Article

Criteria for Evaluating the Legitimacy of Corporate Social Responsibility

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Abstract

The goal of this paper is to provide a general discussion about the legitimacy of corporate social responsibility. Given that social responsibility projects entail costs, it is not always obvious under what precise conditions managers will have a responsibility to engage in activities primarily designed to promote societal goals. In this paper we discuss four distinct criteria for evaluating the legitimacy of corporate projects for institutionalizing social responsibility: (1) local knowledge (2) level of responsibility (3) shared consensus, and (4) relationship to financial performance. We conclude our discussion by noting that in those cases where the firm possesses knowledge about a specific problem and its solution, is directly responsible for causing harm, where a shared consensus among all relevant stakeholders exists, and financial performance will be enhanced, social responsibility projects are ideal. Obviously, no program will meet all of the criteria. In fact, our model specifically suggests that there is often a trade-off between the first three criteria and the last. For example, in those situations where the corporation directly imposes harm on third parties, and where a high degree of consensus exists among all stakeholders, there is little need to link the social responsibility program to financial performance. By contrast, as the corporation seeks proactive solutions to problems which are only incidental to the corporation, and where little consensus exists, the predicted relationship to financial performance becomes more crucial. By formally examining the trade-offs among these four criteria we more fully understand the complex relationship between social responsibility and financial impacts.

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... It refers to the obligation of a certain authority or institution beyond self-interest and in the pursuit of socially valuable goals [44], making them socially responsible and sustainable. It is based on the stakeholders concept of Freeman [45] and on ethical, responsible behaviour of the organisations [46,47]. ...
... Pava and Krautz [46] set the criteria to evaluate the legitimacy of CSR: (1) local knowledge, (2) level of responsibility, (3) shared consensus, and (4) relationship to financial performance. Afterwards, we should refer to these principles again when referring to social effectiveness. ...
... It also fits well with Pava and Krautz's [46] criteria for legitimacy of CSR: (1) local knowledge, or close bonds among neighbours; (2) level of responsibility, a shared responsibility in a common community; (3) shared consensus, which is paramount in this case, because, otherwise, there is no common ground to build social effectiveness; and, finally, (4) relationship to financial performance. Unluckily, this last criterion is difficult to gauge due to the public character of security not prone to being valued or measured on economic terms. ...
Article
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This paper analyses the effect of institutional legitimacy on Corporate Social Responsibility (CSR) and sustainability in police forces through their methods and procedures (procedural justice) that determine citizens’ trust in the police, which theoretically influences organised coexistence in human communities (social effectiveness). CSR can increase collective well-being through legitimacy, sustained by police action. An anonymous citizen survey was carried out to verify the theoretical proposal to inquire about their opinions on the legitimacy, methods, and community relations between Spanish police forces and the community. The hypotheses were analysed with a structural equation system. The practical implications aspire to know the citizens’ opinions about the methods and procedures used by the Spanish police and their relations with Spanish civilians. Finally, citizens consider that police actions and procedures are institutionally and legally regulated competencies, and, therefore, citizens cannot influence them
... It refers to the obligation of a certain authority or institution beyond self-interest and in the pursuit of socially valuable goals [44], making them socially responsible and sustainable. It is based on the stakeholders concept of Freeman [45] and on ethical, responsible behaviour of the organisations [46,47]. ...
... Pava and Krautz [46] set the criteria to evaluate the legitimacy of CSR: (1) local knowledge, (2) level of responsibility, (3) shared consensus, and (4) relationship to financial performance. Afterwards, we should refer to these principles again when referring to social effectiveness. ...
... It also fits well with Pava and Krautz's [46] criteria for legitimacy of CSR: (1) local knowledge, or close bonds among neighbours; (2) level of responsibility, a shared responsibility in a common community; (3) shared consensus, which is paramount in this case, because, otherwise, there is no common ground to build social effectiveness; and, finally, (4) relationship to financial performance. Unluckily, this last criterion is difficult to gauge due to the public character of security not prone to being valued or measured on economic terms. ...
Article
Full-text available
This paper analyses the effect of institutional legitimacy on Corporate Social Responsibility (CSR) and sustainability in police forces through their methods and procedures (procedural justice) that determine citizens’ trust in the police, which theoretically influences organised coexistence in human communities (social effectiveness). CSR can increase collective well-being through legitimacy, sustained by police action. An anonymous citizen survey was carried out to verify the theoretical proposal to inquire about their opinions on the legitimacy, methods, and community relations between Spanish police forces and the community. The hypotheses were analysed with a structural equation system. The practical implications aspire to know the citizens’ opinions about the methods and procedures used by the Spanish police and their relations with Spanish civilians. Finally, citizens consider that police actions and procedures are institutionally and legally regulated competencies, and, therefore, citizens cannot influence them.
... The ability of a stakeholder to exert pressure on an organisation depends on how much power they have over it (Mitchell et al., 1997), and stakeholders with a significant amount of power can influence the organisation's decisions (Frooman, 1999), including those on the adoption of environmental initiatives. Stakeholders can influence an organisation's environmental initiatives through incentives, penalties and advice (Pava and Krausz, 1997). The third attribute affecting the stakeholder and manager relationship is urgency. ...
... Prior literature shows that various stakeholders, such as regulatory agencies, customers, local community groups, environmental groups, suppliers and institutional investors, influence organisations to engage in environmentally friendly practices (Céspedes-Lorente et al., 2003;Stenzel, 2000). Furthermore, stakeholders with significant power can influence firm decisions (Frooman, 1999) and environmental initiatives and EMPs, including incentives, penalties and advice (Pava and Krausz, 1997). ...
Article
Purpose This study aims to investigate the influence and impacts of stakeholders on the awareness and attitudes towards environmental management practices (EMPs) among hotel managers in Malaysia. Design/methodology/approach A total of 159 hotel managers participated in the survey. Structural equation modelling using the partial least squares (PLS) technique was used to test the hypotheses. Findings Owners and regulators influence hotel managers' environmental awareness and attitudes and their adoption of EMPs. Managers with a greater environmental awareness are more likely to adopt basic EMPs, while those with a greater environmental attitude are more likely to adopt advanced EMPs. In addition, stakeholder influence on managers' awareness and attitudes differs for hotels with and without an environmental policy. Research limitations/implications Other types of accommodation and stakeholders, demographic variations of hotels and different data collection methods could provide additional insights into the hotel sustainability issue. Practical implications Coercion may be needed to translate hotel managers' environmental awareness and attitudes into practices. Therefore, regulators should provide rules and penalties to enforce mandatory requirements and incentives to encourage environmental sustainability initiatives. Social implications The joint effort among stakeholders could create a societal norm that appreciates and maintains a sustainable environment and tourism industry. Originality/value This study emphasises the importance of stakeholder salience theory to understand the association between stakeholder influence on managers' awareness and attitudes and the adoption of EMPs by hotels in Malaysia. It is one of only a handful of studies that focuses on stakeholders' influence on environmental stewardship from managers' perspectives.
... In 2012, only two technology companies worldwide published transparency reports; in 2020, that number reached 71 (Access Now, 2020). A number of researchers have questioned what characteristics define a robust transparency report (Weil, 2013;Pava, 1997;Parsons, 2019). Their work has been complemented by civil society groups, such as Ranking Digital Rights and Access Now, that have developed scoring systems to compare and evaluate the quality of transparency reports from year to year (Reitman, 2017;Rodriguez and Alimonti, 2019;Access Now, 2020;Ranking Digital Rights, 2019). ...
