Political Corporate Social Responsibility Research Articles

Governing Corporations in National and Transnational Spaces: Cross‐Level Governmental Orchestration of Corporate Social Responsibility in South Korea

AbstractThe loose spatial and temporal coordination of national and transnational governmental corporate social responsibility (CSR) strategies enables multinational corporations (MNCs) to externalize irresponsible behaviours. Political CSR (PCSR) and ‘government and CSR’ studies show how governmental authority shapes CSR at the domestic and transnational levels but provide only limited insights into how to govern MNCs across levels and over time. Combining the concept of orchestration with insights from power transition theory, we theorize cross‐level governmental orchestration as power‐imbued, dynamic, and involving multiple modes of orchestration. Through an analysis of how the South Korean state has deployed CSR domestic and transnational strategies over 30 years, we induce three configurations of cross‐level governmental orchestration, blending coercive, directive, delegative and facilitative modes of orchestration, and identify the mechanisms behind Korea's transition from one configuration to another. Our results: (1) contribute to PCSR and ‘government and CSR’ studies by conceptualizing a systemic and dynamic view of cross‐level orchestration of governmental CSR strategies; (2) advance transnational governance studies by consolidating orchestration theories and considering coercive power, and (3) add to power transition theory by explaining how regulatory capacity‐building enables shifts of cross‐level orchestration configurations.

Deliberative ideals and hegemonic practices – political CSR in extractive industries

Purpose Political Corporate Social Responsibility (CSR), based on ideas about deliberative democracy, have been criticised for increasing corporate power and democratic deficits. Yet, deliberative ideals are flourishing in the corporate world in the form of dialogues with a broad set of stakeholders and engagement in wider societal issues. Extractive industry areas, with extensive corporate interventions in weak regulatory environments, are particularly vulnerable to asymmetrical power relations when businesses engage with society. This paper aims to illustrate in what way deliberative CSR practices in such contexts risk enhancing corporate power at the expense of community interests. Design/methodology/approach This paper is based on a retrospective qualitative study of a Canadian oil company, operating in an Albanian oilfield between 2009 and 2016. Through a study of three different deliberative CSR practices – market-based land acquisition, a grievance redress mechanism and dialogue groups – it highlights how these practices in various ways enforced corporate interests and prevented further community mobilisation. Findings By applying Laclau and Mouffe’s theory of hegemony, the analysis highlights how deliberative CSR activities isolated and silenced community demands, moved some community members into the corporate alliance and prevented alternative visions of the area to be articulated. In particular, the close connection between deliberative practices and monetary compensation flows is underlined in this dynamic. Originality/value The paper contributes to critical scholarship on political CSR by highlighting in what way deliberative practices, linked to monetary compensation schemes, enforce corporate hegemony by moving community members over to the corporate alliance.

Plastic Politics of Delay: How Political Corporate Social Responsibility Discourses Produce and Reinforce Inequality in Plastic Waste Governance

Abstract As the global plastics pollution crisis grows in severity and complexity, diverse solutions are being proposed across the public and private sectors. Notably, multinational corporations (MNCs) from the petrochemical and consumer goods sectors have become increasingly involved. From providing recycling infrastructure to directly participating in drafting action plans and policies, MNCs are engaging as political actors in plastics waste governance, influencing discourses and actions globally, a process referred to as political corporate social responsibility (CSR). In this article, I examine Coca-Cola’s World Without Waste initiative as a case study of this process. I evaluate how Coca-Cola frames the problems of plastics waste, their solutions, and the roles that Coca-Cola asserts within this complex, transboundary environmental governance issue. Borrowing from literature on corporate climate delay tactics, I demonstrate how the initiative implements discourses and practices of delayed action, hindering comprehensive governance strategies. Through this analysis, I argue that political CSR actions can exacerbate the global plastics pollution crisis through ineffective and inequitable waste governance approaches that perpetuate uneven plastics pollution burdens.

Koneksi Politik dan Pengungkapan Corporate Social Responsibility: Tinjauan Literatur dari Berbagai Negara

This research explains the relationship between political connections and CSR disclosure using a library research approach. Through the exploration and integration of findings from previous empirical research, this study aims to present a more comprehensive understanding of the relationship between political connections and CSR disclosure in various countries. The results of the study indicate that the connection between political connections and CSR disclosure is influenced by the institutional factors of the country where the company operates. Furthermore, the research also shows that political connections provide benefits to companies in developing, advanced, and transforming economies, but these benefits are more significant in developing countries. This study contributes to expanding the literature on political connections and CSR disclosure by presenting empirical results from various countries.

