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Corporate Social Responsibility in Developing Countries as an Emerging Field of Study: CSR in Developing Countries
Abstract
Given the rising interest in corporate social responsibility (CSR) globally, its local expressions are as varied as they are increasingly visible in both developed and developing countries. This paper presents a multilevel review of the literature on CSR in developing countries and highlights the key differentiators and nuanced CSR-related considerations that qualify it as a distinctive field of study. This review entails a content analysis of 452 articles spanning two-and-a-half decades (1990–2015). Based on this comprehensive review, the authors identify the key differentiating attributes of the literature on CSR in developing countries in relation to depictions of how CSR is conceived or 'CSR Thinking' and depictions of how CSR is practiced and implemented or 'CSR Doing'. The authors synthesize from there five key themes that capture the main aspects of variation in this literature, namely: (1) complex institutional antecedents within the national business system (NBS); (2) complex macro-level antecedents outside the NBS; (3) the salience of multiple actors involved in formal and informal governance; (4) hybridized and other nuanced forms of CSR expressions; and (5) varied scope of developmental and detrimental CSR consequences. The paper concludes by accentuating how the nu-anced forms of CSR in the developing world are invariably contextualized and locally shaped by multi-level factors and actors embedded within wider formal and informal governance systems.
... However, too few studies have investigated how multiple logics are translated and transformed in organizational contexts, how they reflect the contradictions in organizational elements, and how organizations respond to these logics (Baumann-Pauly et al., 2016;Greenwood et al., 2011;Thornton et al., 2012). Such a multiplicity is also more pronounced in developing countries (Diab & Metwally, 2020;Jamali & Karam, 2018) with high complexity which different corporate social responsibility (CSR) dynamics have not yet been fully discovered (Badulescu et al., 2018;Jamali & Carroll, 2017;Vermeulen et al., 2016). Additionally, it is emphasized that more studies especially on CSR are needed (Lindgreen et al., 2009;Perrini, 2006;Upadhaya et al., 2018;Visser, 2008). ...
... Given that the growing CSR literature has become increasingly sophisticated and complex (Jamali & Karam, 2018), it seems worthwhile to evaluate such complexity through the lens of the institutional logics perspective, especially in developing countries . In such contexts, CSR features give rise to different CSR expressions than those in developed contexts (Jamali & Karam, 2018;Jamali, Karam, et al., 2017) by adding an extra layer of complexity. ...
... Given that the growing CSR literature has become increasingly sophisticated and complex (Jamali & Karam, 2018), it seems worthwhile to evaluate such complexity through the lens of the institutional logics perspective, especially in developing countries . In such contexts, CSR features give rise to different CSR expressions than those in developed contexts (Jamali & Karam, 2018;Jamali, Karam, et al., 2017) by adding an extra layer of complexity. However, studies of this complexity from logic plurality are lacking so our current understanding remains limited (Besharov & Smith, 2014;Greenwood et al., 2011). ...
Organizations differ in their corporate social responsibility (CSR) orientation, the effects of which manifest themselves in organizational outcomes. Drawing on the institutional logics perspective, the current study explains the underlying dynamics of these differences. The current study aims at revealing how organizations can achieve combined CSR benefits for both society and business by exploring the ways of how social and commercial logic function differently in the context of CSR and shape organizations’ CSR together with some mediators. Based on the developed typology by the current study for CSR, a research model is created for the analysis. A survey was conducted with 192 companies operating in various sectors. The findings confirm the dichotomy, which is theoretically proposed by the developed typology of the current study between institutional logics and perceived CSR benefits: commercial logic mostly increases CSR benefits for business while social logic increases CSR benefits for society. Furthermore, the current study finds out that it is possible for commercial logic to provide CSR benefits for society and social logic to provide CSR benefits for business, thanks to some organizational capabilities that allow overcoming the complexity arising from the different organizational prescriptions of competing institutional logics. Thus, paradox mindset and multi-stakeholders can enable combined CSR benefits by mediating between incompatible structures of multiple logics. Given the importance of approaching strategically in today’s turbulent business environment, both academics and practitioners can use this model to achieve CSR benefits simultaneously for both business and society by managing multiple goals.
... With the growing number of publications on corporate social responsibility (CSR) in rising economies [McKiernan, Purg, 2013] of countries in transition to market economy and developing countries over the last three decades [Jamali, Karam, 2018], researchers in this emergent field discovered the shared features and specific manifestations of CSR within national boundaries and compared their findings with CSR in developed countries [Blowfield, Frynas, 2005;Gugler, Shi, 2009;Idemudia, 2007;Jamali, Neville, 2011;Moon, Shen, 2010;Okoye, 2012;Prieto-Carrуn et al ., 2006;Visser, 2008] . This literature shows the common characteristics of CSR in rising economies as being less formalized, more embedded and driven by multiple actors РЖМ 20 (2): 247-272 (2022) [Jamali, Karam, 2018;Jamali, Neville, 2011;Visser, 2008] . ...
... With the growing number of publications on corporate social responsibility (CSR) in rising economies [McKiernan, Purg, 2013] of countries in transition to market economy and developing countries over the last three decades [Jamali, Karam, 2018], researchers in this emergent field discovered the shared features and specific manifestations of CSR within national boundaries and compared their findings with CSR in developed countries [Blowfield, Frynas, 2005;Gugler, Shi, 2009;Idemudia, 2007;Jamali, Neville, 2011;Moon, Shen, 2010;Okoye, 2012;Prieto-Carrуn et al ., 2006;Visser, 2008] . This literature shows the common characteristics of CSR in rising economies as being less formalized, more embedded and driven by multiple actors РЖМ 20 (2): 247-272 (2022) [Jamali, Karam, 2018;Jamali, Neville, 2011;Visser, 2008] . ...
... Given that there are significant local variations in CSR in the world [Carroll, 2008], there are very few studies providing a sound theoretical basis to these variations . Most commonly it is argued that hybridized forms of CSR practices are prevailing in the developing countries [Jamali, Karam, 2018] . Even less is known about the factors that determine hybridity of CSR in non-Western contexts . ...
Goal: this в paper investigates the diversity of corporate social responsibility (CSR) practices in the Russian context. The purpose of this paper is to study how a heterogeneous context, commonly found in rising economies, shapes the emerging CSR practices of business organizations operating in Russia. Methodology: an institutional perspective that draws on the contextual multilevel approach guides our study. In our theoretical framing we assume that organizational fields play a key role in shaping CSR practices. This is applied to empirical investigation of organizational CSR practices. To inform our analysis we used desk research and an empirical dataset that consists of interviews with local business owners and managers representing a wide range of business organizations operating in Russia. Findings: based on an exploratory qualitative inquiry, we distinguish between four types of organizational CSR practices co-existing in Russia: global, crossvergent, authentic and irresponsible. Our findings demonstrate that business organizations populating one organizational field share homogeneous characteristics of CSR practices. Originality and contribution: the distinctions among CSR practices of business organizations belonging to different organizational fields are explained by the markets where they operate, core stakeholders, response mechanisms to prevailing institutional pressures and the dominant legacy of CSR.
... The authors of papers [5,6] believe that CSR should be regulated through institutional laws and regulations, and an appropriate governing body in the government should be created. This will make it possible to fight against corruption and monopolies. ...
... The current stage of development of corporate social responsibility is noted as a stage of special responsibility of managers in the implementation of the company's external and internal policy [5,6]. A characteristic feature of the modern period is manifested in the fact that this stage of development of social responsibility of business is associated with the emergence of globalization processes and the emergence of various information technologies. ...
... It includes the same indicators as staff turnover, the qualification ratio of workers, the ratio of the average wage in the enterprise to the indicator in the region. The group of socio-environmental indicators makes it possible to estimate in a coefficient terms the level of social security of a person, the degree of social partnership, the environmental friendliness of production, and the coefficient of promoting the improvement of product quality [6]. For example, the coefficient of social partnership is an integral indicator that takes into consideration the participation of employees in decision-making, collective bargaining, in the distribution of profits, etc. ...
Under modern conditions, there are new requirements for the formation of relations with consumers, partners, employees, and society. The possibilities of integrating corporate social responsibility (CSR) tools and economic digitalization processes have been investigated and a new format for evaluating the activities of small and medium-sized businesses related to their level of maturity has been defined. This study formulates patterns of CSR development, proposes the use of a new concept of "digital space of social sustainable development" (DSSSD), and reports a methodological toolkit devised for determining the level of maturity of the digital space of social sustainable development (DSSSD) of food industry enterprises. The developed methodological support makes it possible to assess CSR by economic, social, and informatization criteria. The proposed CSR scorecard makes it possible to compare companies and rank them in the coordinate system of corporate social responsibility/digitalization. 17 key indicators have been identified, which are formed into three key groups. Confirmation of the effectiveness of the methodology is the execution of calculations for small and medium-sized businesses in the food industry. According to the results of the calculations, the maturity levels of eight enterprises of the food industry in Ukraine in the DSSSD space were determined. The analysis made it possible to determine that four enterprises are at the initial level of DSSSD (zone 1 Digital Descriptive), two enterprises are moving to zone 2 (Solutions Analytics Digital), and two enterprises are in a state of transition to zone 3 (Smart CIS) due to increasing the level of digitalization and the formation of an internal CSR system, which indicates their active development. This makes it possible to assert that the technique is effective and can be useful for enterprises around the world. The selected indicators are used at all enterprises of those countries that use the international accounting and reporting system. Improving the system in the areas of formation of corporate social responsibility and the introduction of digitalization of the enterprise makes it possible to optimize the information systems of enterprises, automate management procedures, and create new communication channels with consumers and beneficiaries. This will contribute to the development of a systemic socio-economic effect of business, care for the needs of people, the development of the social climate at an enterprise, and the emergence of new formats of interaction between business, the state, and society.
... More recent studies (Baena, 2018;Drempetic et al., 2020;Jamali and Karam, 2018;Lindgreen, 2017;Marin and Lindgreen, 2017;Schreck and Raithel, 2018;Singh and Misra, 2021) propose that CSR initiatives appear to have marketing-related benefits for PSOs. Investigations conducted by Moyo et al. (2015) and Roy and Graeff (2003) concluded that CSR engagement resulted in benefits that were linked to the PSOs' marketing performance. ...
... That is what we do." [R10] These findings are in line with theories that proposed CSR can be considered to be a marketing strategy (Baena, 2018;Drempetic et al., 2020;Jamali and Karam, 2018;Lindgreen, 2017;Marin and Lindgreen, 2017;Schreck and Raithel, 2018;Singh and Misra, 2021). ...
... Institutional theory, specifically neo-institutional theory, is a useful perspective in capturing the complexity of CSR dynamics because of the integration of external institutional pressures from the global context, the organizational field, and self-interest of the organization itself (Jamali and Karam 2018). ...