... We draw upon the works of academics such as Fung (2013), Haack (2012), Mcconnell (2010), Mulgan (1997), Pava (1997), Weil (2006) (Cardozo et al, 2014;Reitman, 2017), the EFF's global partners (Rodriguez and Alimonti, 2019), New America (Woolery, 2016), Access Now (2020), Ranking Digital Rights (2019), and our past work (Parsons, 2016). Together these authors form a cohesive literature with which we are able to establish a set of metrics for assessing the verifiability and performativity of corporate transparency reports published in Canada, the United Kingdom, and the United States. ...
... Their recommendations infer that the firm's more spending in SCSR cannot be overseen as it also links to the bad performance of the firm's financial performance, which is indeed tax reductions and tends to indulge in inefficient SCSR practices. Pava and Krausz [27] have discussed an issue on the specific criteria on which the managers are entitled to practice SCSR, given that SCSR always contains costs. They proposed 4 basic criteria as i) the need for the SCSR in locality ii) the level of the responsibility that the firm can take iii) consensus from the shareholders and iv) the SCSR practice's impact on the financial performance of the firm. ...
... Another aspect arises when it comes to the measurement of the SCSR practices' outcomes, which is called Corporate Social Performance. This measure is necessary so that the stakeholder may come upon the impact made by the cost incurred for the SCSR activity [27]. It is to be also noted that the criteria made by the stakeholders may arise a trade-off to that of made by the managers for the planning, implementing, and measuring the scope of the SCSR activities by the firm. ...
... reportar su contribución social para justificar su vigencia y su financiación. Esa legitimación tiene que asentarse en la percepción de su aportación al capital social (Putnam, 1993;Bourdieu, 1993) y en el reconocimiento de su valor público por parte de la sociedad (Pava;Krausz, 1997;Arriaza;Nowak;Kuhn, 2015;Powell, 2016). ...
... reportar su contribución social para justificar su vigencia y su financiación. Esa legitimación tiene que asentarse en la percepción de su aportación al capital social (Putnam, 1993;Bourdieu, 1993) y en el reconocimiento de su valor público por parte de la sociedad (Pava;Krausz, 1997;Arriaza;Nowak;Kuhn, 2015;Powell, 2016). ...
Article
La reputación, la credibilidad y la rendición de cuentas son el vértice de la gobernanza de la prestación del servicio audiovisual público para sostener e incrementar su legitimidad en la sociedad actual. Para lograr este objetivo es necesario mantener y mejorar las políticas de gestión que fundamentan la misión de la radiotelevisión pública, y también desarrollar estrategias para comunicar mejor el valor social de este servicio en el contexto de la nueva ecología de medios de comunicación. Partiendo de esas premisas, este artículo aborda la necesidad y las dificultades de establecer indicadores sintéticos de evaluación de los servicios informativos como principal bloque de contenidos de la radiotelevisión pública. Reputation, credibility, and accountability are the cornerstones of governing public service media in order to sustain and increase its legitimacy in society. To achieve this objective the management policies of public service media must be maintained and enhanced according to their mission. It is also necessary to develop strategies to improve the communication of the social value of pubic broadcasting in the media ecosystem. On this basis, this paper discusses the need for and challenges of stabilizing assessment indicators for public broadcasters’ news services.
... A normative stakeholder perspective reflects the needs of organizational members as they arise in practice. Normative motivations for IPV responsiveness resonate with Pava and Krausz's (1997) suggestion that "local knowledge" can play an important role in shaping corporations' responsibilities in particular situations. "Local knowledge" encompasses the idea that to "design effective programs to satisfy social responsibilities, the organization must possess knowledge about the specific social problem" (Pava & Krausz, 1997, p. 339). ...
Article
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Intimate partner violence (IPV) is among society’s most pernicious and impactful social issues, causing substantial harm to health and wellbeing, and impacting women’s employability, work performance, and career opportunity. Organizations play a vital role in addressing IPV, yet, in contrast to other employee- and gender-related social issues, very little is known regarding corporate responses to IPV. IPV responsiveness is a specific demonstration of corporate social responsibility and is central to advancing gender equity in organizations. In this paper, we draw upon unique data on the IPV policies and practices of 191 Australian listed corporations between 2016 and 2019, that collectively employ around 1.5 M employees. Providing the first large-scale empirical analysis of corporate IPV policies and practices, we theorise that listed corporations’ IPV responsiveness reflects institutional and stakeholder pressures which are multifaceted and central to corporate social responsibility. Our findings identify greater IPV responsiveness among larger corporations, as well as those corporations with higher proportions of women middle managers, greater financial resources, and more advanced employee consultation on gender issues. This paper concludes that there is a need for further research on corporate IPV responsiveness, to further illuminate corporate motivations, organizational support processes, and employee experiences.
... The effect of NSCI on REP is positive and significant, registering a coefficient of 0.347 and confirming hypothesis 1. It has an effect size of 0.154, which is considered a moderate effect [80]. This is consistent with the results obtained for SCI, which also has a positive and significant effect on REP and registers a coefficient of 0.304; however, it has an effect size of 0.108, which that author considers small. ...
Article
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Of all the resources and capabilities that have a well-established impact on decision-making, information stands out. With the advent of the digital economy, organizations have been making significant information and communication technology (ICT) investments, but the empirical evidence of the impact of these investments on business outcomes has been inconsistent. This article studies the conditions that disclosed information resources and ICT must fulfil in order to become a source of sustainable competitive advantage in tourism organizations. The results point to the need to identify distinct financial and non-financial information dimensions, distinguished according to their direct potential for creating and maintaining competitive advantages through the improvement in relations with various stakeholders.
... Research has also explored other legitimacy mechanisms such as evaluation (Pava & Krausz, 1997), principles (Wood, 1991), and strategies (Baumann-Pauly et al., 2016). For instance, Baumann-Pauly et al. (2016) suggested that legitimacy is a dynamic process, whereby firms adapt their CSR policies and practices to maintain their 'licence to operate'. ...
Article
Research applying institutional theory to corporate social responsibility (CSR) has experienced remarkable momentum. Institutional theory-based CSR research illustrates the role of values in guiding both agentic choices for CSR and the influence of institutional structures on CSR agency. Although values have been explored in this literature, systematic studies of values that seek to gain insights into the mutual relationship between agentic choices and structures are lacking. Such insights are crucial for exploring whether and how CSR is enabled or constrained. We thus ask two interrelated questions: (1) What is the role of values in institutional theory-based CSR research? (2) How and along which avenues should future institutional theory-based CSR research that focuses on values be mobilised? Based on our analysis of this line of literature from 1989 until 2021, first, we take stock of established institutional theory perspectives on CSR and disentangle what role values have played in this literature. Second, we outline how to mobilise values in future institutional CSR research based on four promising but under-investigated areas. From our literature analysis, two central functions emerge (which we label ‘bridging’ and ‘referencing’) that values can perform in the institutional analysis of CSR. Based on these two functions, our values-focused framework will help scholars examine the moral foundations that inform business–society interactions as well as understand how companies can responsibly manage those interactions with societal stakeholders.
... It may be that individuals within their respective organisations seek to legitimate their actions in one way or another. Pava and Krausz (1997) asserted that it was becoming impossible to evaluate business activities from a traditional ethical perspective because of human nature and human influences upon these activities. Jensen and Meckling (1994, p.7), identified by Pava and Krausz (1997, p.338) as pioneers in modern finance and agency theory, unabashedly described human beings in the following manner: "Like it or not, individuals are willing to sacrifice a little or almost anything we care to name, even reputation or morality, for a sufficiently large quantity of other desired things, and these things do not have to be money or even material goods. ...
