scholarly journals Restoring an eroded legitimacy: the adaptation of nonfinancial disclosure after a scandal and the risk of hypocrisy

2021 ◽  
Vol 34 (9) ◽  
pp. 164-186
Author(s):  
Marco Bellucci ◽  
Diletta Acuti ◽  
Lorenzo Simoni ◽  
Giacomo Manetti
Keyword(s):  
Content Analysis ◽  
Sustainability Reporting ◽  
Corporate Disclosure ◽  
Legitimacy Theory ◽  
Socially Responsible ◽  
Content Type ◽  
Financial Scandals ◽  
Social Environmental ◽  
Corporate Social ◽  
Nonfinancial Disclosure

PurposeThis study contributes to the literature on hypocrisy in corporate social responsibility by investigating how organizations adapt their nonfinancial disclosure after a social, environmental or governance scandal.Design/methodology/approachThe present research employs content analysis of nonfinancial disclosures by 11 organizations during a 3-year timespan to investigate how they responded to major scandals in terms of social, environmental and sustainability reporting and a content analysis of independent counter accounts to detect the presence of views that contrast with the corporate disclosure and suggest hypocritical behaviors.FindingsFour patterns in the adaptation of reporting – genuine, allusive, evasive, indifferent – emerge from information collected on scandals and socially responsible actions. The type of scandal and cultural factors can influence the response to a scandal, as environmental and social scandal can attract more scrutiny than financial scandals. Companies exposed to environmental and social scandals are more likely to disclose information about the scandal and receive more coverage by external parties in the form of counter accounts.Originality/valueUsing a theoretical framework based on legitimacy theory and organizational hypocrisy, the present research contributes to the investigation of the adaptation of reporting when a scandal occurs and during its aftermath.

scholarly journals Hypocrisy and legitimacy in the aftermath of a scandal: an experimental study of stakeholder perceptions of nonfinancial disclosure

2021 ◽  
Vol 34 (9) ◽  
pp. 151-163
Author(s):  
Marco Bellucci ◽  
Diletta Acuti ◽  
Lorenzo Simoni ◽  
Giacomo Manetti
Keyword(s):  
Sustainability Reporting ◽  
Companion Paper ◽  
Socially Responsible ◽  
Content Type ◽  
Reporting Practices ◽  
Reporting Behaviors ◽  
Main Paper ◽  
Social Environmental ◽  
Practical Implications ◽  
Nonfinancial Disclosure

PurposeThis study aims to investigate how stakeholders perceive the company's nonfinancial disclosure after a scandal has occurred. More specifically, the authors examine whether and how sustainability reporting practices in the aftermath of a scandal can influence the perceptions of stakeholders in terms of hypocrisy and legitimacy.Design/methodology/approachThe present research represents a companion paper to another study in this issue that investigates the adaptation of companies' reporting behaviors after a scandal. The results of the initial qualitative study informed the subsequent quantitative study developed in this article. The authors build on the evidence of the main paper and perform a 2 × 2 between-subjects experiment to examine how stakeholders perceive the actions of companies that aim to restore their eroded legitimacy through social, environmental and sustainability (SES) reporting.FindingsThe results suggest that when companies take responsibility and develop remedial, socially responsible corporate activities are perceived as less hypocritical and more legitimate. Moreover, we show an interaction effect between taking responsibility and developing remedial socially responsible actions on hypocrisy and legitimacy perception.Originality/valueThe present research takes advantage of an experimental design to investigate the effects of the adaptation of SES reporting from the perspective of stakeholders. The study provides insightful theoretical and practical implications for managers regarding how to handle a reputational loss and avoid perceptions of hypocrisy.

