scholarly journals CSR Needs CPR: Corporate Sustainability and Politics

2018 ◽  
Vol 60 (4) ◽  
pp. 5-24 ◽  
Author(s):  
Thomas P. Lyon ◽  
Magali A. Delmas ◽  
John W. Maxwell ◽  
Pratima (Tima) Bansal ◽  
Mireille Chiroleu-Assouline ◽  
...  
Keyword(s):  
Environmental Performance ◽  
Corporate Sustainability ◽  
Political Activity ◽  
Political Responsibility ◽  
Corporate Environmental Responsibility ◽  
Rating Systems ◽  
Corporate Political Activity ◽  
Policy Positions ◽  
Corporate Social ◽  
Political Actions

Corporate sustainability has gone mainstream, and many companies have taken meaningful steps to improve their own environmental performance. But while corporate political actions such as lobbying can have a greater impact on environmental quality, they are ignored in most current sustainability metrics. It is time for these metrics to be expanded to critically assess firms based on the sustainability impacts of their public policy positions. To enable such assessments, firms must become as transparent about their corporate political responsibility (CPR) as their corporate social responsibility (CSR). For their part, rating systems must demand such information from firms and include evaluations of corporate political activity in their assessments of corporate environmental responsibility.

scholarly journals Impact of Corporate Political Activity on the Relationship Between Corporate Social Responsibility and Financial Performance: A Dynamic Panel Data Approach

2018 ◽  
Vol 11 (1) ◽  
pp. 60 ◽  
Author(s):  
Woon Lin ◽  
Jo Ho ◽  
Murali Sambasivan
Keyword(s):  
Corporate Social Responsibility ◽  
Panel Data ◽  
Financial Performance ◽  
Dynamic Panel Data ◽  
Political Activity ◽  
Corporate Political Activity ◽  
Dynamic Panel ◽  
Financial Position ◽  
Corporate Social ◽  
The Relationship

As corporate social responsibility (CSR) gains momentum in the business world, it is imperative to comprehend the relationship between CSR and corporate financial performance (CFP). While there is prior research looking at this relationship, scholars have proposed a contingency view that is meant to determine the situational contexts in which critical associations between CFP and CSR activities will arise. This study provides further insight into the moderating effects of corporate political activity, specifying the ways in which different arrangements of corporate CSR and CPA might align or otherwise, thus influencing CFP beyond associated dissimilar effects on corporate performance. The data for this study was obtained for the periods 2007–2016 from the samples selected from the list of Fortune’s World’s Most Admired Companies. The dynamic panel data was analyzed using the System Generalized Method of Moment estimation. The main findings are that CSR does not significantly influence CFP. However, CPA does negatively moderate the relationship between CSR and CFP. This indicates that high political expenditures worsen a firm’s financial position compared to the financial position of firms with less spending on CPA.

Nonmarket Responses to Regulation: A Signaling Theory Approach

2020 ◽  
Vol 45 (6) ◽  
pp. 865-891
Author(s):  
Lee Warren Brown ◽  
Irene Goll ◽  
Abdul A. Rasheed ◽  
Wayne S. Crawford
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Signaling Theory ◽  
Political Activity ◽  
Theory Approach ◽  
Federal Regulations ◽  
Corporate Political Activity ◽  
The Us ◽  
Regulatory Intensity ◽  
Corporate Social

We examine how regulatory intensity and increases in regulation affect the nonmarket activities of firms. Using a signaling theory perspective, we seek to better understand how firms respond to regulation in terms of corporate social responsibility (CSR) and corporate political activity (CPA), the two main pillars of nonmarket activity. Examination of both CSR and CPA in concert rather than in isolation provides insights into whether they are complements or substitutes. We use textual analysis of the US Code of Federal Regulations to measure regulatory intensity and increases in regulation. Based on a sample of 331 S&P 500 firms for the period 1998–2014, our findings suggest that regulatory intensity leads to more nonmarket responses from firms. We also find support for nonlinear relationships between CSR and CPA.

Corporate Political Activity and Sensitivity to Social Attacks: The Case of Family-Managed Firms

2020 ◽  
Vol 33 (2) ◽  
pp. 152-174
Author(s):  
James G. Combs ◽  
Richard J. Gentry ◽  
Sean Lux ◽  
Peter Jaskiewicz ◽  
T. Russell Crook
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Political Activity ◽  
Large Firms ◽  
Corporate Political Activity ◽  
Standard And Poor's ◽  
Corporate Social

Family-managed firms take actions to protect their reputations. We theorize that one such action involves avoiding corporate political activity (CPA) that expose firms to social attack, especially when also invested in corporate social responsibility. Because large firms are frequent targets for social attack, the same sensitivity that encourages most family managers to avoid CPA encourages it among the largest as a buffer. Supportive analysis of Standard and Poor’s 500 firms shows that family-managed firms spend, on average, 86% less on CPA, even less when invested in substantive corporate social responsibility. The largest invest as much or more in CPA as nonfamily peers.

scholarly journals How do firms compete in the non-market? The process of political capability building

2016 ◽  
Vol 18 (3) ◽  
pp. 263-295 ◽  
Author(s):  
Richard S. Brown
Keyword(s):  
Public Policy ◽  
Political Action ◽  
Political Activity ◽  
Corporate Structure ◽  
Corporate Political Activity ◽  
Resource Based View ◽  
Capability Building ◽  
Political Access ◽  
Theory Research ◽  
Political Actions