... It may be that individuals within their respective organisations seek to legitimate their actions in one way or another. Pava and Krausz (1997) asserted that it was becoming impossible to evaluate business activities from a traditional ethical perspective because of human nature and human influences upon these activities. Jensen and Meckling (1994, p.7), identified by Pava and Krausz (1997, p.338) as pioneers in modern finance and agency theory, unabashedly described human beings in the following manner: "Like it or not, individuals are willing to sacrifice a little or almost anything we care to name, even reputation or morality, for a sufficiently large quantity of other desired things, and these things do not have to be money or even material goods. ...
... Questions of socially responsible business behavior are the focus of many researches. Among foreign studies devoted to CSR issues it is necessary to highlight fundamental work Pava M.L. [1], Broberg M.P. [2], Robertson D.C. [3], Weinstein S.L. [4], Burke L. [5], Pava M.L. [6] and others. Questions relating to the conceptual foundations of the institutionalization of socially responsible governmental economy are covered in works of Garrison G. [7], Wulfson M. [8], Adebayo E. [9], M. Schwartz, A. Caroll [10], Englander E. [11]. ...
Article
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The purpose of the study is to show the necessity to integrate the Corporate Social Responsibility course into the educational process. The methodological basis of the study are such methods of scientific knowledge as a historical method, method of logical unity of analysis and synthesis, systematic method, and others. The questions of necessity to reflect CSR in educational programs of economists training programs are discussed. The author substantiates the reasons for the growing interest in this issue. A review of relevant practices in the field of CSR knowledge dissemination is given. It was found that the introduction of the proposed educational product in the learning process allows to strengthen main vocational training programs in many areas of training, to improve their efficiency, to have a significant impact on improving the quality of students’ knowledge, and contribute to the development and the formation of a fundamentally new professional competencies.
... Second, corporate philanthropy can help convicted firms regain legitimacy from the public (Pava & Krausz, 1997). A wealth of research suggests that corporate philanthropy can help firms develop favorable relationships with the public (Brammer & Millington, 2005;Sen, Bhattacharya, & Korschun, 2006). ...
Article
This study examines corporate philanthropy in the context of corporate wrongdoing punishment in emerging markets. Building on institutional theory, we propose that in emerging markets, after being punished for fraudulent behavior by the government, which is collectively the largest institution, convicted firms tend to use corporate philanthropy as an institutional strategy to regain legitimacy. Using data of Chinese-listed firms that were punished for financial fraud in the ten years from 2004 to 2013, our findings show the subsequent growth of corporate philanthropy to be positively related to punishment severity. Furthermore, convicted firms’ media visibility, dominant state ownership, and national political appointment strengthen the effect of punishment severity on corporate philanthropy increase. Our institutional perspective offers new insights into why firms engage in corporate philanthropy after fraud punishment.
... Considering that social responsibility is one of the key components, it can be said that there is a relationship between the social responsibility of the organizations and their stakeholders (Carroll, 1991(Carroll, , 1999Pava & Krausz, 1997;Maignan & Ferrell, 2004;. This relationship is also confirmed by the stakeholder theory, which represents a conceptual framework for business ethics and organizational management (Duckworth & Moore, 2010;Friedman, Parent & Mason, 2004), addresses moral and ethical values in managing the organization's relationships with its stakeholders. ...
Conference Paper
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Social Responsibility is important in today's modern and dynamic times not only for business enterprises but also for other organizations. In this paper, we focused on socially responsible business organizations working in the field of sport. A very important element in socially responsible business is human potential. On the one hand, the influence of the club's employees and managers on the quality of socially responsible business and community action and, on the other, through socially responsible entrepreneurship and club management we influence people around us-the community (children and their parents), sponsors, athletes, fans, other clubs, etc. Based on the analysis of current trends in social responsibility and the analysis of the current state in sports clubs in Slovakia and England, recommendations are suggested in which sport clubs (as well as other sports organizations) should focus on quality and effectively pursuing socially responsible business, thereby positively influencing the potential of their employees and managers (as well as coaches and athletes) and the potential of the people who are affected by club.
... Other authors also raise the need for adaptation of public broadcasters to technological convergence (Humphreys 2010;Larrondo et al. 2016); the deinstitutionalization and adaptation to globalization (Horowitz 2015); the search for new forms of legitimacy (Pava and Krausz 1997;Powell 2016); the transformation, safeguarding the key values of public services (Trappel 2016); the preservation of the digital terrestrial spectrum and presence in multichannel platforms to maintain universality ( Recognising the need and current validity of public service media organizations, because they address issues that other do not sufficiently deal with, and also generate relevant externalities for society not provided by intervention-free markets (Weeds 2013), state and regional corporations that manage PSM are facing, according to Donders (2017), five complex paradoxes. ...
Chapter
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The creation of indicators to assess the provision of public audiovisual services is a strategy that has increased over the last years, both in Europe and other parts of the world, with the aim of reinforcing credibility and supporting the sustainability of their funding through the improvement of their governance, transparency, participation, innovation and accountability. The chapter, which starts from the evolution from public broadcasting to public media service, addresses the issue of public value tests and indicators as one of the current trends in the research and management agenda of these media of social communication. It is concluded that composed indicators, as quantitative and qualitative statistical tools, are demanded because of their utility for good practices in governance and new ways of accountability with the aim of reinforcing legitimacy and assessing both the effectiveness and efficiency of public service media, against the competition of many other media within the context of the new ecology of social communication.
... McWilliams and Siegel (2000) 29.60 2 Burke and Logsdon (1996) 12.90 3 Pava and Krausz (1997) 1.50 4 ...
Article
Purpose: The purpose of this article is to analyse the citations of scientific research on the concept of corporate social responsibility (CSR) from 1970-2014. In particular, several interconnected research questions were investigated: How did the conceptualization of CSR change from 1970-2014? What is the general direction of the change; and how does Islamic CSR emerge? Design: An in-depth analysis was performed with the use of the data analysis tool available in the Web of Science. The study categorises CSR into four areas: Business Ethics and Corporate Governance, Management, Marketing, and Others. The first three categories were based on the Chartered Association of Business Schools’ Academic Journal Guide 2010 and 2015 (UK). Findings: The findings reveal that 67.19% articles have been published based on the ranked journals of Academic Journal Guide 2010 and 2015. The findings of the study will help to inform future areas of CSR. The top journals which published most articles from Academic Journal Guide 2015 are Journal of Business Ethics; and Corporate Social Responsibility and Environmental Management. Practical Implications: The findings suggest that the remit of sustainability from Islamic perspective is wider. Islamic marketing, as an area, remains largely in need of empirical research. The business communities should successfully integrate Muslim communities into their marketing strategies. Originality: To the best of our knowledge, this is the first study to explore citation analysis of general CSR literature and Islamic CSR. The study finds that there has been an increase in interest in this subject of CSR and Islam in the recent years. Future research is needed on theory and methodological analysis of general CSR field and Islamic CSR field.
... According to Ozdora-Aksak and Atakan-Duman (2016) and Pava and Krausz (1997), one characteristic of a legitimate CSR program is to be designed to ameliorate problems for which the corporation is Additionally, a relationship between legitimacy and reputation has been proposed (King & Whetten, 2008;P erez et al., 2015). This perspective suggests that the achievement of CSR initiatives' legitimacy obtained through the compliance with rules and social practices may help the creation of competitive differences between the compliant company and its competitors (Bitektine, 2011;Fombrun, 2005;Fombrun & van Riel, 2003). ...
