Based on a survey and content analysis of 462 peer-reviewed academic articles over the period 1990–2014, this article reviews theories related to the external drivers of corporate social responsibility and the internal drivers of CSR that have been utilized to explain CSR. The article discusses the main tenets of the principal theoretical perspectives and their application in CSR research. Going beyond previous reviews that have largely failed to investigate theory applications in CSR scholarship, this article stresses the importance of theory-driven (...) explanations of CSR and the complementarity of different theories. The article demonstrates that the current mainstream theorizing of CSR is dominated by theories related to the external drivers of CSR and is less developed with regard to the internal dynamics. The article outlines several productive avenues for future research: the need for multi-theory studies and more research at multiple levels of analysis, particularly at the individual level of analysis. It suggests that CSR scholarship can benefit from combining theoretical insights from a range of established theoretical lenses such as institutional theory and RBV, and can gain new insights from theoretical lenses such as Austrian economics and micro-level psychological theories. (shrink)

The goal of this paper is to examine whether business performance is affected by the adoption of practices included under the term Corporate Social Responsibility (CSR). To achieve this goal, we analyse the relation between CSR and certain accounting indicators and examine whether there exist significant differences in performance indicators between European firms that have adopted CSR and others that have not. The effects of compliance with the requirements of CSR were determined on the basis of firms included in the (...) Dow Jones Sustainability Index (DJSI), and specific accounting indicators were applied to measure performance. For the purposes of this study, we selected one group of firms belonging to the DJSI and another comprised of firms quoted on the Dow Jones Global Index (DJGI) but not on the DJSI. The sample was made up of two groups of 55 firms, studied for the period 1998–2004. Empirical analysis supports the conclusion that differences in performance exist between firms that belong to the DJSI and to the DJGI and that these differences are related to CSR practices. We find that a short-term negative impact on performance is produced. (shrink)

This article examines multinational banks’ approaches to corporate social responsibility in developing countries’ subsidiaries, particularly in Latin America. Building on in-depth case studies of two MNBs that are based in Europe and market leaders in Latin America, we analyze their CSR motivations and outcomes in host countries. We examine institutional environments by applying the national business system framework, and we suggest missing categories in its financial and educational dimensions. We theorize how institutional necessity determines MNBs' CSR in developing countries. Finally, (...) we examine the CSR outcomes in Latin America, where banks’ responsible conduct has led to major improvements in educational levels and financial inclusion. These improvements alleviate poverty and enhance both country's social wellbeing and MNBs’ legitimacy, leading to mutual prosperity. (shrink)

This study explores why and how firms respond to social demands through philanthropic giving in the context of a severe natural disaster. Drawing on Marquis and Qian's organizational response model to government signals, we integrate resource dependence theory and institutional theory to build a two-step model of organizational response to social needs, in situations of disaster relief. We argue that firms depending more on the government for support are more likely to donate in disaster relief, while firms who receive more (...) scrutiny from the government and the general public and firms having more slack resources are likely to donate more. Evidence from Chinese listed companies' donations to the 2008 Sichuan earthquake largely supports our predictions. This study provides a more precise understanding of the corporate philanthropic decision process, decoupling the drivers of philanthropic giving, and those determining the amount given. Theoretical and practical implications are suggested. (shrink)

This study examines the effect of integrating sustainability into corporate strategy on various aspects of shareholder value creation and financial performance in the British capital market. The employed method is based on the content analysis of corporate disclosures and a new technique for assessing the adoption of the corporate sustainability concept. Using extensive data of FTSE 350 firms covering the years 2006–2012, 65 companies were selected as meeting corporate sustainability criteria. For the above period, we find that these firms were (...) characterized by higher financial risk exposure, lower asset growth rates, lower BV/MV ratios, lower EVA ratios, and higher MVA ratios. Such relations were generally present among different size and industry groupings. The results support the thesis that firms that incorporate sustainability issues into their business operations are better able to leverage their resources toward stronger financial performance and shareholder value creation than other companies. The paper contributes to the literature by offering a more holistic approach to corporate sustainable performance measurement and shedding additional light on its relation to financial performance in the context of the recent global financial crisis and its direct aftermath. (shrink)

