Resource extraction companies worldwide are involved with Indigenous peoples. Historically these interactions have been antagonistic, yet there is a growing public expectation for improved ethical performance of resource industries to engage with Indigenous peoples. (Crawley and Sinclair, Journal of Business Ethics 45, 361–373 (2003)) proposed an ethical model for human resource practices with Indigenous peoples in Australian mining companies. This paper expands on this work by re-framing the discussion within the context of sustainable development, extending it to Canada, and generalizing (...) to other resource industries. We argue that it is unethical to sacrifice the viability of Indigenous cultures for industrial resource extraction; it is ethical to engage with indigenous peoples in a manner consistent with their wishes and needs as they perceive them. We apply these ideas to a case study in the coastal temperate rainforest of Clayoquot Sound, British Columbia, Canada. In this case a scientific panel comprised of Nuu-Chah-Nulth elders, forest scientists and management professionals, achieved full consensus on developing sustainable forest practice standards by drawing equally on Indigenous traditional ecological knowledge and Western science in the context of one of the most heated and protracted environmental conflicts in Canadian history. The resulting sustainable forest practice standards were later adopted by leading forestry firms operating on the coast. Our analysis of this scientific panels success provides the basis for advancing an ethical approach to sustainable development with Indigenous peoples. This ethical approach is applicable to companies working in natural resource industries where the territories of Indigenous peoples are involved. (shrink)

This article examines the role of social context in corporate social responsibility research. The authors direct attention to three major perspectives in organization studies—institutional, cultural, and cognitive—that bear on the social context and explore how these perspectives are used in CSR research. These perspectives are framed as representative of the levels at which CSR may be analyzed, and each perspective is associated with a certain level of social context: the institutional perspective relates to the external social context, the cultural perspective (...) relates to the organizational level, and the cognitive perspective relates to the individual level. The authors demonstrate how the CSR field can benefit by combining or integrating multiple perspectives that bear on the social context, and by engaging in more explicit multilevel analysis of the social context within which CSR practicesunfold. Three promising avenues for future CSR research are outlined: social ecology, cross-sector social partnerships, and strategy-as-practice. The authors argue that these avenues transcend levels and perspectives and offer the prospect of more context-sensitive CSR research. (shrink)

Being a controversial industry, oil companies turn to corporate social responsibility (CSR) as a means to obtain legitimacy. Adopting a case study methodology, this research examines the characteristics of CSR strategies and CSR communication tactics of six oil companies by analyzing their 2011–2012 web site content. We found that all six companies engaged in CSR activities addressing the needs of various stakeholders and had cross-sector partnerships. CSR information on these companies’ web sites was easily accessible, often involving the use of (...) multimedia technologies and sometimes social media platforms. Furthermore, to boost the credibility of their CSR messages, these companies utilized a variety of tactics, such as factual arguments and two-sided messages. In sum, this research unveils the interconnectedness among business strategy, CSR practices, and CSR communication in oil companies’ attempt to gain legitimacy in an environment of controversy. The article ends with a discussion of the theoretical and practical implications of the research findings. (shrink)

In this paper, we examine the relation between corporate social responsibility (CSR) and firm risk in controversial industry sectors. We develop and test two competing hypotheses of risk reduction and window dressing. Employing an extensive U.S. sample during the 1991-2010 period from controversial industry firms, such as alcohol, tobacco, gambling, and others, we find that CSR engagement inversely affects firm risk after controlling for various firm characteristics. To deal with endogeneity issue, we adopt a system equation approach and difference regressions (...) and continue to find that CSR engagement of firms in controversial industry sectors negatively affects firm risk. To examine the premise that firm risk is more of an issue for controversial firms, we further examine the difference between non-controversial and controversial firm samples, and find that the effect of risk reduction through CSR engagement is more economically and statistically significant in controversial industry firms than in non-controversial industry firms. These findings support the risk-reduction hypothesis, but not the window-dressing hypothesis, and the notion that the top management of U.S. firms in controversial industries is, in general, risk averse and that their CSR engagement helps their risk management efforts. (shrink)

