Corporate Social Responsibility Theory Research Articles

Study About the Impact on Brand Trust Repair from Environmental Donation After the Exposure of Greenwash

Greenwash is a kind of opportunistic behavior, and it would inflict swift devastating blows on enterprise reputation and brand trust once it was exposed. Based on Corporate Social Responsibility Theory and Attribution Theory, this study hypothesized and confirmed that green wash is harmful to brand trust. Regarding trust repair, both strategy of high frequency low amount and high amount low frequency are signally useful. This study is of great significance to repair brand trust for the company which has made a mistake of greenwash.

Corporate social responsibility, gender, and CEO turnover

PurposeThe purpose of this paper is to explore the research question whether corporate social responsibility (CSR) and gender influence the likelihood of CEO turnover.Design/methodology/approachThe author uses a large sample of firms over a 21-year period from 1992 to 2013 taken from firms cross-listed in the ESG STATS, Execucomp, and Compustat databases. Logistic regression is used to analyze the determinants of both CEO turnover and the gender of the newly hired CEO.FindingsFirms with better social performance have higher rates of CEO turnover, performance notwithstanding. Further, for firms with decreasing financial performance, it is more likely they will replace their CEO if they have strong CSR vs firms with weak CSR records. In addition, as performance deteriorates, male CEOs will have a higher chance of being replaced relative to female CEOs. For female CEOs, other factors besides financial performance are important determinants of the likelihood of a turnover taking place.Research limitations/implicationsThis study finds support for the stakeholder theory of CSR and does not support entrenchment theory. It is the first study to look at CSR, CEO turnover, and gender issues concurrently.Practical implicationsFor practitioners looking for tangible effects of CSR in the workplace, this paper provides evidence that it does matter in terms of CEO turnover. The findings suggest that CSR is acting as a deterrent to bad behavior on the part of executives in the face of weak financial performance in particular.Originality/valueThis study is the first to look at the impact of CSR on CEO turnover. Importantly, the findings suggest that CSR is not something that a firm decides or thinks about in the “right” financial environment but is rather an omnipresent focus embedded within the mission of the firm.

Why do employees have counterproductive work behavior? The role of founder’s Machiavellianism and the corporate culture in China

PurposeThe purpose of this paper is to analyse the mechanism of how Machiavellian corporate culture (MCC) affects employees’ counterproductive work behaviours.Design/methodology/approachThrough a three-phase grounded study on the data of a single case amounting to over 170,000 words, this qualitative study explores why employees exhibit counterproductive work behaviours.FindingsThe results indicated that the implications of the MCC of family businesses in China include the following three dimensions: low trust, control orientation, and status orientation. In this corporate cultural context, employees exhibit counterproductive work behaviours because they perceive low organisational justice, psychological contract violation, and low trust. Among them, psychological contract violation serves as a triggering mechanism due to the organisational context and trust is crucial to employee counterproductive work behaviour.Research limitations/implicationsIn this study, the results are derived merely from the observation of and generalisation about one case; more therefore, empirical studies are required.Practical implicationsNumerous family business owners in China exhibit a high level of Machiavellian personality traits, and this personality tends to determine the implications of corporate culture. In order to establish a diverse culture, a heterogeneous top manager team must be developed and a new organisational culture must be established from top down.Originality/valueThis study extends the research scopes of employee personality and behaviours as well as leaders’ personality traits and employee emotions, and proposes a theoretical framework of leaders’ personality-culture-employee behaviours as a contribution to studies on organisational behaviour, theories of corporate social responsibility, and development of corporate culture.

Corporate Social Responsibility and Managing Drugs in Sport

ABSTRACTAs concerns over drug management in sport (from tobacco to supplements to doping) become more prominent, discussion of the corporate social responsibility (CSR) implications of how sport manages its relationship with drugs has been a striking omission from the literature. Analysis using Dahlsrud's five dimensions (stakeholders, social, economic, voluntariness and environmental) demonstrates the potential of developing CSR scholarship with regard to drugs in sport. Three conclusions are drawn from the analysis. First, application of CSR theory and methods can lead to new insights about the management of drugs in sport. Second, research on CSR in sport needs to engage with issues that threaten rather than promote sport, such as drugs, discrimination, exploitation and violence. Third, the management of drugs in sport has potential as a test for theory and methods of CSR, especially comparative studies. The conclusions indicate linking CSR and drugs in sport makes potentially valuable contributions to the field.

