Business & Society

Published by SAGE Publications
Online ISSN: 0007-6503
Publications
Scores of the Three Clusters on the Corporate Social Responsibility Governance Items With Central American Data
Discriminant Analysis of Corporate Social Responsibility Governance by Central American Firms Using Centrality as the Independent Variable
Probit Analysis
Article
The decision to internalize corporate social responsibility (CSR) activities, to buy (outsource) them in the form of corporate philanthropy, or to collaborate with other organizations is of great significance to the ability of the firm to reap benefits from such activity.Using insights provided by organizational economics and the resource-based view of the firm,this paper describes how CSR centrality affects governance choice. This framework is tested using data collected from Central America.The findings suggest that the higher the centrality of CSR activities to the firms’ mission, the more likely that the firms will engage in CSR internally.The paper discusses directions for future research and concludes with the managerialimplications of this research.
 
Article
This paper focuses on the general concern that theories on the social responsibility of business have not much practical value. We discuss the central theses of mainstream themes in the business and society literature – corporate social responsibility, corporate social responsiveness, social issues, corporate social performance, stakeholder management, corporate citizenship, business ethics, sustainable development, and corporate sustainability – and evaluate their descriptive accuracy, normative validity and instrumental power. A great deal of the literature views corporate contribution to social and environmental issues from a moral perspective. Such moral prescription widens the expectational gap between theories and practice. If business and society literature is to have any practical value, our theorizing should make sense to businesses. It therefore needs to reflect, at least partially, the practitioners’ concerns with social responsibility. Hence research questions with practical relevance should be posed, and methods adopted from empirical inquiry, focusing on well-defined problems. Although the empirical method is advocated here, we do not plead for its enforcement on colleagues who might consider it inappropriate. Yet, we do appeal to normative theorists to ponder whether their prescriptions to business can be realistically implemented.
 
Article
The purpose of this paper is to build on the emerging stakeholder model of corporate governance by analyzing the CSR function at board level, board diversity, and stakeholder engagement, and how it relates to financial performance. Based on an empirical study of an international sample of large companies, we find board responsibility for CSR to be a key factor in promoting engagement with primary and secondary stakeholders of the firm. Depending on the legal tradition of the country in which the company is based, we find evidence that board diversity and stakeholder engagement are positively correlated with firm financial performance.
 
Pursuing social goals is more fair than increasing profits: Test results
Fairness is biased towards poorer and smaller parties: Test results
Article
This paper researches factors that influence price fairness judgements. The empirical literature suggests several factors: reference prices, the costs of the seller, a self-interest bias and the perceived motive of sellers. Using a Dutch sample, we find empirical evidence that these factors significantly affect perceptions of fair prices. In addition, we find that the perceived fairness of prices is also influenced by other distributional concerns that are independent of the transaction. In particular, price increases are judged to be fairer if they benefit poor people or small organisations rather than benefiting rich people or big organisations.
 
Factor Analysis Results
Article
Thousands of facilities worldwide have certified to ISO 14001, the international environmental management system standard, and previous research typically has studied these certification decisions at the facility level. However, significant anecdotal evidence indicates that firms may have a strong role, and if so, prior studies may be drawing inappropriate conclusions about the rationale for ISO 14001 certification. Drawing on institutional theory and the resource-based view of the firm, this study offers a conceptual framework that explains why parent companies would mandate — rather than simply encourage — their operational units to certify to ISO 14001. The framework is tested using survey data of corporate environmental managers. The results show that firms have a central role in nearly half of all facility-level certifications and that (compared to companies that merely encourage certification) firms that mandate ISO 14001 endure greater external pressures and have stronger complementary resources and capabilities that support their organization-wide ISO 14001 policies.
 
Article
Thesis (Ph. D. in Business Administration)--University of California, Berkeley, May 1994. Includes bibliographical references (leaves 179-193).
 
Article
This article reviews the development of business ethics and corporate social policy from the perspective of a long-time major in the field.
 
Article
Thesis (D.B.A.)--Boston University, 1997. Vita. Includes bibliographical references (leaves 155-166).
 
Article
This review shows how the relationship between nongovernmental organizations (NGOs) and businesses has been examined in business and society, management, and international business (IB) literatures. Altogether 88 relevant studies have been identified through the analysis of article abstracts from 11 leading journals in these fields. The articles have been classified into three categories according to their focus: NGO—business interface, NGO—business— government interface, and NGOs as one of many corporate stakeholders. Six main themes are identified: (a) Activism and NGO influence, (b) dyadic partnership (NGO—business), (c) cross-sector partnership (NGO—business— government), (d) global governance and standardization, (e) national-level governance, and (f) stakeholder management. The state of the research topic is assessed, and implications and avenues for further research are provided.
 
