs are able to rely on other sustainability attributes of the firm and benefit from improvements in performance in the long term. We discuss the potential importance of these positions as it relates to symbolic versus substantive governance mechanisms through the lens of top management team literature streams. (shrink)

The aim of this article is to explain the transition from implicit CSR to explicit CSR that has taken place in Scandinavia over the last two decades. Matten and Moon’s distinction between implicit and explicit CSR is the point of departure for the analysis, which is based on case studies of two Norwegian companies: HÅG and Hydro. On the basis of these case studies, we identify two forces that are pushing the transition from implicit to explicit CSR in Scandinavia: Organizational (...) expressiveness and Re-legitimizing. Both of these measures are adjustments to the globalization of the economy, altering the competitive situation even in highly institutionalized, Scandinavian economies. HÅG, a midsized Norwegian manufacturer of office chairs, made CSR and environmental values an integral part of their expressive strategy in the early 1990s. Hydro, a big Norwegian aluminium producer, made CSR an explicit issue around the turn of the millennium, in an attempt to re-legitimize their business operations in a new market situation where plants in local communities in Norway were shut down and relocated to less regulated regimes in low-cost regions abroad. (shrink)

Prior work shows limited success in retail firms’ efforts to create socially responsible supply chains by enforcing suppliers’ compliance with labor standards, partly due to conflicting sourcing demands exerted on the supplier by siloed functional units within the retail firm. To ensure the substantive adoption of labor standards throughout its supply chain, we argue that the retail firm must improve their degree of “supply chain labor compliance integration” by minimizing cross-functional tensions in human capital, identities, processes and goals. We define (...) supply chain labor compliance integration, identify its determinant organizational practices that reduce cross-functional tensions, and explain the mechanisms by which it improves the retail firm’s supply chain labor standards performance. This work offers theoretical and practical insights on the retail firm’s capacity for managing socially responsible supply chains, and more broadly, on how systematically minimizing intra-organizational tensions arising in the pursuit of competing organizational priorities is a prerequisite for their simultaneous execution in inter-organizational business exchanges. (shrink)