Article

Responsible Care: An Assessment

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Abstract

Responsible Care is a voluntary code of conduct developed, enforced, and monitored by the Chemical Manufacturers Association. Voluntary codes could be designed and enforced by regulators, nonprofit groups, industry associations, and individual firms. They could vary in their scope, focusing on firms around the globe, in a given region, within a country, or in a given industry. This article focuses on Responsible Care’s self-regulatory services that pertain to establishing, monitoring, and enforcing industry-wide environmental, health, and safety standards. Employing insights from the club theory, stakeholder theory, institutionalist theory, and the corporate social performance perspective, it examines the demand and supply sides of voluntary codes. Finally, it discusses theoretical implications and the key challenges faced by Responsible Care in the future.

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... Επίσης, το συγκεκριµένο πρόγραµµα βασίζεται σε δέκα αρχές που αναπτύχθηκαν αποκλειστικά για τις ανάγκες των µελών των ενώσεων της χηµικής βιοµηχανίας. Οι κώδικες καλύπτουν θέµατα για τη βελτίωση της πληροφόρησης της τοπικής κοινωνίας για της κατάστασης της περιβαλλοντικής ποιότητας, που εξασφαλίζουν την ασφάλεια στη διαδικασία παραγωγής και εγγυώνται την ασφαλή διανοµή, τη µείωση των προβληµάτων Υ&Α των υπάλληλων και την παροχή υψηλής ποιότητας για τη διαχείριση των χηµικών προϊόντων (Prakash, 2000). ...
... Εκτός από τα περιβαλλοντικά και τα οφέλη στον τοµέα της Υ&Α, η υιοθέτηση των ΠΥΦ στοχεύει να πείσει την κοινωνία για την πιθανή αρµονική συνύπαρξη της χηµικής βιοµηχανίας µε το φυσικό περιβάλλον (Givel, 2007). Η καθιέρωση και η Τµήµα Περιβάλλοντος, Πανεπιστήµιο Αιγαίου 20-22 Ιουνίου 2008 159 από 269 επικύρωση αυτού του προγράµµατος από τις ενώσεις χηµικών πολυάριθµων κρατών µπορεί να µειώσει τις δαπάνες συναλλαγής λόγω του χαµηλότερου κόστους των πληροφοριών που µοιράζονται, τη δηµιουργία οικονοµιών κλίµακας και την διάχυση τεχνογνωσίας µεταξύ των µελών διαφορετικών ενώσεων (Prakash, 2000). Ο Hemphill (1992) υποστηρίζει ότι οι συλλογικά αναπτυγµένοι κώδικες µπορούν να οδηγήσουν στα προβλήµατα όπως είναι του 'τζαµπατή' (free rider) που υπονοεί ότι ένα µέλος της ένωσης δεν συµµορφώνεται πλήρως µε τους κώδικες, λαµβάνοντας τα οφέλη από τις προσπάθειες των άλλων µελών που έχουν συµµορφωθεί. ...
... Πράγµατι, οι επιδράσεις αυτής της καταστροφής ώθησαν την ένωση των καναδικών χηµικών παραγωγών (CCPA) να αναπτύξει και να προωθήσει ΠΥΦ µεταξύ των µελών του (Mannan et al., 2005). Αυτό το πρόγραµµα περιλαµβάνει µερικούς βασικούς κώδικες για την κοινωνική ευαισθητοποίηση και την πρόληψη της ρύπανσης, τη µεταφορά και αποθήκευση των χηµικών ουσιών, την Υ&Α και τη περιβαλλοντική διαχείριση προϊόντων (Prakash, 2000). Ο κύριος σκοπός αυτού του προγράµµατος είναι να διευκολυνθεί η χηµική βιοµηχανία για να µειώσει ή να αποτρέψει τις επικίνδυνες περιβαλλοντικές επιδράσεις της. ...
Conference Paper
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Περίληψη Η παγκοσμιοποίηση, η καινοτομία και η τεχνολογική πρόοδος έχουν συμβάλει στις παγιωμένες και οργανωμένες αλλαγές, στον κλάδο των χρηματοοικονομικών υπηρεσιών σε όλες τις χώρες. Αυτές οι αλλαγές έχουν ενδεχομένως σημαντικούς υπαινιγμούς για περιβαλλοντικά θέματα και στην αγορά κεφαλαίου. Οι κυρίαρχοι άξονες της παγκόσμιας χρηματοοικονομικής αγοράς είναι σε θέση να επηρεάσουν τα περιβαλλοντικά πρότυπα των αναδυόμενων αγορών. Όταν οι καθοδηγητικοί μεσάζοντες (Χρηματοδότες, Χρηματοοικονομικοί πράκτορες) χρησιμοποιούν ομοιόμορφες περιβαλλοντικές εκτιμημένες τεχνικές, έχουν την πιθανότητα να θέσουν παγκόσμια πρότυπα για την εκτίμηση του περιβαλλοντικού κινδύνου και την αναγνώριση της περιβαλλοντικής ευκαιρίας προβάλλοντας τη σημαντικότητα των περιβαλλοντικών θεμάτων στη επενδυτική απόφαση. Αυτό που απομένει είναι να δούμε, πώς οι αλλαγές στην παγκόσμια και εγχώρια χρηματοοικονομική αγορά θα επηρεάσουν την περιβαλλοντική απόφαση στις χρηματοοικονομικές υπηρεσίες, αφού οι επιχειρησιακές πολιτικές σε διαφορετικές δικαιοδοσίες εμφανίζονται να καθοδηγούνται από ποικίλες σκέψεις.
... While these findings suggest that markets are creating opportunities for environment-friendly organizations, the majority of consumers still are not influenced by a company's proactive environmental practices. However, these same customers may be persuaded to change their purchasing decisions if a company violates environmental laws or emits high levels of toxins (Prakash, 2000). As a consequence, GSCM adoption may provide a vehicle for organizations to "signal" to market participants that their environmental strategies adhere to or exceed generally accepted environmental standards. ...
... The fourth section includes questions about factors affecting or motivating GSCM implementation. The GSCM pressures identified by the researchers (Andrews et al., 2003;Rao, 2002;Toke et al., 2012;Hoffman, 2000;Ginsberg and Bloom, 2004;Prakash, 2000;Ninlawan et al., 2010) are considered for evaluation in this study. The questions on these performance factors were answered by using a five-point scale, in which 1 -not at all important, 2 -not important, 3 -not thinking about it, 4 -important and 5 -extremely important. ...