Article
This dissertation forum continues the tradition started last year by Business & Society to recognize and recognize the achievements of the finalists of the Academy of Management’s Social Issues in Management (SIM) Division dissertation award. The dissertation forum includes an introductory essay by the chair of the committee. The essay details the procedure behind choosing a winner as well as reflection on the process. The special dissertation forum also includes the three dissertation abstracts by the finalists. The forum includes a description of each of the finalists as well as a critical evaluation of the works. Similar to last year, each finalist was also asked to provide some insights into “for producing exemplary dissertation research.” These insights are also documented at the end of each abstract.
 
Logistic regressions (n=250)
Article
The macro-level debate on the economic impact of multinational enterprises (MNEs) is still unsettled. This paper explores micro-level evidence by examining what Fortune Global 250 firms themselves report about their economic impact. Such reporting embodies corporate attempts to account for their economic implications, in addition to the environmental and social aspects of their activities that have traditionally received more attention in the context of corporate responsibility. Firms' reports turn out to provide a rich illustration of the mechanisms through which MNEs (can) affect economic development (including sheer size, technology transfer, and backward linkages), and of how such impacts are being operationalised and measured. We also test which MNEs are most likely to disclose information on the various mechanisms, and find that it is influenced by region, sector and size, but not by profitability. Implications of this exploratory study for research and practice are discussed.
 
Article
But educational reflection of social rigidity lessens labor force's efficiency
 
MANCOVA Absorptive Capacity -Environmental Proactivity/Competitive Advantage
Article
While abundant literature evaluates how the adoption of proactive environmental strategies affects corporate performance, we have little understanding of the organizational mechanisms that link such strategies to competitive advantage. It is therefore unclear how environmental strategies relate to other management strategies that could lead to a competitive advantage. In this paper, we analyze the organizational capabilities that underlie a firm’s ability to generate competitive advantage from the adoption of proactive environmental strategies. We develop and test a model where absorptive capacity facilitates the development of proactive environmental strategies that result in competitive advantage. Results from a survey of 157 German chemical firms strongly support the model.
 
Article
Not always, concludes this C.P.A. who asks that laymen be critical
 
Article
Explains process and offers insights for practical use through quantitative models
 
Latent Classes of Corporate Social Action Underlying Kinder Lydenburg Domini Social Ratings Data 
Article
The contribution of this work is a classification of corporate social action underlying the Social Ratings Data compiled by Kinder Lydenburg Domini Analytics, Inc. We compare extant typologies of corporate social action to the results of our exploratory factor analysis. Our findings indicate four distinct latent constructs that bear resemblance to concepts discussed in prior literature. Akey finding of our research is that positive and negative social action are both empirically and conceptually distinct constructs and should not be combined in future research. Additionally, we recommend that some prior research results be reconsidered to determine whether these newly derived measures might clarify some previous findings.
 
Article
This article analyzes the process of organizing collective action by studying the role of the organizational platform provided by the United Nations–backed Principles for Responsible Investment (PRI) initiative in supporting institutional investors’ collaborative engagement with corporations on environmental, social, and governance issues. The authors combine stakeholder and collective action theory to explain how institutional investors influence corporations through collective engagement. A unique access to data from the PRI secretariat on two cases of collaborative campaigns allows evaluation of our framework. The findings clarify how investors enhance their sources of power, legitimacy, and urgency and attract managers’ attention through collaborative engagement, and show how they manage these attributes to reshape the legitimacy and urgency of their claims in the eyes of managers. Our data suggest that “enabling organizations” such as the PRI initiative facilitate the emergence of collective action by lowering barriers to entry and providing a mobilizing structure, support collaborative efforts by adding their own legitimacy, normative power, and persistence to the collaborative engagement, and create conditions for a lasting dialogue between investors and managers by providing a hybrid organizational space.
 
Article
This article reviews the literature on corporate political action (CPA), integrating the perspectives of nine basic social science theories. Theoretical and empirical research grounded in these nine theories have described the characteristics of firms that engage in CPA (who), their rationale (why), and their methods (how). To a much lesser extent, the literature has also addressed how CPA changes over time (when) and the settings in which CPA is done (where). Reexamining the CPA literature this way directs us toward fundamental research questions that have not yet been addressed.
 