... These efforts, which were initially implicit CSR efforts, are now being transformed into explicit CSR efforts by business organizations to better fit the international definition of CSR with the objective of legitimacy on a global level. This is consistent with recent literature about CSR in a developing country context, which suggests that firms in developing countries engage in modest forms of explicit CSR as a response to global pressures but have inherent forms of implicit CSR shaped by culture, religion, and societal norms (Jamali and Karam 2018). ...
This article presents a qualitative study pertaining to the interface between business and society that primarily focuses on the prominent institutional factors that are influencing organizations to adopt explicit and implicit forms of corporate social responsibility in a developing country context. This is a pertinent subject because developing countries contain a large proportion of the world’s population and, subsequently, a large proportion of salient issues in the social, economic, and environmental arena. This study identifies that, in the country context chosen namely Lebanon, explicit social responsibility initiatives are driven by predominantly normative and mimetic institutional pressures emanating from both local and international institutions. This study also identifies that implicit social responsibility initiatives are driven by normative institutional pressures emanating from elements in the national business system. Contributions of this study include a conceptual model to aid future research, identifying the importance of the duality of corporate social responsibility, the importance of international institutions in facilitating explicit social responsibility proliferation, and the importance for managers to include explicit social responsibility initiatives in their organizational mandate. Future research can use a different sampling technique, conduct interviews with employees that are not directly involved with social responsibility initiatives, or use other perspectives, such as agency theory or theory of institutional logics, to gain more insight on the topic.
... 13 Aguilera et al. (2007), at p 837. 14 Sheehy (2015). 15 Sheehy (2012); (2017a); Teubner (1984) 16 Jamali and Karam (2018); Turkina et al. (2015). 17 Khan (2010); Kochhar (2014). ...
A policy shift from soft law to hard law rests on assumptions about motivating compliance. The basic idea is that people comply with soft law for personal, moral reasons but are motivated to comply with hard law by self-interested fear. While logically, this is obvious, there is also support for the view that self-determination, organisational justice and social influence are better at motivating compliance in certain contexts. Currently, there is a global policy shift moving Corporate Social Responsibility (CSR) from a voluntary, organisation-based initiative to a practice mandated by law. This shift provides an opportunity to investigate the phenomenon of motivation in law. The current study investigates how the shift to mandatory CSR impacts motivation. Based on an analysis of the programs of 12 firms, in Indonesia we find that CSR hard law appears to motivate CSR without displacing voluntary moral initiatives.
... In recent years, the commitment to Corporate Social Responsibility (CSR) has been gaining momentum worldwide (Visser, 2008;Jamali and Karam, 2018;Crane, Matten and Spence, 2019). In the last decades, additional evidence is being requested to LGs on their sustainability and development (Alcaraz-Quiles, Navarro-Galera and Ortiz-Rodriguez, 2015;Rodriguez Bolivar et al., 2016). ...
... Alpha managers transpire Southern transformational relevance as they narrate in Northern MR language how Alpha challenges/confirms territorial, racial, and class hierarchies in the sector and country through CSR strategies. Defined as "multifaceted" by the Northern literature of expansionist MR that performs the "de-development" of the majority (Jamali & Karam, 2018), this strategy denies and appropriates the Southern, multifaceted field of DA (Dwivedi et al., 2007;Santos et al., 2018) to expand a counterrevolutionary system of white cooptation grounded on the pay-per-call concept, charging a fixed price per "on-net" call -i.e., the same rate for local or long-distance calls and data and SMS transmission. ...
In an era of decolonization and empire, the management field embraced the US-led neoliberal counterrevolution and challenged the Eurocentric theory-practice hierarchy to produced relevant knowledge through managed learning theories. This contested reformist and market-centric management revolution (MR) against the threat of “reverse relevance” fostered by emerging/resurging barbarians subalternizes Southern theories-practices of the multifaceted field of development administration-management (DA) and de-develops the global majority by privileging large corporations and transnational elites. MR expanded in the 1990s through a post-Washington Consensus social perspective based on re-Westernalizing whitening appropriation-containment dynamics of developmental neoliberalisms and Southern counter-hegemonic movements informed by dewesternization and decolonial dynamics which challenge-reaffirm racial capitalism structures. In an Age of Development, MR was re-organized in the 2000s in response to “irresponsible” hybridisms in emerging countries and societies triggered by Southern learning-unlearning-relearning dynamics. This article investigates the Southern co-production of relevant knowledge in Brazil through subversive complicity, focused on a privileged organization-school nexus. Analysis shows how managers and researchers (re)mobilize Southern theories-practices to co-produce relevant knowledge from a transformational-reformist perspective. In the end, the article presents discussions and suggestions for collectively re-appropriating Southern relevant knowledge engaged with the ‘other’ in emerging/resurging societies in both the South and North.
Keywords:
learning; neoliberalism; decoloniality; racism; relevance
... Alpha então desafia-reafirma o elitismo da telefonia móvel no Brasil e o padrão imperialista da gestão de grandes corporações ocidentais no Sul Global (ver Prahalad & Lieberthal, 1998) por meio de discursos socialmente responsáveis da RG que "libertam" ao individualizar/despolitizar/fragmentar uma sociedade potencialmente "ameaçadora" de trabalhadores, gestores, estudantes, consumidores e crescente diversidade de 'outros' (Schiller, 2011 territoriais, raciais e de classe no setor e país por meio de estratégias de RSC. Definida como "multifacetada" pela literatura da RG expansionista que desenvolve o desdesenvolvimento da maioria (Jamali & Karam, 2018), essa estratégia corporativa nega e apropria-contém o campo multifacetado sulista de DA (Dwivedi et al., 2007;Santos et al., 2018) para expandir um sistema contra-revolucionário de cooptação baseado na cobrança de tarifa fixa por chamada telefônica ou transmissão de dados e SMS. ...
In an era of decolonization and empire, the management field embraced the US-led neoliberal counterrevolution and challenged the Eurocentric theory-practice hierarchy to produced relevant knowledge through managed learning theories. This contested reformist and market-centric management revolution (MR) against the threat of “reverse relevance” fostered by emerging/resurging barbarians subalternizes Southern theories-practices of the multifaceted field of development administration-management (DA) and de-develops the global majority by privileging large corporations and transnational elites. MR expanded in the 1990s through a post-Washington Consensus social perspective based on re-Westernalizing whitening appropriation-containment dynamics of developmental neoliberalisms and Southern counter-hegemonic movements informed by dewesternization and decolonial dynamics which challenge-reaffirm racial capitalism structures. In an Age of Development, MR was re-organized in the 2000s in response to “irresponsible” hybridisms in emerging countries and societies triggered by Southern learning-unlearning-relearning dynamics. This article investigates the Southern co-production of relevant knowledge in Brazil through subversive complicity, focused on a privileged organization-school nexus. Analysis shows how managers and researchers (re)mobilize Southern theories-practices to co-produce relevant knowledge from a transformational-reformist perspective. In the end, the article presents discussions and suggestions for collectively re-appropriating Southern relevant knowledge engaged with the ‘other’ in emerging/resurging societies in both the South and North.
Keywords:
learning; neoliberalism; decoloniality; racism; relevance
... Este estudo utiliza, portanto, o TBL. Enquanto a maioria das pesquisas em sustentabilidade tem sido conduzida no contexto do mundo desenvolvido, o interesse pelo tema está crescendo no mundo em desenvolvimento (Buckley et al., 2017;Jamali & Karam, 2016). ...
O objetivo deste estudo é analisar a influência da capacidade absortiva e da orientação empreendedora na sustentabilidade econômica, social e ambiental, no setor hoteleiro das regiões turísticas catarinenses. Trata-se de uma pesquisa quantitativa e descritiva do tipo survey com foco em dados primários originais. Fez-se uso da técnica de Modelagem de Equações Estruturais operacionalizada por meio do software SmartPLS 3.0 para o teste das hipóteses. Os resultados indicam que o constructo sustentabilidade é influenciado direta e positivamente pela capacidade absortiva (ACAP) e pela orientação empreendedora (OE) e que a OE recebe efeito direto e positivo da ACAP. Ainda, que essas relações são controladas segundo a classificação, por número de estrelas, do meio de hospedagem. A originalidade deste estudo está no aprofundamento da influência da ACAP na orientação empreendedora e de ambos os constructos na sustentabilidade. Bem como, ao contribuir com os empreendedores do setor hoteleiro apontando para a necessidade de manter atenção aos conhecimentos que estão fora da empresa, e que ao serem absorvidos possibilitam melhorias na ação empreendedora e na adoção de práticas de sustentabilidade no setor.
... This is due to the lack of understanding of the positive impact of the practice of social responsibility itself and scarce research on the related issues. In addition, the reason of the scarce amount of research about social responsibility practices in developing countries is due to the consequence of socio-cultural difference (Jamali et al. 2015, Podder dan Biswas 2017, Thanh et al. 2021). This socio-culture difference is because the existing practice of social responsibility is originally based on western countries approach that may not be appropriate for practice in developing countries (Johnson and Schaltegger 2016;Bose et al. 2017). ...
... This approach differs significantly from many previous approaches especially within management studies, where 'the state' has usually implicitly or explicitly been mirrored against a Weberian, 'modern' state and any deviations from this ideal type have been considered to be limitations of statehood that corporations have the potential to 'fill in' through CSR. Examples of this mirroring are the frequently used terms 'institutional void' and 'limited statehood' to describe states in CSR research (Adeleye et al., 2020;Amaeshi et al., 2016;Börzel et al., 2012;Jamali and Karam, 2018;Nwoke, 2021). ...
This article explores how the state and transnational oil and gas corporations negotiate over socioeconomic development in Tanzania. It focuses on how public-private and local-global boundaries are in constant reconfiguration between the actors. The article responds to two shortcomings in previous literature on corporate social responsibility, governments and development. First, state agency and power in the global South have been overlooked when the prevailing focus of research has been on community-business relations. Secondly, when states have been addressed, they have commonly been understood either as deviations from a Weberian, 'modern' state or as allied with corporate interests. This article departs from these approaches and analyses state-business relations through a focus on discourses and practices that make and unmake statehood. Building on the 'negotiating statehood' framework, the analysis focuses on the actors, repertoires , resources and modes of governance in the negotiation over development. The analysis shows how corporate-driven development becomes deeply entangled in the making of statehood, even if the corporate approach revolves around unmak-ing and improving statehood.
... It implies that conventional CSR activities are treated significantly in developing countries. Given the increased interest in corporate social responsibility (CSR) throughout the world, its local manifestations are as diverse as they are becoming more prevalent in both developed and developing nations (Jamali & Karam, 2018). ...