Purpose The main objective of this paper is to integrate a typology of green supply chain management (GSCM) practices, performances, pressures and barriers with organizational performance theories. Also the aim of this paper is to investigate the present statues of GSCM amongst Indian manufacturer. Design/methodology/approach Through a systematic review, the study identified 27 GSCM practices, 16 GSCM performances, 06 GSCM pressures and 15 GSCM barriers that were organized into categories according to their theoretical conception, organizational context and characteristics. The survey and interview methods are used for data collection and analyzed by five-point Likert scale. Findings The main finding of this paper is ranking of identified GSCM practices, performances, pressures and barriers. The study identified three organizational context dimensions (innovation, performance and management) and investigated the present status of GSCM. The main contribution of the study is the alignment of each category of GSCM practices, performances, pressures and barriers and organizational dimension with the selected theoretical lenses that can help future investigations to deepen the analysis of GSCM. Besides the theoretical contributions, the authors believe this contribution can also achieve practitioners. Originality/value The authors provide a comprehensive typology of GSCM practices, performances, pressures and barriers based on empirical evidence and conceptual arguments.
... However, far less focus has been paid to multi-plant emergency response preparation in chemical sector areas. In such manufacturing areas, in addition to the business where the large accident takes place, other factories and surrounding neighbourhoods may be affected [9,10]. The Community Recognition and Emergency Response (CAER) Code of Safe Care Management Practices was established in 1984 by the Canadian Procedures Association to guide the efficient and collective response coordination of chemical plants in industrial areas. ...
... The Community Recognition and Emergency Response (CAER) Code of Safe Care Management Practices was established in 1984 by the Canadian Procedures Association to guide the efficient and collective response coordination of chemical plants in industrial areas. The CAER Code specifies 'what' needs to be done for enforcement, and then leaves it to individual firms to assess 'how' to do it on the basis of their own decision of what constitutes an 'appropriate' answer [9,11]. It is essential to agree on the meanings and procedures applied in order to prevent misunderstandings within companies in a chemical cluster CONTACT Chinnakannu Jayakumar c_jayakumar73@yahoo.com; D. M. Reddy Prasad dmr.prasad@utb.edu.bn ...
Article
There is a significant need in the current industrial scenario for methods to be formulated to treat dangerous chemicals most safely. Accidental release of toxic chemicals will result in emergencies. Hence an Emergency Response Plan (ERP) is inevitable. The most toxic chemicals in the water and wastewater sector are Chlorine & hydrogen sulphide, whereas Methane is a flammable gas. CAMEO software is used in this research to predict the region that toxic gas release impacts. This research deals with a sewage treatment plant ERP and control measures for Methane and chlorine gases. The affected area of hazard will depend upon the weather conditions and the time of the accident. Comparing two different seasons, the impacted distance is more significant in summer than in winter. It is observed that the night and early morning time is more dangerous than the afternoon and evening time as it shows the larger impacted distance.
... This would cause free ride problem whereby the implementation of the program by the company only appeared on paper but not being properly implemented. However, recommendations for using independent third parties in the Responsible Care appraisal system have been implemented, but this system is not implemented by all involved companies (Prakash, 2000). ...
... The responded signatory companies stated that product stewardship code was vague causing it difficult to be implemented. Product stewardship code encompasses the management of a chemical product throughout its lifecycle and focuses on the implication of a product on the environmental, health and safety along the product chain (Prakash, 2000). Therefore, to ensure the product safety along the chain, signatory companies have to share the responsibility with stakeholders namely employees, suppliers, contract manufacturers, distributors and customers. ...
Article
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Purpose The purpose of this paper is to explore the barriers and challenges faced by chemical industries in Malaysia causing to the low participation in Responsible Care program. Also, this paper aims to propose a solution to address the issues in implementing Responsible Care by introducing a Simplified and Integrated Management System for Responsible Care. Design/methodology/approach A questionnaire was distributed to 132 Responsible Care signatory companies in Malaysia, and they were given a week to return it via e-mail. Combining the inputs from the survey and document analysis, a Simplified and Integrated Management System for Responsible Care (SIMS-RC) was proposed. Findings Responsible Care signatory companies faced barriers in implementing product stewardship code and they also faced challenges in getting employees’ commitment from all levels. Taking the inputs received from Responsible Care signatory companies and document analysis, an SIMS-RC was proposed as a closed-loop process which consists of quality, environmental, health and safety management system. Research limitations/implications Some of the chemical companies were unable to share their thoughts in the survey due to the companies’ confidential reason. Originality/value Abundant literature has discussed about the limitation of Responsible Care that needs to be improved. Therefore, several elements and procedures of the program need to be revised and innovated to help the signatory companies to continuously improve their performances and encourage more participation in Responsible Care program. The findings will add value to the current body of knowledge and Responsible Care signatory companies which seek to improve Responsible Care implementation through an integrated management system approach. The proposed SIMS-RC is a simple, integrated, holistic and process-oriented management system in which it blends Responsible Care into quality, environmental, health and safety management system.
... Second, we conceptualize how these market-based systems interact with existing globally entrenched norms and institutions. This move draws attention to a major constitutive basis of legitimacy that constrains and mediates the acceptance of NSMD systems, and which has been ignored in previous work that focused primarily on the motivations of non-governmental groups or firms to create or join such systems (Prakash 1999(Prakash , 2000Raines 2003;Rivera 2002;Sasser 2002 Applying insights from constructivist scholarship in International Relations (IR), we argue that an analysis of the constitutive basis of global legitimacy is a critical, yet overlooked step, in understanding how the social structure of global authority -the rules, norms and institutions that define what appropriate authority is, where it is located, and on basis it can be justified -influences the emergence of NSMD systems. This global level is especially important because it captures legitimating dynamics in the emerging social domain where one might notice shifts in global authority and observe new forms of regulation of the global marketplace. ...
... Likewise, widespread efforts by industry associations to create voluntary codes of conduct, such as the chemical industry's voluntary Responsible Care Programme, generally make no effort to build governing mechanisms beyond the association itself (Gunningham, Grabosky, and Sinclair 1998: 137-266;Prakash 2000). For example, Responsible Care, initiated following Union Carbide's Bhopal disaster in order to head off threats of governmental intervention, includes no formal role for social or environmental groups. ...
