Corporate Social Responsibility Standards Research Articles

Evolving Normative Dynamics: Understanding China's Varied Approaches to Overseas Corporate Social Responsibility in the Belt and Road Initiative Era

China's Belt and Road Initiative (BRI) is nowadays a global development initiative, with which China pursues a new international identity as a “responsible major country.” The inadequate fulfilment of corporate social responsibility (CSR) in BRI partner countries however has tainted the BRI's cooperative “win–win” principle and sparked external legitimacy crises. This study explores how Chinese policymakers respond to overseas CSR challenges in the realms of environmental and societal responsibility. By integrating both constructivist and rationalist elements, we employ three key variables to facilitate cross-case comparisons. Our analysis reveals that China has favoured a parallel overseas CSR governance system that allows for tailored responses to specific contexts. China's nuanced approaches to international CSR standards reflect rational decisions influenced by issue-specific domestic–international normative fit, perceived legitimacy of the relevant international regime, and the significance of each issue to China's global status. This research offers insights into China's contextualised engagement with international CSR norms in the BRI era.

Building responsible and sustainable supply chain frameworks: limits of international investment law and the CSR initiatives taken by the EU and China

ABSTRACT Supply chains play a pivotal role in global economic relations, fostering growth, employment, and poverty alleviation. Multinational enterprises (MNEs) are central actors in these chains, bearing responsibilities towards workers and the environment. Corporate Social Responsibility (CSR) standards guide MNEs in assessing the societal and environmental impacts of their activities, though these standards remain largely voluntary. Recent investment treaty practice shows a trend to incorporate CSR provisions in international investment agreements (IIAs), but such clauses fail to impose direct human rights, labour and environmental obligations on investors. Amidst this landscape, the EU and China, major players in global trade and investment, have established diverging legal and policy frameworks to build responsible and sustainable supply chains. Considering these developments, the objectives of this article are twofold. First, the article explores the integration of CSR in international investment law. Second, it evaluates the different CSR initiatives taken by the EU and China that frame their foreign direct investments. Focusing on EU–China FDI relations, the article delineates implications for global supply chain governance offering insights into the evolving landscape of CSR frameworks, and the plagued path in adopting mandatory corporate responsibility standards.

The value of corporate social responsibility practices in a world more concerned about sustainability: A literature review

Corporate social responsibility (CSR) has been seen as an opportunity to increase reputation, cost savings, business and financial opportunities, and create economic and sustainable value. The purpose of this review is twofold: first to draw attention to the complex relationship between common CSR practices used to deal with critical issues for our society and the impact they have on the trust and loyalty of stakeholders. Second, based on a study of 91 documents, to identify the advantages/weaknesses of implementing recognized standards (ISO 14001, ISO 26000, GRI, SA8000, AA1000) in different sectors of the economy. The standards provide a guideline for the elaboration, disclosure, and evaluation of the transparency reports of CSR. Some indicators used to measure CSR are more focused on environmental topics but recognizing social justice as a priority is critical to promoting the well-being of internal and external stakeholders. Furthermore, CSR standards play a crucial role in our world because they encourage ethical behaviors that reinforce the values and integrity of our society. The future research agenda should be oriented to monitor the impact of CSR initiatives in complex scenarios, consider the voices of non-specialized stakeholders, and integrate approaches that make visible the consequences of these practices.

Impact of green financing on CSR and environmental policies and procedures

Despite increasing global attention towards sustainable development, the empirical linkage between green financing and the enhancement of environmental and social governance (ESG) practices within industries remains underexplored. This study investigates the influence of green financing on Corporate Social Responsibility (CSR) and environmental policies and procedures in 40 Chinese industries from 2010 to 2020. By employing a baseline regression and a difference-in-differences methodology, this paper aims to quantify the extent to which green financing initiatives have impacted CSR activities and the adoption of rigorous environmental policies and procedures in the Chinese industrial sector. The results indicate that industries with access to green financing have shown significant improvements in their CSR engagements and the stringency of their environmental policies and procedures compared to those without such financial incentives. Specifically, the difference-in-differences analysis reveals a positive and statistically significant effect of green financing on the adoption of more stringent environmental policies and the enhancement of CSR practices. We identify the specific areas within CSR and environmental policies that are most influenced by green financing. We assess the effectiveness of green financing as a tool for promoting sustainable industrial practices. The analysis utilizes a comprehensive dataset, including industry-specific financing and ESG performance indicators, to conduct a longitudinal assessment over the decade in question. Based on these findings, the study concludes with a policy implication that emphasizes the critical role of green financing as a catalyst for improving CSR and environmental standards in industries. It suggests that policymakers and financial institutions should consider expanding green financing mechanisms to accelerate the transition towards more sustainable industrial practices.

