Are trade unions a stakeholder in corporate social responsibility? An empirical study

Abstract

Trade unions and CSR are two of the self-regulating outcomes of the exploitative intentions of for-profit corporations and business climate. These exploitative intentions have increasingly affected these organisations' social and environmental sustainability and have also brought them in negative limelight, which has harmed their social image and reputation. Its impacts are seen in further repulsion of external stakeholders and investors from these firms. To avoid falling in this rabbit hole of unsustainability and repulsion, many organizations have started looking for strategies to achieve a socially sustainable image. This study investigates whether higher levels of trade union representation can influence employee friendliness, natural resource use, and social controversies. Drawing from the existing literature on CSR, it also investigates the impact of management effectiveness and shareholders effectiveness on these constructs of CSR and social sustainability. It also further extend these relationships to explore their association with business ethics and CSR reporting. The results of the study demonstrate trade unions as a strategic resource in CSR and sustainability, along with management effectiveness and propose a further exploration of a collective framework between them to enhance environmental and social sustainability.