Chapter
The failure of governments and international institutions to effectively address significant global social and environmental problems has created a policy void that an array of voluntary, self-regulatory, shared governance and private arrangements are beginning to fill (Andrews 1998; Gunningham, Kagan and Thornton 2003; Harrison 1998; Howlett 2000; Rosenbaum 1995; Rosenau 2000; Ruggie 2004; Webb 2002). Despite increasing scholarly attention to these new policy arenas, most current research conflates these initiatives with what is arguably the most conceptually distinct and authoritative form of non-state global governance to arise in the last 50 years: non-state market driven (NSMD) governance systems (Cashore 2002). Their purpose is to develop socially and environmentally responsible practices in the marketplace by creating incentives and disincentives, through market supply chains, often through the use of a label that signals compliance to pre-established standards. Their distinctiveness is especially notable along two dimensions. First, they include governance institutions with decisionmaking and compliance mechanisms. Second, contrary to the vast majority of voluntary or self-regulatory initiatives, NSMD governance systems reject state sovereign authority, turning instead to markets (firms, consumers, as well as affected societal actors) for legitimacy to govern.
... The consequence being that sustainability could be differentially framed within the same organization as a competitiveness strategy, as regulatory pressure, or as an ethical responsibility (Bansal & Roth, 2000). Other internal organizational features such as the role of leadership values (Egri & Herman, 2000), managerial attitudes (Cordano & Frieze, 2000;Sharma, 2000), and historical environmental performance can also influence how managers perceive stakeholder pressures and their response (Prakash, 2000), and the visibility of the firm. Therefore, differences in adoption of sustainability tourism practices reflect not only different levels of institutional pressures but also differences in organizational characteristics, since internal organizational dynamics act as moderating factors that magnify or diminish the influence of institutional pressures. ...
... Finally, a firm's historical sustainability performance influences how managers perceive stakeholders' pressures and how to respond to them. This means that managers in firms whose reputation has suffered, such as in the case of the Dubai Report in 2015, may be more sensitive to sustainability issues than those in other companies (Prakash, 2000). ...
Article
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Outbound tour operators are key actors in international mass tourism. However, their contribution to more sustainable and inclusive forms of tourism has been critically questioned. Drawing from new institutional theories in organization studies, and informed by the case of one of the largest Scandinavian tour operators, we examine the corporate social responsibility (CSR) and sustainability work in large tour operators and the challenges faced in being more inclusive. On the basis of in-depth interviews with corporate officers, document analysis and media reports, we show how top-down coercive and normative pressures, coming from the parent company and the host society shape the ability of the daughter corporation to elaborate a more inclusive agenda. However, daughter companies do not merely comply with these institutional pressures and policy is also developed from the ‘bottom-up’. We show how the tour operator’s sustainability work is also the result of organizational responses including buffering, bargaining, negotiating and influencing the parent organization. By creating intra and inter-sectoral learning and collaborative industry platforms, MNCs not only exchange and diffuse more inclusive practices among the industry, but also anticipate future normative pressures such as legislation and brand risk. Daughter organizations help shape their institutional arrangements through internal collaborative platforms and by incorporating local events and societal concerns into the multinational CSR policy, especially when flexible policy frameworks operate, and the corporate CSR agenda and organizational field are under formation. However, risks do exist, in the absence of institutional pressures, of perpetuating a superficial adoption of more inclusive practices in the mass tourism industry.
... In 1992, the Public Interest Research Group (PIRG) called 192 RC facilities to ask nine questions about their policies. Only 58% responded, of which only 17% answered all the nine questions (Prakash 2000). In 1996, the ACC introduced its Management Systems Verification (MSV) program, through which industry peers review each company's RC process at the headquarters and site level. ...
... 4 In 1998, PIRG's experiment was repeated. They found that only 25% of the facilities were willing and able to share information required by the RC program and it appears the peer review did not work as expected (Prakash 2000). This is not surprising as the peer-review system was not an audit of the company and did not identify non-compliance with regulations. ...
Article
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We explore whether the introduction of mandatory third party certification in 2005 under the Responsible Care program has reduced the probability and severity of accidents in participating facilities in the U.S. chemical industry. Using a sample of 10,315 observations from 1136 facilities owned by 566 RC and non-RC firms between 1996 and 2010, we estimate the average treatment effect of third party certification. We find that the difference-in-difference estimate of the average treatment effect is statistically insignificant. This result is robust to various model specifications including the potential endogeniety of third party certification due to a firm’s self-selection into RC.
... External certifications have the effects of changing the logic of collective action and making enterprises take collective responsibility more seriously [41]. For example, in the environmental protection arena, when a company obtains green certification, it is equivalent to joining a prestigious club [42,43]. Independent third-party inspections increase corporate green behavior responsibility, reduce opportunistic behaviors, and enable companies to operate more actively in accordance with the certification's standard [43]. ...
... For example, in the environmental protection arena, when a company obtains green certification, it is equivalent to joining a prestigious club [42,43]. Independent third-party inspections increase corporate green behavior responsibility, reduce opportunistic behaviors, and enable companies to operate more actively in accordance with the certification's standard [43]. ...
Article
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Food safety has long been a major public concern in China. One question of the food processing industry’s emphasis on food safety social responsibility is whether a food processing company should pursue food safety certification for its products. As part of their corporate image, some food processing companies focus on food safety in their corporate mission statements. To enhance the legitimacy of a mission statement, as a guide for a firm, can provide food companies the legitimacy of perhaps pursuing food safety certification. However, we find that under different equity natures, the pressures on the normative legitimacy of the firm are different and the impact of mission statements on the acquisition of food safety certifications is also different. By analyzing the mission statement of companies in the Chinese food industry, we find that firms with a mission focusing on food safety concerns are more willing to pursue food safety certification. Moreover, compared to the firms with more distributed shareholder ownership, in firms where a majority shareholder has substantial control, the relationship between mission statements and the possession of food safety certification is stronger; compared to non-state-owned enterprises, in state-owned enterprise (SOEs), the relationship between firm mission statements of and the acquisition of food safety certification is stronger.
... While they also embody the desire of strategic nonprofits to differentiate themselves from the bad nonprofits, this strategic behavior is predicated on information problems at the donors' end. In the for-profit sector, there is some evidence to suggest that voluntary programs, especially the ones sponsored by industry associations, have emerged in response to growing public concerns regarding the industry; as in the emergence of the Responsible Care program in the chemical industry in the wake of Union Carbide's 1984 Bhopal disaster (Rees 1997;Prakash 2000). We also recognize that while public concerns may motivate the emergence of a specific institutional form, this institution may persist even after the problem is no longer salient. ...