It is a truism that some industries are controversial either because the processes employed or the resulting products, for instance, can potentially harm the well-being of people. The controversy that surrounds certain industries can sharply polarise public opinion and debate. In this article, we employ legitimacy theory and morality policy to show how one industry sector (the electronic gaming machine sector as part of the wider gambling industry) is subject to this reaction. We suggest that the difficulty in establishing legitimacy (...) surrounding CSR practices in this sector is related to morality policy, whereby ideology and personal values play important roles in dividing opinion. Thus, gambling is often framed as an activity that is morally and ethically problematic. To show how this can manifest, we examine the veracity of two state-funded studies in Australia used in the development of gambling policy and their subsequent adoption in academic research. We highlight methodological, analytical and reporting issues in these studies that normally should be identified by those using such findings. The significance is that when morality policy and conflict surrounding legitimacy are involved, then it can explain why adherence to normative research standards is potentially lowered. Our theoretical posture leads us to further speculate that the adoption and communication of CSR in electronic gambling will be contested by opponents of the industry. (shrink)

This article investigates corporate social responsibility (CSR) as an institution within UK multi-national corporations (MNCs). In the context of the literature on the institutionalization of CSR and on critical CSR, it presents two main findings. First, it contributes to the CSR mainstream literature by confirming that CSR has not only become institutionalized in society but that a form of this institution is also present within MNCs. Secondly, it contributes to the critical CSR literature by suggesting that unlike broader notions of (...) CSR shared between multiple stakeholders, MNCs practise a form of CSR that undermines the broader stakeholder concept. By increasingly focusing on strategic forms of CSR activity, MNCs are moving away from a societal understanding of CSR that focuses on redressing the impacts of their operations through stakeholder concerns, back to any activity that supports traditional business imperatives. The implications of this shift are considered using institutional theory to evaluate macro-institutional pressures for CSR activity and the agency of powerful incumbents in the contested field of CSR. (shrink)

In this article, we examine the empirical association between firm value and CSR engagement for firms in sinful industries, such as tobacco, gambling, and alcohol, as well as industries involved with emerging environmental, social, or ethical issues, i.e., weapon, oil, cement, and biotech. We develop and test three hypotheses, the window-dressing hypothesis, the value-enhancement hypothesis, and the value-irrelevance hypothesis. Using an extesive US sample from 1995 to 2009, we find that CSR engagement of firms in controversial industries positively affects firm (...) value after controlling for various firm characteristics. To address the potential endogeneity problem, we further estimate a system of equations and change regression and continue to find a positive relation between CSR engagement and firm value. Our findings support the value-enhancement hypothesis and are consistent with the premise that the top management of US firms in controversial industries, in general, considers social responsibility important even though their products are harmful to human being, society, or environment. (shrink)

Business ethicists should examine not only business practices but whether a particular type of business is even prima facie ethical. To illustrate how this might be done I here examine the contemporary U.S. defense industry. In the past the U.S. military has engaged in missions that arguably satisfied the just war self-defense rationale, thereby implying that its suppliers of equipment and services were ethical as well. Some recent U.S. military missions, however, arguably fail the self-defense rationale. At issue, then, is (...) whether a business supporting these latter missions may not be circumstantially unethical. No it is not, say defense industry advocates, for two principal reasons. For one, this business benefits society at large in numerous ways. And, for another, the organizer of these military missions is a superpower which by its very nature is not subject to the ethical constraints of the self-defense rationale. I dispute both reasons, argue against the second, and conclude that the U.S. military-industrial complex (MIC) is circumstantially unethical. (shrink)

This paper reviews and analyses the implications of citizenship thinking for building ethical institutional arrangements for business. The paper looks at various stakeholder groups whose relation with the company changes quite significantly when one starts to conceptualize it in terms of citizenship. Rather than being simply stakeholders, we could see those groups either as citizens, or as other constituencies participating in the administration of citizenship for others, or in societal governance more broadly. This raises crucial questions about accountability and democracy (...) in stakeholder relations with the corporation. We sketch out the main currents informing and emerging from the citizenship perspective on firm-stakeholder relations; analyze specific stakeholder groups and their particular relevance in the context of a citizenship perspective; and conclude with a discussion of the broader implications in terms of building ethical institutions. (shrink)