Foreign-owned firms’ attractiveness as an employer is crucial for recruiting and retaining talented local job seekers since the new generation is concerned about the social image of their organization. Corporate social responsibility (CSR) is one of the practical tools to connect host country society and create social acceptability. Socially acceptable businesses are comparatively attractive to work with. Drawing on signaling theory to support the study findings, we used cross-sectional surveys with 182 local employees of export-oriented Chinese enterprises in Bangladesh export processing zone (EPZ) areas. We applied structural equation modeling (SEM) to assess the study hypotheses. In addition, Preacher and Hayes mediation analyses were used to evaluate the mediating effect of employer attractiveness on the relationship between corporate social responsibility (CSR) and job pursuit intention. The findings demonstrated a strong association between the research variables and indicate that CSR positively influences employer attractiveness and job pursuit intention. The results show that employer attractiveness partially mediates the impact of CSR on job pursuit intention. This research provides HR managers with practical insights for boosting employer attractiveness, which may play a crucial role in recruiting a competent local workforce. Future implications for HRD professionals and avenues for future research are discussed.
... Although reporting on corporate social responsibility (CSR) is not required in most countries, firms are increasingly being pressured by other stakeholders to address social and environmental concerns [29]. For instance, in industrialized nations, stakeholder concerns about social and environmental issues have risen to the point that businesses can no longer get away with misconduct [30], while emerging nations are dominated by implications of Western frames [31]. ...
The COVID-19 pandemic has taken business uncertainty to an unprecedented level and put business agility and leadership under harsh tests, confronting a diverse and complicated stakeholder reality. Through original interview data and case studies from the hospitality industry in Taiwan collected and compiled since the beginning of the COVID-19 pandemic in 2020, the present research explores how strategic agility can be built, fostered, and enhanced through responsible leadership and CSR initiatives during a time of grand challenges in the hospitality industry. We also discuss and highlight the role played by one stakeholder, namely, the local government, in contributing to strategic agility through reinforcing and possibly enabling responsible leadership during hardships. This paper sheds light both empirically and theoretically on the roles played by business leaders in contributing to strategic agility, which, in turn, helps to build a more socially responsible organization.
... Aunque estas características hacen particularmente difícil el realizar acciones de RSE en las PYMEs, se reconoce que estas contribuyen significativamente con la creación de empleos y la reducción de la pobreza en contextos con mucha informalidad y con grandes vacíos institucionales (Jamali et al., 2017;Jamali & Karam, 2018), además que por la cantidad de PYMEs que existen, sus operaciones tienen un gran impacto sobre el medio ambiente (Grimstad et al., 2020). Es por esto por lo que es relevante explorar los desarrollos teóricos realizados sobre la forma en como las PYMEs se relacionan con la RSE y cuál es el impacto que esta tendría en la sostenibilidad de sus acciones. ...
Se reconoce que la responsabilidad social empresarial (RSE) genera un impacto positivo en el desempeño de los negocios, principalmente en la gran empresa, sin embargo, su sostenibilidad en las PYMEs es debatida. Este artículo propone un modelo de RSE para PYMEs desarrollado a partir de una revisión bibliográfica y que luego fue examinado en un grupo de microempresas que practican RSE. A través del análisis narrativo se encontró que es factible realizar acciones de RSE en estos negocios, pero hay que tomar en cuenta la familia, el trabajo colaborativo y el apoyo institucional como factores adicionales que influencian su sostenibilidad.
... Moreover, Jamali and Karam (2018) observe that the boundaries between formal (e.g. government regulations) and informal (e.g. religious) institutions are often blurred and that may lead to peculiar CSR orientation and practice in the region. ...
Academic research suggests that variances in contextual dynamics, and more specifically religion, may lead to disparate
perceptions and practices of corporate social responsibility (CSR). Driven by the increased geopolitical and economic importance
of the Middle East and identified gaps in knowledge, the study aims to examine if indeed there is a divergent form of
CSR exercised in the region. The study identifies unique CSR dimensions and constructs presented through an empirical
framework in order to outline the practice and perception of CSR in a context with strong Islamic beliefs. The framework
goes beyond the platform of mere Islamic philanthropy and is based on CSR-stakeholder management practices. Following
an exploratory research design and collecting interview data from representatives of 63 organisations from Saudi Arabia,
the United Arab Emirates and Oman, the study offers a snapshot of the CSR reality from the perspective of those living the
phenomenon. The results suggest that the practice and perception of CSR in the examined context are largely grounded in the
areas of social and altruistic actions but they cannot be examined in isolation from the religious context of CSR operation.
This focus is mainly attributed to the dominant role of Islam in the examined sample, which leads to forms of non-structured
or semi-structured approaches to CSR. Apart from the theoretical advancements offered to the CSR literature, the study also
provides contributions for practitioners and policy makers.
... Meanwhile, some scholars have pointed out that institutional voids emerge because of weak governance, legal, and monitoring mechanisms in a specific institutional context (Ioannou and Serafeim, 2012;Lanis and Richardson, 2015). In such contexts, stakeholders are less capable of monitoring companies' irresponsible behaviors; they tend to evaluate CSR actions with more skepticism, compared to contexts without institutional voids (Amaeshi et al., 2016;Jamali and Karam, 2018). Therefore, it is important to conduct studies that further develop the institutional contextualization of CSR. ...
This study investigates, in the context of a weak institution, the single and interactive effects of firms’ nonmarket strategies in China’s government procurement market. Based on transaction cost and signal theory, using data pertaining to Chinese government procurement contracts from 2016 to 2018, this study also provides evidence that superior corporate social responsibility (CSR) performance enables firms to obtain more government procurement contracts. However, the effect is only significant in non-state-owned enterprises. Considering the interaction effect of corporate political activity (CPA) and CSR in business to government (B2G) markets, this study finds that CPA, characterized by the political attributes of executives, enhances the signal effect of CSR in B2G markets. Further heterogeneity analysis indicates that CSR’s signal effect diminishes over time and is enhanced with high industry competition. Our findings provide new insights on nonmarket mechanisms (such as CSR), through which firms competing in China’s B2G market can compensate for the weak institution.
... In research by Jamali and Karam (2016), fewer studies have been undertaken on the responsibilities of CSR like ethical, legal, economic, and discretionary responsibilities; thus, more such study is required. These responsibility dimensions have also been demonstrated to have a favorable impact on organizational performance (Waddock & Graves, 1997). ...
... Consumers' growing ability to pay for green products provides business organizations with an incentive to change their business strategies [12]. If a company implements a corporate social responsibility strategy, it will increase its attractiveness to specific stakeholders, leading to positive consumer emotional orientation and purchase intention [13]. Consequently, greenwashing has become an important tool to compete with rivals in the market. ...
The fast fashion industry is criticized for its unsustainable development. With the rise of the green economy and the awakening of consumers’ awareness of sustainable consumption, more and more companies realize the significance of green marketing in improving brand performance. However, it is undeniable that many fast fashion companies tend to take advantage of information asymmetry and cover up the unsustainable part of their business activities through fake green marketing campaigns to gain more potential consumers. There is a limited number of green marketing studies investigating consumers’ perception of greenwashing, while it is naturally important to explore the demand side responses to greenwashing in different industries. Therefore, this paper examines whether and how consumers’ perception of greenwashing in the fast fashion industry impacts their green purchase intention. The study explores the mediating role of perceived risk and the moderating role of consumers’ impulsive buying. In this paper, 433 valid questionnaires are collected from mainland China, and the Partial Least Square-Structural Equation (PLS-SEM) is used to test the hypotheses. We draw the following conclusions: (1) consumers’ perception of greenwashing in the fast fashion industry has a direct negative effect on their green purchase intention; (2) greenwashing perception has an indirect negative effect through consumers’ risk perception, including financial perceived risk and green perceived risk; (3) consumers’ impulsive buying in the fast fashion industry reinforces the positive effect of greenwashing on their financial risk perceptions as a moderating variable. The conclusion of this paper has implications for the sustainable development of China and other emerging economies, which highlights the importance of pursuing information symmetry in green marketing to reduce consumers’ perceived risk and encourages companies to make substantial, sustainable development initiatives.
... Emerging markets like China usually have a higher degree of institutional complexity than developed markets [10]. There is also a notable degree of political-institutions deficiencies, and informal institutions (eg. ...
China has a complex institutional environment, with its rapidly expanding economy and a rising number of middle class, businesses like Marks & Spencer (M&S) opted to enter this foreign market in 2010 with the expectation of increasing their revenue and brand recognition. The 4Ps marketing model is used in this essay to explain why M&S has failed in their market entry and operations in China. Dissecting and describing the problems associated with their promotion, product, choice of shop location, and pricing. Based on the problems identified, this article also proposes potential solutions on what M&S could do in the pre-entry phase, and the post-entry phase to prevent such failure from occurring.
... With the globalization of economy, CSR is no longer an issue being discussed only in western developed nations where the concept was emerged. Although the discussion on CSR concept has significantly increased in developing nations, and has become a popular research stream across many scientific disciplines [81,82], there are still many aspects of the field remaining underdeveloped and questions remain unanswered. In business practice, the drive to adopt CSR was predicted based on the idea that by integrating and interacting social, ethical and environmental concerns into business operation could lead to the achievement of business sustainability. ...
Despite its vital contribution to the social and economic development, the nature of the construction sector which compounded with wide range of unethical issues has called for the urgent needs to promote an ethical business philosophy in line with the concept of corporate social responsibility (CSR). However, the concept of CSR and how it was implemented within the construction sector has yet to be clearly understood. In this paper, focus is given to understand of crucial factors that lead to successful adoption of CSR in practice. Theoretically, this paper could provide a better understanding on how to successfully integrating CSR into business strategies and in turn, maximum benefits from such effort could be expected.
... Professional logicas reflected in the mission and guidelines provided by several international associations that have emerged in the field of CSR and sustainability-has become the dominant normative reference point in today's business environment (Arena et al., 2018) and exertswith its own norms and principles-a huge influence on the interpretations of social and environmental responsibilities of businesses worldwide. However, as noted by Jammulamadaka (2020), the global codes of conduct (towards which the professional logic requires compliance) are recognized as dominated by Western CSR codes, and some authors acknowledge that the mainstream understandings and practices of CSR are "Western-centric" (Jamali and Karam, 2018;Jamali et al., 2017) [4]. For these reasons, from now on, we will refer to this professional logic as Western-mainstream logic. ...