Investigating CSR Disclosures and Aggressive Financial Reporting in Relation to Tax Aggressiveness: Can Board Structure Change The Status Quo?

In recent years, academic researchers and policymakers have increasingly discussed the role of Corporate Social Responsibility (CSR) disclosures and aggressive financial reporting in tax aggressiveness. Tax aggressiveness can be defined as a company's eagerness in using legal loopholes and other methods of tax reduction. Companies must evaluate how their tax practices affect their reputation and adhere to tax reporting and CSR standards. The objective of this research is to investigate in the relationship between CSR disclosures and aggressive financial reporting on tax aggressiveness moderated by board structures. The board's internal control function is expected to reduce tax aggressiveness-related risks. The study employed static panel data regression analyses on 665 firm-year data from the Indonesia Stock Exchange from 2016 to 2020. This study discovered that a larger board size could diminish the negative relationship between CSR disclosure and tax aggressiveness in particular industries while strengthening the positive relationship between aggressive financial reporting and tax aggressiveness. The current work suggests that companies with more independent boards of directors could increase the negative association between CSR disclosure and tax aggressiveness while reducing the positive association between aggressive financial reporting and tax aggressiveness. This study could reference future corporate policy regarding the most effective board structures to minimise tax aggressiveness.

Doing great by doing good: organizational Pao culture and its CSR effect

PurposeThis paper explores the mechanism of organizational Pao culture in an Oriental cultural context and its impact on CSR implementation and outcomes.Design/methodology/approachThree short cases are presented to reveal how the traditional Chinese Pao culture influences CSR implementation and outcomes in Chinese firms.FindingsThe findings suggest that the traditional Chinese Pao culture is the driver behind the value orientation of the norms of passing on favors and doing good deeds will be rewarded. Knowing this can help leaders in such organizations to incentivize member participation in building organizational Pao culture.Practical implicationsThrough the collaborative construction of the core of Pao culture and external evaluation standards of corporate social responsibility, enterprises can thus achieve the dual goals of self-development and social benefits.Social implicationsEnterprises and managers can be encouraged to draw management wisdom from the essence of cultural norms, so as to achieve the goal of realizing the interests of all CSR participants.Originality/valueThis paper emphasizes the dynamics and outcomes of CSR implementation in the context of the traditional Chinese Pao culture and expands the boundary of CSR research beyond a Western cultural setting.

An investigation of corporate social responsibility conformity: The roles of network prominence and supply chain partners

AbstractNumerous studies on corporate social responsibility (CSR) indicate that firms adopt CSR practices for various reasons related to their supply chain. However, the necessity to conform to a firm's own industry CSR norm is overlooked. Conforming to one's industry CSR norm—a herding behavior known as CSR conformity—ensures firm in‐group legitimacy and preserves internal resources for core business activities. On the other hand, deviating from industry norms sets a firm apart from its peers, making the firm more appealing to supply chain partners. Motivated by this dilemma, this study draws on middle‐status conformity theory and explores how a firm's network prominence determines its CSR conformity. Panel data analyses of 1650 firm‐year observations reveal an inverse U‐shaped relationship between firm network prominence and its CSR conformity, indicating that firms with a mid‐level network prominence engage in higher CSR conformity. However, the inverse U is flattened when a firm's supply chain partners (and their respective industries) share similar CSR standards, suggesting that a firm can only prioritize its own industry CSR norms if its supply chain partners share a compatible CSR standard. These findings highlight the importance of understanding CSR from an organizational conformity perspective, especially in the context of supply chain network.