Article
Even though the link between perceived corporate social responsibility fit (PCSR-fit) and corporate reputation has received much attention from scholars, this tradition has ignored that the underpinnings of this association vary depending on the particular characteristics of each industry under study. To delve into this matter, we investigate in the increasingly relevant context of controversial industries (CIs) how PCSR-fit could enhance corporate reputation and which are the mediating mechanisms of this association. Our academic contribution is twofold. First, we find that controversial sectors indeed can increase corporate reputation through CSR activities. However, we find that to achieve this goal, the nature of PCSR-fit should be different than what extant literature indicates, because companies in these settings should directly focus on avoiding or reducing their inherent controversial harm or impact. Second, we evidence that “CSR initiatives’ legitimacy” and “situational skepticism” mediate the PCSR-fit and corporate reputation relationship in CIs. Therefore, we further unravel the underpinnings of this association to advance what we know on the matter and aid practitioners in this particular context.
... Second, corporate philanthropy can help convicted firms regain legitimacy from the public (Pava & Krausz, 1997). A wealth of research suggests that corporate philanthropy can help firms develop favorable relationships with the public (Brammer & Millington, 2005;Sen, Bhattacharya, & Korschun, 2006). ...
... Voluntary communication is part of the socially responsible behavior assumed by companies (Pava & Krausz, 1997). Indeed, the most committed companies have the highest data quality for their stakeholders (Gelb & Strawser, 2001). ...
Article
Corporate Social Responsibility (CSR) is the voluntary commitment taken over by companies in social, economic, and environmental terms. The aim is to counteract impacts generated by their activity. While the concept is genuinely linked to the private sector, this self-regulated system has been steadily introduced in some European public service media. Indeed, CSR is one of the mechanisms to face the challenges of the sector, both the financial crisis and the lack of trust. Seven public service media from the European Union are reporting—via their websites—on their CSR strategies. Annual reports on their performance are issued by the German ZDF, the Spanish RTVE, the Portuguese RTP, the British BBC, the Irish RTÉ, the Finnish YLE, and the Italian RAI. Also, four other corporations—VRT and RTBF from Belgium, FT from France, and DR from Denmark include a section on corporate social responsibility on their annual reports. The aim of this paper is to know which of the trends in CSR are dominant among public service media in Europe, namely economy, environment, and society. The content analysis of corporate reports is the method used for the research.
... One of the newest forms of transparency reporting involves telecommunications companies compensating for gaps in the national governance of governmental surveillance activities. Though there are a range of mechanisms to evaluate CSR reports that are issued by companies (Chen & Bouvain, 2009;Lopatta, Buchholz, & Kaspereit, 2016;Pava & Krausz, 1997;Pérez & del Bosque, 2013), these telecommunications transparency reports serve to fill a gap left by government and thus require a novel way of evaluating their contents. Telecommunications companies' reports parallel other forms of CSR reporting, insofar as they disclose firm behavior, while also having the effect of exposing lawful activities that were undertaken in relative secrecy at the behest or compulsion of state agents. ...
Article
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This article analyzes the relative effectiveness and limitations of companies’ voluntarily produced transparency reports in promoting change in firm and government behavior. Such reports are published by telecommunications companies and disclose how often and on what grounds government agencies compel customer data from these companies. These reports expose corporate behaviors while lifting the veil of governmental secrecy surrounding these kinds of compulsions. Fung, Graham, and Weil’s “targeted transparency” model is used to evaluate the extent to which these reports affect behavior. From the analysis, it is evident that telecommunications companies’ transparency reports are only partially effective; while firms may modify their reports to present more information, these reports do not necessarily induce government to more broadly reveal its own activities. The article ultimately suggests that voluntarily produced transparency reports may become more comparable with one another as a result of either corporate reports evolving in consultation with external stakeholders or following a crisis that prompts government or industry to adopt a given standard. Such standards may positively influence the effectiveness of reports while concealing as much about firm behaviors as they purport to reveal.
... Ademais, poden dar resposta a diversas finalidades, como por exemplo dialogar coas audiencias, atender queixas, ofrecer información corporativa, corrixir erros, explicar, divulgar a política editorial e avaliar o cumprimento da misión. A comunicación voluntaria de información é parte do comportamento socialmente responsable das organizacións (Pava e Krausz, 1997) e, de feito, as empresas máis comprometidas son as que maior cantidade de datos divulgan aos seus grupos de interese (Gelb e Strawser, 2001). As canles de comunicación soen ser informes sociais, códigos de conduta, sitios web, canles internas, convocatoria de eventos, márketing relacional, intervencións nos medios de comunicación e material para puntos de venda. ...
Chapter
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Propomos uma abordagem pós-convencional do conceito de cultura, mobilizando conceitos como sejam os de cibercultura, rede, identidade e globalização. Esta abordagem levanta dois problemas fundamentais. Um primeiro problema é conceptual: faz sentido, a partir de uma perspetiva pós -convencional, reconhecer a identidade de uma cultura humanístics, recuperando a ideia de formação (paideia) proveniente dos clássicos e distinguindo-a do conceito antropológico de cultura? Qual o impacto das indústrias culturais, das indústrias criativas e da cibercultura nestas divisões tradicionais? Outro dos problemas é predominantemente político. Qual o modelo de globalização cultural com que nos confrontamos hoje? É um modelo de globalização homogeneizadora ou é um modelo de diálogo multicultural? Aa globalização, na sua configuração atual permite o reconhecimento das culturas periféricas, nomeadamente o acesso ao reconhecimento e protagonismo nas indústrias culturais e criativas?
... Therefore, we attempt to answer RQ3 to address the link between a firm's CSR activities and its bottom line. In attempting to provide a reliable measurement of CSR, many scholars have sought a link between CSR and a firm's financial performance (e.g., Alexander & Bucholtz, 1978; Arlow & Gannon, 1982; Cochran & Wood, 1984; Cornell & Shapiro, 1987; McGuire, Sundgren, & Schneeweis, 1988; Pava & Krausz, 1997 ), between CSR expenditure and reputation (e.g., Brammer & Millington, 2005), and between public relations and financial performance (e.g., Kim, 2001; Kotler, 1988) but often ended up with mixed results (McGuire et al., 1988; Sen & Bhattacharya, 2001). Debates over the proper measure of financial performance are ongoing. ...
... This is the "residue of goodwill", (Mahon and Wartick, 2003: 19) that can be of significant benefit to organisations and should be considered on a more strategic level. Pava and Krausz (1997) put forward four distinct criteria for evaluating the legitimacy of corporate projects for institutionalising social responsibility: local knowledge, level of responsibility, shared consensus among stakeholders, and relationship to financial performance. The authors accepted that no program would meet all of the criteria, but put them forward as ideals to be pursued, rather than as minimalist goals to be obtained easily. ...