Constructing the ideal SRI (sustainability reporting index) framework for Indonesian market: combined perspectives from rating agencies, academics, and practitioners

2019 ◽  
Vol 15 (5) ◽  
pp. 573-596 ◽  
Author(s):  
Sita deliyana Firmialy ◽  
Yunieta Anny Nainggolan
Keyword(s):  
Factor Analysis ◽  
Content Analysis ◽  
Exploratory Factor Analysis ◽  
Social Performance ◽  
Sustainability Reporting ◽  
Analysis Method ◽  
Content Type ◽  
Rating Agencies ◽  
Social Environmental ◽  
Social Rating

Purpose This study aims to focus on developing the sustainability reporting index (SRI) with combined perspectives from varied social rating agencies, along with integrated combined perspectives from academics experts and Indonesian companies. Design/methodology/approach The first section discusses the theoretical framework along with the sustainability challenges faced by companies in Indonesia. The second section develops the methodology of the study to measure the SRI by considering practical and theoretical perspectives, starting from the identification of initial disclosure, selecting the final disclosure and developing the hierarchical framework. Lastly, the third section confirms the validity of the study’s framework by the exploratory factor analysis method and its comparability by comparing the content analysis result of the study with the Kinder–Lydenberg–Domini (KLD) method. The content analysis was used to analyze annual reports, sustainability reports and companies’ websites based on indicators found in the resulted model. Findings The main finding is the SRI framework (SRIF) of the study, which is built on the basis of the stakeholder relationship theory and is focused on three main dimensions (social, economic and environmental). Specifically, the framework consists of 17 indicators and 93 sub-indicators. On the basis of factor analysis method, it can be safely said that the study’s SRIF is quite valid. The high score of correlations between the SRIF and KLD results at the composite and dimension levels, along with the statistically significant results show that the study’s SRIF results and KLD results are fairly similar. Research limitations/implications The present study has its limitation as it only gathers data from publicly available reports issued by the firms (secondary data). Owing to time limitation, primary data are not collected. However, this is also the strength of this research as it will allow investors to replicate the study’s methodology to measure companies’ sustainability. Practical implications The study is useful to organizations and statutory bodies toward finding a replicable method to measure the Indonesian companies’ social performance. In addition, the study also introduced the usefulness of the qualitative program Atlas TI to perform content analysis, the exploratory factor analysis method to ensure validity and comparability by comparing it to the KLD methodology, which is known globally as the most widely accepted methodology to measures social performance. Lastly, this study will provide implications to the Government to ascertain the level of SRI reporting among the Indonesian public-listed companies. Originality/value The resulted framework in this study simultaneously considers social, environmental and economic factors in the context of companies in Indonesia, while previous researchers have constructed reporting index separately (i.e. Sumiani et al., 2007; Zhao et al., 2012). Especially in the context of Indonesia, there is no such index simultaneously focused on the three main dimensions, namely, social, environmental and economics. The current study tries to fill the gap by using the constructed SRI index based on three perspectives combined, namely, social rating agencies, academic theorist and Indonesian companies.

scholarly journals The use of social media for engaging stakeholders in sustainability reporting

2016 ◽  
Vol 29 (6) ◽  
pp. 985-1011 ◽  
Author(s):  
Giacomo Manetti ◽  
Marco Bellucci
Keyword(s):  
Social Media ◽  
Stakeholder Engagement ◽  
Sustainability Reporting ◽  
Global Reporting Initiative ◽  
Exploratory Research ◽  
Content Type ◽  
Political Views ◽  
Social Environmental ◽  
Use Of Social Media ◽  
Corporate Social

Purpose – The purpose of this paper is to assess if online interaction through social media, particularly Facebook, Twitter, and YouTube, represents an effective stakeholder engagement mechanism in order to define the contents of social, environmental, or sustainability reporting (SESR). Design/methodology/approach – After examining 332 worldwide sustainability reports for the year 2013, drawn up according to the guidelines provided by the Global Reporting Initiative, the authors conducted a content analysis on the Twitter, Facebook, and YouTube pages of the organisations who rely on these types of social media. This was done in order to assess the scope of interaction between the organisation and its stakeholders. Findings – The authors found that a small number of organisations use social media to engage stakeholders as a means of defining the contents of SESR, and that the level of interaction is generally low. Rather than assuming a deliberative approach that is aimed at forging a democratic consensus on how to address specific corporate social responsibility or SESR issues, these types of interaction focus on gathering divergent socio-political views in an agonistic perspective. Research limitations/implications – Further research could complement this exploratory research with statistical analyses. It could focus on how comments/replies by users are used by organisations and examine the impacts of SESR on companies’ performances. Originality/value – The authors contribute to the literature on social accounting by understanding whether social media can be reliable instruments of stakeholder engagement and by examining the relevance of information that is voluntarily disclosed by corporations in SESR.