Book
How can nonprofit organizations and NGOs demonstrate accountability to stakeholders and show that they are using funds appropriately and delivering on their promises? Many nonprofit stakeholders, including funders and regulators, have few opportunities to observe nonprofit internal management and policies. Such information deficits make it difficult for 'principals' to differentiate credible nonprofits from less credible ones. This volume examines a key instrument employed by nonprofits to respond to these challenges: voluntary accountability clubs. These clubs are voluntary, rule-based governance systems created and sponsored by nongovernmental actors. By participating in accountability clubs, nonprofits agree to abide by certain rules regarding internal governance in order to send a signal of quality to key principals. Nonprofit voluntary programs are relatively new but are spreading rapidly across the globe. This book investigates how the emergence, design, and success of such initiatives vary across a range of sectors and institutional contexts in the United States, the Netherlands, Africa, and Central Europe.
... In 1984, the Community Awareness and Emergency Response (CAER) Code of Responsible Care Management Practices was developed by the Canadian Procedures Association to guide the chemical plants in industrial areas to have effective and mutual response planning. The CAER Code determines "what" must be done for compliance but leaves it to individual companies to decide "how" it should be done based on their own judgment about what constitutes an 'appropriate' response (Prakash, 2000;Howard et al., 1999). …. ...
Article
Emergency response planning for major accidents in the chemical industry is essential to protect the public and workers’ health and safety, to reduce the environmental impacts, and to accelerate the resumption of normal operations. So far, much attention has been given to developing and implementing emergency planning in single chemical plants. However in chemical industrial areas – also known as chemical clusters – which consist of a number of different plants, less attention has been given to multi-plant emergency response planning. This paper is aimed at developing a multi-plant emergency response decision tool for chemical clusters in case of major accidents so that not only plant emergency levels but also respective response strategies can be determined. This way, a crisis situation within the chemical cluster can be handled in a much faster way than is the case today.
... The creation of the programme signified recognition by the industry that improved performance among chemical companies was crucial to public acceptability and viability. A series of major chemical accidents, most notably the 1984 disaster in the Union Carbide plant in Bhopal, India, reinforced a perception that the chemical industry was unable to carry out its operations without harming human health and damaging the environment (Prakash 2000). For this reason, companies were keen to demonstrate eco-efficiency measures; however, companies were faced with a situation which could be said to have been characterised by a degree of 'wickedness'. ...
... This is a voluntary industry-led code of conduct aimed at improving workplace safety standards in chemical industry supply chains. This initiative was created following the 1984 Bhopal disaster and other widely publicized events in the early 1980s that led to increased public and government pressure for the chemical industry to take greater responsibility for its impact (Prakash, 2000). More recently, the 2013 Rana Plaza building collapse in Bangladesh was a catalyst for unions and NGOs to pressure multinational clothing brands to sign the Accord on Fire and Building Safety in Bangladesh aimed at strengthening workplace safety standards in Bangladesh's garment manufacturing industry (Schuessler et al., 2018). ...
... Most notable is Responsible Care, the chemical industry's voluntary commitment to enhanced chemical safety and product stewardship. Though it may not have contributed much to improving sustainability performance in developed countries, its impact in emerging economies and developing countries appears to be more relevant (Conzelmann 2012;Prakash 2000). The European polyvinyl chloride (PVC) industry has committed itself to a set of sustainability goals that include increasing recycling rates and enhancing energy efficiency at PVC production facilities through VinylPlus, a private-sector partnership. ...
Book
Full-text available
Global plastic production is continuously increasing and reached 322 million tonnes in 2015, generating revenues for plastic manufacturers of about US$ 750 billion. However, adequate waste collection systems are lacking in many countries. As a con- sequence, discarded plastic often ends up in the environment, where it can cause health and other problems. Every year between 4.8 and 12.7 million tonnes of plas- tic end up in the ocean. There, it endangers sea life, breaks down into ever smaller pieces and can wind up in the food chain with unknown consequences. These plastic pieces spread across the globe, creating a transnational problem with high costs for economically important sectors such as tourism and fishing. Although public aware- ness of the problem has grown in recent years, international efforts to limit plastic pollution have so far failed to successfully address the problem. Most approaches have concentrated on the oceans, although the majority of plastic waste does not originate there, whereas a legally binding international treaty that deals with hazard- ous waste on land, the Basel Convention, is hardly applicable to plastic waste. To fill this gap and to address the transnational problem of plastic pollution, we propose to commence negotiations on a global plastics convention. Such a conven- tion should be built on five pillars. First, a clear and binding goal is needed to elimi- nate plastic waste discharge into the ocean as a top-down mechanism. Second, each country should propose, in a bottom-up manner, an action plan containing specific measures based on a toolbox. Third, implementation of these action plans should be fostered by a supporting structure and other capacity development measures, including a financing mechanism. Fourth, the success of this framework will need to be assessed through a stringent follow-up and review mechanism. Fifth, the involve- ment of non-governmental stakeholders from civil society, business, and academia is vital both for launching negotiations on such a convention and for making it an effective instrument for curbing plastic pollution. A coalition of stakeholders could take up the call and begin campaigning for a global plastics convention, negotiations on which could be launched by the UN Environment Assembly or the UN General Assembly. In addition, existing frame- works could be strengthened to further prevent marine dumping and other sources of plastic pollution at sea. Although the international community currently tends to prefer voluntary measures to legally binding treaties, the plastic pollution problem is global, costly, and will keep growing. This represents a strong case for overcoming the treaty fatigue in global politics and writing a new chapter in international envi- ronmental governance.
... The sponsors of voluntary programs include governments, business groups, and nongovernmental organizations (NGOs). We conceptualize voluntary programs as clubs (Prakash 2000a), drawing on the theoretical insights proposed by Buchanan (1965). Clubs promulgate standards of conduct targeted to produce public benefits by changing members' behaviors. ...
Article
Voluntary programs have become widespread tools for governments and nongovernmental actors looking to improve industry's environmental and regulatory performance. Voluntary programs can be conceptualized as club goods that provide nonrival but potentially excludable benefits to members. For firms, the value of joining a green club over taking the same actions unilaterally is to appropriate the club's positive brand reputation. Our analysis of about 3,700 U.S. facilities indicates that joining ISO 14001, an important nongovernmental voluntary program, improves facilities' compliance with government regulations. We conjecture that ISO 14001 is effective because its broad positive standing with external audiences provides a reputational benefit that helps induce facilities to take costly progressive environmental action they would not take unilaterally.