Article
This research aims to investigate whether Environmental, Social and Governance (ESG) practices influence corporate financial performance, by emphasizing the Southern African Development Community (SADC) region often underrepresented in global ESG discussions and focusing on the food producer sector that is one of the critical industries for this region. In order to achieve this aim, after the theoretical background on the subject, the empirical section examines whether engagement in ESG practices contributes to financial performance, measured primarily by Tobin's Q and alternatively by the market-to-book value ratio. Panel data models are applied to 8 years of data (2015-2022) from 32 publicly traded food producer companies in the SADC region. Additionally, for the robustness test, the analysis is also repeated on a subset of 14 food producers listed in South Africa. The findings highlight that companies disclosing ESG practices and so having ESG scores tend to operate with higher Tobin's Q and market-to-book value ratios. The findings suggest that companies actively involved in social, environmental, and governance initiatives, alongside transparent disclosure of their responsible practices, tend to exhibit superior financial performance. This finding is consistent with stakeholder theory, suggesting that firms can only enhance their long-term financial performance by fulfilling their responsibilities to all stakeholders and ultimately to society.
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We draw from resource dependence and institutional theories to explore how board characteristics associated with directors’ capacities to provide resources and legitimacy (i.e., board size, the number of non-executive, interlocking, and female directors) along with regulative, normative, and cultural-cognitive institutional conditions combine to shape firm environmental, social, and governance (ESG) performance. Using a process of configurational theorizing with fuzzy set qualitative comparative analysis and data from firms in 32 countries, we identify multiple equifinal configurations that are associated with high and low ESG performance. We find that high and low ESG performance have different drivers due to complementarities among the presence and absence of board characteristics. Our results also show that the effectiveness (or not) of the bundles of boards’ characteristics for ESG performance varies across institutional contexts. By leveraging these findings to construct a typology of board archetypes that lead to high and low ESG performance, we offer novel theoretical and empirical insights to scholars as well as implications for practice.
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This foundational text was one of the first books to integrate work from moral philosophy, developmental/moral psychology, applied psychology, political and social economy, and political science, as well as business scholarship. Twenty years on, this third edition utilizes ideas from the first two to provide readers with a practical model for ethical decision making and includes examples from I-O research and practice, as well as current business events. The book incorporates diverse perspectives into a "framework for taking moral action" based on learning points from each chapter. Examples and references have been updated throughout, and sections on moral psychology, economic justice, the "replicability crisis," and open science have been expanded and the "radical behavioral challenge" to ethical decision-making is critiqued. In fifteen clearly structured and theory-based chapters, the author also presents a variety of ethical incidents reported by practicing I-O psychologists. This is the ideal resource for Ethics and I-O courses at the graduate and doctoral level. Academics in Organizational Behavior and Human Resource Management will also benefit from this book, as well as anyone interested in Ethics in Psychology and Business.
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Social responsibility is the most important thing to consider while working on a project. When deciding on a project or taking part in a bid, it is crucial to understand the nature and potential consequences of the risks involved. Attempting to implement projects with cutting-edge technologies appears to be necessary, necessitating up-to-date and continuous planning to implement the relevant matters in light of the ever-increasing growth of urban communities, the need to carry out tasks, and the rising standard of living. Due to the strong demand, these strategies try to improve quality while decreasing prices. In the beginning, Smarandache suggests using neutrosophic sets. These sets are an improvement above traditional fuzzy set theory in reflecting the uncertainty and fuzziness of real-world issues. Three decision-making states are considered: uncertainty, truthiness, and falseness. The fuzzy set degree in Zadeh's classic theory is merely the membership function. On the other hand, three membership functions are considered in a neutrosophic setting. An indeterminacy degree is considered, which is not the case with intuitionistic fuzzy sets. To express decision makers' perspectives on the truthiness (T), falsity (F), and indeterminacy (I) for a fuzzy set concurrently, this paper expands the usual neutrosophic TOPSIS approach to interval-valued neutrosophic. One example of how the suggested strategy might be put to use is to prioritize initiatives in the realm of corporate social responsibility using a combination of expert opinion and objective criteria.
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This paper investigates how competition affects firms' environmental, social, and governance (ESG) practices in 22 emerging markets, using a sample of 6,906 firm–year observations from 2011 to 2019. Using a difference-in-differences technique and matched samples with a treated and a control group, I explore exogenous variation in the competitive environment of one country, Brazil, to assess the competition´s causal effect on ESG. The results suggest that firms adjust ESG practices negatively after a shock in competition, contrasting with previous results from developed economies.
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The chapter looks to contribute in a theoretical way to the measurement of the concepts of CSR (corporate social responsibility), good governance, and reputation in SMEs, since they are concepts of great importance in business management and are related. Social responsibility actions through the exercise of good governance means that SMEs can obtain a solid reputation. The purpose of the chapter is to develop how companies that incorporate social responsibility into their business model achieve a better image in the eyes of their stakeholders. Codes of ethics play an important role as an instrument of good governance. As a result, the chapter proposes measurement indicators to be used in future empirical research to verify the effects of causality. They can be a valuable tool for knowledge management as a source of innovation for SMEs.
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This paper investigates how competition affects corporate environmental, social, and governance practices (ESG) in 22 emerging markets using a sample of 5.971 firm-year observations from 2011 to 2019. Using a differences-indifferences technique and matched samples from a treated vs. control group configuration, I explore exogenous variation in one country's competitive environment (i.e., Brazil) to assess the causal effect from competition to ESG. The results suggest that firms adjust ESG practices negatively after a competition shock, which contrasts with previous results from developed economies.
Chapter
The chapter looks to contribute in a theoretical way to the measurement of the concepts of CSR (corporate social responsibility), good governance, and reputation in SMEs, since they are concepts of great importance in business management and are related. Social responsibility actions through the exercise of good governance means that SMEs can obtain a solid reputation. The purpose of the chapter is to develop how companies that incorporate social responsibility into their business model achieve a better image in the eyes of their stakeholders. Codes of ethics play an important role as an instrument of good governance. As a result, the chapter proposes measurement indicators to be used in future empirical research to verify the effects of causality. They can be a valuable tool for knowledge management as a source of innovation for SMEs.
Chapter
Despite business’s business being business, the business owners have been doing acts of benevolence depending upon the owner’s religion, faith, values and beliefs. Establishment of temples, mosques, churches, schools, hospitals etc. has been usual practice through which firms have shown their concern about the society and made contribution to the social cause. However, of late, it is observed that progressive businesses, after understanding the nuances of sustainable development and its reporting, have moved from philanthropic mode of contributing to society to the concept of Corporate Social Responsibity (CSR). Some of them have gone beyond CSR and have entered the domain of Strategic CSR. In the process, a new concept of Corporate Sustainability, which is based on Triple Bottom-line concept, has emerged in strategic management literature. Thus, today CSR activities are being aligned with the business strategy of the firm. In the developed countries, firms are increasingly integrating CSR with the core business activities e.g. innovation, marketing, finance etc. This article attempts to look into firm’s CSR and corporate sustainability with special reference to a developing country - India.