Purpose
This paper aims at explaining variances in the contribution of Islamic crowdfunding platforms (ICFPs) to sustainable development (SD), by adopting an institutional logic perspective (ILP). ICFPs represent a dual institutional overlap between two logics (the Western-mainstream and the Islamic logic) which have an impact on corporate social responsibility (CSR) interpretations, practices, and decisions and whose conflicts are mitigated by choosing different resolution strategies. The authors aim at showing that this choice affects SD differently.
Design/methodology/approach
The authors develop a conceptual typology through the following steps: (1) choice of variables and identification of corresponding variable domains, through literature review. Variables chosen are the elemental CSR dimensions related to various social and environmental corporate responsibilities to whom diverse meaning and emphasis are given under the Western-mainstream and Islamic logics. (2) Identification of three distinct ideal types of ICFPs, building on different resolution strategies to mitigate conflicts between logics; (3) development, for each ideal type, of a set of implications related to SD; (4) implementation of a first test aiming at assigning real cases to each ideal type.
Findings
The authors identify Western-mimicking (platforms adopting as resolution strategy decoupling or compartmentalizing strategies), Islamic-driven (platforms focusing on one prevailing logic) and Syncretism-inspired (platforms adopting hybridizing practices) ideal-types.
Originality/value
It is the first paper suggesting ILP to explain variances in crowdfunding platforms' role in addressing SD. It focuses on a specific type of CF platforms till now neglected.
... This, of course, is essentially the top level of the corporate social responsibility (CSR) pyramid popularized by Carroll [81]. At this top level, "corporate social responsibility therefore builds on the basic economic and legal contracts between corporations and society, and tries to go beyond these to further the common good" [82] (p. 13). ...
Many companies nowadays implement sustainable practices internally, and build brand images that communicate sustainability. However, there are different degrees of ‘sustainability’. This study examines the extent to which full three-pillar sustainability (environmental, social, economic) translates into a sustainable brand image among consumers in Thailand. Nine major companies producing household durables were scored based on their website information, using the Dow Jones Sustainability Index to identify those having high-, mid-, and low-level sustainability implementation. In-depth interviews were conducted with three managers in one company at each level, and three consumers who mainly buy household durables from each company were also interviewed. Manager interviews confirmed that the level of sustainability implementation evident on the website is fairly accurate. Consumers roughly translate this into brand image reflecting the degree of the company’s sustainability, but the mapping is not exact. Stronger communications about the company’s sustainability seem able to improve consumer perceptions somewhat. Consumers are quite aware of three-pillar sustainability, but often do not explicitly consider all three pillars in their product decisions. However, the long-term trend seems to be toward merging the separate market segments into a comprehensive, three-pillar sustainability-oriented segment.
... On the types of CSR practices in developing countries, Abugre and Nyuur (2015), note that, few CSR practices fall within human development or are within a national development context while the majority still falls under philanthropy. Jamali and Karam (2016) however argue that CSR in developing countries is more rooted and dictated by "religious/cultural beliefs" than connected to a national development goal. Abdelhalim and Eldin (2019) explain that the opportunity to connect or exploit CSR towards a national development goal or other similar goals is mostly lost because of lack of existing explicit institutional frameworks in developing countries to organize the state's participation in promoting CSR. ...
Corporate Social Responsibility (CSR) has been identified as an effective strategy for oil and gas companies to obtain a social license from their host communities. Within Ghana's oil and gas sector, different companies have developed and implemented many social interventions as part of their CSR initiatives meant to achieve win-win outcomes and to gain legitimacy from host communities. Based on primary data and guided by the social license to operate (SLO) model, the study examines community perceptions and experiences of the CSR initiatives of oil and gas companies operating in Ghana. We find that the impact of projects on communities vary from place to place. This variation is due to the level of involvement of communities in project conception and implementation, capacity building of programs, the nature of post implementation management, and the cost and preparedness for the maintenance of projects. Specifically, 48% of the respondents indicated that they are involved in the CSR decisions of oil and gas companies. Despite this level of involvement, 98% of the respondents had no knowledge of the cost of the interventions provided by the oil and gas companies. Clearly, while there is an average local participation in CSR decisions, there appears to be information asymmetry in the implementation of these activities. We conclude with some practical implications for the development and implementation of effective CSR interventions within the oil and gas sector in Ghana that may be applicable in other countries.
Considering the globalization of corporate social responsibility (CSR), China has become an important and distinctive market for CSR practice and research. Communication, as a fast-growing subfield of CSR research, has made substantial contributions to the theorization of CSR yet has been dominated by Western contexts. To provide a contextualized view of CSR communication, this study systematically examined the 88 articles of CSR communication research published in peer-reviewed journals with a focus on the Chinese context. Findings revealed the unique characteristics of Chinese CSR and the status of Chinese CSR communication literature in terms of publication trend, authorship/institution, RQ/Hypothesis, research topics, research context, theoretical frameworks, and methodological approaches. In addition, this study identified gaps in the current Chinese CSR communication research. It offered directions for future development regarding strengthening conceptual development, innovating methodological approaches, and expanding research topics and scopes.
Corporate Social Responsibility (CSR) is now a critical component of any company's decision-making in the modern world. Big businesses must include CSR practices of any kind into their operations. Every company adopts CSR differently, and a variety of criteria, including size, industry sector, stakeholder expectations, prior CSR involvement, R&D activities, and labor market conditions, influence this choice. The possible advantages of CSR initiatives aid firms in gaining a better reputation as ethical corporations that can successfully gain a competitive edge. To make a focus on the adaption of CSR activity, it was found that India is one, who adopts the CSR activity as by amending the Company Act 2013 in April 2014. The reviews of international literature and publications generate new thoughts ideas, issues, and solutions to understand the conceptualization of corporate social responsibilities of companies based in India towards Environmental sustainability. Globalization and liberalization in the Indian economy has shifted corporate goals from a socioeconomic focus towards increasing shareholders value to the benefit of various stakeholders and extensive. This review is conducted to synthesis information on environmental sustainability practices carried out by selected Indian companies and to identify the level of understanding of firms towards statutory CSR provisions and to compare environmental sustainability related CSR practices of these companies. For the same, data was collected from Wiley, Emerald, Web of Science and Scopus reviews. Those studies were selected which were peer reviewed, published in past 10 years, in English language, and were conducted for organizations with mandatory Corporate social responsibility. Companies performing CSR are the participants for the study. The findings of the study suggest the Indian companies selected for the purpose of the study are much aware about the environmental sustainability concept and their CSR practices are inclined toward sustainability of the environment.
Метою дослідження є узагальнення найкращих практик корпоративної соціальної відповідальності міжнародних компаній, особливо під впливом глобальної пандемії COVID-19. У дослідженні використано методи логічного узагальнення, аналізу, порівняння, групування, графічні та табличні. Особливістю корпоративної соціальної відповідальності є її приналежність до суспільного або квазісуспільного блага, що поєднує корпоративне управління й економіку публічного сектора. Низка сучасних досліджень указує на прямий зв'язок соціальної відповідальності та репутації компаній, оскільки її найбільш важливими факторами визнаються якість товарів та послуг (20,1 %), якість управління (14,8 %), громадянство (14,4 %), фінансовий успіх (13,2 %) та інновації (13,1 %).У статті наголошено, що глобальний уплив пандемії COVID-19 сприяв тому, що організації в прискореному режимі почали розвивати власну стратегічну гнучкість та різні моделі корпоративної соціальної відповідальності. Відтак у 2022 р. рейтинг соціально відповідальних компаній очолили: Rolex, Ferrari, Lego Group, Rolls-Royce, Mercedes-Benz, Harley-Davidson, The Bosch Group, PayPal, Netflix, Intel. Визначено, що пандемія COVID-19 сприяла появі нових соціальних ініціатив: від створення інноваційного фонду кліматичних рішень, відмови від використання пластику до забезпечення дітей із малозабезпечених сімей безкоштовним доступом до Інтернету та гаджетами. У статті доведено, що зростання лояльності споживачів, підвищення репутації корпорацій як привабливих роботодавців безпосередньо впливають на збільшення обсягів продажів, мотивацію співробітників, бажання держави та суспільства взаємодіяти із соціально відповідальними компаніями, зростання ринкової вартості компаній.
This study contributes to the growing literature related to demands for social responsibility in the public sector in a developing country context. We report on a qualitative and a quantitative study conducted in the public sector in Kosovo to investigate, first, whether public sector organizations strive for CSR engagement, and second, whether and how employees’ perceptions of their employers’ CSR engagement affect various employee outcomes. The results of the qualitative content analysis of the mission statements of 20 public sector organizations in terms of CSR-related information they contain show that the public sector organizations have included both internal and external CSR elements in their mission statements. The quantitative study uses survey data collected from 126 employees in public sector organizations in Kosovo. The findings support the serial mediation of organizational trust and job satisfaction on the negative relationship between employees’ perceptions of internal and external CSR and intention to emigrate. From a practical perspective, the findings encourage public sector organizations to increase their CSR engagement to achieve positive employee outcomes, both in relation to their own organization and beyond.
At present, the labor market in Vietnam is witnessing a rapid increase in the number of foreign employees of diverse nationalities. To facilitate work by foreign employees in Vietnam and fulfil international commitments, Vietnam must update and perfect its legal framework and national policies to promote the implementation of corporate social responsibility (CSR) in concluding, performing, and terminating labor contracts with foreign employees working in Vietnam. This chapter focuses on analyzing CSR in the process of concluding, implementing, and terminating labor contracts with foreign workers in Vietnam that are regulated by the Labor Code 2019 and other relevant legal documents.
The market rivalry and China’s ongoing economic expansion are both contributing to a gradual rise in shareholder influence over businesses. Fulfilling corporate social responsibility (CSR) is becoming more and more important to improve corporate performance, gain long-term competitive advantage and achieve sustainable development. Based on panel data of 514 listed Chinese A-share companies from 2015-2019, this study applies a two-way fixed effect model to examine the effect of CSR on corporate performance from stakeholders’ perspectives. And it also examines the mediating effect played by green technological innovation and the moderating effect of two basic corporate competitive strategies on the role of CSR in corporate performance. The study’s findings indicate that: (1) the fulfillment of CSR has a significant positive impact on corporate performance. (2) Green technology innovation plays a part in mediating the process of fulfilling CSR in promoting corporate performance. Internal CSR fulfillment enhances corporate performance by boosting investment in green technology innovation, but external CSR fulfillment enhances corporate performance by decreasing investment in green technology innovation. (3) The positive effect of CSR on corporate performance is weakened by an increase in the level of low-cost strategies, while the positive relationship between CSR and corporate performance is strengthened by an increase in the level of differentiation strategies.