CEO career horizons, foreign experience, and state ownership impact on the adoption of the Global Reporting Initiative standards for corporate social responsibility reporting

AbstractThis study investigates the influence of chief executive officers' (CEOs) career horizon on the adoption of Global Reporting Initiative (GRI) standards for corporate social responsibility (CSR) reporting. Using data from A‐share Chinese listed firms on the Shanghai and Shenzhen stock exchanges from 2010 to 2020, we employ logistic regression analysis to examine the empirical relationship. Our findings indicate that companies led by CEOs with shorter career horizons (older CEOs) are less inclined to adopt GRI reporting standards for CSR reporting. This association is particularly pronounced in non‐state‐owned enterprises compared to state‐owned enterprises. Additionally, we observe a weaker relationship between CEO career horizon and GRI adoption when the CEO possesses foreign experience. These results remain robust across various measures of CEO career horizons and econometric methodologies as well. The implications of our findings are significant for understanding the development and implementation of GRI standards for CSR reporting, particularly within the context of China.

The Contribution of Perceived Brand Ethics to the Development of Consumer Trust: A Qualitative Study of Moroccan Islamic Banks

The Moroccan banking sector is facing growing challenges to adhere to emerging standards of business ethics and corporate social and environmental responsibility. A marketing ethic based on good organizational conduct is now necessary to consolidate competitive advantage, strengthen market positioning and ensure the long-term sustainability of the corporate brand. This article primarily aims to delve into a relatively overlooked subject within marketing literature: the consumer-perceived ethics in the service sector, the brand equity of Islamic banks, and their consequential influence on brand trust development.

Towards a software industry corporate social responsibility reference model for software sustainability

AbstractOver the last few years, sustainability has become increasingly relevant in different areas of industry. However, from the point of view of the software companies, the concept of software sustainability is still underdeveloped, as software emissions are not as easily observable as in other sectors, such as the power generation. A starting point for software development companies to tackle software sustainability is the inclusion of actions focused on improving software sustainability within their corporate social responsibility (CSR). For this reason, in this work, a set of specific software sustainability actions aligned with ISO 26000 corporate social responsibility standard is proposed. By including these actions in the CSR of software companies, they can improve sustainability aspects associated with software. In addition, the proposal was applied to six leading companies in the software sector in order to check its suitability and applicability.

Utilizing Corporate Social Responsibility to Strengthen Brand Equity

This research aims to analyze and evaluate the role of using Corporate Social Responsibility (CSR) in strengthening a company's brand equity. Utilizing CSR has become a major focus for companies that want to improve their brand image in the eyes of consumers and society. This research uses qualitative analysis methods with descriptive methods. The research results show that effective implementation of the Corporate Social Responsibility (CSR) program provides significant benefits in strengthening a company's brand equity. Active participation in CSR activities not only improves a company's reputation in the eyes of consumers, but also differentiates the brand from competitors, builds close relationships with consumers, and increases customer loyalty. In addition, engagement in CSR also helps companies manage reputational risks related to social and environmental issues, while ensuring compliance with relevant CSR regulations and standards. Thus, CSR has an important role in establishing a strong and responsible brand image, which ultimately supports a company's long-term growth and sustainability in a competitive market.

Shaping corporate social responsibility standards in the global economy: Chinese industry guidelines for responsible mineral supply chains

Between 2014 and 2023, the China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters (known by its acronym CCCMC) developed a set of corporate social responsibility guidelines which aim to steer Chinese outward mining investment toward a socially responsible model. This article presents an in-depth analysis of these voluntary industry-specific corporate social responsibility guidelines. The article also unfolds the less visible processes in which a Chinese industry association proactively engages with the dynamics of multi-level governance of corporate social responsibility in global mineral supply chains. While focusing on the rising role of the CCCMC, the article takes a ‘multi-level and actor-centred’ approach to understand the development of corporate social responsibility standards in the global economy. The article finds that CCCMC guidelines are inspired by and infused with pre-existing corporate social responsibility standards, especially international standards. Furthermore, it showcases the CCCMC’s continuing follow-up measures to implement the guidelines and increase recognition from other actors in global mineral supply chains. In particular, the article finds that the CCCMC has taken substantive measures to formulate and implement applicable labour standards in global mineral supply chains.