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Sprawozdawczość niefinansowa to obecnie niezmiernie ciekawy obszar badawczy. Z jednej strony, sprawozdania niefinansowe stanowią próbę rozwiązania niektórych ważnych problemów, z którymi boryka się sprawozdawczość finansowa. W szczególności wynikają one z konieczności prezentowania w sprawozdaniach finansowych informacji o odpowiednio wysokim poziomie wiarygodności, co powoduje, że wiele informacji (finansowych i niefinansowych) oczekiwanych i przydatnych dla odbiorców się w nim nie mieści. Z drugiej natomiast strony, ujawnianie informacji niefinansowych odpowiada na zupełnie odmienne potrzeby, wynikające z dążenia społeczeństw i państw do sterowania rozwojem gospodarczym w sposób zrównoważony, z uwzględnieniem konieczności działania zgodnego z koncepcją społecznej odpowiedzialności przedsiębiorstw (Corporate Social Responsibility – CSR). Są to potrzeby zupełnie inne niż te, które zaspokajała rachunkowość finansowa. Przede wszystkim są to potrzeby innego kręgu interesariuszy, obejmującego m.in. dostarczycieli kapitału zainteresowanych społecznie odpowiedzialnymi inwestycjami, klientów i kontrahentów świadomych znaczenia kwestii ekologicznych i społecznych oraz organizacje pozarządowe reprezentujące grupy społeczne. W książce określono ich mianem interesariuszy niefinansowych. Do nierozstrzygniętych wciąż jednoznacznie kwestii należy definicja sprawozdawczości niefinansowej i określenie jej granic. Można domniemywać, że sprawozdawczość niefinansowa zyskała swoją nazwę właśnie w zamiarze przeciwstawienia jej sprawozdawczości finansowej, która zgodnie z Międzynarodowymi Standardami Sprawozdawczości Finansowej (MSSF) jest ściśle zorientowana na potrzeby interesariuszy finansowych zainteresowanych przede wszystkim sytuacją finansową i wynikami finansowymi. W monografii zdefiniowano sprawozdawczość niefinansową jako w znacznej mierze dobrowolny proces przygotowywania i ujawniania przez przedsiębiorstwo informacji adresowanych do szerokiego kręgu odbiorców, ze szczególnym uwzględnieniem potrzeb interesariuszy niefinansowych, którzy wykorzystując je wpływają na przedsiębiorstwo tak, aby jego działalność była społecznie odpowiedzialna. Celem monografii jest przedstawienie sprawozdawczości niefinansowej przedsiębiorstw w kontekście najnowszych zmian regulacyjnych i standaryzacyjnych. Nowe regulacje w tym zakresie zostały wprowadzone w Unii Europejskiej na mocy Dyrektywy 2014/95/UE i jej późniejszej inkorporacji do prawodawstwa krajów członkowskich. Za najważniejsze standardy ujawniania informacji niefinansowych uznano natomiast wytyczne Międzynarodowej Rady ds. Zintegrowanego Raportowania (International Integrated Reporting Council – IIRC) oraz standardy Global Reporting Initiative (GRI). Monografia składa się z ośmiu rozdziałów. W pierwszym rozdziale podjęto próbę objaśnienia kontekstu powstania raportowania niefinansowego oraz wyjaśniono podstawowe pojęcia z nim związane. Zaproponowano autorską definicję sprawozdawczości niefinansowej oraz zarysowano jej ewolucję odwołując się do najważniejszych prób uzupełnienia zawartości informacyjnej sprawozdań finansowych o informacje niefinansowe. W dalszej części rozdziału przedstawiono podstawy teoretyczne sprawozdawczości niefinansowej przybliżając podstawowe założenia wybranych pozytywnych i normatywnych teorii rachunkowości. W rozdziale zidentyfikowano i sklasyfikowano także użytkowników sprawozdawczości niefinansowej oraz opisano korzyści, jakie mogą oni i jednostka sprawozdawcza odnieść z raportowania niefinansowego. Rozdział drugi dotyczy najważniejszej inicjatywy regulacyjnej w zakresie sprawozdawczości niefinansowej podjętej na szczeblu Unii Europejskiej (UE), czyli Dyrektywy 2014/95/UE. Przedstawiono w nim najważniejsze rozwiązania Dyrektywy, proces jej opracowywania oraz różnice w sposobie jej wdrożenia w krajach członkowskich UE. Ponieważ ustalenia Dyrektywy 2014/95/UE mają charakter ramowy, jej koniecznym uzupełnieniem są wydane przez Komisję Europejską (KE) wytyczne oraz inne standardy sprawozdawczości niefinansowej. W rozdziale przedstawiono także proces ich konsultacji. Ponadto scharakteryzowano ponad 20 standardów i norm dotyczących sprawozdawczości niefinansowej (lub jej elementów), z których mogą korzystać przedsiębiorstwa stosujące Dyrektywę i Wytyczne. Równolegle z pracami prowadzonymi w ramach UE nad Dyrektywą 2014/95/UE rozwijała się inna koncepcja zmian w sprawozdawczości przedsiębiorstw – raportowanie zintegrowane (integrated reporting), której autorem jest wspomniana już Międzynarodowa Rada ds. Zintegrowanego Raportowania (IIRC). W trzecim rozdziale porównano Wytyczne KE i Ramy Zintegrowanego Raportowania IIRC z uwzględnieniem ich istoty, celu, cech jakościowych i głównych obszarów ujawnień. Wskazano także na znaczenie, jakie dla rozwoju obu inicjatyw – unijnej i podjętej przez IIRC - ma działalność GRI. Rozdział zakończono rozważaniami na temat możliwej przyszłej konwergencji regulacji UE i wytycznych IIRC. Kolejne trzy rozdziały łączy orientacja na praktykę sprawozdawczości niefinansowej. W czwartym rozdziale podjęto temat rozpowszechnienia się raportowania niefinansowego w Polsce i innych krajach UE oraz przedstawiono przegląd literatury poświęconej sprawozdawczości niefinansowej, ze szczególnym uwzględnieniem badań empirycznych. Zwrócono uwagę na rosnącą liczbę przedsiębiorstw ujawniających informacje niefinansowe oraz na wpływ przynależności branżowej na ten proces. W rozdziale podkreślono także intensyfikację badań naukowych dotyczących sprawozdawczości niefinansowej w Polsce, wskazano ich główne obszary i stosowane metody badawcze. W ostatniej części rozdziału skoncentrowano uwagę na publikacjach odnoszących się bezpośrednio do Dyrektywy 2014/95/UE, podejmowanych w celu skonfrontowania stanu sprawozdawczości niefinansowej przed i po wdrożeniu obowiązku publikacji informacji niefinansowych. Pierwsze kompleksowe badania pozwalające ocenić zawartość i jakość sprawozdań niefinansowych przedsiębiorstw w Polsce przedstawiono w raporcie opracowanym na zlecenie Ministerstwa Finansów. W rozdziale piątym szczegółowo opisano zawartość tego raportu, rozpoczynając od wskazania celu i zakresu przeprowadzonego badania. Następnie przedstawiono zawarte w raporcie odniesienia do dobrych praktyk przedsiębiorstw, jak i uwagi krytyczne zgłaszane przez ekspertów. Rozważania poparto licznymi przykładami odnoszącymi się do formy i obszarów niefinansowych ujawnień. Rozdział zakończono przestawieniem własnych wniosków wynikających z lektury raportu. W rozdziale szóstym zamieszczono wyniki analizy treści sprawozdań niefinansowych wybranych spółek notowanych w Polsce. Badanie ma na celu opisanie zawartości sprawozdań niefinansowych na podstawie analizy struktury treści, poruszanych w nim tematów oraz częstotliwości ich występowania i współwystępowania. Próbę badawczą stanowiło 46 podmiotów z takich sektorów jak: produkcja przemysłowa i budowlano-montażowa, paliwa i energia, technologie, ochrona zdrowia. Analizie poddano częstotliwość występowania tematów charakterystycznych dla jednego z pięciu obszarów ujawnień wymaganych Dyrektywą i UoR (czyli dla obszaru spraw społecznych, środowiska naturalnego, spraw pracowniczych, dotyczącego przeciwdziałania korupcji i łapownictwu oraz poszanowania praw człowieka), jak również ich współwystępowanie w kontekście ujawnień dotyczących ryzyka oraz regulacji wewnętrznych (takich jak na przykład polityka prowadzona w jednym z tych obszarów). Badania dotyczyły także porównania zakresu informacji niefinansowych ujawnianych przed i po wprowadzeniu nowego obowiązku sprawozdawczego czyli w latach 2016 i 2017. Ostatnie dwa rozdziały stanowią próbę określenia kierunków dalszego rozwoju sprawozdawczości niefinansowej. W rozdziale siódmym zidentyfikowano najbardziej istotne problemy i wyzwania, przed którymi stoi sprawozdawczość niefinansowa. Wbrew bowiem licznym publikacjom, których autorzy kreślą bardzo optymistyczne wizje przyszłości raportowania niefinansowego, sprawozdania niefinansowe obarczone są licznymi słabościami i kontrowersjami, których przezwyciężenie zdecyduje o ich użyteczności. Przedstawiono zatem wątpliwości związane z przyjętym modelem regulowania sprawozdawczości niefinansowej oraz z użytecznością informacji niefinansowych dla interesariuszy przedsiębiorstw. Zwrócono ponadto uwagę na niepewność korzyści z ujawniania informacji niefinansowych oraz kontrowersje wokół ich wiarygodności. W ostatnim rozdziale wskazano możliwe kierunki rozwoju sprawozdawczości niefinansowej przedsiębiorstw. Rozważania rozpoczęto od przedstawienia czwartej rewolucji przemysłowej jako źródła istotnych szans i wyzwań w zakresie sprawozdawczości przedsiębiorstw. Następnie wskazano zalecenia dla sprawozdawczości niefinansowej oraz scharakteryzowano główne czynniki mające wpływ na jej rozwój w przyszłości – prawdopodobnie w formie raportowania zintegrowanego. W ostatniej części rozdziału zwrócono także uwagę na istotne wyzwania, kontrowersje i dylematy z tym związane. Niniejsza książka stanowi próbę wniesienia wkładu w nowy, ale obecnie dynamicznie rozwijający się kierunek badań w rachunkowości dotyczący sprawozdawczości niefinansowej. Autorzy proponują tę książkę pracownikom naukowym i wykładowcom wyższych uczelni, doktorantom i studentom oraz osobom zainteresowanym problematyką szeroko rozumianej rachunkowości, społecznej odpowiedzialności przedsiębiorstw oraz raportowania zintegrowanego, mając nadzieję, że okaże się ona przydatna w ich pracy naukowej i praktyce zawodowej.