This article addresses four hypotheses: (a) that corporate social responsibility (CSR) in Asia is not homogeneous but varies among countries, (b) that the variation is explained by stages of development, (c) that globalization enhances the adoption of CSR in Asia, and (d) that national business systems structure the profile of multinational corporations’ CSR. These hypotheses are investigated through analysis of Web site reporting of 50 companies in seven Asian countries: India, Indonesia, Malaysia, the Philippines, South Korea, Singapore, and Thailand. The (...) article concludes that CSR does vary considerably among Asian countries but that this variation is not explained by development but by factors in the respective national business systems. It also concludes that multinational companies are more likely to adopt CSR than those operating solely in their home country but that the profile of their CSR tends to reflect the profile of the country of operation rather than the country of origin. (shrink)

This paper capitalizes on an institutional perspective to analyze corporate social responsibility (CSR) orientations in the Lebanese context. Specifically, the paper compiles a new theoretical framework drawing on a multi-level model of institutional flows by Scott (Institutions and organizations: ideas and interests, 2008 ) and the explicit/implicit CSR model by Matten and Moon (Acad Manag Rev 33(2):404–424, 2008 ). This new theoretical framework is then used to explore the CSR convergence versus divergence question in a developing country context. The findings (...) highlight the usefulness of the compiled multi-layered institutional framework and the varied nuances and profound insights it offers in analyzing CSR in context. They also suggest that a cosmetic level of global convergence in explicit CSR may materialize in light of mimetic isomorphic pressures, but that the path dependence hypothesis is indeed salient in light of national history trajectories and socio-politico configurations. The findings correspond most closely to patterns of CSR crossvergence, combining elements of both convergence and divergence, and reflecting in complex hybridized CSR expressions. The findings and their implications are presented and assessed. (shrink)

Even though the link between perceived corporate social responsibility fit and corporate reputation has received much attention from scholars, this tradition has ignored that the underpinnings of this association vary depending on the particular characteristics of each industry under study. To delve into this matter, we investigate in the increasingly relevant context of controversial industries how PCSR-fit could enhance corporate reputation and which are the mediating mechanisms of this association. Our academic contribution is twofold. First, we find that controversial sectors (...) indeed can increase corporate reputation through CSR activities. However, we find that to achieve this goal, the nature of PCSR-fit should be different than what extant literature indicates, because companies in these settings should directly focus on avoiding or reducing their inherent controversial harm or impact. Second, we evidence that “CSR initiatives' legitimacy” and “situational skepticism” mediate the PCSR-fit and corporate reputation relationship in CIs. Therefore, we further unravel the underpinnings of this association to advance what we know on the matter and aid practitioners in this particular context. (shrink)

With the advent of globalization, the track record of multinational corporations (MNCs) has been mixed at best in relation to their Corporate Social Responsibility (CSR) involvement in developing countries. This article attempts to cross-fertilize insights from the business-society and international business political behavior literature streams to identify relevant dimensions and contingencies that can be used to analyze the CSR of MNCs in developing countries and the extent of standardization or localization of their strategies. The article makes use of the new (...) theoretical framework in the context of an interpretive research methodology to examine the CSR orientations of a sample of MNC subsidiaries in Lebanon. The findings reveal patterns of global CSR being diffused to developing countries, but also being diluted along the way in view of specific subsidiary endowments and host market characteristics. (shrink)

This article addresses four hypotheses: (a) that corporate social responsibility (CSR) in Asia is not homogeneous but varies among countries, (b) that the variation is explained by stages of development, (c) that globalization enhances the adoption of CSR in Asia, and (d) that national business systems structure the profile of multinational corporations’ CSR. These hypotheses are investigated through analysis of Web site reporting of 50 companies in seven Asian countries: India, Indonesia, Malaysia, the Philippines, South Korea, Singapore, and Thailand. The (...) article concludes that CSR does vary considerably among Asian countries but that this variation is not explained by development but by factors in the respective national business systems. It also concludes that multinational companies are more likely to adopt CSR than those operating solely in their home country but that the profile of their CSR tends to reflect the profile of the country of operation rather than the country of origin. (shrink)