Entangling global chains of wealth and value through CSR-ization: A critical Polanyian perspective on Weda Bay Nickel

Recent contributions to Global Value Chain studies have cast the intertwining of global finance and production in a new light, through the concept of entanglement of Global Wealth Chains (GWCs) and Global Value Chains (GVCs), and their uneven social consequences have been questioned. The paper contributes to this emerging debate through a critical Polanyian perspective on GVCs/GWCs where the processes of fictitious commodification pertain not only to money, labor, and the land as theorized by Polanyi, but also to ethics, which is commodified via Corporate Social Responsibility (CSR) standards and discourses. Our contribution is based on a grounded research study of Weda Bay Nickel (WBN), a mining project that unfolded over two decades of exploration and across the intertwined scales of financial markets, multinationals, government, activists, and the villagers residing in Weda Bay, on the Indonesian island of Halmahera. We show how “CSR-ization” was orchestrated by lead corporate and financial players to obtain the World Bank’s ethical approval and financial guarantee for the project. Standardized ethicality was granted to WBN even though high social and environmental risks were acknowledged, and several contestation movements had to be erased, discredited, and/or physically repressed for the mine to see the light of day. We contend, in Polanyian terms, that fictitious commodification leads to the destruction of people and nature—and not simply inequality—in the deployment of GWCs/GVCs where CSR-ization is closely intertwined with contestation and repression.

The reference-independence of CSR expectations for luxury firms.

Consumers actively look to and expect businesses to engage in charitable donation activities. While past research has demonstrated the strategic benefits that corporate social responsibility (CSR) affords to firms, little is known about the way consumers apply subjective (or objective) ethical standards for corporate donations. Our research focuses on the way expectation standards of CSR are applied to luxury (versus non-luxury) companies. Do consumers hold a belief that luxury firms are expected to donate more? Four experimental studies find robust and converging evidence that consumers do not hold luxury firms to a higher standard; instead, they take on the normative belief that companies are obligated to donate equal amounts. This reference-independence holds stable across different product categories (Studies 1a and 1b), perspectives (Study 2), and attempts to alter the belief (Study 3). However, individual differences do exist among consumers regarding the level of donation expected, particularly for materialists and spendthrifts. Specifically, moderation analyses reveal that materialists and spendthrifts (compared to non-materialists and tightwads) expect higher levels of corporate donations regardless of the type of firm (i.e., luxury vs. non-luxury). This research extends the discussion of subjective ethical beliefs in the context of luxury CSR.

Internationalizing China Standards Through Corporate Social Responsibility: An Exploratory Study of Chinese State-Owned Enterprises in Africa

ABSTRACT The paper unpacks the multi-level efforts to establish, promote and implement China standards in overseas contexts through an examination of corporate social responsibility (CSR) activities of Chinese state-owned enterprises (SOEs) in Africa. Drawing upon document analysis of government policies, institutional guidelines and corporate reports from four case companies, as well as field research in Ethiopia, it identifies ways that Chinese corporate actors interpret, incorporate and initiate CSR standards through strategic planning and during overseas business activities. Analysis of both first-hand and secondary data shows the development of Chinese CSR standards is a co-production of international, national and local standards, which involves diverse actors and institutions and is driven by multiple considerations to fulfill commercial, political, social and diplomatic objectives for overseas companies and Chinese government.

Assessing CSR Reports of Top UK Construction Companies: The Case of Occupational Health and Safety Disclosures

As health and safety in construction is a major concern worldwide, this paper examines the occupational health and safety (OHS) disclosures of leading companies. A composite disclosure index was devised, based on the Global Reporting Initiative (GRI) Standards for Corporate Social Responsibility (CSR) Reporting, and focuses on the information found in such reports of corporations pertaining to the United Kingdom (UK) construction industry, in an attempt to identify trends in OHS reporting from a sample of fifteen corporations. The results disclose that construction companies fall short in reporting OHS objectives. The prevention and mitigation measures of OHS impacts and occupational health services are the only indicators in which companies reach medium to good performance. In contrast, issues of young workers exposed to hazards pertaining to suppliers are not reported by the sample. Five sample firms were identified as not revealing any information on OHS, while there was no disclosure by at least nine companies.