... However, the implementation of the general concept of sustainability requires a novel cognitive and behavioral approach that integrates environmental, social, and economic elements, but that is difficult to break down into its fundamental parts. The successful implementation of more sustainable processes, therefore, dictates a modus operandi based equally on a rational use of physical resources that yields efficient processes and prevents and/or reduces the discharge of harmful effluents to the environment and on the responsible design and operation of the process, integral to which is cooperation between people, i.e., nonphysical resources (Prakash 2000;Druckrey 1998). ...
Chapter
Sustainability is a service that should be produced and delivered in any process that generates tangible or intangible values and that should be incorporated into each phase of the value chain. Moreover, sustainability should also be an essential part of value co-creation, the process of which eventually recruits the customer as a provider of sustainability to current and future generations. In so doing, the value co-creation process and subsequent propagation of sustainability can mimic the cyclic and evolutionary aspects of nature.
... When asked what members believed were the main goals of the panels, making improvements either to the environment or economic relationships scored the lowest level of agreement, while helping companies understand community concerns and improving their communications scored the highest. Prakash's (2000) review of Responsible Care noted the continuing low levels of trust of publics living close to chemical facilities, but also argued that citizen groups saw the wider significance of the strategy as seeking substitution of environmental regulations for voluntary codes. Such codes would place the industry into private regimes beyond public scrutiny, in the process reducing the possibility that adversarial relationships could shift to legal or legislative arenas -in line with the aims of Excellence theory reducing economic costs to the industry. ...
Article
This is a conceptual article that seeks to apply agonistic theories of democracy to critique the embracing of dialogic communication in public relations theory. Several strands of scholarship, despite their vastly different starting points and epistemological assumptions, have converged on advancing dialogic forms of communication as representing the best normative theories for shifting practice towards what might be considered civic, democracy-friendly norms. As a consequence, theorising has emphasised compromise and consensus which pressurises practitioners to adopt ostensibly non-partisan styles of communication. In contrast, agonistic democratic theory elevates the value of permanent contest, dissensus and performance in vibrant public spaces which expose and test the legitimacy of those who hold power and privilege. However, the disputes in other academic fields between advocates of deliberative and agonistic approaches have up to now been largely absent in the public relations literature. This article uses agonistic theory, particularly the work of Chantal Mouffe, to critique some of the assumptions that have been used to apply to public relations: (a) Habermasian deliberation and (b) two-way symmetrical communication. Finally, the article discusses the value of the agonistic framework for building new models for understanding the forms of public relations that would support democratic practice.
... To tide with these different sets of externalities (that increase industry susceptibility to social activism), there are different codes that guide action such as the Ethical Trading Initiative (ETI) that seeks to improve working conditions in the apparel industry, and the Sustainable Mining Initiative that addresses social and environmental issues related to extractive industries. Firms adopting such industry codes are likely to gain more legitimacy among their peers and supply chain partners (Prakash 2000). We contend that normative institutional pressures, together with sector specific externalities, visibility of the industry and pressures of conformation within the industry are likely to inform stakeholder orientations at the industry level. ...
Article
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This study examines corporate stakeholder orientation (CSO) across industries and over time prior to the introduction of mandatory CSR. We argue that CSO is a legitimacy signal consciously employed by firms to demonstrate their shareholder and specific non-shareholder orientations in the midst of institutional pressures emerging from country and industry contexts. Using a 7-code index of CSO on CEO-shareholder communications from India, we find that in general large firms in India exhibit a predominant, significant and rising trend of pro-shareholder orientation in the six-year period immediately preceding the CSR law. Yet, we uncover significant industry differences in CSO potentially driven by four key factors: the degree of competitive dynamics, nature of products and services, extent of negative externalities and social activism, and exposure to international markets. Our findings support the view that while some minimum threshold of regulatory intervention is required to balance the interests of business with society, legislation raises questions in relation to the usefulness of a uniform one-size-fits-all CSR across all industries.
... One well-known example is the Responsible Care initiative that emerged from the chemical industry after the infamous explosion in 1984 at a Union Carbide plant in Bhopal, India. Whether Responsible Care had an impact on environmental performance is debatable (King & Lenox, 2000;Prakash, 2000), but the chemical industry sought to create change through a program, which can be assessed. Thus, industry activity, not just location, is also a basis of collective action for social impact. ...
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Are CSR initiatives providing the societal good that they promise? After decades of CSR studies, we do not have an answer. In this review, we analyze progression of the CSR literature toward assessing the performance of CSR initiatives, identify factors that have limited the literature’s progress, and suggest a new approach to the study of CSR that can overcome these limits. We begin with comprehensive bibliometric mapping illustrating that although social impact has infrequently been its explicit focus, the CSR literature has measured outcomes other than firm performance, especially in the current decade. Thereafter, we conduct a more fine-grained analysis of recent CSR studies. Adapting a logic model framework, we show that even the most highly cited studies have stopped short of assessing social impact, often measuring CSR activities rather than impacts, and focusing on benefits to specific stakeholders rather than to wider society. In combination, our analyses suggest that assessment of the performance of CSR initiatives has been driven by the availability of large, public secondary data sources. However, creating more such databases and turning to “big data” analyses are inadequate solutions. Drawing from the impact evaluation literature of development economics, we argue that the CSR field should reconceive itself as a science of design in which researchers formulate CSR initiatives that seek to achieve specific social and environmental objectives. In accordance with this pursuit, CSR researchers should move toward “small data” research designs, which will enable studies to better determine causation, rather than just identify correlation.
... Moreover, the positive public image in the favour of green manufacturing helps the firm to increase the sales volume and revenue (Ginsberg and Bloom 2004). In addition, consumers may change their preference, if the firm does not pay heed to environmental issues and/or break the environmental laws (Galbraith et al., 2007;Prakash, 2000). Thus, based on the aforesaid reasons, 'Green manufacturing' name is appropriately taken as one of the green-labels to examine consumer preference. ...