Forward‐Looking Responsibility and Political Corporate Social Responsibility

AbstractThis paper contributes to the literature on political corporate social responsibility (PCSR) by considering the forward‐looking, political responsibilities of corporations in relation to structural injustice, based on a critical engagement with Iris Marion Young's Social Connection Model (SCM) of responsibility. Although Young's SCM serves as a key reference point in the PCSR literature, engagement with her work tends to be superficial and lacks critical engagement. By offering a more developed engagement with Young's SCM, this paper addresses several themes that have been highlighted as being insufficiently developed in the PCSR literature. In particular, this paper considers (i) the grounds for corporate political responsibility in relation to structural injustice rather than globalization; (ii) the scope of corporate political responsibilities vis‐à‐vis other actors; and (iii) the role of power in relation to deliberative processes and in relation to scope.

Political legitimacy and CSR reporting: Evidence from non-SOEs in China

This study explores the corporate social responsibility (CSR) reporting initiatives of Chinese non-state-owned enterprises (non-SOEs) after losing their political connections due to exposure of corruption scandals. Using difference-in-differences estimation, we show that firms are more likely to issue CSR reports voluntarily after losing their political connections. This phenomenon is more prevalent for firms facing severe financial constraints, those located in provinces with low marketisation, and those in industries with high competition. Our mediation analysis suggests that a reduction in profitability serves as a channel through which the loss of political connections influences firms' decision to disclose CSR. Furthermore, we find that the loss of political connections reduces economic benefits for corruption-related firms. These results imply that non-SOEs voluntarily disclose their CSR reports to build political legitimacy, which is valuable capital for firms to maintain their competitiveness in the market. Our results are robust to alternative measurements of the key variables and rule out several alternative explanations.

Grounding and Limiting Political Corporate Social Responsibility (PCSR) Using a Neo-Aristotelian Approach

This paper offers a neo-Aristotelian approach to PCSR aimed at enabling us to more systematically ascertain which sorts of corporate political activities, if any, might be politically acceptable. Part 1 sketches Aristotle’s account of the “political.” Aristotelian politics have at least four key dimensions. When we speak of PCSR, we should, from this Aristotelian perspective, evaluate how specific behaviors accord with or undermine these four aspects of political life. Part 2 of the paper explores which forms of activity by corporations qualify as genuinely (and thus acceptably) political within a neo-Aristotelian framework. Part 3 highlights strengths and limitations of this approach to PCSR.

Commentary: On theory, data, and interpreting results in political CSR research: Reflecting on “Do firms put their money where their mouth is? Sociopolitical claims and corporate political activity”

In examining whether firms align their sociopolitical claims with their corporate political activities (CPA), Preuss and Max (2023) tackle a topic of keen interest to the Accounting, Organizations and Society (AOS), corporate social responsibility (CSR), and broader interdisciplinary accounting research communities. They document partial alignment between firms' diversity and environmental claims and the voting records of U.S. Congress members they financially support through political action committee (PAC) contributions, but also report several important caveats. Given that firm strategies on CSR and CPA often are played on ‘two (different) chessboards’ (Den Hond, Rehbein, de Bakker, & Lankveld, 2014), a study such as theirs is difficult to accomplish successfully. I applaud their efforts and believe the objective of their study was met. In my commentary, I use their study as a springboard to discuss key considerations regarding theory, data, and the interpretation of results when performing political CSR research in accounting.

Managerial understanding of corporate social responsibility in Nepal

PurposeConsidering the ongoing debate regarding the roles of business in society, this paper aims to examine the managerial understanding of corporate social responsibility (CSR) in Nepal.Design/methodology/approachThis study uses explanatory sequential design under mixed methods of research. First, the questionnaire survey method was used to collect data from 168 managers of listed companies in Nepal. Second, semistructured interviews were conducted with 20 senior-level managers of listed companies to verify the results obtained from the survey and to gain a deeper understanding of the phenomena.FindingsThe survey results show that managerial understanding of CSR is mainly guided by the notions of corporate philanthropy, stakeholder approach and political CSR, respectively. However, the managerial understanding vis-à-vis political CSR and corporate philanthropy were found to be remarkably positively influenced by the firm’s size, whereas the stakeholder perspective was widely held by the managers regardless of their firm’s size. The interview results largely substantiated questionnaire survey findings and further revealed vivid dimensions within the philanthropic approach, stakeholder approach and political CSR.Practical implicationsGiven the recent legal provisions vis-à-vis mandatory CSR spending in Nepal, the policymakers may devise and update common core and firm-size-specific informational, fiscal-economic, legal and partnering instruments based on the findings of this study. Besides, companies may go for appropriate institutional arrangements for CSR as needed.Originality/valueThe reaffirmation of conventionally accepted roles and the approval of relatively nascent political roles of business in a distinct socio–political–legal–economic context of Nepal can be an important contribution to the literature.

