The supplier perspective: forging strong partnerships with buyers

2015 ◽  
Vol 36 (1) ◽  
pp. 25-32 ◽  
Author(s):  
Julia Roloff ◽  
Michael S. Aßländer ◽  
Dilek Zamantili Nayir
Keyword(s):  
Case Studies ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Clothing Industry ◽  
Management Approach ◽  
Open Communication ◽  
Content Type ◽  
Problems And Solutions ◽  
Supplier Partnerships ◽  
Corporate Social

Purpose – The purpose of this paper is to identify three commonly observed mistakes made when managing suppliers and describe factors that contribute to successful buyer–supplier partnerships. Design/methodology/approach – Five extensive case studies in the automotive and clothing industry, as well as cases discussed in the literature, are analysed. Findings – Barriers to successful partnerships are a too strong emphasis on cost cutting and a too controlling management approach on the part of the buyer, and the abuse of insider knowledge for faking performances on the side of the supplier. Open communication, willingness to engage in mutual learning and encouraging innovations are observed in successful partnerships. Research limitations/implications – A limited number of case studies in the German automotive industry and the Turkish clothing industry are used. Both industries are subject to significant change which means that generalisations should be made with caution. Therefore, we discuss only problems and solutions that have also been identified in studies conducted in other industries and/or countries. Practical implications – Managers learn how to best manage partnerships with suppliers and what mistakes to avoid. Social implications – Partnerships aiming at improving working conditions are discussed. Findings and recommendations help managers improve their corporate social performance in the supply chain. Originality/value – Partnerships are approached from the perspective of the supplier to identify commonly made mistakes and successful practices of buyers.

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.

In search of ethics: from Carroll to integrative CSR economics

2019 ◽  
Vol 15 (4) ◽  
pp. 469-491 ◽  
Author(s):  
Sigmund Wagner-Tsukamoto
Keyword(s):  
Institutional Economics ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Business Case ◽  
Future Research ◽  
Market Exchange ◽  
Content Type ◽  
Four Dimensions ◽  
Corporate Social ◽  
Practical Implications

PurposeRevisiting Carroll’s classic corporate social responsibility (CSR) pyramid framework, this paper aims to evolve a novel synthesis of ethics and economics. This yielded an “integrative CSR economics”.Design/methodology/approachThis theory paper examined how to conceptually set up CSR theory, argue its ethical nature and establish its practical, social and empirical relevance. Economic analysis reached out from contemporary institutional economics to Smith’s classic studies.FindingsThe paper reconstructed all of Carroll’s four dimensions of CSR – economic, legal, ethical and philanthropic responsibilities – through economics. The paper discounted a core assumption of much CSR research that economic approach to CSR, including the instrumental, strategic “business case” approach to CSR, were unethical and lacked any foundations in ethics theory. Integrative CSR economics reframes research on viability and capability requirements for CSR practice; redirecting empirical research on links between CSP (corporate social performance) and CFP (corporate financial performance).Research limitations/implicationsThe paper focused on Carroll as the leading champion of CSR research. Future research needs to align other writers with integrative CSR economics. Friedman or Freeman, or the historic contributions of Dodd, Mayo, Bowen or Drucker, are especially interesting.Practical implicationsThe paper set out how integrative CSR economics satisfies the “business case” approach to CSR and develops practical implications along: a systemic dimension of the market economy; a legal-constitutional dimension; and the dimension of market exchanges.Social implicationsIntegrative CSR economics creates ethical benefits for society along: a systemic dimension of the market (mutual gains); a legal-constitutional dimension (law-following); and the dimension of market exchange (ethical capital creation). Social benefits are not only aspired to but also are achievable as a business case approach to CSR is followed.Originality/valueThe paper’s main contribution is a new synthesis of economics and ethics that yields an “integrative CSR economics”.