Article
Despite growing interest in the dynamics and influences of activist groups, few studies have examined the specific tactics used by activists to achieve legitimacy and how these actions affect target firms or industries. This article studies the history and current state of the battle between tobacco control groups and Big Tobacco in search of evidence for their use of framing—a process of generating shared meaning and purpose through the creation of overarching messages—as a vehicle for carrying out their mission, achieving legitimacy, and thwarting the efforts of adversaries. The authors propose that both sides marshal specific core frames in service of broader master frames, namely the projection of honesty and trustworthiness for the tobacco industry, countered by public health's master frame of distrust of the industry. The evolution of this battle may also be understood within the framework of a two-factor model of trust and distrust; the authors assert that the relationship between tobacco control and the industry will likely continue as one of low trust/high distrust, in part because the master frame of distrust has served multiple purposes for public health activists, including the establishment of greater legitimacy with the public and, by proxy, with the target industry. Several specific conclusions are drawn regarding the functions of distrust and the relationship between framing, trust, and legitimacy.
 
Article
This study compared the public policy interactions over time between small and medium-sized firms. Hypotheses related to firm size, frequency of activity, and influence methods were developed and tested. Small and medium-sized firms had different patterns of public policy involvement, with medium-sized firms reporting less activity but more success in influencing the public policy process than did small firms. Of the influence methods, only letter writing was significant to reported success rates. A regression analysis revealed that firm size and letterwriting variables provided the best fit in a linear-relationship model.
 
Article
This article applies the main findings of actor-network theory to the outcomes of international environmental negotiations on technological issues. Taking the Convention on Biodiversity (CBD) as a case study, and more precisely its developments on biotechnology and bioprospecting applications, the research identifies three successive stages in the negotiation of technological issues under the biodiversity treaty: (i) their emergence on the agenda of the CBD, (ii) the development of two sociotechnical networks in favor of biotechnology and bioprospecting applications, and (iii) the failure of these networks to influence the international agreement. These successive stages are the result of the mobilization of diverse actor networks, arising from the intersection of technological findings on the one hand and the interests of particular businesses, governments, and environmental NGOs with regard to these technological applications on the other hand. Closer scrutiny of these actor networks reveals that coherence between actors’ intentions and actions is a key element for their successful influence on international negotiations.
 
Adaptive cycle. Source: Adapted from Holling and Gunderson (2002).  
Statistical Variables to Characterize Extremity
Resilience framework. Source: Adapted from Adger (2000), McDaniels et al. (2008), and Linnenluecke et al. (2008). Note: For the purpose of clarity, this figure depicts the impact of a single, extreme weather event. Given the expected increase in number and/or frequency of extreme weather events, organizations might be exposed to more than a single, extreme weather event; they might possibly also face more intense events that result in a larger disturbance.  
Article
Scientific findings forecast that one of the major consequences of human-induced climate change and global warming is a greater occurrence of extreme weather events with potentially catastrophic effects for organizations, industries, and society. Current management and adaptation approaches typically focus on economic factors of competition, such as technology and innovation. Although offering useful insights, these approaches are potentially ill equipped to deal with any increases in drastic changes in the natural environment. This article argues that discussions on organizational adaptation need to be broadened and that new conceptual and practical approaches are needed to incorporate the effects of climate change and a greater occurrence of weather extremes into corporate strategy and decision making. The authors advance the notion that a resilience framework might provide insights into dealing with new types of environmental change. They contend that by developing resilience, organizations can develop resources and capabilities to avoid or minimize organizational collapse and to reorganize in light of discontinuities associated with climate change and weather extremes. Implications for organizational practice and research are discussed. 2010 SAGE Publications.
 
Article
The term nonmarket is increasingly applied to environments, institutions, organizations, and exchanges that are also labeled as noneconomic and social. Why has this new term been coined and widely adopted, and what are its distinct denotations? The author traces the development of this concept through four perspectives on nonmarket, which are integrated into an overarching definition, after relating them to major theories and pointing to major research challenges. The constituting and correcting of markets, firms, and noneconomic institutions are the central concerns of nonmarket studies that bear on all organizing projects.
 