РОЛЬ ЕКОЛОГІЧНИХ СТАНДАРТІВ У ФОРМУВАННІ КОРПОРАТИВНОЇ ВІДПВІДАЛЬНОСТІ ГЛОБАЛЬНОГО БІЗНЕСУ

The article emphasizes that one of the trends in the development of modern global business is compliance with environmental requirements. At the same time, it has been noted that the complex process of "environmentalization" of corporate responsibility draws the attention of scientists and politicians to the problem of determining directions and models of successful implementation of its role in creating conditions for sustainable development. It has been also emphasized on the existing risks of global business activity, which is demonstrated by the accumulated experience of unfair competition of transnationalized business. The author notes that it is the business giants of the global industry all over the world in the implementation of their production and commercial activities that consume the largest volumes of natural, raw and fuel-energy resources, and also pollute the largest water areas. Emphasis is also placed on the gradual destruction of national ecological systems based on close interaction and mutual influence of all parameters of ecological activity of specific states on their territory. In addition, one of the main components of the policy of the welfare state has been violated: guaranteeing the protection of environmental rights and human freedoms. The author believes that the significant expansion of the environmental platform of corporate social responsibility, which makes it possible to organically combine both the goals of maximizing the profitability of business activities and the goals of social utility, plays the key role to ensuring a deep convergence of public and corporate economic interests and leveling environmental threats in society. The article presents empirical data that confirm the special role of the institute of corporate environmental responsibility in the development of a global green economy. It has been noted that one of the components of the implementation of corporate environmental responsibility mechanisms by business structures is their compliance with environmental standards. At the same time, it has been emphasized in the article that environmental standards, on the one hand, are developed by states and international organizations, and on the other hand, they are commonly initiated by the companies themselves as part of the implementation of corporate environmental management strategies. The most common environmental standards of corporate social responsibility have been demonstrated and characterized. A list of methodological foundations that unite environmental standards of global business has been proposed by the author.

Corrected Game Model in CSR: MNC Strategies and Chinese Practice

Abstract Multinational Corporation (MNC) behaviors (Hoffman et al, 2017) have come under growing scrutiny, and many MNCs have been found to be following lax corporate social responsibility (CSR) standards. MNCs are being held to a standard of new sustainability paradigm, which is challenging them to develop new models of CSR decision making. We represent the CSR decision making challenges of MNCs with the help of a game theoretical model. The model specifies alternative strategies and payoffs for the MNCs and the stakeholders and examines the dominant strategies in the Nash equilibrium. To identify solutions for the future, we propose a corrected game model, where the incentive structure is revised so that the stakeholders are able to signal rewards and penalties for CSR behavior. In this corrected game model, the dominant strategy for the MNCs is to step up their CSR compliance, and for the stakeholders is to offer rewards for the CSR behavior.

The Political Ontology of Corporate Social Responsibility: Obscuring the Pluriverse in Place

This article examines corporate social responsibility (CSR) through the lens of political ontology. We contend that CSR is not only a discursive mean of legitimization but an inherently ontological practice through which particular worlds become real. CSR enables the politics of place-making, connecting humans and nonhumans in specific territorial configurations in accordance with corporate needs and interests. We discuss three CSR mechanisms of singularization that create a particular corporate ontology in place: (1) community engagements that form ‘stakeholders’; (2) CSR standards and certifications that produce singular sustainable environments; and (3) CSR reporting that erases ontological conflicts and enables the singularized representation (of the environment and the community) to travel to other locations of the corporate world. We argue that these ontological CSR practices obscure the pluriverse of other world and place-making practices that would create different kinds of sustainabilities based on less extractive and non-corporate ways of being in place.

Diverse Organizational Adoption Of Institutions In The Field Of Corporate Social Responsibility

In the current literature, institutional adoption of Corporate Social Responsibility (CSR) governance standards is mainly understood in a binary sense (adoption versus no adoption), and existing research has hitherto focused on inducements as well as on barriers of related organizational change. However, little is known about often invisible internal adoption patterns relating to institutional entrepreneurship in the field of CSR. At the same time, additional information about these processes is relevant in order to systematically assess the outcomes of institutional entrepreneurship and to differentiate between substantive versus symbolic implementation. In this paper, we contribute a comparative intraorganizational differentiation of institutional adoption processes in the field of CSR, and we distinguish between broad and narrow organizational institutional adoption across different management functions relating to institutions of a similar type. Our study is based on a quantitative survey among members of the United Nations Global Compact Network Germany, as well as on qualitative interviews. We analyze different institutional adoption patterns and derive ten theoretical predictors of diverse institutional adoption choices and thereby inform the literatures on institutional entrepreneurship, CSR governance, and Multi-Stakeholder Initiatives. Besides our theoretical contributions, our findings serve as a source of information for practitioners engaged in CSR governance as they provide new insights into the managerial perception and assessment of different CSR standards and initiatives.