Social Organizational Performance Research Articles

Overcoming unintended consequences of social impact accountability: How to avoid counterproductive responses of individuals and groups in organizations

AbstractThis contribution aims to explain when and why policies that increase social accountability are likely to have unintended and counterproductive effects on the social performance of organizations. The Behavioral Regulation Model applies insights from social identity theory to recent research on moral psychology. This elucidates that deep concerns about social approval for one's morality and good intentions, raise “the paradox of morality”: The motivation to signal endorsement of social values and good intentions prompts people to justify and defend shortcomings in these domains, instead of addressing them. We demonstrate how this approach and research supporting it can help recognize and understand a range of defensive responses organizations and their representatives are likely to show. Subsequently, we specify how policymakers, regulators, and other stakeholders can circumvent these counterproductive effects and help people in organizations to show more constructive responses toward social impact improvement.

Evaluating board diversity and its importance in the environmental and social performance of organizations

AbstractPast literature documenting the relationship between board diversity and organizational sustainability performance resulted in inconclusive findings. The study draws on the resource dependency theory to investigatehowboard gender diversity and age diversity influence the corporate social responsibility (CSR) performance of organizations. The qualitative data were collected through in‐depth interviews of 19 board directors from 14 organizations operating in Australia. Data were analyzed following the six‐phase process of thematic analysis. The findings indicate that board gender and age diversity enhance CSR investment and approach decisions, and, in turn, they improve the CSR performance of organizations. The effectiveness of these relationships depends on the number of women directors, organizational culture, industry regulations, and organizational life‐cycle stage. This study provides insights into the “black box” of boardroom dynamics. The findings suggest that efforts need to be made at the organizational and policy levels to increase board gender and age diversity for a sustainable performance.

Is Micro Financing Creating Social Value: The Effect of Impact Investment of Microfinance Banks on Borrowing Firms’ Financial and Social Performance and with the Mediatory Role of Principal-Agent Relationship

Impact investment has emerged as an idea for sustainable development and aims at creating positive change towards the environment and society besides increasing returns. There have been many debates regarding its functionality and viability and argue that is made in favor of “financial returns” and “social returns” by various practitioners. The microfinance banking system in Pakistan is still in the infancy phase concerning impact investment. This study explored the relationship between impact investment and how various dimensions of impact assessment influence financial performance and social performance and how it will in turn affect the social value creation. For this we developed a theoretical framework, modifying financial intermediary social value equation model developed by that conceptualized the mediatory role of principal-agent relationship in impact investment and performance nexus. Impact of investment. To measure impact investing, we used a 3 tier Business Performance measurement matrix conceptualized by Rowe-Haynes, M. D. (2017). These included Job, Business Survival, Ethnicity and minority, Business, and Bank Impact. We hypothesized that these impact investing dimensions affect both financial performances as well as social performance through strengthening Principal-Agent Relationship. Higher financial and social performance would in turn lead to social value creation in the society. Empirical validity was established by conducting a survey using a close-ended questionnaire. Data were collected from 100 small/ medium scale businesses using confirmatory factor analysis and structured equation modeling. The survey of each business included its owner who got loans as well as conducting another round of survey with the bank managers who sanctioned those loans. The results suggested that ethic and minority impact positively and significantly influence the financial performance along with the principal-agent relationship. Also, the social performance of organizations seems to be a key contributor to social value creation. This implies that social inclusion in society to integrate all segments along with a focus on the management of principal-agency problems is imperative for financial performance. Hence, the findings imply that impact investment is not increasing financial value as much as it addresses social performance indicators. This social performance leads to social value creation in the society hence impact investment creates social value.

EO, Network Resources, and Social Performance: Does Organizational Age Matter?

This study contributes to the limited established empirical research on the role of entrepreneurial orientation (EO) and network resources on the social performance of economic development organizations. We examine how an organization’s EO and resources accessed through its connections within a collaboration network impact its ability to accomplish its goals, satisfy its stakeholders, obtain sufficient resources, develop social innovation, and influence regional economic development. Leveraging a sample of 97 collaborating nonprofit economic development organizations operating in the economically distressed region of eastern Kentucky, our results show that EO and network strength positively impact social performance. We also theorize that those effects are moderated by the age of the organization. Our work highlights the value of taking a holistic resourced-based view and considering boundary conditions in examining the social performance of organizations.

Neural Networks: A Methodology to Evaluate Sustainability in Companies

Academics and practitioners have not yet developed an adequate method to evaluate the social performance of organizations that includes a robust and comprehensive approach to sustainability and uses the most relevant data sources. This study contributes to research on the evaluation of social performance in organizations by means of an innovative methodology that combines the use of neural networks and fuzzy logic for the development of experts systems suitable for classifying organisations according to their performance on CSR. The methodology has been validated in a simplified scenario and results indicate that it is suitable for replicating the classifications provided by sustainability rating agencies.

Rival private governance networks: Competing to define the rules of sustainability performance

Private governance of environmental and social performance of organizations, processes and products is gaining prominence in market and policy arenas, and thus, increasingly influencing sustainability outcomes. This study presents a concept of rival private governance where multiple initiatives compete for rule-setting authority. Specifically, we argue that heterogeneous actors organize in network form to establish legitimacy of new sustainability governance fields. In an effort to preempt threats from these new fields of governance, nonparticipating actors create rival private governance networks and compete based on each network's ability to access unique relational assets from participants. Based on the cases of carbon off-set standards, green building rating systems and sustainable forestry certifications, we suggest that this competitive market vetting results in pressures toward the convergence of governance rules over time, but not a single winning set of rules. Our findings illustrate that multiple and competing networks can provide innovative, legitimate and dynamically evolving governance of sustainability, while presenting new challenges for public and private sector actors.

Integrating health impact assessment into the triple bottom line concept

This theoretical study explores the links between the Triple Bottom Line (TBL) concept and the principles of HIA and considers the potential role of HIA to provide a mechanism for integrating health concerns within a broader agenda of government and business. TBL is a framework linked to the broader sustainability agenda that underpins and reviews environmental, economic and social performance of organizations. In its simplest form, TBL acts as a tool for reporting to stakeholders/shareholders organizational performance and the nature of the impacts on the community. The links to HIA are clear as both seek to determine the impact (potential and actual) on the health and well-being of the population. The study found that TBL can operate at four levels within organizations ranging from reporting through to full integration with the organization's goals and practices. Health is narrowly defined and there are tensions about how to undertake the social accountability functions. The study shows the potential role for HIA within the broader policy and accountability agenda. As health is one of the main outcomes of an organization's activities it needs to be taken into account at all levels of activity.