The Corporate Social Responsibility (CSR) field presents not only a landscape of theories but also a proliferation of approaches, which are controversial, complex and unclear. This article tries to clarify the situation, mapping the territory by classifying the main CSR theories and related approaches in four groups: (1) instrumental theories, in which the corporation is seen as only an instrument for wealth creation, and its social activities are only a means to achieve economic results; (2) political theories, which concern themselves (...) with the power of corporations in society and a responsible use of this power in the political arena; (3) integrative theories, in which the corporation is focused on the satisfaction of social demands; and (4) ethical theories, based on ethical responsibilities of corporations to society. In practice, each CSR theory presents four dimensions related to profits, political performance, social demands and ethical values. The findings suggest the necessity to develop a new theory on the business and society relationship, which should integrate these four dimensions. (shrink)

A critical and notoriously elusive issue in Corporate Social Responsibility (CSR) research is the impact of Corporate Social Performance (CSP) on the bottom line. Instead of looking for direct correlations between social and financial performance, we hypothesize that the first result of CSR activities is the creation of trust among the stakeholders. A survey conducted on consumers of organic products provided support for our hypothesis, showing that CSP influences consumer trust and that that trust in turn influences consumers' subsequent actions. (...) The findings further suggest that intermediate variables between CSP and Corporate Financial Performance (CFP) may best support a business case for CSR. (shrink)

This article examines how well the Kinder, Lydenberg, Domini Research & Analytics ratings measure past corporate social performance and predict future corporate social performance in Diversity and Governance categories. The results show that the KLD ratings effectively measure and predict social performance in both categories. The results also suggest that the KLD ratings may identify differences in the quality of management and firm which can affect future social performance and is not entirely explained by past social performance. The findings of (...) this study lend some support for empirical studies relying on the KLD ratings to operationalize corporate social performance. The findings suggest that users of the ratings need to have a clear understanding of what information they are seeking from the KLD ratings in order to maximize the utility of these ratings. (shrink)

This study examines the importance of external monitoring and public reporting on the performance of firms in the global apparel industry. By focusing on the relevance of company reputation in the global community, the authors examine financial performance and stock market reaction to the release of information describing the manufacturing practices of firms made available by a third-party monitor. Using agency theory as a predictive framework, industry-wide changes in market measures of company risk as a result of third-party monitoring are (...) found, suggesting that society values such external reports. The authors’ findings are important to business and society because they bridge the gap in knowledge about how voluntary compliance programs are supplemented by external monitoring and reporting for firms operating in the global environment. This work suggests that external monitoring is valuable to business and society by reducing information asymmetry between the two groups and encouraging accurate assessment of the risks associated with global operations. (shrink)

This study contributes to the work on board composition and firm corporate social responsibility by extending it to the environmental domain. It evaluates the relationship between boards of directors’ composition and environmental corporate social responsibility by integrating literatures on board composition, firm corporate social responsibility, and individual differences in attitudes toward and information about environmental issues. Using disclosed company data and the natural environment ratings data from Kinder Lydenberg Domini Inc. for 78 Fortune 1000 companies, the study finds that a (...) higher proportion of outside board directors is associated with more favorable ECSR and higher KLD strengths scores. Firms with boards composed of three or more female directors received higher KLD strengths scores. And, boards whose directors average closer to 56 years in age and those with a higher proportion of Western European directors are more likely to implement environmental governance structures or processes. Our results also reinforce growing concerns around unidimensional KLD measures. (shrink)

Corporate social responsibility is a tortured concept. A number of alternative definitions of the construct exist at the theoretical level, and much debate surrounds the meaning of the term. Empirically, CSR research reaches few remarkable conclusions. In this article, the authors reconceptualize CSR into a number of discrete corporate social responsibilities , each of which can have a positive or negative social impact, and each of which has an endogenous managerially driven component and an exogenous stakeholder-driven component. Using an industry-level (...) sample drawn from the KLD database, the authors test the impact of hypothesized drivers of CSR on various CSRs. (shrink)

The authors review three theoretical approaches to strategic corporate social responsibility (CSR), which can be defined as voluntary CSR actions that enhance a firm’s competitiveness and reputation. The end result of such activities should be an improvement in financial and economic performance. Based on an overview of recent empirical evidence, the authors conclude that economic theories of strategic CSR have the greatest potential for advancing this field of inquiry, although theories of strategic leadership should also be incorporated into this perspective. (...) In the remainder of the article, they provide focused summaries of the articles presented in this special issue and outline an agenda for future research on strategic CSR and environmental sustainability. (shrink)