Intertwining CSR with strategy – the way ahead

2014 ◽  
Vol 14 (2) ◽  
pp. 211-219 ◽  
Author(s):  
Shital Jhunjhunwala
Keyword(s):  
Business Strategy ◽  
Design Methodology ◽  
Business Models ◽  
Corporate Strategy ◽  
Sustainable Business ◽  
Socially Responsible ◽  
Content Type ◽  
Sustainable Business Models ◽  
Corporate Social

Purpose – The purpose of this paper is to emphasize the importance and means of making corporate social responsibility (CSR) an integral part of corporate strategy with the help of case studies. Design/methodology/approach – The article explores the transformation of business from being egocentric to socially responsible. With the use of examples it demonstrates how integrating CSR into strategy can create sustainable business models. Findings – Firms need to develop a framework for integrating CSR into their business strategy for long term successful survival. Social implications – Corporates and society are intertwined and mutually dependent. Business cannot survive without society's acquiescence nor succeed without its active support. Originality/value – The article explains the benefits of CSR and how to make it an integral part of business strategy to gain a competitive advantage.

Corporate social responsibility disclosure on the websites of coffee chains in Turkey

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Petek Tosun
Keyword(s):  
Corporate Social Responsibility ◽  
Content Analysis ◽  
Social Responsibility ◽  
Public Attention ◽  
Content Type ◽  
The Public ◽  
The Social ◽  
Csr Disclosure ◽  
Social And Environmental Responsibilities ◽  
Corporate Social

Purpose Coffee is among the primary products that attract the public attention to the social and environmental responsibilities of companies. Coffee shops have a big carbon footprint because of their daily operations. With the rising consciousness about sustainability in developing countries, online disclosure of corporate social responsibility (CSR) is becoming increasingly important for not only multinational but also local coffee chains. The purpose of this study is to analyze the extent to which coffee chains include CSR on their websites. Design/methodology/approach Turkey, which is a large emerging economy with an expanding coffee chain market, is selected as the research context. The CSR disclosure on the websites of coffee chains is examined by content analysis according to CSR dimensions. A sample of 27 coffee chains with more than ten stores is included in the analysis. Findings Foreign coffee chains disclose more information on the environment and fair trade than local coffee chains. On the other hand, CSR content in websites of foreign and local coffee chains does not differ significantly in human resources and community dimensions. Foreign coffee chains have comparatively longer brand history, more rooted brands and larger networks than local coffee chains. Originality/value To the best of the author’s knowledge, this study is the first that used a content analysis about CSR on the websites of coffee chains in Turkey. Findings contribute to the understanding of CSR disclosure in the coffee chain industry and can be beneficial for researchers and managers in other emerging markets.

Understanding how social responsibility drives social innovation: characteristics of radically innovative projects

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Duygu Turker ◽  
Y. Serkan Ozmen
Keyword(s):  
Social Responsibility ◽  
Social Innovation ◽  
Socially Responsible ◽  
Content Type ◽  
Radical Innovations ◽  
Award Winning ◽  
Innovation Characteristics ◽  
Sustainability Challenges ◽  
Corporate Social ◽  
The Impact

PurposeThis study aims to analyze how corporate social responsibility (CSR) initiatives address sustainability challenges by focusing on the congruence between process and outcome variables of CSR.Design/methodology/approachFollowing a theory-driven model, a content analysis was conducted on 63 award-winning social responsibility projects.FindingsThe study reveals that the adoption of a proactive approach during environmental assessment, which manifests itself in a focus on emerging sustainability challenges with a deeper interest, affects the centrality of social responsibility initiative by increasing its learning and partnership potential and leads organizations to produce radical innovations.Practical implicationsThe findings provide a valuable understanding for practitioners on organizing the decision making process of CSR initiatives in order to unlock its learning potentials.Social implicationsRadically innovative projects with their higher levels of proactivity, centrality and generalizability are better than incremental ones at transferring and integrating company resources and capabilities to address emergent sustainability challenges.Originality/valueThe impact of CSR on society and nature has been a neglected area of literature. To reduce this gap, this study analyzes how the configuration of process variables shapes the outcomes of socially responsible initiatives on sustainability. It also provides a new typology on the relevance of CSR initiatives to company mission/model that can show how CSR can unlock organizational learning and innovation potentials.