Value chain management actively studies sources and types of interfirm power because increasing power symmetry between partners fosters innovativeness and adaptability to a market context. This study focuses on global value chains (GVCs) as a special type of value chains that experiences substantial influence of collective power. In the analysis I attempt to demonstrate higher power symmetry between partners inside a GVC than in other value chains. This hypothesis is based on a combination of resource dependence, mutual dependence, and social exchange/social embeddedness approaches with the analysis of structure in a GVC. The paper uses data from four waves of a survey conducted in Russia between 2010–2019 that include more than 2.700 managers of both buyers and suppliers. (OLS) and logit regression models were built for the analysis. The results demonstrate that partners inside GVCs share trade margins more symmetrically, have more equal negotiation power, and are more intensively involved in social exchanges through informal support.
This paper reports the results of a field experiment to assess the collaborative effects of community participation in the Ugandan oil and gas sector. Our research design assesses collaborative impacts as relational between community members and different decision-makers in the sector and measures these impacts from the point of view of local people. Local people often face power imbalances in collaborative governance. Decision-makers are increasingly attempting to mitigate such imbalances to improve outcomes for communities, but little experimental evidence exists showing the impact of such efforts. Using multilevel ordered logit models, we estimate positive treatment effects, finding that encouraging the equitable participation of communities improves collaboration with other actors. Next, we use machine-learning techniques to demonstrate a method for targeting communities most likely to benefit from the intervention. We estimate that purposefully targeting communities that would benefit most yields a treatment effect about twice as large, relative to pure random assignment. Our results provide evidence that interventions mindful of community needs can improve collaborative governance and shows how such communities can be most effectively targeted. The experiment took place across 107 villages (53 treatment and 54 control) and the unit of statistical analysis is the household, where we report outcomes measured from 6,062 household surveys (approximately half at baseline and half at endline).
Previous study researching the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) shows how important industry specificity is. Seeing by the stakeholder theory, we argue that strategic fit of CSR has a multi-dimensional characteristics, some CSR activity will be more impactful for certain industry than the others. We tested two set of hypothesis including controversial and non-controversial industry. Furthermore, we do this research by using 2019 economic recession in Indonesia throughout Covid-19 as a boundaries condition. Our studies contributes to the literature and demonstrate the role of CSR by explaining the strategic fit of CSR to specific Industry. Additional testing with mechanism in time of economic hardship adds an aspect of uniqueness to our empirical contributions.
The article describes the issues of social responsibility of business in three directions: compliance with the requirements of marketing ethics, protection of the environment, participation in the solution of social problems of society. The article, based on the analysis of the current situation, shows the necessity of raising business responsibility in Georgia. In this regard, attention is focused on the issue of increasing the responsibility of individual citizens in environmental protection, which, in turn, requires the activation of governmental structures and non-governmental organizations. According to the authors of the article, increasing the role of business in solving the social problems facing the society will help both the people employed in the business, as well as consumers and the whole society to compensate for the material and moral losses caused by the coronavirus pandemic.
Keywords:Social responsibility, marketing ethics, environmental protection.
Purpose
This study aims to complement existing studies by investigating the impact of different corporate social responsibility (CSR) information disclosed by peer listed stars (i.e. governance information [GI] and output information [OI]) on focal firms’ responsive CSR (RCSR) and strategic CSR (SCSR) practices. The authors also investigate the influence of different boundary conditions (i.e. founders’ social status [SS] and industry pollution intensity).
Design/methodology/approach
Based on the listed stars of 16 industries and their 4,096 private peers in China, the authors use the least squares method and logistic regression models to analyze the data set.
Findings
The results indicate that the GI of peer listed stars can only positively affect firms’ RCSR behavior. The OI of peer listed stars has a positive effect on firms’ SCSR behavior while negatively affecting firms’ RCSR behavior. The SS of focal firms’ founders and their interaction with the industry’s pollution level strengthen the abovementioned positive relationships while weakening the negative ones.
Practical implications
This study provides insights into the role of listed stars in influencing peer firms’ CSR activities, offering important practical implications for both policymakers and managers.
Originality/value
This study extends the recent discussion on peer effects of CSR by elucidating the peer star effect on CSR and confirms that firms may adopt heterogeneous CSR practices to achieve sustainable growth by investigating peer firms’ different responses to their listed stars’ different CSR information. Moreover, by introducing the SS of founders and the pollution intensity of the industry as boundary conditions, this study enriches the research context on CSR activities.
This study tends to explore the influence of corporate social responsibility (CSR) on new venture performance (NVP) through the mediation of stakeholders' trust. While following the chronicles of stakeholder theory and resource based theory, this study used survey approach for collection of data from 378 managers, owners, and owner-mangers of the new ventures in Khyber Pakhtunkhwa Province of Pakistan. We used structural equation modelling technique in AMOS 24 to deduce precise results of the study. After testing data normality and conducting confirmatory factor analysis, the hypotheses of the study were checked with the help of path analysis diagrams. The outcomes of the study revealed that CSR has a significant positive impact on NVP and ST. Further, evidence was documented for stakeholders' trust as playing positive significant role in the route of CSR and NVP. This study empirically proved that every good brings good in return.
This study examines the underexplored issue of whether or not activities of corporate philanthropy (CP) by foreign multinationals, which have been shown to positively influence global stakeholders, can also influence local consumers in developing countries in Asia. We survey how consumers in Myanmar and Vietnam perceive Chinese and Korean multinationals and their CP activities. The results indicate that CP has a fairly limited influence on purchase intentions of local consumers in these markets. The study found only indirect effects through corporate image for firms from China (unfavourable origin), However, neither direct nor indirect effects on purchase intentions were observed for Korean firms (favourable origin). Our findings suggest that, unlike in developed countries, local consumers may not be key stakeholders to consider in planning corporate-sponsored philanthropic activities in developing Asia.
Sustainable development is a key notion in today’s business world. More frequently, Sustainability is thought to be solely dependent on resource management and production processes. However, HRM (Human Resource Management) plays an important role in its actual implementation. This paper focuses on the growing importance of social sustainability aspects of sustainable HRM that contribute to the sustainability of the organizations. The study identified ten significant social sustainability factors of sustainable HRM through a comprehensive literature review and experts. The ‘Total Interpretive Structural Modelling (TISM) technique was used to uncover the relationship between the indicated factors and to establish their structural hierarchy. Further MICMAC (Matriced Impact Croises Multiplication Applique) study was performed to assess each factor’s driving-dependence power. The factor, namely “availability of equal employment opportunities” was found to be the most important factor, whereas “social trust” was observed to be highly dependent on the remaining factors. The intended framework might facilitate practitioners and decision-makers to understand the interrelationships among the social sustainability factors of sustainable HRM. This will be useful for SME owners and managers in comprehending the opportunities in improving organizational performance via social sustainability factors.
Purpose
The purpose of this study is twofold. The first is to examine the impact of environmental disclosure on banks’ performance, while the second is to investigate the moderating role of a country’s economic activities and institutional quality on the relationship between environmental activities disclosure and banks’ operational, financial and market performance.
Design/methodology/approach
The sample includes 246 banks from emerging markets from 2008 to 2020, comprising 1,899 bank-year observations. The independent regressors are environmental disclosure, two moderators and two sets of control (bank and country) variables. The dependent variables are return on assets, return on equity and Tobin’s Q. This study adopts ordinary least squares, panel fixed effect and instrumental variables generalized method of moments to estimate the parameters of the models.
Findings
This study reveals a negative relationship between environmental disclosure and bank performance, lending credence to the agency and neoclassical theories. The moderator regressors show positive influence on banks performance. The results indicate that it is difficult to make a business case for environmental commitment.
Practical implications
There is a need for effective monitoring by shareholders to ensure that funds allocated for environmental activities are spent wisely.
Originality/value
This study provides new evidence on the ways in which economic and institutional quality influence the environmental practices of banks in emerging and frontier markets.
Purpose-This paper seeks to understand how accountants in Sri Lanka perceive the effect of religiosity on ethical decision-making. Sri Lanka is a highly religious country, but it also has a high level of corruption so understanding ethical decision-making in this context is important for the accounting profession.
Design/methodology/approach-Data were collected using semi-structured interviews with 40 accountants in Sri Lanka with decision-making roles. Virtue ethics theory and content analysis were used to analyse the interview data and categorise accountants' responses into themes using an interpretive methodology.
Findings-The paper identifies three ways in which religiosity can influence accountants' ethical decision-making. Firstly, through a faith in the beliefs of their religion; secondly, through awareness of religious prescriptions and virtues; thirdly, through a commitment towards religious practices and rituals. However, the findings show that religiosity does not always influence the ethical decision-making of accountants due to pervasive corruption, which is a cultural norm in contemporary Sri Lanka. Thus, it is evident that there is an interrelationship between religious and cultural environments which can influence ethical decision-making.
Originality-While the religiosity of accountants can support ethical decision-making, the findings of this paper show that the cultural norm of corruption can mediate this connection as the evidence shows that accountants with a strong religious background, irrespective of their religion, may still act unethically when corruption is a cultural norm.
Purpose
This study aims to investigate the integration of corporate social responsibility (CSR) at a functional level and examine its impact on company performance.
Design/methodology/approach
Using data from 435 Indonesian manufacturing companies, 11 hypotheses were tested on direct, indirect and total effects of the relationship between functional CSR integration and its impact on company performance. The stakeholder and contingency theories were applied.
Findings
The findings of this study reveal that functional CSR integration has a significant impact on customer, employee, operational and financial performances. The findings show that the relationship between functional CSR integration and financial performance can be mediated by customer, employee and operational performances. The results of this study also highlight that functional CSR integration has a stronger total effect on both customer and financial performances in environmentally non-sensitive industries than in environmentally sensitive ones.
Research limitations/implications
This study expands the prior studies by providing a theoretical framework for the relationship between CSR integration and company performance, as well as testing the framework using quantitative research.
Practical implications
The findings can encourage managers to effectively integrate CSR into business functions to achieve superior social and financial performance, particularly in a developing country context.
Originality/value
To the best of the authors’ knowledge, this study is one of the first to empirically investigate the performance implications of integrating CSR into business functions and reveals new findings on how such integration can substantially improve company performance.