CSR and Feminist Organization Studies: Towards an Integrated Theorization for the Analysis of Gender Issues

Although corporate social responsibility (CSR) practice increasingly addresses gender issues, and gender and CSR scholarship is expanding, feminist theory is rarely explicitly referenced or discussed in the CSR literature. We contend that this omission is a key limitation of the field. We argue that CSR theorization and research on gender can be improved through more explicit and systematic reference to feminist theories, and particularly those from feminist organization studies (FOS). Addressing this gap, we review developments in feminist organization theory, mapping their relevance to CSR. With reference to six major theoretical perspectives in CSR scholarship, we note feminist research relating to each. Drawing upon FOS theory and CSR theory, we then develop an integrated theoretical framework for the analysis of gender issues in CSR. Our framework enables us to identify research strengths in the gender and CSR literature, as well as gaps therein, to open new conversations and to posit future research directions for this emerging area of scholarship. Our paper illustrates how a better grounding of CSR in feminist theory can contribute to CSR research more broadly.

Corporations as agents of social change: A case study of diversity at Cummins Inc.

This case study on the American multinational Cummins Inc. calls into question traditional, normative theories of corporate social responsibility (CSR). Although the dominant literature views CSR as a response to society, Cummins’ promotion of diversity dates back to the 1940s, making their efforts well in advance of society’s expectations. The article shows that Cummins’ management pushed for civil and lesbian, gay, bisexual and transgender (LGBT) rights at times when society viewed these actions as being illegitimate and against community values. The study suggests that leaders for diversity at Cummins were able to gain support during these difficult times due to their high level of influence and by connecting the value of diversity to Cummins’ organisational identity.

Mining conflict prevention in Ghana: is corporate social responsibility the answer?

Even though corporate social responsibility (CSR) is not obligatory in Ghana, it is highly practiced in recent times by a number of multinational corporations. These multinational corporations, particularly the mining companies use CSR as a stopgap measure against the socio-economic, cultural and environmental challenges emanating from their activities, which has the tendency to trigger violent conflict. The objective of this paper is to examine whether or not CSR is a solution to the potential mining conflicts in Ghana. The integrative theory of CSR which argues that integrating the needs of the mining communities into a corporate policy is relevant for conflict prevention in mining communities was examined. Qualitative research approach and a case study design were used in both the data collection process and analysis.The study revealed that although CSR is voluntary in Ghana without it violent and non-violent conflicts are bound to occur between the mining communities and the mining companies. It is recommended that stakeholders and government agencies should work together for a policy framework on CSR backed by law.

Linking corporate social responsibility and organizational performance in the construction industry

In the construction industry, the subject of corporate social responsibility (CSR) is becoming increasingly important as communities, employees and socially conscious clients expect firms to demonstrate they are good corporate citizens. However, while CSR research in construction has accelerated in recent years, it remains fragmented and unconceptualized and there is little understanding of the relationship between CSR and organizational performance, the types of CSR strategies employed and the strategic motivations behind them. To address this deficiency in current CSR knowledge and drawing upon contemporary CSR theory, a survey of 104 professionals from across the construction supply chain in Australia and New Zealand was undertaken. The results show that CSR initiatives in the construction sector are integrative, isolated, narrowly focussed (mainly on environmental activities), immature, compliance-based and operational rather than strategic. The link between CSR and economic performance increasingly espoused (and assumed) in much of the CSR literature does not appear to be accepted in practice with the main benefits being seen as relational in building corporate loyalty, brand and engagement with both internal and external stakeholders. By empirically showing that CSR in construction takes place within an integrative conceptual framework, our findings highlight the potential value of theoretical concepts such as stakeholder salience in moving this field of research forward. These approaches recognize the power that stakeholders (both internal and external) have over a business and the need to manage those relationships carefully in order to secure a licence to operate.