Delivering warmth and expediting love: just-in-time CSR in the midst of COVID-19 mega disruption

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zhiwei (CJ) Lin ◽  
IpKin Anthony Wong ◽  
Shuyi Kara Lin ◽  
Yun Yang
Keyword(s):  
Well Being ◽  
Research Problem ◽  
Media Analysis ◽  
Just In Time ◽  
Business Practices ◽  
Socially Responsible ◽  
Content Type ◽  
Brand Resonance ◽  
Corporate Social ◽  
Crisis Responses

Purpose This study aims to move beyond the current understanding of corporate social responsibility (CSR) to propose the concept of just-in-time (JIT) CSR as a metaphor that reflects hospitality operators’ endeavors to expedite socially responsible measures to both internal and external organizational stakeholders during times when functional and emotional supports are urgently needed. Design/methodology/approach This research used a qualitative approach in two studies. Study 1 engaged a media analysis to better grasp the knowledge of the research problem at hand. Study 2 involved interviews from stakeholders to assess their emotions and perceptions of meanings of major contents discerned from the first study. Findings This research highlights a process in which operators’ CSR practices (e.g. for business practices, for organizational strategy and for stakeholder well-being) during the COVID-19 crisis are imbued with connotative meanings (e.g. place-as-safety, place-as-partnership and place-as-warmth) that ultimately give shape to three core outcomes (e.g. individual rejoinder, brand resonance and societal resilience). Research limitations/implications While JIT CSR is not an antidote for all devastations caused by COVID-19, it is posited as a needed mechanism that operators could use to ameliorate the situation and to go beyond their own stake to bring a broader array of societal benefits to humanity. Originality/value This research underscores how hospitality operators expedite crisis responses to the pandemic, and how their societal objectives transform the image of a place from a commercial venue into a place imbued with meaning associated with safety, partnership and warmth.

Towards a more ethical market: the impact of ESG rating on corporate financial performance

2019 ◽  
Vol 15 (1) ◽  
pp. 11-27 ◽  
Author(s):  
Giovanni Landi ◽  
Mauro Sciarelli
Keyword(s):  
Data Analysis ◽  
Corporate Social Performance ◽  
Stock Exchange ◽  
Social Performance ◽  
Panel Data Analysis ◽  
Abnormal Returns ◽  
Socially Responsible ◽  
Content Type ◽  
Corporate Social ◽  
The Impact

Purpose This paper fits in a research field dealing with the impact of Corporate Ethics Assessment on Financial Performance. The authors argue how environmental, social and governance (ESG) paradigm, meant to measure corporate social performance by rating issuance, can impact on abnormal returns of Italian firms listed on Financial Times Stock Exchange Milano Indice di Borsa (FTSE MIB) Index, developing a panel data analysis which runs from 2007 to 2015. Design/methodology/approach This study aims at exploring whether socially responsible investors outperform an excess market return on Italian Stock Exchange because of their investment behavior, testing statistically the relationship between the yearly ESG assessment issued by Standard Ethics Agency on FTSE MIB’s companies and their abnormal returns. To verify the impact of an ESG Rating on a company’s abnormal return, the authors developed a panel data analysis through a Fixed Effects Model. They measured abnormal returns via Fama–French approach, running a yearly Jensen’s Performance Index for each company under investigation. Findings The empirical results denote in Italy both a growing interest to corporate social responsibility (CSR) and sustainability by managers over the past decade, as well as an improving quality in ESG assessments because of a reliable corporate disclosure. Thus, despite investors have been applying ESG criteria in their stock – picking operations, the authors found a not positive and statistically significant impact in terms of market premium, when they have been undertaking a socially responsible investment (SRI). Practical implications The findings described above show that ethics is not yet a reliable fundraising tool for Italian-listed companies, despite SRIs having a positive growth rate over past decade. Investors seem to be not pricing CSR on Stock Exchange Market; therefore, listed companies cannot be rewarded with a premium price because of their highly stakeholder oriented behavior. Originality/value This paper explores, for the first time in Italy, when market extra-returns (if any) are related to corporate social performance and how managers leverage ethics to build capital added value.

scholarly journals Contextual determinants of HR professionals’ self-perceptions of unethical HRM practices