Örgütler birbirinden farklı kurumsal düzenleri gerektiren çoklu mantıkların mevcut olduğu bir alanda faaliyetlerini gerçekleştirmekte ve bunları örgütsel uygulama-süreç ve çıktılarına yansıtmaktadırlar. Ancak bu mantık çokluğu, birbiri ile çelişebilen talepleri sebebi ile farklı örgütsel reçeteler sunmaktadır. Örgütsel sonuçlar üzerinde önemli etkileri göz önüne alındığında, bu mantıkların örgütlerde nasıl tezahür ettiği kritik önem taşımaktadır. Literatürde özellikle bu tarz etkilerin karmaşıklık düzeyi yüksek ve kurumsal sosyal sorumluluk (KSS) dinamiklerinin henüz tam olarak keşfedilemediği gelişmekte olan ülkelerde daha belirgin olduğu belirtilmektedir. Bu sebeple çalışmanın amacı, örgütlerin çeşitli kurumsal mantıkların etkisi altında ne tür KSS yönelimlerini hangi yollarla geliştirdiklerini keşfetmektir. Bu amaç doğrultusunda geliştirilen KSS tipolojisine dayalı bir araştırma modeli oluşturulmuştur. Modeli test etmek için gerçekleştirilen anket çalışması sonuçlarına göre; ticari mantığın daha çok şirketsel fayda, sosyal mantığın daha çok toplumsal faydaya götürdüğü ortaya konmuştur. Ancak her iki mantığın birlikte var olması durumuna ilişkin, paydaşların zıt kutuplar arasında aracılık ederek örgütlerin birleşik faydalar, yani hem şirketsel hem de toplumsal faydalar sağlayabilmelerini mümkün kıldığı tespit edilmiştir.
This study examines the relationship between corporate philanthropy (CP) and audit fees. Using corporate donation data from China, our investigation finds that CP is significantly positively associated with audit fees. Resource‐seeking purpose and the enhanced publicity effect may be plausible channels behind this relationship. We further find that the frequency and intensity of donations reinforce this positive association. Additional analysis reveals that the resource‐seeking effect exists in any type of enterprise, while the enhanced publicity effect only exists in non‐SOEs. Our main results remain robust to a battery of additional tests. Overall, our findings suggest that by increasing audit workload and prospective audit risk, CP could make auditors more conservative such that they charge a higher audit fee. This article emphasizes the dialectic institutional stakeholder perspective in understanding the economic consequences of CP. Both the theoretical contributions and practical implications of these findings are discussed.
This article examines joint action initiatives among small-and medium-sized enterprises (SMEs) in the manufacturing industries in developing countries in the context of the ascendancy of corporate social responsibility (CSR) and the proliferation of a variety of international accountability tools and standards. Through empirical fieldwork in the football manufacturing industry of Jalandhar in North India, the article documents how local cluster-based SMEs stay coupled with the global CSR agenda through joint CSR initiatives focusing on child labor. Probing further, however, also reveals patterns of selective decoupling in relation to core humanitarian and labor rights issues. Through in-depth interviews with a wide range of stakeholders involved in the export-oriented football manufacturing industry of Jalandhar in North India, the article highlights the dynamics of coupling and decoupling taking place, and how developing country firms can gain credit and traction by focusing on high visibility CSR issues, although the plight of workers remains fundamentally unchanged. The authors revisit these findings in the
A well-known fact about the Nigerian Niger Delta region is incessant conflicts between the Oil Transnational Corporations and the oil producing communities. This could be attributed to the fact that the activities of Oil TNCs have continued to unleash untold devastation on the environment of the oil producing communities and its consequences on the local economy and by extension the total obliteration of the livelihood of the inhabitants of the area. Therefore, the Oil TNCs are increasingly becoming conscious of their devastating impact on the ecology of the area and their blatant disregard for the socio-economic development of the host communities. Consequently, the Oil TNCs have come to embrace the idea of executing Corporate Social Responsibility (CSR) projects as a vehicle to intervene meaningfully in order to mitigate the adverse effects of their operations on the environments of the host communities. This paper attempts to review and analyze CSR practices of the two major Oil TNCs in Bayelsa State: Shell and Agip in six host communities: Olugboboro, Olugbobiri, Ikebiri 1, Oporoma, Angiama, and Peremabiri in Southern Ijaw local government area. The key question explored in this study is: has the practice of CSR in the Nigerian Niger Delta region by Oil TNCs brought about socio-economic development and drastic reduction in conflict between the host communities and the Oil TNCs? The paper argues that CSR projects of transnational oil corporations in Nigeria are driven by short-term expediency rather than the long term environmental developmental needs of host communities through the provision of poor quality social amenities to these communities in order to secure social license to operate. For transnational oil corporations to make positive impact in the Nigerian Niger Delta Region, their CSR projects should belong tern in nature, taking into consideration the sustainable development needs of the local communities. The CSR projects should be in the form of high quality social amenities and environmental rehabilitation and protection, which could serve the needs of the present and future generations.
Most research on corporate social responsibility disclosure (CSRD) describes its relationships with external factors such as financial performance and corporate reputation. There are relatively few studies that have focused employee’s behaviours towards CSRD. This paper examines the relationship between CSRD on employee commitment. An exploratory approach is used in this paper by this study. This study utilizes interview method to collect data from 31 financial managers and information managers of 22 organisations; Miles and Huberman (1994) approach is used to analyse the qualitative data. The researchers have chosen the Libyan context as one of the world’s developing countries that has undergone many changes over a short period of time in terms of economic, environmental and social changes. The majority view of managers interviewed is that as CSRD related to employee activities and consumer activities increases employee commitment towards its company increase. However, there is no relationship between CSRD related to environmental and employee disclosures and employee commitment in Libyan companies. The study discusses and explains important implications regarding uses of CSRD for enhancing employee’s commitment.
Orientation: With banks faced with fulfilling the increasing demands of diverse stakeholders, this study sought to explore the views and motives for corporate social responsibility practices in the Ghanaian banking sector and also to investigate any possible relationship between these practices and financial performance.
Research purpose: This article examined the impact of corporate social responsibility on financial performance using empirical evidence from the Ghanaian banking sector.
Motivation for the study: Although corporate social responsibility is a hot topic in Ghana and banks do practise it, no detailed study has been conducted to ascertain whether banks derive any benefits therefrom.
Research design, approach and method: A sample size of 22 banks was involved. A structured questionnaire was used to obtain primary data whilst archival records were used to gather the secondary data.
Main findings: The findings revealed that banks in Ghana view corporate social responsibility practices to be a strategic tool; banks are motivated to practise corporate social responsibility by legitimate reasons as much as they are motivated by profitability and sustainability reasons. Also, although there is a positive relationship between corporate social responsibility practices and financial performance, the financial performance of banks in Ghana does not depend significantly on their corporate social responsibility practices but rather on other control variables, such as growth, origin, debt ratio, and size.
Practical implications: Properly adopted and implemented, corporate social responsibility can pay its way by contributing toward firm performance.
Contribution: There is a positive but currently insignificant relationship between corporate social responsibility and financial performance amongst Ghanaian banks. However, given the numerous benefits of corporate social responsibility, it is recommended that firms continue to give priority to this practice.
Offered here is a conceptual model that comprehensively describes essential aspects of corporate social performance (CSP). The three dimensional model address major questions of concern: (1) What is included in the definition of CSR? (2) What are the social/stakeholder issues the firm must address? and (3) What is the organization's strategy/mode/philosophy of social responsiveness.
The first dimension is the source of the original four-part definition of CSR originated: economic, legal, ethical, and discretionary (later termed philanthropic). It was later presented at the CSR Pyramid (1991).
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.
Ghana has been highly successful in mining for over a century. However, one area of concern is the negative impact of mining activities on water resources: their quality and quantity. Mining companies are guided by rules and regulations, particularly those that have to do with the quality of water supply. Safe water supply is essential for improved health and quality of life for increased productivity. Yet, water supply in mining communities has not assumed the critical importance that it deserves toward the realization of human health security. A combination of key informant interviews and a copious desk-top study of official documentary reports were analysed in the context of the polluter-pays principle. The paper interrogates the corporate social responsibility ambivalence that arises from fresh water contamination during the extraction of mineral resources in the western mining region of Ghana. In spite of some efforts at addressing this problem through corporate social responsibilities, communities affected by mining still question the professed sensitivity of mining companies to their plight with respect to their inalienable right to water supply.
Corporate Social Responsibility (CSR) can be viewed from two different perspectives: that of the business; and that of the individual investor (Socially Responsible Investing, SRI). In this study regression analysis as well as an event study was used to examine the link between CSR and firm performance. The results suggested that in the short-term there were no significant price effects on the SRI shares. In contrast, the returns of SRI portfolios over the sample period seemed to be superior to those of conventional firms. The regression analysis found that generally the SRI coefficients were insignificant; however using one of the models during the fifteen year sample period, SRI constituents attained a ROE that was 11.18% higher (as well as a ROA that was 1.824% lower) than conventional firms. When the period was restricted to 2004-2009 it was found that social performance was positively - and sometimes significantly - correlated with ROE.
There is an increasing recognition within the developed economies across the world that today, CSR is not an optional extra; i.e., firms can no longer look at CSR as a luxury or an indicator of their goodwill toward society. Firms, in today's context, are seeking to integrate CSR in their corporate policies and strategies. Developing countries' firms, however, are still in the early stage of their awareness and integration of CSR activities within their corporate policies and strategies. The present exploratory study utilizes a sample of Saudi Arabian firms' managers to assess the extent of their awareness of CSR, its role within their organizations, the extent of CSR integration in their corporate policies, and the nature and scope of these firms' CSR activities. Results indicate that there is a reasonable level of CSR awareness as well as a moderately positive attitude toward the concept. However, most CSR activities in Saudi Arabia seem to focus on the local communities in which these firms operate. Discussion of the results and their implications are provided.
This article maps out the crucial role and responsibilities for business in fighting poverty and acting responsibly in developing countries. It begins by proposing different ways to categorize the literature on corporate social responsibility (CSR) in developing countries. It then reviews the research which has been conducted at a global and regional level, before considering the main CSR drivers in developing countries. Finally, it proposes a model of CSR in developing countries, before concluding with a summary and recommendations for future research. What is clear from this article is that CSR in developing countries is a rich and fascinating area of enquiry, which is becoming ever more important in CSR theory and practice. And since it is profoundly under-researched, this enquiry also represents a tremendous opportunity for improving the knowledge and understanding about CSR.
Two parallel strands of nonmarket strategy research have emerged largely in isolation. One strand examines strategic corporate social responsibility (CSR), and the other examines corporate political activity (CPA), even though there is an overlap between the social and political aspects of corporate strategies. In this article, we review and synthesize strategic CSR and CPA research published in top-tier and specialized academic journals between 2000 and 2014. Specifically, we (a) review the literature on the link between nonmarket strategy and organizational performance, (b) identify the mechanisms through which nonmarket strategy influences organizational performance, (c) integrate and synthesize the two strands—strategic CSR and CPA—of the literature, and (d) develop a multi-theoretical framework for improving our understanding
of the effects of nonmarket strategy on organizational performance. We conclude by outlining a research agenda for future theoretical and empirical studies on the impact of nonmarket strategy on organizational outcomes.
A review of the role of buisness in global environmental governance.