This paper contributes to both corporate political activity (CPA) research and capabilities theory research by offering models that better describe the process that managers undertake to nurture a political capability. This is done through the interplay of four factors inherent in political actions, namely (i) corporate structure, (ii) firm-government linkages, (iii) political access and (iv) public policy pressure. Additionally, recognizing that political capability attainment is not a binary endeavor, I offer a political capability continuum to better categorize the magnitude by which differing firms allocate resources toward molding public policy. This paper adds to the scant literature on management-focused CPA research that integrates the resource-based view (RBV) of the firm and political action research.

scholarly journals Guest Editors’ Introduction:Corporate Sustainability Management and Environmental Ethics

2017 ◽  
Vol 27 (2) ◽  
pp. 213-237 ◽  
Author(s):  
Douglas Schuler ◽  
Andreas Rasche ◽  
Dror Etzion ◽  
Lisa Newton
Keyword(s):  
Environmental Ethics ◽  
Special Section ◽  
Intrinsic Value ◽  
Corporate Sustainability ◽  
Political Activity ◽  
Business Practices ◽  
Sustainable Business ◽  
Corporate Political Activity ◽  
Sustainability Management ◽  
Sustainability Standards

ABSTRACT:This article reviews four key orientations in environmental ethics that range from an instrumental understanding of sustainability to one that acknowledges the intrinsic value of sustainable behavior (i.e., sustainable resource use, conservation and preservation, rights-based perspectives, and deep ecology). It then shows that the current scholarly discourse around corporate sustainability management—as reflected in environment management (EM), corporate social responsibility (CSR), and corporate political activity (CPA)—mostly favors an instrumental perspective on sustainability. Sustainable business practices are viewed as anthropocentric and are conceptualized as a means to achieve competitive advantage. Based on these observations, we speculate about what corporate sustainability management might look like if it applied ethical orientations that emphasize the intrinsic value of nature. This discussion also includes an introduction to two articles in this special section focused on the role of the environmental manager and sustainability standards, both of which offer paths for incorporating intrinsic valuation of the environment into sustainability management.

scholarly journals Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research

2021 ◽  
Author(s):  
Pei Sun ◽  
Jonathan P. Doh ◽  
Tazeeb Rajwani ◽  
Donald Siegel
Keyword(s):  
Multinational Enterprises ◽  
Political Activity ◽  
Future Research ◽  
Strategy Research ◽  
Corporate Political Activity ◽  
Missed Opportunities ◽  
Nonmarket Strategy ◽  
Global Issues ◽  
Global Institutions ◽  
Corporate Social

AbstractMultinational enterprises are deeply engaged in nonmarket strategy (NMS), including both corporate political activity (CPA) and strategic corporate social responsibility (SCSR). In this review, we document the multinational NMS research according to contributions’ theme, method, context, theory, and level of analysis. We then develop an institutional multiplicity framework to organize our analysis of this large and fragmented body of literature. In so doing, we identify the most impactful contributions within three major themes – multinational CPA, multinational SCSR, and the integration of CPA and SCSR – and their respective subthemes, and call attention to limitations in the extant research. We also highlight promising avenues for future research, including expanding the scope of NMS to incorporate microfoundations research, integrating macrolevel scholarship on global institutions, placing greater attention on the interaction between CPA and SCSR, and incorporating multi-actor global issues and movements. Our review underscores the growing importance and missed opportunities of NMS research in the international business field.

scholarly journals How do perceived CPA and political CSR interact in their relationships with citizens’ trust in companies?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vicent Tortosa-Edo ◽  
Miguel Ángel López-Navarro
Keyword(s):  
Structural Equation ◽  
Negative Relationship ◽  
Political Activity ◽  
Industrial Complex ◽  
Corporate Political Activity ◽  
Content Type ◽  
Political Csr ◽  
Political Corporate Social Responsibility ◽  
Corporate Social ◽  
Market Strategies

Purpose In the context of an industrial complex where corporate political activity (CPA) and political corporate social responsibility (political CSR) are not related, this study aims to investigate the possible relationship between citizens’ perceptions of these two non-market strategies and residents’ trust in companies located in the industrial complex. Design/methodology/approach Data were collected from 740 citizens living near a petrochemical complex in Tarragona (Spain). The results were analysed using structural equation modelling. Findings Based on institutional theory, the key findings of the study are that CPA and political CSR are differently related to citizens’ trust in companies. The results also verify that the negative relationship (between CPA and trust) outweighs the positive one (between political CSR and trust). Practical implications The lack of fit between political CSR and CPA in the complex analysed suggests that firms are neglecting approaches shared by these non-market strategies, and thus wasting a huge opportunity to improve citizens’ trust in and acceptance of the complex firms. Moreover, the ethical dimension should always be present when these firms take on political responsibilities. Originality/value To date, CPA and political CSR have largely been dealt with separately in the literature. This study attempted to bridge this gap by examining a situation where there is no strategic relationship between CPA and political CSR to analyse, from the perspective of citizens’ perceptions, the relationship each strategy has with the important academic concept of citizens’ trust in companies.

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