Article
Researching the organization and management of international public affairs (IPA) in the then-new multinational enterprises (MNEs) started in the 1960s. At first, IPA studies kept fairly good pace with what was known about the MNEs' nonmarket environments, their structurings, and their processes. After 1980, a disconnect developed in our knowledge of these three interrelated topics. In particular, much of more recent IPA research (a) fails to reflect the true scope, real actors, and organizational location of the IPA function; (b) remains focused on old issues (e.g., the hierarchical relationship between headquarters and subsidiaries); (c) is mired in complex statistical analyses of remote data; (d) uses relevant theories in rather marginal ways; and (e) overlooks the impact on IPA of such important developments as mergers, acquisitions, and divestments. Yet, investigators can stretch their research methodologies and refocus their studies on the organization and management of the two faces of public affairs—offensive and defensive—in the context of new nonmarket threats and opportunities.
 
Article
Military exigencies should not preclude planning for the economics of peace
 
Codes of Good Practice-Generic Scorecard
Codes of Good Practice-Enterprise BEE Status
Article
The South African government has been active in promulgating specific corporate social responsibility (CSR) regulations since 1994 directed at the economic empowerment of historically disadvantaged Black people. Government laws have sought to involve corporations in promoting social cohesion and in addressing problems of historical exclusion of Black communities from the mainstream economy. This objective of transformation within the economy culminated in the release of the Broad-Based Black Economic Empowerment Act in 2003. The Department of Trade and Industry finalized the Codes of Good Practice on February 9, 2007, to clarify and ensure consistency in the implementation of socially responsible behavior in one area, empowerment of historically disadvantaged Black people (other areas of CSR do not display this consistently) within organizations across industry sectors. In this article, the authors discuss the key principles of this legislation, approaches to monitoring and measuring Codes of Good Practice implementation, and their implications for social-change initiatives in local and multinational enterprises that operate in South Africa.
 
Article
In recent years there has been a surge in corporate governance reform around the world. On the African continent this phenomenon is evident in the number of national corporate governance reports that have been produced. This article analyzes these national codes of corporate governance in Africa to determine how the relationship between corporate governance and business ethics is being perceived. The article commences by providing a background to the corporate governance reform process that still is in the making in Africa. It then explores the relation between corporate governance and business ethics by looking at various aspects of corporate governance that might have an impact on how business ethics is being perceived and practiced. Finally new corporate governance developments that potentially might have an impact on the prominence and practice of business ethics are reviewed.
 
Article
All three corporate governance systems in North America are currently embroiled in fundamental transformations. Most of Mexico’s corporations are run by a small group of controlling shareholders and operate in an economic system rife with corruption. Recent political reforms and a desire to tap global equity markets have heightened their interest in improving corporate governance structures. United States corporations face a dispersed ownership base that has tended toward inattentiveness, allowing such infamous scandals as Enron to rock the global investing community. A backlash against the ensuing, restrictive Sarbanes-Oxley legislation is now underway. Like Mexico’s, Canada’s major corporations are led by a handful of controlling shareholders, but corruption is uncommon. New corporate governance guidelines are under debate, and the Ontario Securities Commission is wresting control from the Toronto Stock Exchange. Although these three corporate governance systems vary in terms of ownership dispersion, level of corruption, and legislative intervention, they currently share a common focus on fundamental reform.
 
Article
This article determines what the role of business ethics is within the Latin American corporate governance context. We analyzed five sources of information that provide vital information on the state of corporate governance in Latin America: the meetings of the Latin American Corporate Governance Network; the debates in the Latin America Corporate Governance Roundtables; the study Panorama Atual da Governança Corporativa no Brasil [Overview of Corporate Governance in Brazil], developed by the IBGC (Brazilian Institute of Corporate Governance) in partnership with Booz Allen Hamilton in 2003; the third version of the Code of Best Practices of Corporate Governance produced by the IBGC in March 2004; and the IBGC Corporate Governance Survey in Brazil. Based on the analysis of the above sources, conclusions are drawn on the role of business ethics within Latin American corporate governance.
 
Article
Peer Reviewed http://deepblue.lib.umich.edu/bitstream/2027.42/66736/2/10.1177_000765036500600103.pdf
 
Article
This research note proposes the Bass Model as an empirical tool for analyzing the diffusion of new product and service innovations in Base of the Pyramid (BoP) markets. This approach allows researchers to test whether factors that seem theoretically relevant to the speed and trajectory of adoption actually matter empirically. The authors model the growth of three BoP success stories using the Bass Model: Patrimonio Hoy, e-Choupal, and Grameen’s Village Phone. In two of the three cases considered, the Bass Model estimates confirm Diffusion Theory predictions, but generate additional insight by quantifying the strength of the identified effects. In the case of Patrimonio Hoy, the Bass Model estimates conflict with the predictions of Diffusion Theory. Sorting out this paradox demonstrates the Bass Model’s potential to identify conflicting influences on consumer adoption, and measure how the relative strength of these competing forces nets out to determine the course of consumer adoption.
 
