Critics of SRI have said little about the integrity of corporate representations resulting in screening inclusion or exclusion. This is surprising given social and environmental accounting research that finds corporate posturing and deception in the absence of external verification, and a parallel body of literature describing corporate "greenwashing" and other forms of corporate disinformation. In this paper I argue that the problems and challenges of ensuring fair and accurate corporate social reporting mirror those accompanying corporate compliance with law. Similarities and (...) points of convergence between social reporting and corporate compliance are discussed, along with proposals for reform. (shrink)

The concept of acting intentionally is an important nexus where ‘theory of mind’ and moral judgment meet. Preschool children’s judgments of intentional action show a valence-driven asymmetry. Children say that a foreseen but disavowed side-effect is brought about 'on purpose' when the side-effect itself is morally bad but not when it is morally good. This is the first demonstration in preschoolers that moral judgment influences judgments of ‘on-purpose’ (as opposed to purpose influencing moral judgment). Judgments of intentional action are usually (...) assumed to be purely factual. That these judgments are sometimes partly normative — even in preschoolers — challenges current understanding. Young children’s judgments regarding foreseen side-effects depend upon whether the children process the idea that the character does not care about the side-effect. As soon as preschoolers effectively process the ‘theory of mind’ concept, NOT CARE THAT P, children show the side-effect effect.idea.. (shrink)

While it is generally agreed that companies need to manage their relationships with their stakeholders, the way in which they choose to do so varies considerably. In this paper, it is argued that when companies want to communicate with stakeholders about their CSR initiatives, they need to involve those stakeholders in a two-way communication process, defined as an ongoing iterative sense-giving and sense-making process. The paper also argues that companies need to communicate through carefully crafted and increasingly sophisticated processes. Three (...) CSR communication strategies are developed. Based on empirical illustrations and prior research, the authors argue that managers need to move from ‘informing’ and ‘responding’ to ‘involving’ stakeholders in CSR communication itself. They conclude that managers need to expand the role of stakeholders in corporate CSR communication processes if they want to improve their efforts to build legitimacy, a positive reputation and lasting stakeholder relationships. (shrink)

Participants compared the mental capacities of various human and nonhuman characters via online surveys. Factor analysis revealed two dimensions of mind perception, Experience and Agency. The dimensions predicted different moral judgments but were both related to valuing of mind.

While it is generally agreed that companies need to manage their relationships with their stakeholders, the way in which they choose to do so varies considerably. In this paper, it is argued that when companies want to communicate with stakeholders about their CSR initiatives, they need to involve those stakeholders in a two-way communication process, defined as an ongoing iterative sense-giving and sense-making process. The paper also argues that companies need to communicate through carefully crafted and increasingly sophisticated processes. Three (...) CSR communication strategies are developed. Based on empirical illustrations and prior research, the authors argue that managers need to move from ‘informing’ and ‘responding’ to ‘involving’ stakeholders in CSR communication itself. They conclude that managers need to expand the role of stakeholders in corporate CSR communication processes if they want to improve their efforts to build legitimacy, a positive reputation and lasting stakeholder relationships. (shrink)

Do firms gain environmental legitimacy when they conform to external expectations regarding the natural environment? Drawing on institutional logic and signaling theory, we investigate sources of heterogeneity in the impacts of environmental actions on environmental legitimacy. Longitudinal data about 325 publicly traded U.S. firms in polluting industries support the notion that environmental actions help firms gain environmental legitimacy. However, some actions instead can harm this legitimacy if environmental performance deteriorates and the firm is subject to intense scrutiny from nongovernmental organizations. (...) Thus, an important contribution of this research is to identify conditions under which greenwashing can backfire. (shrink)

Across four experiments, participants saw companies as capable of having ‘agentic’ mental states, such as having intentions, but incapable of having ‘experiential’ mental states, such as feeling pain. This difference in mental state ascription caused companies to elicit anger as villains, but not sympathy as victims. Differences in sympathy were mediated by perceived capacities for experience. When participants had a background leading companies (i.e. senior executives) or when a recognizable brand (i.e. Google) was anthropomorphized, perceptions of experience increased and the (...) sympathy gap disappeared. An organization seen as high in experience and low in agency (i.e. sports team) elicited more sympathy and less anger than companies. Our findings elucidate the mechanisms underlying the link between mental state ascription and moral judgment; the tendency to ascribe some mental states to organizations more easily than others; and the phenomenon whereby companies elicit anger as villains but fail to elicit sympathy as victims. (shrink)

Do environmental policy statements accurately represent corporate commitment to environmental sustainability? Because companies are not required by law to publish environmental policy statements or to verify that these statements are true using independent third parties, external stakeholders often wonder when a published commitment to a policy translates into actual policy implementation. The authors analyzed two independent databases to predict the circumstances under which large, leading-edge corporations in industry sectors will commit to and/or implement proactive corporate environmental policies and when it (...) is unlikely they will do so. The authors found that commitment to specific environmental policies does not vary greatly between industry sectors; however, policy implementation does. (shrink)

Of the many ethical corporate marketing practices, many firms use corporate social responsibility (CSR) communication to enhance their corporate image. Yet, consumers, overwhelmed by these more or less well-founded CSR claims, often have trouble identifying truly responsible firms. This confusion encourages ‘greenwashing’ and may make CSR initiatives less effective. On the basis of attribution theory, this study investigates the role of independent sustainability ratings on consumers’ responses to companies’ CSR communication. Experimental results indicate the negative effect of a poor sustainability (...) rating for corporate brand evaluations in the case of CSR communication, because consumers infer less intrinsic motives by the brand. Sustainability ratings thus could act to deter ‘greenwashing’ and encourage virtuous firms to persevere in their CSR practices. (shrink)