Systemic corporate social responsibility: micro-to-macro transitions, collective outcomes and self-regulation

2016 ◽  
Vol 12 (2) ◽  
pp. 209-227 ◽  
Author(s):  
Brent D. Beal ◽  
Cristina Neesham
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Corporate Social Performance ◽  
Corporate Citizenship ◽  
Social Performance ◽  
Self Regulation ◽  
System Level ◽  
Content Type ◽  
Management Approaches ◽  
Corporate Social

Purpose The purpose of this paper is to call attention to the need to revitalize the systemic nature of corporate social responsibility (CSR) and offer some suggestions about how this might be accomplished. The authors introduce the concept of systemic CSR and associate it with micro-to-macro transitions, the need to make systemic objectives explicit and the responsibility of system participants to regulate their behavior to contribute to these outcomes. Design/methodology/approach The authors comment, from a systemic perspective, on four different management approaches to CSR – shareholder value, corporate social performance, stakeholder theory and corporate citizenship. Three general systemic principles that participants can use as decision-making guides are a focus on value creation, ongoing assessment of collective outcomes and reflective engagement in the aggregation process. Findings The authors observe that businesses routinely demonstrate their ability to think in systemic terms in strategic contexts that require it. If businesses can address systemic issues in these contexts, then they can also apply systemic logic in furtherance of collective (or system-level) objectives. Originality/value The authors propose an approach to CSR that emphasizes micro-to-macro transitions, the need to make systemic objectives explicit and the responsibility of system participants to regulate their behavior to contribute to these desired objectives. Systemic CSR is unique in its explicit focus on the micro-to-macro transition (i.e. the process of aggregation), systemic objectives and the need to actively insource responsibility for contribution to the realization of those objectives.

Stakeholder performance, corporate social performance

2019 ◽  
Vol 14 (3) ◽  
pp. 242-253
Author(s):  
Jean Biwole Fouda ◽  
Irène Abessolo Abessolo
Keyword(s):  
Life Cycle ◽  
Corporate Social Performance ◽  
Social Performance ◽  
The Other ◽  
Life Cycle Model ◽  
Cycle Model ◽  
Dominant Type ◽  
Content Type ◽  
Essentially Contested Concepts ◽  
Corporate Social

Purpose The purpose of this paper is to find out what added value does the stakeholder performance concept bring with respect to that of corporate social performance. To better understand the developments of these concepts, the authors resort to Gallie’s theory (1956) of essentially contested concepts, the life-cycle model of Hirsch and Levin’s (1999) umbrella concepts. Reconciling these two theoretical frameworks allows us to introduce the competing category notion consisting of a dominant and a dominated-type concepts. Through a historical and synchronic literature examination, CSP is shown to have characteristics of the dominant type, thanks to its more diffuse character. On the other hand, the stakeholder performance would relate to the dominated type, though it provides better operationalization possibilities. Design/methodology/approach To better understand the developments of these concepts, Gallie’s theory (1956) of essentially contested concepts, the life cycle model of Hirsch and Levin’s (1999) umbrella concepts are used. Findings CSP has characteristics of the dominant type, thanks to its more diffuse character. On the other hand, the stakeholder performance relates to the dominated type, though it provides better operationalization. Originality/value CSP as a dominant type and stakeholder performance is a dominated type.

The relationship between poor CSR performance and hard, negative CSR information disclosures

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maher Jeriji ◽  
Waël Louhichi
Keyword(s):  
Information Disclosure ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Panel Data Analysis ◽  
Content Type ◽  
Csr Reporting ◽  
Opportunistic Behaviour ◽  
Corporate Social ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between hard, negative corporate social responsibility (CSR) information disclosure and corporate social performance. Design/methodology/approach This study uses a generalised least squares panel data analysis based on a sample of firms ranked in the Fortune Global 500 for the period 2013–2016. Robustness check tests were conducted to limit endogeneity concerns. Findings The results show that in line with strategic legitimacy theory, agency theory and organisational stigma theory, poor sustainability performers disclose a low quality of hard, negative CSR information. Practical implications This paper provides guidance for stakeholders to identify good and poor CSR performers by better understanding whether corporate CSR reports are more likely to be symbolic or substantive when considering the amount of hard, negative content in their CSR stand-alone reports. Social implications The research highlights the opportunistic behaviour of CSR reporting, which is used more as a legitimation device than as an accountability mechanism. Thi Originality/value Although numerous studies have investigated the association between the level of corporate social disclosure (CSD) and corporate social performance, no research has focussed on hard, negative CSD. Also, an index that captures the disclosure quality rather than the quantity of negative CSR information was constructed.