Article
Stories of firms that exceed local compliance requirements in their environmental performance appear routinely. However, we have limited theoretical explanations of what propels these firms to exceed compliance. Our theory suggests that global competitive and institutional pressures lead multinational firms to develop highlevel, environmental management systems (EMS) that make them more competitive. For economic and other reasons, select firms make the choice to rationalize their collective environmental performance to the highest common denominator rather than the lowest. Regulations around the world differ widely and are a moving target in many settings. The need to comply with such myriad, shifting rules leads to firms creating EMS to help stay ahead of regulations worldwide. Using institutional and internationalization theories as our basis, we offer a propositional model concerning global competitive/institutional pressures and their effects on corporate environmental performance. We conclude the paper with a discussion of the implications of the model.
 
Article
This doctoral thesis examines the influence of relative performance and managerial incentives on corporate financial misrepresentation, and then tests the relationship between misrepresentation and subsequent operating performance, including the moderating effects of change in board composition and CEO turnover. Using a hand-collected dataset from several archival sources of company records, the study includes a combination of estimation techniques, including categorical dependent variable and fixed-effect methods, all conducted using a matched sample of misrepresenting and non-misrepresenting firms. I draw several important conclusions from the empirical analyses. First, CEO incentive pay and poor relative performance increase the likelihood of misrepresentation. Second, misrepresentation impairs subsequent operating performance, although this negative effect can be partially offset by CEO replacement and increased board independence. The study advances our academic understanding of corporate misconduct, and contributes to academic theory across research literatures, including strategic management, organization theory, and business ethics.
 
Article
An increasing number of global policy regimes are intended to influence international business practices, but their effectiveness is uncertain. This article presents a conceptual framework for understanding the effectiveness of regimes, with seven propositions. The case of the evolving global anticorruption regime is described and used to test the propositions. Two key conclusions are (a) the difficulty of the problem being addressed is a key factor in limiting regime effectiveness and (b) this problem, as well as others, can be addressed in part by careful development of formal regime policies. Implications for scholarship and practice are presented.
 
Article
This article investigates the relation between corporate governance and business ethics in the Asia-Pacific region. It draws on four examples of countries in the region (Australia, China, Singapore, and India), not because they are representative of certain regional characteristics, but as a means of reflecting on the diversity in this region. These countries display pronounced differences in terms of inter alia, historical development, cultural and social factors, legal system, corporate governance model, political system, and economic development. The complex interaction of all these considerations provides the context for corporate governance and business ethics in each of the countries. The article highlights different orientations to stakeholder management and integrity behavior in the boardroom and executives’ offices. Although globalization and financial market hegemony suggests a convergent model is theoretically desirable, this research suggests that the human capacity to protect diversity and enshrine regional and local interests seems likely to inhibit rapid change.
 
Article
The community mining space remains contested for a range of complex reasons. This inherently difficult discursive space is made most apparent in the context of international development where mining is often viewed as a potential lever in the effort to lift poorer nations out of poverty. In this article, the authors offer a critical review of community development (CD) approaches that are currently being applied by the mining sector. While the authors acknowledge recent positive developments in this domain, there remains a good deal of scope for improving the internal standing of, and the external influence over, CD practice in mining. Drawing on the contemporary CD literature, the authors assert “assets” as one possible heurism for enhancing this discursive space by highlighting the ways in which community and company representatives may be able to participate more actively in dialogical processes—both between and within company and community—where development discourse is not prefigured or biased against participating parties.
 
Descriptive Statistics and Correlation Coefficients
Regression Results Predicting Trade Association Total Expenditures
Article
Trade associations operate under the premise of advancing the shared interests of their member firms. How well do they fulfill this role? In this paper, I measure the activity of 148 major industry trade associations over time and relate this activity to the performance of the relevant industries and dominant firms within them. Findings suggest that trade association spending increases when the profitability of the four largest firms in an industry decreases but spending is unrelated to the profitability of the industry overall. This implies that large firms exert control over trade association agendas and may use these communal organizations to advance their own interests rather than the shared interests of the entire industry. Moreover, it points to the need for further development of the currently anemic management literature on the activities of trade associations.
 