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This study examined public perception of NDDC'S community relations practices in Oromerezimgbu community in Rivers State. The objective was to identify how NDDC relates with the communities in the Niger Delta and ascertain the workability of the strategies used. The questionnaire and interview schedule were the instruments for data collection. The survey method was used in distributing the questionnaire to Oromerezimgbu community members while interview was conducted on select management staff of NDDC. Findings show that community relations practices of NDDC are based on the proactive and reaclive approaches. This Finding is based on the response from the interview with the key management staff. Finding also reveals that NDDC's community relations practices have not been as effective as it should be in addressing the needs of the people in Oromerezimgbu community as evident in conflicts that exist between the commission and the host communities. Based on above findings, the study therefore, recommended among other things that: For NDDC to effectively bridge the gap in communication which exists between the commission and the host, an enlightenment campaign should be organized periodically to keep the people informed of its activities. Also, NDDC's community relations programmes, especially the capacity intensive projects, should be evenly distributed among the various communities in the state to avoid conflict. Keywords: Community Relations, Organization, Practices, NDDC, Corporate Community
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Purpose Corporate social responsibility (CSR) has become an issue in the international banking industry, where each bank must assert its stakeholders, the social fabric and the natural environment. In the same time, legitimacy which has become one of the most critical issues for corporations, can be increased in the eyes of other stakeholders or institutions by structurally or procedurally adjusting to institutional influences. By conforming to three external institutional pressures (normative, mimetic and coercive), identified by DiMaggio and Powell (1983), organizations can build, support and gain legitimacy for their activities in specific institutional environments. Design/methodology/approach Using a qualitative approach, this research highlights the input of neo-institutional theory in the CSR context in top Lebanese banks in Lebanon. Findings This paper aims to analyze the impact of neo-institutionalism and the role of stakeholders in legitimizing CSR practices in the Lebanese banking sector. Practical implications Top Lebanese banks cannot simply comply with institutional pressures to gain their legitimacy, they need to develop their CSR activities targeted toward legitimacy-building at the local level; as for managers they cannot simply adopt managerial perspectives instrumentally to gain societal support, they need to adapt such perspectives and practices to the local needs as expressed by their internal and external stakeholders. Originality/value Managers of top Lebanese banks need to proactively engage in managing institutional pressures by adopting and adapting legitimacy-seeking strategies. This study highlights that top Lebanese banks differ in their CSR orientation because of their ownership structure, number of employees and profitability.
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Na Europa, a responsabilidade social das empresas, em particular a sua dimensão filantrópica, não está tão consolidada como nos EUA. Porém, nos últimos anos, confrontados com exigentes restrições orçamentais, os Estados-Membros da União Europeia esforçam-se por apoiar o setor privado não lucrativo (terceiro setor), assegurando a sua vitalidade. Daí que a compreensão das razões que estão na base da concessão de donativos pelas empresas seja fundamental para o fortalecimento do terceiro setor, que desempenha um papel central no bem-estar coletivo. As preferências individuais dos gestores influenciam a atividade filantrópica da empresa, afastando-a de uma trajectória de obtenção de lucros. Porém, a revisão de literatura efectuada e a reconfiguração das ligações concetuais sugerem que a procura da legitimação pessoal e empresarial, em um enquadramento institucional, constitui uma explicação pertinente para a concessão de donativos. O modelo teórico proposto ilustra que a procura de legitimação produz efeitos positivos na empresa e alinha os interesses dos agentes e dos principais. Palavras-chave: Donativos. Legitimação. Institucionalismo. Terceiro setor. Responsabilidade social.
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Any company operating in the market more or less affects different stakeholder groups by their business activity. With the spread of the concept of corporate social responsibility (CSR), expectations and non-financial benefits, mainly social and environmental, have become increasingly important for many stakeholders. Companies wanting to adapt to the changing conditions in the society, more and more often engage in CSR activities, and rapport about it. They try to meet the needs of stakeholders and provide them with value, knowing that sustained development and competitive advantage are possible only in a situation of balancing the interests of different parties and involving in CSR related activities. The company value was usually considered in the context of its results – the achievements of a financial nature, but now, it is gaining importance also in social 188 Justyna Fija³kowska, Ma³gorzata Macuda and environmental terms. The purpose of this paper is to present the conceptual framework of value creation of companies engaged in CSR activities. The research method adopted were the following: the analysis of the literature, descriptive and comparative analysis and logical inference. The paper presents the concept of value in accounting terms, indicates the relationship between CSR and value creation of the company and analyzes different concepts of its creation – stakeholders approach, value for the customer, shareholder value, including the creation through involvement in socially responsible activities – triple bottom line, blended value and sustainable value. We conclude that the sustainability value is only when it is created simultaneously for all stakeholders – when it includes economic, social and environmental value
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This study examines the impact of institutional directors on the level of corporate social responsibility disclosure (CSRD) in the Jordanian banks. A comprehensive CSR checklist, consisting of 100 items, is designed to collect the data from 147 observations from 2004 to 2013. The descriptive analysis shows, relatively, a low level of CSRD with a mean of 46%. In addition, institutional directors occupy 46.4% of the banks' board seats. The analysis shows that 11% of the institutional directors are serving as CEOs, 22.5% are independent institutional directors and 65.5% are non-independent non-executive directors. Results from multiple regression analysis show that institutional directors, has a negative and non-significant impact on the level of CSRD. However, we break down the institutional directors to two groups based on their status; institutional independent directors and institutional non-independent non-executive directors. The results show that the two groups have positive significant impacts on the level of CSRD. Then, the institutional CEO (CEO institutional-affiliated) is analyzed and it has a significant negative impact. Regarding the control variables, bank age and leverage significantly and positively enhance the CSRD while board size and profitability (ROA) are insignificantly related to CSRD.