Bridging the gap between corporate social responsibility performance and tax aggressiveness

2020 ◽  
Vol 33 (4) ◽  
pp. 825-855 ◽  
Author(s):  
Eduardo Ortas ◽  
Isabel Gallego-Álvarez
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Cultural Dimensions ◽  
Economic Sectors ◽  
Data Set ◽  
Content Type ◽  
Tax Aggressiveness ◽  
Corporate Social

PurposeThis paper addresses the role of corporate social responsibility (CSR) performance as a potential mechanism for reducing firms' likelihood of engaging in tax aggressiveness (TAG). The paper also contributes to the existing literature by addressing the moderating effect of national cultures on the link between CSR performance and corporate TAG.Design/methodology/approachThe focus is placed on an unbalanced panel of 2,696 companies distributed in 30 countries and seven economic sectors over the period of 2002–2014.FindingsThe results provide support for those companies achieving high corporate social performance (CSP), corporate environmental performance (CEP) and corporate governance performance (CGP) being less likely to engage in aggressive tax practices. Finally, the results identify some national cultural dimensions moderating the link between disaggregated measures of CSR performance and firms' TAG.Research limitations/implicationsThe difficulty of accessing CSR and TAG data for non-listed companies could bias the data set towards a compliant company profile because of the higher visibility. In addition, the use of effective tax rates to examine firms' TAG should be interpreted with some caution.Practical implicationsThe paper's findings provide unique and useful information for company stakeholders and managers aiming to address the factors that enhance firms' incentives to engage in aggressive tax practices.Originality/valueThis paper addresses the multidimensional nature of CSR performance by analysing the links between CSP, CEP and CGP and corporations' TAG. Furthermore, the research addresses the way in which national culture moderates the links between disaggregated measures of CSR performance and corporate TAG.

Corporate social and financial performance in different industry contexts: the chicken or the egg?

2016 ◽  
Vol 12 (4) ◽  
pp. 672-686 ◽  
Author(s):  
Anni Tuppura ◽  
Heli Arminen ◽  
Satu Pätäri ◽  
Ari Jantunen
Keyword(s):  
Financial Performance ◽  
Granger Causality ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Causality Test ◽  
Content Type ◽  
Forest Industries ◽  
The Usa ◽  
Causality Relationship ◽  
Corporate Social

Purpose The purpose of the paper is to examine empirically Granger causality relationships between corporate social performance (CSP) and corporate financial performance (CFP) in four different industries. Design/methodology/approach The paper uses the Granger causality test to analyse the causality relationships between CSP and CFP in clothing, energy, food and forest industries in the USA. The panel data used combined CSP and CFP measures over the years 1991-2009. CSP strengths and concerns are handled as distinct constructs. Findings There is some evidence of bidirectional causality between CSP and CFP in the clothing, energy and forest industries; but in the food industry, CSP appears not to Granger-cause CFP. The results encourage accounting for the industry in empirical analyses, as well as the use of more than one measure for CFP in the analyses. Originality/value The direction of causality between CSP and CFP has been specifically addressed in only a few studies. Because the causality relationship may, in addition, be concealed when multi-industry data are used, this paper contributes to the literature by examining the Granger causality between CSP and CFP in four different industry contexts using two different measures of CFP.

scholarly journals Can board gender diversity promote corporate social performance?