This article traces the concept of corporate social responsibility (CSR) from its post WWII beginnings in popularity up through the end of the 1990s. The article focuses on definitions or understandings of the concept/construct. It does not focus on actual company practices during this time as they were quite varied. (This article has been ranked #1 most read in the Business and Society journal for years now).
Corporate Social responsibility (CSR) has been accepted as a business idea worldwide and is no longer
seen as a pure philanthropy. It has become part of the corporate values, policies and practices which
looks beyond narrow defined business and economic goals of the organization. In that backdrop, the
present paper attempts to explore and analyze CSR practices existing in Saudi Arabia, and documents the
steps undertaken by various stakeholders in that regard. Looking beyond charity and adopting strategic
CSR initiative are some of the challenges before the Saudi firms to achieve a place in the global market.
CSR is in its infancy in Saudi Arabia, and its Islamic and cultural values can play important role in
leveraging strategic philanthropy in Saudi Arabia.
In the current paper, our aim is to explore the latent power dynamics surrounding corporate social responsibility (CSR) in developing countries. To do this, we synthesize an analytic framework that borrows from both cross-cultural management literature (i.e., endogenous versus indigenous research) as well as feminist considerations of power (i.e., power over and power to). We then use the framework to examine three streams of CSR literature. Our analysis uncovers the prevalence of arguments and discussions about indigenous and power-over themes rather than more generative, endogenous, and power-to themes. The paper concludes with the suggestion for more space in the CSR literature for examining the realities and potentialities of local SME CSR expressions to counterbalance the overwhelming focus on MNCs. Such counterbalancing can better lead to the recognition that power and domination are not the only important dynamics to examine in CSR research. Just as important is the need for a more nuanced consideration of the role and contributions of different actors to the continuously unfolding CSR discourse.
The research is focused on the nexus between corporate social responsibility (CSR) and innovation. Scientific literature analysis, systematization and case study methods were applied. Aiming to clarify the interconnectivity of key terms and perspectives i.e., the nexus between CSR and innovation, the research is providing an overview of core issues and definitions in scientific discourse and practice. Based on that recent developments in Lithuania are analyzed from the systemic point of view taking into account the general innovation policy and CSR-driven initiatives. Research results show, that CSR-driven innovation from organized and systemic perspective are considered being at their initial phase throughout the country as in most cases companies lack systemic approach towards CSR. Therefore CSR might be considered as innovation in Lithuania, however further developments are essential.
This paper examines the discursive legitimation of controversial investment projects to provide a better understanding of the ways in which corporate social responsibility is constructed in international settings. On the basis of a discursive analysis of an intense dispute between Finnish, Uruguayan and Argentinean actors over a pulp mill project in Uruguay, we develop a framework that elucidates four legitimating discourses: technocratic, societal, national-political, and global-capitalist. With this framework, our analysis helps to better understand how CSR involves discourse-ideological struggles, how CSR is embedded in international relations, and how CSR is mediatized in contemporary globalizing society. By so doing, our analysis contributes to critical studies of CSR as well as research on legitimation more generally.
The present study addresses the issue of the relationship in the midst of Corporate Financial Performance (CFP) and Corporate Social performance (CSP) or Corporate Social Responsibility (CSR) in Indian connection under good management theory. The study utilized S&P ESG India Index as a substitute of CSP/ CSR of Indian firms for the first time over the 2005–2011 periods. We outlined econometric models and controlled industry particular traits and performed Weighted Least Square technique for the investigation. General results show unbiased however unobtrusive negative connection between these which in the long run advises that if there would be any relationship, it would be negative.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2599423
This study investigates the influences of the strategy tripod, an established concept in the international business (IB) literature, on a corporate social responsibility (CSR)-based differentiation strategy for export firms. This strategy is conceived as consisting of product-level and firm-level CSR. Using a sample of 195 Brazilian export firms, the authors find that innovation capabilities, international market exposure, and institutional pressures significantly influence product-level CSR; however, the latter two factors influence firm-level CSR only through their mediating effects on product-level CSR. This study contributes to the existing CSR and IB literature in three ways. First, it integrates and systematizes the factors influencing CSR-based strategies into the three categories represented by the legs of the strategy tripod to help elucidate the previous research on the factors that drive CSR. Second, it suggests that exporters’ CSR strategies can be affected by social and environmental institutions based outside their home countries. Third, this study contributes to filling an important empirical gap in the research on CSR by focusing on export ventures from emerging countries.
Corporate social responsibility has major implications for pricing decisions in some markets. An extreme case is the pricing of life-saving drugs in developing countries; industry critics have pointed to price as an obstacle to treatment and a factor in the deaths of millions of AIDS victims. This article examines socially responsible pricing in the form of differential pricing across markets, taking into account ability to pay and social welfare. An analysis of AIDS drug pricing between 1999 and 2003 suggests that, in fact, the high prices of AIDS drugs in developing countries sub-optimized contribution earnings in those markets. In the 1990s, multinationals could have earned greater contribution in developing countries by reducing prices, while also saving thousands of lives. However, that could have jeopardized earnings in developed countries, and this, together with other factors, created barriers to socially responsible pricing. Neither multinationals nor developing-country governments can alone create conditions for socially responsible pricing to prevail. This article identifies the role of different players in addressing barriers to socially responsible pricing, including multinationals, governments, non-governmental organizations, and multilateral institutions such as the World Trade Organization and the World Health Organization. This article also offers lessons for managers in industries with characteristics similar to the drug industry, where socially responsible pricing also may be needed, if not demanded.
A theory of planned behavior (TPB) framework was employed to investigate the impact of corporate social responsibility (CSR) perceptions on the job choice intentions of American, Chinese, and Lebanese college students. Attitudes toward CSR, subjective norm, and perceived behavioral control explained moderate levels of the variance in job choice intention in all three countries. Attitudes toward CSR, which entailed individual evaluations of CSR, were positively related to job choice intentions among Lebanese and American respondents, but not Chinese respondents. Subjective norm, the importance accorded the views of significant others, was most strongly related to job choice intentions among Chinese respondents. Perceived behavioral control, the perceived degree of control over one's actions and outcomes, had the strongest relationship to job choice intentions among American respondents. The authors concluded that respondents in the three countries did not differ in the extent to which they intend to work for socially responsible firms but tended to derive their intentions in different ways. Implications for tailoring CSR and recruitment efforts across countries are derived based on the findings.
We examine the relationship between corporate governance and the extent of corporate social responsibility (CSR) disclosures in the annual reports of Bangladeshi companies. A legitimacy theory framework is adopted to understand the extent to which corporate governance characteristics, such as managerial ownership, public ownership, foreign ownership, board independence, CEO duality and presence of audit committee influence organisational response to various stakeholder groups. Our results suggest that although CSR disclosures generally have a negative association with managerial ownership, such relationship becomes significant and positive for export-oriented industries. We also find public ownership, foreign ownership, board independence and presence of audit committee to have positive significant impacts on CSR disclosures. However, we fail to find any significant impact of CEO duality. Thus, our results suggest that pressures exerted by external stakeholder groups and corporate governance mechanisms involving independent outsiders may allay some concerns relating to family influence on CSR disclosure practices. Overall, our study implies that corporate governance attributes play a vital role in ensuring organisational legitimacy through CSR disclosures. The findings of our study should be of interest to regulators and policy makers in countries which share similar corporate ownership and regulatory structures.
Applying the new economics of organization and relational theories of the firm to the problem of understanding cross‐national variation in the political economy, this volume elaborates a new understanding of the institutional differences that characterize the ‘varieties of capitalism’ found among the developed economies. Building on a distinction between ‘liberal market economies’ and ‘coordinated market economies’, it explores the impact of these variations on economic performance and many spheres of policy‐making, including macroeconomic policy, social policy, vocational training, legal decision‐making, and international economic negotiations. The volume examines the institutional complementarities across spheres of the political economy, including labour markets, markets for corporate finance, the system of skill formation, and inter‐firm collaboration on research and development that reinforce national equilibria and give rise to comparative institutional advantages, notably in the sphere of innovation where LMEs are better placed to sponsor radical innovation and CMEs to sponsor incremental innovation. By linking managerial strategy to national institutions, the volume builds a firm‐centred comparative political economy that can be used to assess the response of firms and governments to the pressures associated with globalization. Its new perspectives on the welfare state emphasize the role of business interests and of economic systems built on general or specific skills in the development of social policy. It explores the relationship between national legal systems, as well as systems of standards setting, and the political economy. The analysis has many implications for economic policy‐making, at national and international levels, in the global age.
Although corporate citizenship has been a burgeoning theme in the corporate social responsibility literature, comparative studies of citizenship across cultures have been limited. The development of a deeper understanding of how diverse nations perceive citizenship principles from their own paradigms is important in the complex world of international business. This study develops and tests a survey instrument in the Kingdom of Saudi Arabia and the United States to assess perceptions of corporate citizenship principles. Results from a sample of 224 working adults (Saudi Arabia 108, USA 116) include the finding that, regardless of culture, citizenship principles are positively related to ethical business behavior. Significant differences across the two groups are identified such as the higher U.S. perception of citizenship principles related to Ethics, Stakeholders, and the Community at large. Both countries are found to have comparable beliefs related to consumer rights. Managerial implications and future research directions are also discussed.
Nowadays, consumers are more interested in the conditions under which products have been manufactured in developing countries. Ethical and socially responsible consumption are emphasized. In this context, socially responsible consumption is more concerned with the ethics of care, ethical and moral principles and social factors influence on consumer choice. In scientific literature, there has been increased interest on socially responsible consumption issue and how ethical principles can influence consumer decision making. It must be emphasized, that only potential consumer response to particular areas of CSR was analyzed. The opportunity for companies to identify and act upon complex consumer buying choices that balance personal and ethical consumerism circumstances has almost not been investigated. Socially responsible consumption and social values influence on the consumer's decision making has not been analyzed in Lithuania. The link between corporate social responsibility and consumer social responsibility is defined in this research paper. According to the quantitative survey, there are identified key factors influencing purchasing decision. The results show that organizations need to consider the influence of consumer social responsibility associated with their products and services in the development of CSR strategies. There are also identified which factors determine discrepancy between consumer attitudes and actual behaviour in consumption decision - making. DOI: http://dx.doi.org/10.5755/j01.em.18.4.5062
The Companies Act 2013 has made a provision requiring corporates to spend 2% of the profits towards Corporate Social Responsibilities (CSR). The purpose of this study is to analyse the expenditure pattern of corporates towards CSR activities in the period of voluntary spending and based on the results, evaluate whether insertion of such a provision in the Act was necessary or not. The sample consists of thirty companies included in BSE Sensex from 2001 to 2012. The analysis is done on the basis of number of companies spending on CSR, details of CSR expenditure, amount of CSR spending as percentage of sales and profits for each year and on an overall basis. The analysis shows that the CSR spending has been very low as percentage of revenue and profits during the phase of voluntary spending. The results also suggest that spending on environment and pollution control is not on the priority list of companies. Though, impact of CSR activities cannot always be evaluated in terms of fund allocations, still it is one of the most important indicators of the engagement of companies with society. Therefore, based on the findings, it can be concluded that insertion of this provision is an appropriate step by the regulators to make corporates socially more responsible.