... 1 Voluntary environmental programs have been conceptualized as clubs in the sense proposed by Buchanan (1965). As noted by Prakash (2000) and Potoski and Prakash (2005), these programs aim at modifying members' behavior in order to produce public benefits. Although belonging to the club entails some costs, it also renders some excludable and nonrivalrous benefits to participating companies, such as affiliation with the club's positive brand name, particularly, when they are signaled with a certification (see also Potoski and Prakash, 2009). ...
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The effectiveness of voluntary environmental programs and certifications to render social and private benefits depends on how aware consumers are, so that they can consider such initiatives when making their decisions. Consumers’ awareness has been mostly addressed in developed countries, although the benefits of companies’ environmental actions also take place in developing countries. This study is conducted in a developing country, such as Costa Rica. Using a large sample (n = 1191), consumers’ awareness of environmental certifications is studied at a general level (being able to name some environmental certification or program) and at a specific level (ability to name certified firms). The results show that consumers who are younger, with higher household income, with a university or technical degree and those participating in environmental or community groups are more likely to be aware of environmental certifications on both levels. Moreover, aware consumers tend to be more willing to pay for a certified coffee or a coffee produced by a certified company.
... Tentu saja, jika produk hijau lebih murah dari produk lain, harga premium mereka tidak akan menjadi masalah bagi konsumen. Prakash (2000) berpendapat bahwa tantangan utama bagi pemasar adalah untuk memahami apakah konsumen melihat pengukuhan perusahaan / produk sebagai faktor pendorong (kehadiran mereka mendorong konsumen untuk membeli produk tertentu; ...
... The literature abounds with examples of business-led selfregulatory institutions introduced without a direct intervention of the state. The classical example is the trade-association-sponsored Responsible Care programme launched by the chemical sector in 1985 (King and Lenox, 2000;Prakash, 2000). This and other similar initiatives (such as Valdez Principles) represent "a new set of institutional constraints on companies and thus another instance of going outside the states system to institutionalise guidelines for widespread and transnational behaviour" (Wapner, 1997: 82). ...
... Although the CMA is one of the oldest trade and industry associations in the United States, some of its principles and codes of conduct are relatively new. By establishing a voluntary code of conduct for participants in this industry called 'Responsible Care', those volunteering to participate accept the code's policies and rules of behaviour and subject themselves to regulation that includes monitoring and enforcement by the CMA (Prakash 2000). Such industry-level initiatives serve the common good by engaging citizens' groups in their development, minimising the adversarial nature of government intervention and legal action (somewhat distrusted by both corporations and citizens), and by providing firms greater flexibility to channel private interests toward achieving broader societal objectives in a manner from which all can benefit. ...
... This finding is in contrast with prior studies criticizing business networks that might actually be less inclusive and act like clubs where the big ones write the rules and do not pay attention to the needs of other, smaller members of the business environment [88]. Additionally, the international business associations were criticized due to weak child labor protection and prevailing non-specific content of their codes of ethics [89]. ...
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This study aims to contribute to the understanding of unethical practices in business and asks whether certain types of organizations are considerably more exposed to unethical business practices than others are. Drawing from the tenets of institutional theory, the paper investigates the occurrence of unethical practices in different organizational “fields”, namely the industry sector (with focus on Finance and Construction), company membership in professional networks, company ownership (public/private), and company age. The method of stratified random sampling by proportional allocation is used to establish the sample (n = 1295), composed mostly of company owners and higher managers. Results show that, in general, the industry sector, membership in professional networks, and company age are associated with significant variance in the perceived incidence of unethical practices, whereas company ownership has no significant effect in this regard. More specifically, the construction sector is significantly more exposed to unethical practices than other sectors in the sample, while the finance sector is not. Companies with membership in professional networks report a significantly lower occurrence of unethical practices. Young companies are significantly more exposed than their more mature counterparts; however, here the effect of company size must be accounted for. The research was conducted in one of the former CEE block countries—Slovakia. Given their common communist past and comparable peripeties with the transition process, these findings might be useful for understanding business ethics issues in a wider context of the CEE region.
... Whether Responsible Care had an impact on environmental performance is debatable (A. King & Lenox, 2000;Prakash, 2000), but the chemical industry sought to create change through a program, which can be assessed. Thus, industry activity, not just location, is also a basis of collective action for social impact. ...
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Are corporate social responsibility (CSR) initiatives providing the societal good that they promise? After decades of CSR studies, we do not have an answer. In this review, we analyze progression of the CSR literature toward assessing the performance of CSR initiatives, identify factors that have limited the literature’s progress, and suggest a new approach to the study of CSR that can overcome these limits. We begin with comprehensive bibliometric mapping illustrating that although social impact has infrequently been its explicit focus, the CSR literature has measured outcomes other than firm performance, especially in the current decade. Thereafter, we conduct a more fine-grained analysis of recent CSR studies. Adapting a logic model framework, we show that even the most highly cited studies have stopped short of assessing social impact, often measuring CSR activities rather than impacts and focusing on benefits to specific stakeholders rather than to wider society. In combination, our analyses suggest that assessment of the performance of CSR initiatives has been driven by the availability of large, public secondary data sources. However, creating more such databases and turning to “big data” analyses are inadequate solutions. Drawing from the impact evaluation literature of development economics, we argue that the CSR field should reconceive itself as a science of design in which researchers formulate CSR initiatives that seek to achieve specific social and environmental objectives. In accordance with this pursuit, CSR researchers should move toward “small data” research designs, which will enable studies to better determine causation rather than just identify correlation.
... RC is perhaps the first environmental club sponsored by an industry association. The Chemical Industry Association of Canada launched Responsible Care® in 1985(Hoffman, 1997Prakash, 2000). Soon after, in 1988, the American Chemistry Council (previously known as the Chemical Manufacturers Association) also adopted RC. ...
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The development of chemical industries in Malaysia has raised the need to strengthen the chemicals management to avoid incidents which could put the environment, health and safety at risks. Responsible Care program was launched in 1994 to promote sustainable management of chemicals throughout the product chain as a commitment to build trust in the chemical industries. Although Responsible Care program was developed to restore public’s trust toward chemical industries, there are issues debated particularly on the effectiveness of its self-regulatory program whether could achieve the objective of practicing sustainable chemical industry management. In this chapter, a concept of integrating Responsible Care through quality, environmental, health and safety management system for chemical industries is laid out, taking Malaysian chemical industries as a case study. Considering the challenges faced by the signatory chemical companies, a simplified and integrated management system for Responsible Care has been developed by incorporating ISO9001, ISO14001 and OHSAS18001 with Responsible Care program. The simplified and integrated management system for Responsible Care is expected to assist chemical companies in enhancing the implementation of Responsible Care program and promoting more participation of chemical companies in Responsible Care program for the sustainability of chemical industries.