Does Investment in CSR Activities Enhance Firm Value for Politically Connected Firms? Evidence from India

This article examines whether political connections and CSR activities influence firm value in an emerging market. We use panel data of 1,897 firms listed on the National stock exchange (NSE) for 2015–2020 with 11,382 firm-year observations. Around 20% of sample firms in the study are politically connected, with 12% connected through the donation channel and 18% connected through the promoter or firm owner channel. The results show that politically connected firms are actively involved in CSR through spending on various activities. We find that politically connected firms perform better, and investment in CSR activities has a moderating effect on firm value. Our result is consistent when examined using firm-level ESG (Environmental, Social and Governance) data and after controlling for various factors.

Corporate social responsibility in China's airline industry: A longitudinal content analysis of related reports

As China has become the world's largest consumer market and leading exporter, researchers and practitioners urgently need to understand how corporate social responsibility (CSR) is socially constructed in the Chinese context, especially for international industries such as the airline sector. Building upon the triple bottom line model, this study offers a contextualized and dynamic understanding of Chinese airline CSR. Content analysis was performed to analyze 74 aggregate CSR reports (2007–2020) issued by different types of Chinese airlines. The findings reveal that in addition to the economic, social, and environmental responsibilities that are commonly seen in the West, Chinese airlines assume unique political responsibilities. This political dimension of CSR in China has become increasingly obvious in recent years. Driven by factors such as international pressure, industry competition, and more importantly, national policies, the focus of Chinese airline companies' CSR reporting has been changing over time. However, it has maintained a high level of content completeness over the years, and the social dimension of CSR has always been the aspect of greatest concern. This study contributes to the airline CSR literature by considering the particularity of airline companies and Chinese contextual factors and augmenting political CSR as a critical component of CSR in the Chinese context. Managerial implications are provided for international enterprises to cater more appropriately to the Chinese market and achieve cooperation with Chinese enterprises by implementing CSR strategies.

Kindness or hypocrisy: political mindset and corporate social responsibility decoupling in Chinese firms

This study examines the effects of executives’ political mindsets on their Corporate Social Responsibility (CSR), which has corporate and societal implications. We focus on the Chinese market, where political connections shape business activities. We find that executives with a promotion or ideology-oriented mindset issue more substantive CSR reports than their peers. However, only executives with ideology-oriented mindsets contribute to society, whereas promotion-oriented executives are associated with lower societal impact. This ‘CSR decoupling' also manifests itself in firms’ CSR activities. Chairpersons with political connections are more likely to pursue financial performance at the expense of societal contributions than their unconnected peers. In contrast, chairpersons with party membership are less likely to do so than their unaffiliated peers. Lastly, this paper shows that executives’ political perception affects the relationship between political mindset and CSR.

Political CSR and Populism: Toward an Information-Based Theory of Political CSR

Extant research on political corporate social responsibility (PCSR) has not yet addressed how the populist turn impacts PCSR theory and practice. This conceptual article analyzes how populism influences PCSR across a range of political environments. We draw on signaling and screening theories to develop a conceptual model that advances PCSR literature by proposing an information-centric approach. We highlight the necessity of high-quality information as an enabling condition for effective PCSR-related decision-making, and our model explains how the depreciation of information transparency under populism impacts PCSR strategy. We thus contribute to PCSR literature with a new information-based theorization by showing how PCSR depends on the political environment and by enhancing our understanding of the role of the state in the development of PCSR strategies.

Political Corporate Social Responsibility in Small Tourism Business: The Case of a Finnish Sled Dog Kennel

Political Corporate Social Responsibility in Small Tourism Business: The Case of a Finnish Sled Dog Kennel

Public Health and Political Corporate Social Responsibility: Pharmaceutical Company Engagement in COVAX

Pharmaceutical companies developed Covid-19 vaccines in record time. However, it soon became apparent that global access to the vaccines was inequitable. Through a qualitative inquiry as the pandemic unfolded (to mid-2021), we provide an in-depth analysis of why companies engaged with the Covid-19 Vaccines Global Access Facility (COVAX), identifying the internal (to the company) and external factors that facilitated or impeded engagement. While all producers of the World Health Organization (WHO)-approved vaccines engaged with COVAX, our analysis highlights the differential levels of COVAX engagement and identifies contractual obligations, opportunities and company strategy, and reputational pressures as key explanatory factors. We discuss our empirical findings relative to the literature on political corporate social responsibility (PCSR). Accordingly, we question whether pharmaceutical companies lived up to their responsibilities as corporate citizens and conclude that they failed to fulfill the implied responsibility of combating inequitable vaccine distribution. We conclude with implications of our research for practice, in relation to the challenges of global access to Covid-19 vaccines and for access to medicines more generally.

