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”.

Employee competence development in corporate volunteering

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aldona Glińska-Neweś ◽  
Akram Hatami ◽  
Jan Hermes ◽  
Anne Keränen ◽  
Pauliina Ulkuniemi
Keyword(s):  
Business Case ◽  
Competence Development ◽  
Future Research ◽  
Content Type ◽  
Organizational Settings ◽  
Corporate Volunteering ◽  
Holistic Understanding ◽  
Perceived Effects ◽  
Corporate Social ◽  
Practical Implications

Purpose The purpose of this study is to examine how employee competences can be developed through corporate volunteering (CV). Specifically, this study focuses on diversity of volunteering studies categorized according to the type of beneficiaries and intensity of volunteer contact with them. The study examines how the beneficiary-employee relation influences the development of employee competences in CV projects. Design/methodology/approach In this qualitative empirical study, interview data collected in Poland about the perceived effects of CV projects on employee competences was used. Findings The findings suggest that to understand the competences generated in CV, attention needs to be paid to the nature of the volunteering study itself. The study proposes four different logics of competence development in CV, based on the type of the beneficiary and contact with them. Research limitations/implications The study builds on managers’ perceptions of competence development. For a holistic understanding, future research should include employees’ perceptions of the process. Also, more research is needed regarding national and organizational settings as factors in competence development through CV. Practical implications The study suggests how companies could best engage in volunteering programs and improve existing ones to make them more beneficial for all parties involved. Social implications The findings build the better business case for CV and other corporate social responsibility (CSR) initiatives, i.e. they deliver rationales for business engagement in this regard. Originality/value The study contributes to the conceptual understanding of CSR activities by presenting four logics of competence development in CV.

Investigating the relationship between director’s profile, board interlocks and corporate social responsibility

2015 ◽  
Vol 53 (3) ◽  
pp. 553-570 ◽  
Author(s):  
Hazar Ben Barka ◽  
Ali Dardour
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Board Of Directors ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Future Research ◽  
Content Type ◽  
Board Interlocks ◽  
Corporate Social ◽  
The Relationship

Purpose – The purpose of this paper is to discuss a research model that presents three metrics of corporate social performance (CSP): board interlocks, director’s profile and corporate social responsibility (CSR). Design/methodology/approach – Based on social network theories, the authors argue the possible relationships between the three variables. The authors conduct the study on 255 directorships in the boards of 20 listed companies in France, which participate in Carbon Disclosure Project (CDP) for 2010. Findings – The results show that director’s background and nationality diversity in the board are the most relevant attributes to discerning firms with high CSR scores. However, the relationship between board interlocks and CSR is not consistent. Some explanations are reported and discussed. Research limitations/implications – The research contributes to recognize the most influential variables in board composition for firms with high CSR scores, although it is based on a conceptual development and an explorative analysis. It could constitute the basis for future research which integrates modeling and multivariate analysis. Practical implications – Diversity in the board could be an effective tool to guide management for more CSR decisions. Social implications – The paper highlights the importance of diversifying the recruitment base when integrating new board members. This implies opening board networks to new profiles, in order to better meet stakeholders’ expectations regarding CSR. Originality/value – The paper contributes to board literature by highlighting the importance of combining individual attributes (director) with corporate ones (board of directors) to better assess the role of board of directors in the adoption of CSR’ practices.

Epistemological development of corporate social responsibility: the evolution continues

2017 ◽  
Vol 13 (2) ◽  
pp. 279-291 ◽  
Author(s):  
Norman Cameron Croker ◽  
Lisa Robyn Barnes
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Practical Importance ◽  
The Body ◽  
Future Research ◽  
Content Type ◽  
Management Literature ◽  
Corporate Social

Purpose The purpose of this paper is to investigate the corporate social responsibility (CSR) and corporate social performance (CSP) in literature from its inception to 2013. Design/methodology/approach Using a bibliometric technique, the authors examine CSR’s epistemological orientation and determine whether it is primarily composed of authors building on each other’s work (“progressive”), or comprises the development of alternative constructs (“variegational”), or whether both orientations exist side-by-side within a dynamic, multidimensional concept. Findings The paper reviews bibliometric analysis of the epistemological evolution of the CSR concept within the management literature, from 1972 to 2002, using a dataset to that time of approximately 500 articles. Since then, the evolving CSR/CSP literature has transitioned the main CSR debate from a “whether or not to”, to a “how to” implement CSR debate, and the body of literature has grown to over 8,000 articles. The authors find that the progression of the CSR construct is both variegational and progressive. They identify that the predominant theoretical theme is based on stakeholder theory. Research limitations/implications The results of this research, identifying that the epistemological evolution of the CSR concept within the recent management literature can be characterised as being both variegational and progressive, adds a valuable contribution to the ongoing and increasing body of knowledge relating to CSR. Originality/value The results of this study may be of practical importance to scholars in identifying relevant foci for their future research into the CSR construct.