The state governance system seems to be incapable to address sufficiently global public goods problems or to regulate global business so that the public interest is served. At the same time, international governmental organizations are unable to fill the governance gap while nongovernmental organizations criticize the behavior of business firms along their supply chains. Therefore, business firms are confronted with increasing social and environmental demands and are requested to take responsibility for issues of public concern. As a response, some business (...) firms engage with corporate social responsibility projects and directly contribute to the production of public goods. These developments challenge the received theory of the firm and its strict separation of public and private domains. Corporations become political actors. In this introductory essay, the guest editors first elaborate on the concept of politics and describe the challenges that lead to the new political role of global business firms and, second, will introduce the articles in this special issue and briefly comment on their contribution. (shrink)

We seek to add to the Corporate Social Responsibility (CSR) and Sustainable Development (SD) literature through the empirical study of Latin American firm membership in the United Nations Global Compact (GC) and Global Report Initiative (GRI). Within an institutional-based framework, we explore through three filters – commercial, state-signaling, and distinguished peers – the impact of normative and mimetic pressures associated with GC/gri membership. Our sample includes 207 public firms from six Latin American countries (Argentina, Brazil, Chile, Colombia, Mexico, and Peru). (...) Our results suggest Latin American firms from countries with a greater European influence (normative pressure) are twice as likely to be enrolled in the GC/gri. Additionally, we find that Latin American firms listed on the NYSE (mimetic pressure) are also twice as likely to sign up under the GC/gri. Hence, the normative and mimetic pillars of institutional theory are found to be significant factors for Latin American firms adopting sustainability initiatives. (shrink)

There are two different, and somewhat competing, strategic explanations for why firms certify for ISO 14001. On the one hand, firms may seek to reinforce their present strategies thereby further enhancing their competitive advantage. On the other hand, firms may use ISO 14001 as a mechanism to reorient their strategies, so that a clear signal is sent about the firm's change in strategic positioning. This paper aims to identify the most likely explanation for early adopters of ISO 14001. Using a (...) matched pair design, we test these alternative explanations on a sample of US firms that certified for ISO 14001 in the first two years after its introduction. In particular, we tested whether ISO 14001 was used to reinforce or reorient firm strategies in respect to the natural environment, corporate social responsibility, quality, and internationalization. We found that firms that certified early for ISO 14001 had considerable environmental legitimacy and a strong international presence. We also found that the firm's commitment to corporate social responsibility and quality were not significantly different between certified and non-certified firms. These findings suggest that early adopters of ISO 14001 leaned towards reinforcing rather than reorienting their firm strategy, which calls into question the ultimate reach of ISO 14001. (shrink)

According to attention-based theories, to explain organizational attention is to explain organizational behavior. In our study, we test the model of situated attention and firm behavior by examining the effects of attention structures and allocation of attention on organizational outcomes. We hypothesize a positive relationship between attention structures and the allocation of organizational attention that, in turn, has an effect on financial performance. Using a unique data set composed of indicators of social responsibility published by 338 Brazilian organizations between 2001 (...) and 2007, we find support for our hypotheses. Our findings suggest that organizational attention to social issues fully mediates the relationship between attention structures and financial performance. (shrink)

Although an important feature of firms’ corporate social responsibility, the strategic pressures behind firms’ corporate philanthropy are not well researched or understood. This research note argues that firms’ CP and firms’ corporate political activity may share common strategic antecedents; forces in firms’ political environment may shape both CP and CPA. Using S&P 500 data in a longitudinal analysis, the authors find evidence suggesting that industry-level political uncertainty increases firm propensity for engaging in both CP and CPA, above and beyond the (...) propensity to engage in either as a stand-alone strategy. The authors use this preliminary evidence to explore political marketplace contingencies for the relationship between CP and CPA. CSR literature indicates that CP can benefit firms by creating and enhancing their relational wealth and institutional legitimacy. Such benefits may also serve firm interactions with government policy makers—a dynamic largely ignored until recently. The authors’ findings may indicate that, due to its institutional signaling ability and impact on firms’ reputations, CP may allow firms to differentiate themselves or stand out from others when faced with political uncertainty, and that these outcomes should be considered when firms engage in CP. (shrink)

This article draws from theories of business-government relations and Austrian economics to develop a model relating firm performance to the firm’s market and nonmarket actions. Nonmarket actions represent one mechanism for the implementation of firm strategies. The model is tested using an original data set covering airlines serving international routes in the North Atlantic region. Results suggest that nonmarket actions have a positive and significant impact on performance, measured in three ways: profits, market share, and capacity utilization.