2017 ◽  
Vol 17 (5) ◽  
pp. 789-802 ◽  
Author(s):  
Khine Kyaw ◽  
Mojisola Olugbode ◽  
Barbara Petracci
Keyword(s):  
Emerging Markets ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Critical Mass ◽  
Gender Diversity ◽  
Corporate Boards ◽  
Content Type ◽  
Clear Cut ◽  
Board Gender Diversity ◽  
Corporate Social

Purpose This paper examines if gender diversity on corporate boards promotes corporate social performance (CSP) across industries and across countries. Design/methodology/approach Fixed-effect panel models are estimated using Europe-wide data from 2002 through 2013. Instrumental variable estimation and propensity score matching are also used to control for potential endogeneity. Findings Board gender diversity (BGD) improves environmental and social performance and consequently the CSP. Although the positive effect of gender diversity is prevalent across industries, the effect is more pronounced for firms in emerging markets. Practical implications The findings suggest that gender law that fosters gender diversity can promote CSP in firms, and the benefit can be enjoyed with just an introduction of one female director to the board. Promotion of gender diversity in Europe is most beneficial in emerging markets. Originality/value The results provide new insights to the literature, as we find that a critical mass of female directors on boards is not required to promote CSP. The research also highlights that BGD enhances CSP irrespective of the industry, and the effect on CSP is more pronounced in emerging markets where regulations regarding CSR are not so clear-cut.

Board nationality and educational background diversity and corporate social performance

2019 ◽  
Vol 19 (2) ◽  
pp. 217-239 ◽  
Author(s):  
Maretno Agus Harjoto ◽  
Indrarini Laksmana ◽  
Ya wen Yang
Keyword(s):  
Corporate Social Performance ◽  
Social Performance ◽  
Educational Background ◽  
Corporate Boards ◽  
Content Type ◽  
The Us ◽  
National Citizenship ◽  
Corporate Social ◽  
The Relationship ◽  
Nationality Diversity

Purpose This paper aims to examine the relationship between the nationality and educational background diversity of directors serving on corporate boards and the firms’ corporate social performance (CSP). Design/methodology/approach This study measures nationality diversity by directors’ national citizenship and measures educational background diversity by countries from which they earned their undergraduate and post undergraduate degrees. It measures firms’ CSP using the MSCI ESG ratings. The study uses both univariate and multivariate analyses to empirically test the hypotheses. Findings Using a sample of US firms, the authors find that board nationality diversity and educational background diversity are positively associated with CSP. The findings suggest that improving director nationality diversity and educational background diversity could improve firms’ social performance. Originality/value This study shows that the increasing trend of foreign nationals in the US boards could shift the focus of US corporations to be more stakeholder-oriented.

scholarly journals Negative disclosures in corporate social responsibility reporting

2020 ◽  
Vol 25 (2) ◽  
pp. 319-337 ◽  
Author(s):  
Sabine A. Einwiller ◽  
Craig E. Carroll
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Cultural Differences ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Large Firms ◽  
Content Type ◽  
Body Of Knowledge ◽  
Corporate Social Responsibility Reporting ◽  
Corporate Social

PurposeThis study aims to reveal the quantity, quality and cultural differences of negative corporate social performance (CSP) disclosures in large firms' corporate social responsibility (CSR) reports. Firms are expected to be transparent about the impacts and outcomes of their CSP. A central aspect of transparency is balance, which means disclosing both positive and negative CSP.Design/methodology/approachContent analysis was applied to 75 CSR reports of large firms chosen from the Forbes Top 500 list. The firms belong to three cultural clusters: Anglo, Confucian Asia and Germanic/Nordic Europe.FindingsFirms made few negative CSP disclosures, yet the quantity of negative CSP disclosures varied among cultural clusters. Reports from Germanic/Nordic Europe showed the highest number of negative CSP disclosures, reports from Confucian Asia showed the lowest number and the Anglo cluster's number fell in between. The Asian firms communicated corrective actions more often than firms from the other clusters.Research limitations/implicationsThis study focused on negative CSP disclosures in the CSR reports – not omitting negative CSP. The practice of self-laudatory CSR communication decreases the likelihood that relevant stakeholders will believe what firms report about.Originality/valueStudies on the quality and quantity of negative disclosures are rare; by examining cultural differences, this study contributes to the limited body of knowledge.

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