Article
Building on existing studies suggesting that corporate social performance (CSP) is important in the job choice process, the authors investigate job seekers’perceptions of importance of CSP and explore effects of CSP dimensions on organizational attractiveness. Job seekers consider CSP important to assessment of firms and rate five specific CSP dimensions (environment, community relations, employee relations, diversity, and product issues) as more important than six other CSP dimensions. Using signaling theory and social identity theory, the authors hypothesize differences in effects of CSP data on ratings of employer attractiveness and find that environment, community relations, and diversity dimensions have the largest affect on attractiveness ratings.
 
Article
A research forum published in Business & Society in 1995 (Issue 2) analyzed whether Fortune magazine's annual Reputation Survey (FRS) is viable as a corporate social performance (CSP) research database. We examine plausible alternative interpretations for a number of assertions and conclusions by the forum authors, including the premise for Brown and Perry's proposed transformation: that the Fortune data are confounded by the presence of a financial "halo," which biases ratings of nonfinancial attributes. Finally, we examine the appropriate roles of the two primary corporate rating systems in the context of CSP.
 
Article
Observers generally assume that firms which engage in lobbying know what they want. Business–government relations and especially the corporate political activities of network operators during the basic telecommunication negotiations of the World Trade Organization present a slightly different picture. European monopoly providers benefited from the old international regime and initially ignored trade discussions in their sector. In the course of negotiations, however, they became part of a three-level game, which obliged them to consider national, European, and multilateral objectives simultaneously. In the course of these complex negotiations, their preferences evolved. Because governments advanced independently on the liberalization project, companies adapted their policy stances from reluctance to support for the negotiations. This article thus cautions against treatments of lobbying that consider preferences as exogenously given.
 
Article
This article examines the potential for visionary small-enterprise to operate with a fundamentally different conception of nature from the environmental management mode offered within the business case for sustainable development. Corporate environmental management is critiqued for not offering any fundamental reassessment of the business–nature relationship, which would be required to achieve ecological sustainability. Three contrasting cases of visionary small-enterprise in New Zealand are described in terms of the entrepreneurs’ expressed understandings of nature and constructions of the business–nature relationship. The entrepreneurs in this study readily made connections between nature and their businesses and were aware of value judgments they made either in favor of nature, or with some regret against it where supporting infrastructure was absent, or economic rationalities prevailed. A nature-centered and not overly growth-focused outlook appears an essential element of business aligned with the new ecological paradigm.
 
Article
The idea that business can play a role in alleviating poverty has caught the imagination of academics and practitioners alike. An emerging consensus points to the critical importance of partnerships in market initiatives addressed to the base of the pyramid (BOP). But despite the calls for cross sector partnerships in BOP initiatives, our collective understanding of how these actually work has not advanced proportionally. This study attempts to address this issue by examining the dynamics at play in nine networks that integrated the BOP with mainstream markets in nine developing nations. The paper is structured in three broad issue-areas: alliance formation (drivers that compelled companies to engage in strategic partnerships); alliance implementation (choice of governance mechanisms, resources for enhancing trust and reciprocity between partners, and conflict-resolution mechanisms); and performance outcome (the extent to which an organization's commitment to an alliance impacted its performance and its societal context).
 
Article
In this research, the authors present a model that demonstrates that motivating managers to change unpopular or irresponsible corporate behavior may be required when the stakeholders desire such a change. Using agency theory, they then test part of the model and demonstrate why it may be necessary for an organized protest to impact on share prices before managers choose to change the behavior. Investors' reactions to announcements of product boycotts and stock divestitures made over the 23-year period 1969-1991 were examined. Announcements about boycotts were associated with significant negative market reactions, whereas divestiture announcements resulted in no significant market responses. From a pure stock market perspective, boycotts appear to be a more effective tool in influencing managers to change a company's behavior.
 
Boycott Rates Among Demographic Groups.
Descriptive Statistics and Nonparametric Spearman Correlations.
Results of Logit and HLM2 Logit Analyses for Boycotting. a
(continued)
Article
The authors apply marginalization theory to develop a model of boycotts that incorporates both individual motives and corporate strategic issues. Overall, their analysis of more than 25,000 individual evaluations of 59 companies suggests that members of marginalized groups are more likely to boycott. Individuals are less likely to boycott companies about which they are knowledgeable and more likely to boycott companies that are organized boycott targets. In addition, the authors find systematic differences in the types of boycotts associated with strategic issues that are supported by members of marginalized groups. Overall, boycott supporters tend to be upwardly mobile members of marginalized groups.
 