The Environmental Liability Directive and Liability of Parent Companies for Damage Caused by Their Subsidiaries (‘Enterprise Liability’)

This article discusses whether parent companies can, and, in light of opportunities for regulatory evasion and developments in corporate group liability, should be held liable under the ELD for environmental damage caused by their subsidiaries. Depending on the facts, a parent company could qualify as an operator of its subsidiary’s activities, but an extensive application of the operator definition to parent companies could have adverse effects on corporate risk management. Parent company liability could also be viewed as a remedy for the lack of mandatory financial security, but would not appear to meet a clear need and is unlikely to be the preferred policy option. Trends in corporate liability, however, may result in broader exposure of parent companies under the ELD. Outside the realm of the ELD, current developments and new thinking on corporate groups and supply chain liability may also exercise an influence on the way courts construe the ELD or other laws applicable to environmental damage. Several trends may join forces to inspire authorities to adopt creative approaches to construing and applying the ELD. First, the concept of limited liability is being questioned, either in general or as applied to corporate groups. Theories of enterprise liability or efficient investor liability are, to varying degrees, inconsistent with limited liability. Second, under the theory of corporate social responsibility, corporations are believed to have obligations towards society and the environment beyond their legal obligations. These moral obligations could easily become legal obligations once a sufficiently egregious case presents itself. Third, under the theory of supply chain responsibility, corporations increasingly have obligations towards their suppliers, customers, and business partners. Such responsibility may ground liability if damage arises and deep pockets are required to remedy the damage.Thus, even if the ELD remains unchanged, developments in corporate group liability in general may exercise influence on the way the ELD or related laws applying to environmental damage are construed. In the hands of authorities and courts deeply concerned about the deteriorating environment, the ELD’s limited scope might prove to be a weak barrier against the incoming tide of expanded corporate and supply chain liability.

SIMILARITIES AND DIFFERENCES IN TEACHING CORPORATE SOCIAL RESPONSIBILITY: EVIDENCE FROM MEXICO AND CANADA

The need to incorporate and develop Corporate Social Responsibility (CSR) within university programs is necessary for future leaders, managers and entrepreneurs. Within the framework of CSR and stakeholder theory the paper contributes a comparative case study that utilizes curriculum and in-depth interview analysis to illustrate not only the similarities and differences in the CSR programs, but how social responsibility is taught in a Mexican and Canadian University context. The main findings are: the CSR program in Mexico is perceived as a strategic management tool that adds value to the organization and does not pay any special attention to the globalization phenomena. Whereas in Canada, social responsibility is founded on ethics, attention to the different stakeholders in a globalized environment is emphasized and the strategic importance of CSR is widely accepted. The paper provides academics and researcher insight into exploring how universities can further facilitate students as stakeholders in considering social responsibility as important and necessary to ensure CSR sustainability in practice.

Corporate Profit, Social Welfare, and the Logic of Capitalism

AbstractBusiness ethics scholars have proposed strategies for mitigating the ill effects brought on by a wealth maximization business strategy by urging managers to either embrace corporate social responsibility (CSR) or to manage according to stakeholder theory. In this article I argue that these strategies are often ineffective in bringing about the behavior they promote because it is antithetical to the nature and logic of capitalism. I examine the organizing principles of capitalism and the role it assigns to capitalists, and juxtapose these with the behavior prescribed by three normative frameworks: strategic management theory (SMT), the CSR initiative, and stakeholder theory. Unlike the behaviors prescribed by the CSR initiative and stakeholder management theory, the behavior prescribed by SMT is consistent with the role of capitalists as defined by the organizing principles of capitalism, and SMT's “rules” have instilled habits that have, in turn, been able to mold managers’ aspirations and purposes. CSR and stakeholder theory must not only combat the habits instilled by the entrenched SMT, they must also find some way of instilling habits that run contrary to those defined by the nature and logic of capitalism itself.

Deliberative Lobbying? Toward a Noncontradiction of Corporate Political Activities and Corporate Social Responsibility?

Recently, researchers have claimed that food and beverage corporations should be excluded from the development of public health policy because their lobbying activities strategically undermine the promotion of public health. At the same time, recent political corporate social responsibility (CSR) theory holds that corporations have a responsibility to help solve global public issues. We address this described misalignment and show that corporations may fulfill this “new political role” if they turn to novel forms of corporate political activity (CPA) establishing a minimal standard for not contradicting their CSR. Therefore, we put forward a normative concept called deliberative lobbying based on discourse, transparency, and accountability, which aims to resolve public issues and advance CPA. In three lobbying cases, we show misalignments and contradictions that harm both society and the corporation. We position deliberative lobbing as an argument to maintain self-regulation against critics claiming that corporations should be excluded from all political processes.