Published posthumously in the early 1920's, Max Weber's Economy and Society has since become recognized as one of the greatest sociological treatises of the 20th century, as well as a foundational text of the modern sociological imagination. The first strictly empirical comparison of social structures and normative orders conducted in world-historical depth, this two volume set of Economy and Society—now with new introductory material contextualizing Weber’s work for 21st century audiences—looks at social action, religion, law, bureaucracy, charisma, the city, and (...) the political community. Meant as a broad introduction for an educated general public, in its own way Economy and Society is the most demanding textbook yet written by a sociologist. The precision of its definitions, the complexity of its typologies, and the wealth of its historical content make the work an important challenge to our sociological thought: for the advanced undergraduate who gropes for her sense of society, for the graduate student who must develop his own analytical skills, and for the scholar who must match wits with Weber. (shrink)

Several researchers have suggested that a talented, quality workforce will become a more important source of competitive advantage for firms in the future. Drawing on social identity theory and signaling theory, the authors hypothesize that firms can use their corporate social performance (CSP) activities to attract job applicants. Specifically, signaling theory suggests that a firm’s CSP sends signals to prospective job applicants about what it would be like to work for a firm. Social identity theory suggests that job applicants have (...) higher self-images whenworking for socially responsive firms over their less responsive counterparts. The authors conducted an experiment in which they manipulated CSP and found that prospective job applicants are more likely to pursue jobs from socially responsible firms than from firms with poor social performance reputations. The implications of these findings for academicians and practitioners alike are discussed. (shrink)

Online gambling companies claim that they are ethical providers. They seem committed to corporate social responsibility (CSR) practices that are aimed at preventing or minimising the harm associated with their activities. Our empirical research employed a sample of 209 university student online gamblers, who took part in an online survey. Our findings suggest that the extent of online problem gambling is substantial and that it adversely impacts on the gambler's mental and physical health, social relationships and academic performance. Online problem (...) gambling seems to be related to the time spent on the Internet and gambling online, parental/peer gambling and binge drinking. As our findings show that there are harmful repercussions associated with online gambling, we argue that companies in this controversial sector cannot reach the higher level of CSR achieved by other industries. Nevertheless, they can gain legitimacy on the basis of their CSR engagement at a transactional level, and so, by meeting their legal and ethical commitments and behaving with transparency and fairness, the integrity of the company can be ensured. We also argue that current failures in the implementation and control of CSR policies, the reliance on revenue from problem gamblers' losses, and controversial marketing activities appear to constitute the main obstacles in the prevention or minimisation of harm related to online gambling. As online gambling companies must be responsible for the harm related to their activities, we suggest that CSR policies should be fully implemented, monitored and clearly reported; all forms of advertising should be reduced substantially; and unfair or misleading promotional techniques should be banned. The industry should not rely on revenue from problem gamblers, nor should their behaviour be reinforced by marketing activities (i.e. rewards). We realise, however, that it is unrealistic to expect the online gambling industry to prioritise harm prevention over revenue maximisation. Policy makers and regulators, therefore, would need to become involved if the actions suggested above are to be undertaken. CSR is paramount to minimise harm and provide a healthier user experience in this business sector, but it also poses marketing dilemmas. We support a global collaborative approach for the online gambling industry, as harm related to gambling is a public health issue. (shrink)

This paper documents a quantitative study into socially responsible principles and practices adopted in registered clubs in New South Wales Australia to manage one of their social impacts – problem gambling. The survey utilised an adapted version of Aupperle''s (1982) corporate social responsibility instrument to measure the priority given to economic, legal, ethical and discretionary principles in club machine gambling operations. The survey also assessed support for certain management practices in responsible gambling. The results indicate that the participating club managers (...) prioritise economic, legal, ethical and discretionary principles respectively, and that these are statistically related to practices they have implemented and support in responsible gambling. The managers most favoured secondary harm minimisation practices, followed by reactive primary intervention. Less favoured were proactive primary intervention and discretionary practices. These principles and practices contrast markedly with those advocated by key stakeholder groups, as expressed in semi-structured interviews and submissions to the NSW Gaming Inquiry. Non-industry stakeholders favoured a more balanced set of principles and a more holistic set of management practices in responsible gambling. The results also provide validation of Aupperle''s (1982) instrument when applied to corporate management of a single social impact and for Carroll''s (1979, 1991) construct of corporate social responsibility. (shrink)