2019 ◽  
Vol 28 (1) ◽  
pp. 90-108
Author(s):  
Eduardo Simões ◽  
Ana Patricia Duarte ◽  
José Neves ◽  
Vítor Hugo Silva
Keyword(s):  
Ethical Issues ◽  
Socially Responsible ◽  
Content Type ◽  
Self Perceptions ◽  
Hrm Practices ◽  
Unethical Practices ◽  
Contextual Determinants ◽  
The Individual ◽  
Corporate Social ◽  
Structured Questionnaire

Purpose The purpose of this paper is to examine human resources (HR) professionals’ self-perceptions of ethically questionable human resource management (HRM) practices (i.e. disregard for the individual, favoring those in power and discrimination). The research sought specifically to determine how these perceptions are influenced by their organizations’ ethical infrastructure and corporate social responsibility (CSR) practices. Design/methodology/approach Data were collected from 134 HR professionals using an anonymous structured questionnaire. Findings The scope of organizations’ ethics programs and the degree of importance given to developing an ethical infrastructure were found to predict the level of acceptance of unethical HRM practices related to discrimination. These practices are also less acceptable to professionals from organizations that are perceived as more socially responsible regarding their employees. Research limitations/implications Additional studies with larger samples are needed to determine more clearly not only the influence of contextual determinants, but also the practical consequences of high levels of acceptance of unethical practices in HRM. Practical implications Organizations can decrease their HR professionals’ acceptance of ethically questionable HRM practices by developing and emphasizing a strong ethical infrastructure and CSR practices, especially those affecting employees. Originality/value HR professionals’ perceptions of ethical issues have rarely been analyzed using empirically tested methods. By surveying HR professionals, this study contributes to a fuller understanding of their perceptions regarding the ethics of their own practices. The results show that contextual determinants play an important role in predicting the level of acceptance of unethical HRM practices, especially those leading to discrimination.

scholarly journals What does corporate social advocacy signal? Evidence from boycott participation decisions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pyemo N. Afego ◽  
Imhotep P. Alagidede
Keyword(s):  
Content Analysis ◽  
Stock Market ◽  
Event Study ◽  
Market Valuation ◽  
Social Advocacy ◽  
Content Type ◽  
Political Issues ◽  
Stock Market Valuation ◽  
Corporate Social ◽  
The Impact

PurposeThis paper explores how a firm's public stand on a social-political issue can be a salient signal of the firm's values, identity and reputation. In particular, it investigates how boycott participation–conceptualized as a cue of a corporation's stand on important social-political issues–may affect the stock market valuation of that corporation, as well as how corporations legitimise their stand on the issues.Design/methodology/approachThe authors employ a mixed-methods design that uses both qualitative techniques (content analysis) and quantitative methods (event study methodology) to examine a sample of US firms who participated in a boycott campaign that sought to call attention to issues of hate speech, misinformation and discriminatory content on social media platform Facebook.FindingsFindings from the qualitative content analysis of company statements show that firms legitimise their stand on, and participation in, the boycott by expressing altruistic values and suggesting to stakeholders that their stand aligns not only with organizational values/convictions but also with the greater social good. Importantly, the event study results show that firms who publicly announced their intention to participate in the boycott, on average, earn a statistically significant positive abnormal stock return of 2.68% in the four days immediately after their announcements.Research limitations/implicationsFindings relate to a specific case of a boycott campaign. Also, the sample size is limited and restricted to US stocks. The signalling value of corporate social advocacy actions may vary across countries due to institutional and cultural differences. Market reaction may also be different for issues that are more charged than the ones examined in this study. Therefore, future research might investigate other markets, use larger sample sizes and consider a broader range of social-political issues.Practical implicationsThe presence of significant stock price changes for firms that publicly announced their decision to side with activists on the issue of hate propaganda and misinformation offers potentially valuable insights on the timing of trades for investors and arbitrageurs. Insights from the study also provide a practical resource that can be used to inform organizations' decision-making about such issues.Social implicationsTaking the lead to push on social-political issues, such as hate propaganda, discrimination, among others, and communicating their stands in a way that speaks to their values and identity, could be rewarding for companies.Originality/valueThis study provides novel evidence on the impact that corporate stances on important social-political issues can have on stock market valuation of firms and therefore extends the existing related research which until now has focused on the impact on consumer purchasing intent and brand loyalty.

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