The stakeholder management theory of CSR

Purpose– Based on the principles of the stakeholder management theory, the purpose of this paper is to explore customers’ multidimensional perceptions of both banking companies and the corporate social responsibility (CSR) orientations of these companies. The paper also explores how these multidimensional perceptions affect customer identification and satisfaction towards banking companies.Design/methodology/approach– A structural equation model is tested using information collected from 1,124 banking service customers.Findings– The findings demonstrate that customers’ perceptions of customer-related CSR and broad legal and ethical issues have significant positive impact on both customer identification and satisfaction with banking companies. Perceptions of shareholder-related CSR also significantly boost customer satisfaction. In contrast, perceptions of employee- and community-related CSR do not have a profound effect on customer identification or satisfaction. These findings also confirm the importance of customer identification with the company as a key mediator in their satisfaction responses to the multidimensional perceptions of the companies’ CSR orientations.Originality/value– The contribution of the paper is based on the exploration of a multidimensional approach, relying on the principles of the stakeholder management theory to study customer responses and perceptions of the CSR orientations of banking companies. Previous scholars have reported mixed findings while exploring customer responses to their perceptions of companies’ CSR orientations. However, they frequently considered customer CSR perceptions either as one-dimensional or a reflective second-order construct, thus ignoring the possibility of multidimensional CSR perceptions having multiple effects on customer responses such as identification and satisfaction.

Does community environment matter to corporate social responsibility?

How does the preference of local stakeholders shape firm's corporate social responsibility (CSR)? Using a twenty-year U.S. sample, this paper examines the effects of the community demographic and cultural environment on CSR. We find that firms located in counties with more senior residents and/or higher levels of religiosity display higher degree of corporate social responsibility. In addition, we find the positive effects of local seniors and religiosity are stronger for less financial constrained firms. The result is robust after controlling for firm fixed effects, operating state trends and incorporation state trends. Taken together, our evidence supports a stakeholder theory of corporate social responsibility.

Is Corporate Social Responsibility Oiling the Neoliberal Carbon Economy?

ABSTRACTThis study focuses on the corporate social responsibility (CSR) work the Austrian energy company OMV pursued as it constructed a gas power plant on the shores of the Black Sea. I argue that neither social movement theory nor CSR theory fully explain what happened in this case. Environmental protests quickly became embedded in local politics and national identity figurations, and the CSR work by the company was transformed and domesticated by local actors. While agency and power was thus distributed, various actors also shared a common language, tapping into a globally circulating discourse that has gained traction in Turkey with the current neoliberal policies. The way CSR was played out and negotiated in this case meant that social capital and equity were construed as issues of concern, while environmental issues were downplayed. Thus, in the process, the double bind between the growth economy and ecologies of survival was effectively reproduced.

Corporate social responsibility: engaging the community

PurposeThis paper aims to extend corporate social responsibility (CSR) theory by exploring how firms engage with community. The community is frequently cited as a stakeholder of the firm, but in spite of its status in networks it has not been the focus of research. Drawing on community theory and Carroll’s pyramid for the foundation of this study, the authors undertake an empirical investigation to advance knowledge in CSR engagement with a particular stakeholder group.Design/methodology/approachTo generate an in-depth insight, the study adopts a multiple case study approach involving the purposeful selection of three retail banks in Ghana as units of analysis. It draws on multiple data sources to strengthen its findings.FindingsThe study finds that community engagement consists of four spheres of activity: donations, employee voluntarism, projects and partnerships. Philanthropy forms part of largelyad hocCSR actions by firms. The study also finds that philanthropy is not merely a desired function of the CSR pyramid but an essential one.Practical implicationsThis research imparts increased understanding of how firms engage with an important but frequently overlooked stakeholder group – community.Originality/valueThis study presents specific theoretical extensions to CSR through its identification of four core activities of community engagement.

The Big Event

The Big Event is a nationally recognized, student-run day of service where students, faculty, and staff give back to their university’s surrounding community by performing volunteer work. The Big Event can also be used as a resource to teach and reinforce corporate social responsibility (CSR) theories to management students. Students participating in the Big Event see firsthand application of the many CSR concepts they learn in the classroom. By utilizing the Big Event as a service project, students also gain a better appreciation of the real-world issues and problems that modern organizations often encounter. The service project can be used in a business law or ethics course, in an introductory management course, or in an organizational behavior course, among others. The Big Event is therefore an excellent resource for management educators to use when teaching CSR theories, and it is a wonderful way for students, faculty, and staff to give back to the community.