Corporate social performance and cost of debt: the relationship

2017 ◽  
Vol 13 (2) ◽  
pp. 250-265 ◽  
Author(s):  
Barbara Sveva Magnanelli ◽  
Maria Federica Izzo
Keyword(s):  
Global Financial Crisis ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Risk Profile ◽  
Cost Of Debt ◽  
Data Set ◽  
Content Type ◽  
Corporate Social ◽  
The Cost ◽  
Practical Implications

Purpose This paper aims to investigate the link between corporate social performance (CSP) and cost of debt financing. Despite academic debate has focused on the link between corporate social responsibility (CSR) and CSP (expressed through accounting and market measures of profitability), few empirical researches have analysed the relations between CSR, cost of debt and its relation with the risk profile of a firm. The literature on the cost of debt determinants generally documents a negative association between measures of the risk of the firm and its cost of debt. The literature on CSR defines risk reduction as one of the potential benefits related to CSR activities. Thus, the expectation is that high CSP scores are inversely related to cost of debt. Design/methodology/approach Using a unique data set of 332 firms over a time period of five years antecedent to the global financial crisis, a linear regression model is applied. Findings The results show a positive relation between CSP and cost of debt, demonstrating that CSR is not a value driver with an impact on the firm’s risk profile. Practical implications The research has also practical implications as it makes managers aware of the potentiality of CSP to reduce the firm’s cost of debt. Originality/value These findings enlarge the empirical research on the value of CSP, expanding it towards a quite new area of investigation: the cost of external financing.

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.

Corporate Social Responsibility, Irresponsibility, and Citizenship

2021 ◽  
pp. 830-846
Author(s):  
Duane Windsor
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Corporate Social Performance ◽  
Corporate Citizenship ◽  
Social Performance ◽  
Field Work ◽  
Future Research ◽  
Business And Society ◽  
Key Issues ◽  
Corporate Social

This article explains the three related conceptions of corporate social responsibility (CSR), corporate social irresponsibility (CSiR), and corporate citizenship. The three conceptions involve different approaches for answering the overarching question of the appropriate relationship between “business and society”. The article lays out the basics of the three conceptions; and contrasts economic, ethical, and strategic perspectives on these three conceptions. The article connects the three conceptions to corporate social performance (CSP), corporate governance, and stakeholder theory. The author provides the reader with a guide to the extant literature in a way that will facilitate further exploration into key issues. The author proposes some recommendations and solutions for addressing key problems in the field; and suggests future research directions. The article emphasizes key contributions to the development of the field. Work of important authors such as A. B. Carroll, Milton Friedman, Michael E. Porter, and Donna J. Wood among others receives attention.

Determinants and consequences of corporate social responsibility assurance: a systematic review of archival research

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Patrick Velte
Keyword(s):  
Corporate Social Responsibility ◽  
Literature Review ◽  
Social Responsibility ◽  
Value Added ◽  
Business Case ◽  
Future Research ◽  
Archival Research ◽  
Content Type ◽  
Decision Usefulness ◽  
Corporate Social

Purpose This paper aims to analyze the governance-related and financial determinants and consequences of corporate social responsibility assurance (CSRA). Design/methodology/approach Based on a legitimacy theoretical framework and on the business case argument, the author conducts a structured literature review and includes 66 quantitative peer-reviewed empirical (archival) studies on key CSRA proxies (CSRA adoption, choice of CSR assuror and CSRA quality). Findings In line with the business case for CSRA, the literature review indicates that internal corporate governance, country-related governance and specific financial determinants as reporting, firm size and industry (sensitivity) have a positive impact on CSRA adoption. Research limitations/implications A detailed analysis of CSRA proxies is needed in future archival research to differentiate between symbolic and substantive use of CSRA. In view of the current regulatory initiatives on CSR reporting and their decision usefulness, future research should also analyze in greater depth CSRA proxies as moderator and mediator variables. Practical implications With regard to the increased stakeholder demand on CSRA after the financial crisis of 2008–2009, firms should be aware of the value-added of CSRA to increase the decision usefulness of their CSR reports and firm reputation. Originality/value The analysis makes useful contributions to prior literature by focussing on empirical quantitative (archival) research method, structuring research on the business case for CSRA with respect to its governance and financial determinants and consequences for firms and stressing moderator analysis in archival CSRA research.

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.

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