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Crisis Communication in a Digital World - edited by Mark Sheehan April 2015
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This article extends earlier research concerning the relationship between corporate social performance and corporate financial performance, with particular emphasis on methodological inconsistencies. Research in this area is extended in three critical areas. First, it focuses on a particular industry, the chemical industry. Second, it uses multiple sources of data-two that are perceptual based (KLD Index and Fortune reputation survey), and two that are performance based (TRI database and corporate philanthropy) in order to triangulate toward assessing corporate social performance. Third, it uses the five most commonly applied accounting measures in the corporate social performance and corporate financial performance (CSP/CFP) literature to assess corporate financial performance. The results indicate that the a priori use of measures may actually predetermine the CSP/CFP relationship outcome. Surprisingly, Fortune and KLD indices very closely track one another, whereas TRI and corporate philanthropy differentiate between high and low social performers and do not correlate to the firm's financial performance.
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Imagine trying to change the direction of a herd of mastodons rushing headlong toward a primeval tar pit— and certain death. If you can imagine that then you have some idea of what the chemical industry is trying to do with its Responsible Care initiative, a costly, ambitious and unique program to change the culture of a large and diverse enterprise. According to Chemical Manufacturers Association (CMA) chairman Frank Popoff, Dow's chairman and chief executive officer, "Responsible Care is [the chemical industry's] strategy for survival." And if it functions as intended, it will "fundamentally change the way the industry sees its role in society. It will fundamentally change the way industry deals with society," explains Jon C. Holtzman, CMA's vice president for communications. The initiative, coordinated by CMA, is designed to alter industry's performance, its commitments and decision-making processes, and its relationship with the public. "It has earned us a place at the table in ...
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Chemical makers have always been safety conscious. By the nature of the trade, they've had to be. Over the years, the chemical industry has prided itself on its safety record. But today the industry is under sharply increased pressure to redouble its efforts to protect both its workers and its neighbors. At the same time, further improvements in chemical process safety are proving to be laborious, costly, and difficult for the public to track. Propelling this greater emphasis on safety are two federal initiatives. One concerns the impact of chemical releases beyond the plant fence line, the other the release of hazardous substances within the workplace. In addition, a system to track plant safety performance under the Responsible Care program of the Chemical Manufacturers Association (CMA) is being finalized and may be in place as early as next year. The Environmental Protection Agency's proposed risk management rule, published last month in the Federal Register , addresses ...
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In the five years since the Chemical Manufacturers Association (CMA) adopted its Responsible Care program, the initiative has been gaining momentum in the chemical industry. As a condition of membership, CMA's 178 members have pledged through a process of continual improvement to fully implement Responsible Care's six codes of management practice, which are aimed at improving the industry's performance in health, safety, and environmental quality in concert with the public. CMA has been busy spreading the Responsible Care gospel to non-CMA companies as well. Many smaller companies that not only manufacture, but also package, transport, store, dispose of, or sell chemicals are embracing the initiative by signing on as Responsible Care partner companies or through their membership in one of 16 partner associations. For example, in 1990, the program gained the endorsement of the Synthetic Organic Chemical Manufacturers Association (SOCMA), which represents a large number of small companies—73% of its 145 manufacturing members generate sales ...
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Workers and their trade union representatives are neither widely involved in nor well informed about the chemical industry's Responsible Care initiative, according to a survey published last week. Responsible Care commits companies to environmental, health, and safety responsibility in managing chemicals. The survey was conducted during 1997 by the Brussels-based International Federation of Chemical, Energy, Mine & General Workers' Unions (ICEM), which claims to represent some 20 million workers around the world. The ICEM survey covered more than 29 unions in 21 countries. Survey results show that "35% of respondents were not even aware of the Responsible Care program." According to ICEM officials, awareness and involvement follow a decided geographic pattern. Unions that were "both aware of and in some way involved in Responsible Care were mainly in Japan, Scandinavia, and northwestern Europe," the survey says. But it finds that the ability of U.S. workers and their union representatives to get involved "in a formal ...
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Ecological problems rooted in organizational activities have increased significantly, yet the role corporations play in achieving ecological sustainability is poorly understood. This article examines the implications of ecologically sustainable development for corporations. It articulates corporate ecological sustainability through the concepts of (a) total quality environmental management, (b) ecologically sustainable competitive strategies, (c) technology transfer through technology-for nature-swaps, and (d) reducing the impact of populations on ecosystems. It examines the implications that these concepts have for organizational research.
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Historically. management theory has ignored the constraints imposed by the biophysical (natural) environment. Building upon resource-based theory, this article attempts to fill this void by proposing a natural-resource-based view of the firm-a theory of competitive advantage based upon the firm's relationship to the natural environment. It is composed of three interconnected strategies: pollution prevention, product stewardship, and sustainable development. Propositions are advanced for each of these strategies regarding key resource requirements and their contributions to sustained competitive advantage.
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The stakeholder theory has been advanced and justified in the man- agement literature on the basis of its descriptive accuracy, instrumen- tal power, and normative validity. These three aspects of the theory, although interrelated, are quite distinct; they involve different types of evidence and argument and have different implications. In this article, we examine these three aspects of the theory and critique and integrate important contributions to the literature related to each. We conclude that the three aspects of stakeholder theory are mutually supportive and that the normative base of the theory-which includes the modern theory of property rights-is fundamental. If the unity of the corporate body is real, then there is reality and not simply legal fiction in the proposition that the man- agers of the unit are fiduciaries for it and not merely for its individual members, that they are . . . trustees for an institu- tion (with multiple constituents) rather than attorneys for the stockholders.
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An emerging subfield of strategic management is that dealing with the natural environment as it affects corporate strategy. To analyze this we organize the literature on environmental regulations and corporate strategy into a new managerial framework. Next we develop a resource-based view of the interaction between firm-level competitiveness and environmental regulations, including the conditions for the use of green capabilities. Finally, we analyze the green capabilities of multinational enterprises within a standard international business model, using firm-specific advantages (FSAs) and country-specific advantages (CSAs). We then use this FSA/CSA configuration to explore hypotheses on environmental regulations, competitiveness, and corporate strategy. © 1998 John Wiley & Sons, Ltd.