How globalization affects inequality is subject to heated debate (Fischer 2003:5). Stiglitz (1998) and Hurrell and Woods (2000), among others, argue that globalization leads to increases in inequality because trade increases differentials in returns to education and skills, globalization marginalizes certain groups of people or geographic regions, and liberalization is not complemented by development of adequate institutions and governance. This view is supported by evidence from China and some transitional economies that are experiencing significant increases in inequality after their having opened up to the outside world (Birdsall 1999; Mazur 2000). In developed countries, rising inequalities are being attributed to trade growth or international specialization as well (Atkinson 2001). To the contrary, Ben-David (1993) and Srinivasan and Bhagwati (1999) conclude that globalization helps to reduce inequality. This is also supported by evidence from a number of countries where inequality decreased when they liberalized their economies (Wade 2001). In between these two opposing views, Lindert and Williamson (2001) and Sala-i-Martin (2002a, 2002b) find that a significant globalization—inequality relationship does not exist. Krugman and Venables (1995:859) deduce a U-shaped pattern between inequality and trade.
Formulating and translating corporate social responsibility (CSR) strategy into actual managerial practices and outcome values remain ongoing challenges for many organizations. This paper argues that the human resource management (HRM) function can potentially play an important role in supporting organizations to address this challenge. We argue that HRM could provide an interesting and dynamic support to CSR strategy design as well as implementation and delivery. Drawing on a systematic review of relevant strategic CSR and HRM literatures, this paper highlights the important interfaces between CSR and HRM and develops a conceptual model, the CSR-HRM co-creation model, which accounts for the potential HRM roles in CSR and identifies a range of outcome values resulting from a more effective integration of the role of HRM within CSR. The paper concludes with relevant theoretical and managerial recommendations that advance our understanding of the potential interfaces between HRM and CSR and how HRM can support a systematic and progressive CSR agenda.
This article presents a theoretical proposition based on stakeholder theory for better Corporate Social Responsibility (CSR) practices, specifically in the context of Malaysia. The aim of this article is to argue the need for a government initiative to help empower local communities and transform them into legitimate and powerful stakeholders. An understanding of the concept and importance of CSR is still lacking among the local communities in Malaysia, in contrast to the communities in certain developed nations where the idea of CSR originated. Competing for the limited resources of the firm, communities need to understand that they also have a role in promoting better CSR. This article contributes to the literature by providing a fundamental explanation of how the community could be empowered to become an important driver of CSR practices, contributing to a better atmosphere if both firms and communities work together towards a sustainable livelihood. The public sector includes all types of government agencies, which should play their role in providing awareness to the community about its rights and capability to become an effective change agent regarding the responsibility of firms operating within its environment.
Corporate Social Responsibility (CSR) has the potential to contribute in a positive way to development of the society and businesses. Companies are beginning to see the benefits from implementing CSR strategies into their agenda. The reason why CSR attention increased is based on its capacity to influence company performance. The field of CSR has rapidly grown in the last years, a large number of methods and frameworks have been developed, mostly in developed countries. This study focuses on developing economies and on Romania specifically. Using a sample of 21 companies quoted in Romania between 2008 and 2012, this study tests the sign of the relation between CSR and financial performance. In order to test this relationship, this study use empirical methods. The results indicate a positive and significant relationship, supporting the view that responsible financial performance can be associated with a series of bottom-line benefits.
Many formal organizational structures arise as reflections of rationalized institutional rules. The elaboration of such rules in modern states and societies accounts in part for the expansion and increased complexity of formal organizational structures. Institutional rules function as myths which organizations incorporate, gaining legitimacy, resources, stability, and enhanced survival prospects. Organizations whose structures become isomorphic with the myths of the institutional environment-in contrast with those primarily structured by the demands of technical production and exchange-decrease internal coordination and control in order to maintain legitimacy. Structures are decoupled from each other and from ongoing activities. In place of coordination, inspection, and evaluation, a logic of confidence and good faith is employed.
Brazilian and Chinese textile firms are exposed to a highly competitive global market. In both countries, corporate social responsibility encompasses practices related to markets, the workplace, the environment, community relationships and company values. We studied the influence of three variables (country location, firm size and position in the value chain) on the adoption of CSR practices. Our study reveals that CSR was not widely used in textile industries in either China or Brazil. However, Brazilian firms have many more CSR practices in place than Chinese firms suggesting that the country where a firm is located strongly influences CSR adoption. Firm size and position in the value chain also exert significant influence but to a lesser extent than the country variable. We argue that the CSR differences between countries result from the unique historical evolution of their national business systems. This together with the institutional framework of a country affect CSR approaches. In the case of textile firms, coercive isomorphism plays a dominant role in legitimizing CSR. The more transparent and rule-based governance system in Brazil explains the more comprehensive CSR practices.
This paper fills some of the theoretical and empirical deficiencies regarding Corporate Social Responsibility (CSR) dimensions in Islamic Banking and Financial Institutions (IBFIs). The firms’ CSR initiatives are the key to secure success in modern business and society, and there is a scope to develop a broader understanding of CSR in globally integrated business and financial markets. This paper provides the Islamic perspective of CSR, which is etho-religious based and, thus, more meaningful and intensified. It proposes a CSR framework for IBFIs based on principles of Islamic economics and society. The proposed framework urges IBFIs to engage in communitybased banking, work toward the betterment of the poor, ensure the most efficient and socially desirable utilization of financial resources, develop their institutional frameworks, infrastructures, and innovative products to facilitate the wider circulation of wealth and sustainable development in the world. This paper observes that IBFIs have failed to deal with underlying CSR challenges due to lack of commitment and expertise in the field. The CSR-based outlook of IBFIs can only ensure their legitimacy, sustainability, and longterm success.
Through a rhetoric analysis of 776 projects from firms located in 22 Asian countries, the authors argue that companies are looking for new forms of legitimacy that cannot be completely explained using traditional management theories. The authors introduce political theory into the debate. First, this study proposes a three-approach model of legitimation: The first approach is based on the strategic rhetoric as a mechanism for achieving pragmatic legitimacy, the second one uses the institutional rhetoric for gaining cognitive legitimacy, and the third, the political approach, is one through which firms seek to obtain moral legitimacy. The political strategy is aimed at improving the discursive quality between corporations and their stakeholders. Second, since the motivation for differing legitimacy strategies should be understood within their institutional environment, the authors look for patterns within each strategy dependent on national, industry, and firm-specific characteristics.
The question of why and how firms' approach to Corporate Social Responsibility (CSR) differs across countries is one that can only be adequately addressed by giving a strong theoretical underpinning to research on comparative CSR. To this end, drawing on institutional theory and the institutionalist arguments of the comparative capitalism literature, we identify the mechanism by which national institutional arrangements influence CSR. We do this by (a) separating CSR from corporate governance, and identifying corporate governance as the missing link between the broader institutional arrangements that govern finance and labour and CSR, and (b) using the concept of institutional complementarity (a process of mutual reinforcement that enhances the value of both institutions) to specify the nature of the relationship between corporate governance and CSR. We refer to three models of capitalism-liberal market economies (LMEs, e. g. the USA and the UK), coordinated market economies (CMEs, e. g. Germany and Japan) and state-led market economies (SLMEs, e. g. France and South Korea)-as empirical sites for exploration of these ideas. We argue that CSR complements corporate governance systems by a logic of similarity (a link based on similar properties) and that, as change in the broader institutional arrangements and corporate governance occurs, CSR reflects and facilities this change.
This study examined US and Chinese consumers' perceptions of the economic, ethical, legal, and philanthropic responsibilities that wood products companies should be held responsible for. Survey data collected in the United States and China in 2011 were analyzed to determine whether this four-component corporate social responsibility (CSR) model was valid and to explore differences between the two countries. Results suggest that economic, ethical, legal, and philanthropic dimensions fit well a model of CSR. Responsibilities related to sound forest management were embedded in legal and ethical expectations. Wood products consumers from both nations self-reported higher expectations for companies' legal and ethical responsibilities than for economic and philanthropic responsibilities. US respondents' expectations for ethical and philanthropic responsibilities in the wood products industry had positive and significant effects on their stated preferences to purchase wood products. In China, only respondents' expectations for philanthropic responsibilities were found to have a positive and significant impact on stated purchasing preferences. The premise that wood products companies' primary objective is to attain economic profits may not be representative of consumers' expectations. Economic expectations seem axiomatic, and consumers instead deem this and likely other natural resource-based industries should exercise greater legal, ethical, and philanthropic practices.
While others have tried to accommodate agency and interests within institutional theory by directly incorporating a strategic choice perspective, we propose here that institutions are primary and exist as the context within which interests operate. We argue that uncertainty provides discretion, implying that organizational influence on practice will be greatest when institutional standards are most uncertain. We examine these arguments in the context of cesarean section surgeries in hospitals with different ownership and teaching structures. As expected, we found that hospitals' characteristics were influential in determining the use of cesareans only when the level of institutional uncertainty was high, that is, when patient risk was at an intermediate rather than a high or low level.•.
The globally generated concepts of environment and sustainability are fast gaining currency in international business discourse. Sustainability concerns are concurrently becoming significant to business planning around corporate social responsibility and integral to organizational strategies toward enhancing shareholder value. The mindset of corporate managers is a key factor in determining company approaches to sustainability. But what do corporate managers understand by sustainability? Our study explores discursive meaning negotiation surrounding the concepts of environment and sustainability within business discourse. The study is based on qualitative interpretive research drawing from symbolic interactionism (Blumer, Symbolic interactionism: perspective and method. Prentice-Hall, Englewood Cliffs, 1969) which postulates that meaning in discourse is an essentially contested domain dependent upon negotiation in the Habermasian tradition of mutually respectful dialogue (Habermas, The theory of communicative action: lifeworld and system: a critique of functionalist reason. Beacon Press, Boston 1987). Data from semi-structured intensive interviews of a small sample of senior corporate managers was analyzed to examine how corporate elites in India frame their approach to sustainability issues and respond to external pressures for deeper corporate responsibility. The findings point to the existence of a distinctively local narrative with strong potential for the discursive negotiation of personal and collective understanding of ethical and socio-cultural values that may help internalize broader sustainability considerations into corporate decision-making processes.