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Kwestia pomiaru dokonań z zakresu społecznej odpowiedzialności (CSR) i ich powiązań z dokonaniami finansowymi przedsiębiorstw społecznie odpowiedzialnych jest kluczowa dla oceny przydatności koncepcji CSR. Pozostaje jednak wciąż otwarta, ponieważ dotychczas przeprowadzone badania naukowe nie wskazują jednoznacznie na relacje pomiędzy tymi dokonaniami. Wobec powyższego celem artykułu jest ustalenie wpływu dokonań z zakresu społecznej odpowiedzialności na wyniki finansowe na przykładzie spółek należących do indeksu RESPECT Index Giełdy Papierów Wartościowych w Warszawie. Wykorzystano do tego studia literatury przedmiotu i analizę statystyczną – statystykę opisową za okres 2008–2014. W wyniku przeprowadzonego badania ustalono, iż nie można oczekiwać, że społeczna odpowiedzialność spółek z parkietu RESPECT Index przekłada się na wyniki finansowe.
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Corporate social responsibility (CSR) has become increasingly significant for a wide range of organisations and for the managers that work within them. This is particularly true in the sport industry, where CSR is now an important area of focus for sport organisations, sport events and individual athletes. This article demonstrates how CSR can inform both theoretical debates and management practice within sport organisations. It does so by focusing on stakeholder theory, which overlaps considerably with CSR. In this article, stakeholder theory is used to examine three major CSR issues: stakeholder definition and salience, firm actions and responses, and stakeholder actions and responses. These three issues are considered in the context of the UK football industry. The article draws on 15 semi-structured qualitative interviews with senior representatives from a number of different organisations. These include the director of a large professional football club; a chief executive of a medium-sized professional football club in addition to the supporter-elected director; and the vice-chairman of a small professional football club. Additional interviews were undertaken with five representatives from national supporter organisations, two board members at two large supporter associations, two representatives from the Football League, one representative from the Independent Football Commission, and a prominent sports journalist. The analysis of the interview data illustrates ways in which CSR can be implemented by sport organisations through stakeholder management strategies. The article concludes that stakeholder theory has both conceptual and empirical value and can be used to illuminate key issues in sport management.
Chapter
The debate on the ‘appropriate’ nature of the relationship between business and society has a long history. Philosophers of more ancient times such as Plato and Aristotle, pondered on the morality of the relationship between business and society. In recent times attention has focused on the concept of CSR (Klonoski, 1991; Greening and Gray, 1994; Wood, 1991). CSR has provoked numerous debates and definitions, some supportive and others critical. The neoclassical economists and proponents of market liberalisation and profit-maximisation (Friedman, 1962: 133; Arrow, 1997: 143) suggest that the only social responsibility of business it to ‘use its resources and engage in activities designed to increase its profits so long as it … engages in open and free competition without deception or fraud’. In contrast, CSR advocates (Jones, 1980: 59–60; Jones et al., 2002: 21) promote the notion, ‘that corporations have an obligation to constituent groups in society other than stockholders and beyond that prescribed by law or union contract’, and furthermore, the obligation should be ‘voluntarily adopted’. Similarly, McWilliams and Siegal (2001) argue that CSR represents ‘actions that appear to further some social good, beyond the interests of the firm and that which is required by law’.
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Business Ethics in Islam, by Ali Abbas J. . Cheltenham, UK: Edward Elgar Publishing, 2014. 256 pp. ISBN 978-1781006726 - Volume 26 Issue 2 - Azhar Kazmi
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The recent case between Apple and the FBI, in which Apple refused to comply with a court order to aid the FBI in overriding the security features of an iPhone used by one of the San Bernardino terrorists, brought the tension between national security and individual rights to the forefront. This article looks at the case and these two core values from a liberal communitarian ethics perspective, and provides an analysis of how these values are reflected in U.S. law. It concludes with an ethical discussion relevant to the resolution of differences between high-tech corporations and the government.
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This paper aims to lay the foundations for a more critical approach to the relationship between Corporate Social Responsibility (CSR) and corporate law. Limitations on legislative approaches including directors’ duties, information disclosure, sustainable decisions, direct promotion and corporate internal management structure are critically analysed, trying to find well thought-out and effectively implemented adjudication that provides meaningful instruction for regulating CSR. The article explores the manner in which corporate law may contribute to accommodating CSR principles within corporate strategies, in order to establish a transformative legal regulatory framework within corporate law by using the authoritative legal mode to promote corporate regulatory mechanisms. The article critically studies a few legislative measures supported by the relevant legislative experiences from various jurisdictions as examples of currently enforced CSR-laws at national level, in order to offer comprehensive and potentially effective legislative suggestions for accommodating CSR elements. However, a ‘one size fits all’ approach is clearly not desirable, and these suggestions should be interpreted and implemented in a locally relevant manner, according to path dependence theory.
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Much has been written about stakeholder analysis as a process by which to introduce ethical values into management decision-making. This paper takes a critical look at the assumptions behind this idea, in an effort to understand better the meaning of ethical management decisions. A distinction is made between stakeholder analysis and stakeholder synthesis. The two most natural kinds of stakeholder synthesis are then defined and discussed: strategic and multi-fiduciary. Paradoxically, the former appears to yield business without ethics and the latter appears to yield ethics without business. The paper concludes by suggesting that a third approach to stakeholder thinking needs to be developed, one that avoids the paradox just mentioned and that clarifies for managers (and directors) the legitimate role of ethical considerations in decision-making. So we must think through what management should be accountable for; and how and through whom its accountability can be discharged. The stockholders’ interest, both short- and long-term, is one of the areas. But it is only one. Peter Drucker, 1988 Harvard Business Review
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The purpose of this paper is to enter the conversation about stakeholder theory with the goal of clarifying certain foundational issues. I want to show, along with Boatright, that there is no stakeholder paradox, and that the principle on which such a paradox is built, the Separation Thesis, is nicely self-serving to business and ethics academics. If we give up such a thesis we find there is no stakeholder theory but that stakeholder theory becomes a genre that is quite rich. It becomes one of many ways to blend together the central concepts of business with those of ethics. Rather than take each concept of business singly or the whole of “business” together and hold it to the light of ethical standards, we can use the stakeholder concept to create more fine-grained analyses that combine business and ethics; or more simply, we can tell many more, and more interesting, stories about business.
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Sumario: Sources of sustained success -- What effective firms do with people -- The evidence for slow learning and unrealized potential -- Wrong heroes, wrong theories, wrong language -- Overcoming history -- Labor laws, lawyers, and litigation: friends or foes of work place change? -- Employee organizations: their effects and role in work place reform -- Resistance from within -- The promise of the quality movement -- Making the change
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