There appears to be an implicit assumption by those connected with the ethical investment movement (e.g., ethical investment firms, individual investors, social investment organizations, academia, and the media), that ethical investment is in fact ethical. This paper will attempt to challenge the notion that the ethical mutual fund industry, as currently taking place, is acting in an ethical manner. Ethical issues such as the transparency of the funds and advertising are discussed. Ethical mutual fund screens such as tobacco, alcohol, gambling, (...) and the military are preliminarily examined to better determine whether they can actually be defined as "ethical" screens as opposed to merely social, political, or religious screens. A code of ethics for ethical investment is constructed by which ethical mutual fund firms can be audited for ethical compliance. (shrink)

Controversial industry sectors, such as alcohol, gambling, and tobacco, though long-established, suffer organizational legitimacy problems. The authors consider various strategies used to seek organizational legitimacy in the U.K. casino gambling market. The findings are based on a detailed, multistakeholder case study pertaining to a failed bid for a regional supercasino. They suggest four generic strategies for seeking organizational legitimacy in this highly complex context: construing, earning, bargaining, and capturing, as well as pathways that combine these strategies. The case analysis and (...) proposed bidimensional model of generic legitimacy-seeking strategies contribute to limited literature on organizational legitimacy in controversial industry sectors. In addition, beyond organizations active in controversial contexts, this study and its implications are useful for individuals and organizations supporting or opposing the organizational legitimacy of organizations in controversial industries. (shrink)

This paper analyzes the determinants of corporate reputation within a sample of large UK companies drawn from a diverse range of industries. We pay particular attention to the role that philanthropic expenditures and policies may play in shaping the perceptions of companies among their stakeholders. Our findings highlight that companies which make higher levels of philanthropic expenditures have better reputations and that this effect varies significantly across industries. Given that reputational indices tend to reflect the financial performance of organizations above (...) other factors (Fryxell, G. E. and J. Wang: 1994, Journal of Management 20, 1–14) and that elements of the literature emphasise that discretionary aspects of social responsibility, including corporate donations, may not be in the financial interests of organizations (e.g. Friedman, M.: 1970, “The Social Responsibility of Business is to Increase its Profits”, New York Times Magazine, September 13), this is a significant finding. It suggests that philanthropic expenditures may play a significant role in stakeholder management and may, in particular, lead to stakeholders holding more positive impressions of philanthropic corporations. (shrink)

Tobacco companies have started to position themselves as good corporate citizens. The effort towards CSR engagement in the tobacco industry is not only heavily criticized by anti-tobacco NGOs. Some opponents such as the the World Health Organization have even categorically questioned the possibility of social responsibility in the tobacco industry. The paper will demonstrate that the deep distrust towards tobacco companies is linked to the lethal character of their products and the dubious behavior of their representatives in recent decades. As (...) a result, tobacco companies are not in the CSR business in the strict sense. Key aspects of mainstream CSR theory and practice such as corporate philanthropy, stakeholder collaboration, CSR reporting and self-regulation, are demonstrated to be ineffective or even counterproductive in the tobacco industry. Building upon the terminology used in the leadership literature, the paper proposes to differentiate between transactional and transformational CSR arguing that tobacco companies can only operate on a transactional level. As a consequence, corporate responsibility in the tobacco industry is based upon a much thinner approach to CSR and has to be conceptualized with a focus on transactional integrity across the tobacco supply chain. (shrink)

The goal of this paper is to provide a general discussion about the legitimacy of corporate social responsibility. Given that social responsibility projects entail costs, it is not always obvious under what precise conditions managers will have a responsibility to engage in activities primarily designed to promote societal goals.In this paper we discuss four distinct criteria for evaluating the legitimacy of corporate projects for institutionalizing social responsibility.