The Two Sides of Community Political Conservatism and CSR: Exploring the role of community social connectedness

Despite decades of globalization, organization studies have consistently found evidence of community influences on firm behavior. In this study, we develop and test a nuanced theory on the relationship between community political conservatism and corporate social responsibility engagement by integrating social capital theory and the logic of appropriateness. We demonstrate that the influence of community political conservatism is contingent upon two types of community social capital: interfirm and cooperative social connectedness. These two types of social connectedness elicit the manifestation of two different aspects from community political conservatism: free-market and community orientations. While interfirm social connectedness enhances the negative relationship between community political conservatism and corporate social responsibility engagement, cooperative social connectedness weakens it.

Big Tech’s power, political corporate social responsibility and regulation

The economic dominance of large Internet tech companies, specifically the ‘Big Five’ (Google, Apple, Meta née Facebook, Amazon and Microsoft), is fundamentally complicating the organisation of society. Their positions raise profound questions, old and new, at the intersection of information systems and political philosophy, where companies have traditionally appeared in liberal democracies as economic operators rather than powerful political actors that threaten to limit citizens’ fundamental rights significantly through their operations. Importantly, the traditional understanding of corporate social responsibility is rooted in the liberal-democratic conception of moral labour’s division between public and private powers in a market economy. Focussing on this division, the paper analyses the various types of political power these companies wield and the complexities of regulating that power. Thus, it contributes to the IS discipline’s theoretical discussion by introducing political theory concepts that hold untapped potential for reconciling Big Tech and modern liberal-democratic conceptions of society. Taking these concepts as underpinnings for discussing six types of power, in turn (business vs. politics, democratic government, institutions of a market economy, companies, civil society and citizens), the paper offers the discipline example research questions to tackle and points to potential directions for scholarship.

Political Interaction Strategy Corporate Social Responsibility of PT Riau Andalan Pulp and Paper in Riau Province, Indonesia

This research aims to analyze the corporate social responsibility (CSR) political interaction strategy used by PT Riau Andalan Pulp and Paper (RAPP) in Riau Province, Indonesia. This is qualitative research with data collected through interviews and the annual reports on the stock exchange of Indonesian companies. This research using cluster analysis to investigate the degree of correlation between political actors and companies. Furthermore, the N Vivo 12 Software was used to strengthen the actors built in the CSR political interaction strategy. The result showed that the constituency development strategy is the strongest of the four other political interactions. A constituency-building strategy means that companies seek to build relationships with multiple stakeholders in addressing political issues. The company's political interaction strategy for constituency development is building relationships with the community, policymakers, and Key Opinion Leaders while engaging with the media. It was also found that of four constituency development strategies in this company, the interaction with the media was the strongest relationship built to support political interaction and CSR.

Political sentiment and corporate social responsibility

This paper examines the association between firm-level political sentiment and corporate social responsibility (CSR). Drawing inferences from signaling and resource-based theory, we posit a positive relationship between political sentiment and CSR. Using 23,160 firm-year observations of US public firms between 2002 and 2018 as our sample, we find empirical support for our prediction. In addition, the positive relationship between political sentiment and CSR is driven by the environment, community relations, employee relations, and diversity dimensions of CSR activities. We find consistent evidence when we measure CSR using some ‘real effect’ variables. Our cross-sectional analyses reveal that the positive association between political sentiment and CSR is more evident for firms that have a high level of information asymmetry and firms that are large, mature, and active in political lobbying. Our findings remain robust to a batch of sensitivity and endogeneity tests. Overall, our findings advance the literature by highlighting the interplay between politics and firms in an ever-changing political environment.

Does the government procurement market favor corporate social responsibility in a weak institution? Evidence from China

This study investigates, in the context of a weak institution, the single and interactive effects of firms’ nonmarket strategies in China’s government procurement market. Based on transaction cost and signal theory, using data pertaining to Chinese government procurement contracts from 2016 to 2018, this study also provides evidence that superior corporate social responsibility (CSR) performance enables firms to obtain more government procurement contracts. However, the effect is only significant in non-state-owned enterprises. Considering the interaction effect of corporate political activity (CPA) and CSR in business to government (B2G) markets, this study finds that CPA, characterized by the political attributes of executives, enhances the signal effect of CSR in B2G markets. Further heterogeneity analysis indicates that CSR’s signal effect diminishes over time and is enhanced with high industry competition. Our findings provide new insights on nonmarket mechanisms (such as CSR), through which firms competing in China’s B2G market can compensate for the weak institution.