This research draws on the stakeholder salience framework to explore more deeply the web of business–stakeholder relationships that characterize the Fortune Global 100’s corporate social responsibility and sustainability reports. By better understanding stakeholder salience, defined as the power, legitimacy, and urgency attributed to stakeholders in these corporate reports, this research enables business leaders and scholars to further their recognition and comprehension of the characteristics of the critical stakeholder relationships that link business’s social and sustainability performance with its economic performance—the triple (...) bottom line. Despite the predictions of this research, nationality was not found to be a differentiating factor of stakeholder salience, whereas industry membership, in one of two instances, was found to differentiate stakeholder salience in the corporate reports. Implications of these findings are discussed. (shrink)

This article analyzes the process of organizing collective action by studying the role of the organizational platform provided by the United Nations–backed Principles for Responsible Investment (PRI) initiative in supporting institutional investors’ collaborative engagement with corporations on environmental, social, and governance issues. The authors combine stakeholder and collective action theory to explain how institutional investors influence corporations through collective engagement. A unique access to data from the PRI secretariat on two cases of collaborative campaigns allows evaluation of our framework. The (...) findings clarify how investors enhance their sources of power, legitimacy, and urgency and attract managers’ attention through collaborative engagement, and show how they manage these attributes to reshape the legitimacy and urgency of their claims in the eyes of managers. Our data suggest that “enabling organizations” such as the PRI initiative facilitate the emergence of collective action by lowering barriers to entry and providing a mobilizing structure, support collaborative efforts by adding their own legitimacy, normative power, and persistence to the collaborative engagement, and create conditions for a lasting dialogue between investors and managers by providing a hybrid organizational space. (shrink)

There is an impressive history associated with the evolution of the concept and definition of corporate social responsibility (CSR). In this article, the author traces the evolution of the CSR construct beginning in the 1950s, which marks the modern era of CSR. Definitions expanded during the 1960s and proliferated during the 1970s. In the 1980s, there were fewer new definitions, more empirical research, and alternative themes began to mature. These alternative themes included corporate social performance (CSP), stakeholder theory, and business (...) ethics theory. In the 1990s, CSR continues to serve as a core construct but yields to or is transformed into alternative thematic frameworks. (shrink)

Scholars and practitioners have wondered and debated over the participation of business organizations in the corporate social environment as well as argued over the successes or limitations of such participation. The authors examined six firms' corporate social responsibility activities within the beer industry in an effort to identify and compare these firms' stakeholder relations. The results have implications in our understanding and assessment of corporate social responsibility practices both within and across business industry groups.

Building on earlier work on the relationship between corporate social performance (CSP) and a firm’s financial performance, this integrative empirical study supports the theoretical argument that the higher a firm’s CSP the lower its financial risk. Specifically, the relationship between CSP and risk appears to be one of reciprocal causality, because prior CSP is negatively related to subsequent financial risk, and prior financial risk is negatively related to subsequent CSP. Additionally, CSP is more strongly correlated with measures of market risk (...) than measures of accounting risk. Of all CSP measures, reputation for social responsibility appears to be the most important one in terms of its risk implications. (shrink)

This article analyzes the process of organizing collective action by studying the role of the organizational platform provided by the United Nations–backed Principles for Responsible Investment (PRI) initiative in supporting institutional investors’ collaborative engagement with corporations on environmental, social, and governance issues. The authors combine stakeholder and collective action theory to explain how institutional investors influence corporations through collective engagement. A unique access to data from the PRI secretariat on two cases of collaborative campaigns allows evaluation of our framework. The (...) findings clarify how investors enhance their sources of power, legitimacy, and urgency and attract managers’ attention through collaborative engagement, and show how they manage these attributes to reshape the legitimacy and urgency of their claims in the eyes of managers. Our data suggest that “enabling organizations” such as the PRI initiative facilitate the emergence of collective action by lowering barriers to entry and providing a mobilizing structure, support collaborative efforts by adding their own legitimacy, normative power, and persistence to the collaborative engagement, and create conditions for a lasting dialogue between investors and managers by providing a hybrid organizational space. (shrink)