Article
To provide effective guidance for business decisions, a set of ethical principles must be stable over time, rather than responding to changes in the business environment for expediency sake. This article examines the ability of religious principles to maintain such stability by reviewing the historical relationship between commerce and Christianity, beginning with early Christianity and concluding with the Enlightenment.The changes in five constructs are examined: ownership of land, acquisition of wealth, attitude toward work, charging of interest and acceptability of trade. For each construct, the attitude evidenced in early Christianity was, at least to some degree, inimical to business as we view it today. That perspective changed over time, with the practice becoming at first acceptable and later even admired. The authors conclude that ethical principles based on referents from outside business are ineffective as a check on the undesirable effects of business on society.
 
Article
Corporate social responsibility orientation (CSRO) remains an important topic of researchers. However, one aspect of CSRO that has not been well researched is how it relates to behaviors and goals of managers. In this article, the authors explore that relationship, testing whether emphasis on a particular domain of social responsibility affects time spent dealing with specific stakeholder groups and whether firm size affects that relationship. Results from a survey of small business owners indicate that the emphasis a manager places on a domain does affect behavior and that firm size has little impact on this relationship. Implications of these findings are discussed.
 
Article
This article uses a historical perspective for reviewing the evolution of Business & Society/Business Ethics courses at business schools and programs in the United States. The study carefully reviews the findings of 11 major studies relating to the role and number of Business & Society/Business Ethics courses in business school/program curricula. Included in these 11 studies are the results of the 1990 survey on curricula and faculty conducted by the Curriculum Development Committee of the Academy of Management's Social Issues in Management Division. The study reveals that business schools/programs experienced a period of growth in Business & Society course offerings between 1973 and 1986 but a decline between 1986 and 1990 at both the undergraduate and graduate levels. A brief look at alternative futures for Business & Society teaching and research is offered at the end of the article.
 
Article
Bill Frederick’s work calls on business ethicists to consider religion as well as nature. Because there are naturally wired religious impulses in human beings and because of the fairness of including normative approaches meaningful for business people, Frederick suggests that the “R” in CSR4 should represent religion. This article takes up the theme in terms of the emerging field of naturalist theology, particularly (although embryonically) as stated by theologian Paul Tillich. Doing so creates (a) connections between “God as Life” and nature and (b) linkages of the notions of symbol, culture, and transcendence. In addition to avoiding the socalled “naturalistic fallacy,” this integration can foster ethical business behavior.
 
Article
Theoretical and practical trends of corporate citizenship indicate a deepening partnership between business and community. Following these developments, the article develops a model for the participation of businesses in decision-making processes as part of policy making and social-economic planning in the community. The article focuses on three levels: It examines the benefits and risks of such participation; identifies the typical dimensions of the participation processes; and finally, provides guidelines on how to develop a participation strategy based on the unique conditions of each business and community.
 
Article
Business scholars pay increasing attention to the expanded influence of stakeholders on firm strategies, legitimacy, and competitiveness. At the same time, analysts have noted that the transformed regulatory and legislative environments of recent decades have encouraged firms to become much more politically active. Surprisingly, relatively little research has tied together these two trends. The present study integrates perspectives on stakeholder management with research on corporate political activity to develop an understanding of the structural sources of stakeholder mobilization in professional grassroots lobbying campaigns. This study employs a unique, original data source to consider how the adoption of grassroots lobbying by a firm relates to its industry, degree of inside lobbying, partisan PAC contributions, and more. This research shows that corporate grassroots lobbying is shaped most significantly by a firm’s degree of inside lobbying, as highly active firms take a diversified strategy for gaining influence. Firms in industries with a heavy public presence as well as those concerned with taxation, government appropriations, and economic development also adopt these strategies readily. PAC contributions to Republican, but not Democratic, candidates also heighten firms’ propensity to lobby the public.
 
Top-cited authors
Archie B Carroll
  • University of Georgia
John F. Mahon
  • University of Maine
Jennifer Jeanne Griffin
  • Loyola University Chicago
Frank de Bakker
  • IESEG School of Management
Daniel W. Greening
  • University of Missouri