Illuminating the Signals Job Seekers Receive from an Employer's Community Involvement and Environmental Sustainability Practices: Insights into Why Most Job Seekers Are Attracted, Others Are Indifferent, and a Few Are Repelled

Evidence shows that job seekers tend to be attracted to employers known for their corporate social responsibility (CSR), but relatively little is known about the underlying psychological processes. Moreover, the literature is silent about whether and why some job seekers are unaffected, or even repelled by, an employer's CSR. We conducted a substantive replication of recent empirical support for three signal-based mechanisms by adapting the experimental manipulation used in a prior study while employing an alternative approach to analyzing a distinctly different type of data. We also extended prior work by examining other possible explanatory mechanisms and exploring potentially negative reactions to CSR. Using signaling theory as an overarching framework, we assessed research questions and tested hypotheses grounded in theories of employee recruitment and the psychology of CSR, specifying how an employer's CSR practices send signals from which job seekers draw inferences about unknown working conditions, thereby affecting their attraction to the employer. Study participants (N = 108) reviewed the webpages of two hiring companies and responded to open-ended questions about each employer. We content-analyzed written responses pertaining to one employer's webpages in which we embedded an experimental manipulation of information about the employer's community involvement or its environmentally sustainable practices. The results supported hypotheses that corroborate prior evidence for the “perceived value fit” and “expected employee treatment” mechanisms, and provided some, but relatively limited, support for the “anticipated pride” mechanism. Assessment of research questions highlighted previously undiscovered signal-based mechanisms that might help explain job seekers' attraction to CSR (e.g., inferences about the employer's positive work environment and financial standing, and the nature of its employees). Results also showed that a few people were less attracted because of the employer's CSR practices. Analyses among those individuals, combined with one-third of the sample who reported their attraction was unaffected by the employer's CSR, provided insights about when and why CSR fails to enhance attraction, such as when job seekers focus on other priorities, or are deeply skeptical and cynical about the employer's CSR. We discuss the implications for advancing a signal-based theory of CSR and employee recruitment, and recruitment practice.

The credibility of CSR (corporate social responsibility) reports in Europe. Evidence from a quantitative content analysis in 11 countries

When it comes to corporate social responsibility (CSR) reports, skepticism and mistrust toward companies often prevail among both stakeholders and scholars. However, the overall content quality of CSR reports has only sparsely evoked researchers' attention. Therefore, this paper focuses on the credibility of CSR reports, based on both human and software-enhanced quantitative content analysis of 237 CSR reports from 11 European countries. Credibility is conceptualized as a multilayered construct along CSR and communication theories, filling the theory void in the field. The influence of contextual (e.g., industry), format, and firm-level (e.g., size) factors on reporting credibility is also investigated. The results show that European CSR reports do not score high on credibility, leaving much room for improvement. The study finds that it is standardization and content that matter most for reporting credibility; external influences are secondary, at best. To be considered credible, CSR reports must first be understandable to their readers; in addition, credibility involves truth, sincerity, and stakeholder specificity. Voluntary standardization affects CSR reporting credibility positively, whereas regulation does not yet have the same positive effect. Based on the empirical results of the content analysis, we present a new two-phase-model of reporting credibility. For practice, we suggest that companies focus on the contents of their reports to render them more credible. To raise credibility levels consistently, policy makers can create a level playing field in CSR reporting regulation, as already initiated by several countries.

"Gender, CSR and Feminist Organization Studies: Mapping the Theoretical Terrain"

Corporate Social Responsibility (CSR) practice increasingly addresses gender issues (e.g. Women’s Empowerment Principles Global Reporting Initiative, United Nations Global Compact, Ethical Trading Initiative), and research on gender and CSR is rapidly expanding. Yet beyond feminist ethics this scholarship often fails to explicitly reference feminist theory, and particularly that deriving from feminist organization studies (FOS). The first contribution of our paper is to address this gap by reviewing developments in feminist organization theory, and mapping their relevance to CSR. Our second contribution is to extend Garriga and Mele’s (2004) mapping of CSR theory to interrogate, and inform, extant gender and CSR scholarship. Both these exercises suggest research gaps and possible new theoretical, empirical and methodological research directions. Ultimately, we consider that really innovative contributions to gender and CSR scholarship will come from research that is well grounded in both feminist and CSR ...