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This article defines corporate social performance (CSP) and reformulates the CSP model to build a coherent, integrative framework for business and society research. Principles of social responsibility are framed at the institutional, organizational, and individual levels; processes of social responsiveness are shown to be environmental assessment, stakeholder management, and issues management; and outcomes of CSP are posed as social impacts, programs, and policies. Rethinking CSP in this manner points to vital research questions that have not yet been addressed.
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Criticism of the analytical validity of public utility pricing ‘rules’ has resulted over a period of years in the introduction of successive modifications to the original simple (though not unambiguous) marginal-cost ‘rule’, culminating in advocacy of the two-part tariff and of the ‘club’ principle.2 While these pricing rules have been regarded with scepticism as practical guides to public utility pricing policy,3 however, there has perhaps been a less general appreciation of the cumulative weight of the theoretical objections to all such rules; there is still interest in the discovery of a ‘right’ rule, and in the estimation of the ‘marginal’ or other costs of particular public utility enterprises.
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Stakeholder theory development has increased in recent years, in part because of its emphasis on explaining and predicting how an organization functions with respect to the relationships and influences existing in its environment. Thus far, most researchers have concentrated on dyadic relationships between individual stakeholders and a focal organization. Using social network analysis, I construct in this article a theory of stakeholder influences, which accommodates multiple, interdependent stakeholder demands and predicts how organizations respond to the simultaneous influence of multiple stakeholders.
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Examines the role that institutions, defined as the humanly devised constraints that shape human interaction, play in economic performance and how those institutions change and how a model of dynamic institutions explains the differential performance of economies through time. Institutions are separate from organizations, which are assemblages of people directed to strategically operating within institutional constraints. Institutions affect the economy by influencing, together with technology, transaction and production costs. They do this by reducing uncertainty in human interaction, albeit not always efficiently. Entrepreneurs accomplish incremental changes in institutions by perceiving opportunities to do better through altering the institutional framework of political and economic organizations. Importantly, the ability to perceive these opportunities depends on both the completeness of information and the mental constructs used to process that information. Thus, institutions and entrepreneurs stand in a symbiotic relationship where each gives feedback to the other. Neoclassical economics suggests that inefficient institutions ought to be rapidly replaced. This symbiotic relationship helps explain why this theoretical consequence is often not observed: while this relationship allows growth, it also allows inefficient institutions to persist. The author identifies changes in relative prices and prevailing ideas as the source of institutional alterations. Transaction costs, however, may keep relative price changes from being fully exploited. Transaction costs are influenced by institutions and institutional development is accordingly path-dependent. (CAR)
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The article deals with the role of companies in the social market economy. An example of a successful international self-regulatory initiative and its implementation in German chemical industry is discussed.
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This paper examines why US firms are lukewarm towards ISO 14000 while the US chemical industry has enthusiastically adopted Responsible Care. It also briefly explores why European and Asian firms are eagerly adopting ISO 14000. Employing a new-institutionalist framework it argues that firms have incentives to adopt beyond-compliance voluntary programs only if they perceive excludable benefits exceeding excludable costs. Institutions, the central conceptual pillar in a new-institutionalist framework, are important in shaping perceptions of benefits and costs and the extent of their excludability.US regulators can encourage adoption of ISO 14000 by granting attorney–client privileges and enhancing levels of regulatory relief. Firms, in turn, need to appreciate the political constraints of the EPA on this issue. They could relax these constraints by addressing the apprehensions of EPA’s key constituents. Copyright © 1999 John Wiley & Sons, Ltd and ERP Environment.
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This article applies the convergent insights of institutional and resource dependence perspectives to the prediction of strategic responses to institutional processes. The article offers a typology of strategic responses that vary in active organizational resistance from passive conformity to proactive manipulation. Ten institutional factors are hypothesized to predict the occurrence of the alternative proposed strategies and the degree of organizational conformity or resistance to institutional pressures.
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This paper uses a stakeholder framework to review the empirical literature on corporate social performance (CSP), focusing particularly on studies attempting to correlate social with financial performance. Results show first that most studies correlate measures of business performance that as yet have no theoretical relationship (for example, the level of corporate charitable giving with return on investment). To make sense of this body of research, CSP studies must be integrated with stakeholder theory. Multiple stakeholders (a) set expectations for corporate performance, (b) experience the effects of corporate behavior, and (c) evaluate the outcomes of corporate behavior. However, we find that the empirical CSP literature mismatches variables in terms of which stakeholders are relevant to which kind of measure. Second, only the studies using market-based variables and theory show a consistent relationship between social and financial performance, particularly those showing a negative abnormal return to the stock price of companies experiencing product recalls. Although this paper shows that the CSP construct is not yet well-specified enough to produce stronger results, recent research suggests that much progress is being made both empirically and theoretically in developing valid and reliable measures of corporate social performance.
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This article is intended to enhance the position of stakeholder theory as an integrating theme for the business and society field. It offers an instrumental theory of stakeholder management based on a synthesis of the stakeholder concept, economic theory, behavioral science, and ethics. The core theory-that a subset of ethical principles (trust, trustworthiness, and cooperativeness) can result in significant com- petitive advantage-is supplemented by nine research propositions along with some research and policy implications. Even before Preston (1975) issued an intellectual call-to-arms, schol- ars in the field of inquiry called business and society sought a paradigm or an integrating framework for topics thought to be central to the disci- pline. Various models-corporate social performance, social control of business, and stakeholder-have been advanced as part of this search. This article attempts to advance the case for using the stakeholder model as an integrating theme for the field by proposing a formal instrumental theory of stakeholder management. The theory represents a synthesis of the stakeholder concept, economic theory, insights from behavioral sci- ence, and ethics. The argument begins with a brief history of the search for a paradigm in the business and society field followed by a discussion of the stakeholder model as theory. Assumptions that underlie the theory are then offered along with discussions of the nature of contracting, effi- cient contracting, and the role of ethics in efficient contracting. An argu- ment is presented for corporate morality as an analog to individual mo- rality. At this point, the instrumental stakeholder theory is formally presented, followed by several research propositions. Implications and extensions of the theory and a brief conclusion complete the article. THE QUEST FOR A BUSINESS AND SOCIETY PARADIGM Although the business and society field has had at least a nominal presence at numerous business schools for over two decades and has experienced considerable growth since then in terms of faculty member- ship in academic organizations and numbers of outlets for scholarly ar-