In this paper, three major themes in research on corporate social responsibility (CSR) are identified. Of particular interest, however, is the potential link between CSR and organizational effectiveness (OE). Data collected from 410 college graduate and undergraduate students were used to examine this relationship. Using factor analysis, eight dimensions of CSR and three components of OE were extracted. Canonical analysis was then performed. The result supports the proposition that specific CSR practices affect select OE outcomes. In addition, the method employed here provides a parsimonious approach to give priority to social claims.

Corporate social responsibility and organizational effectiveness: A multivariate approach

This paper investigates the differences in perceptions between business students and service-sector managers regarding the role that ethics and social responsibility serve in determining organizational effectiveness. An organizational effectiveness instrument containing business ethics and social responsibility items served as a questionnaire for a sample of 151 senior business undergraduates and 53 service-sector managers. The results indicated that while students acting as managers rate some social responsibility issues as more important than do managers, they also rate ethical conduct and a few dimensions of social responsibility lower than do managers. The findings have direct implications for both business practitioners and educators.

The role of ethics and social responsibility in achieving organizational effectiveness: Students versus managers

This paper investigates the relative importance of social responsibility criteria in determining organizational effectiveness. The organizational effectiveness menu was used as a questionnaire with a sample of 151 senior undergraduates. Each respondent was asked to rate the importance of the criteria from three constituent perspectives within a service organization: (1) as a manager, (2) as an investor, (3) as an employee. Later, a subsample of students (n=61) responded to the same questionnaire acting as a manager in an assigned case study. The results indicated that students acting as managers, investors, or employees rate social responsibility criteria among the least important of the determinants of organizational effectiveness. Moreover, while specific situations may call for changes in the relative importance of these criteria, social responsibility criteria were not viewed, generally, as the most important determinants of organizational effectiveness.

The relative importance of social responsibility in determining organizational effectiveness: Student responses

This article examines recent developments in company law surrounding corporate social responsibility (CSR). The focus is on the recognition of stakeholder interests and the role of contemporary community expectations in director decision making. The author provides judicial evidence regarding the recognition of the legitimate interests of shareholders and other stakeholders in company decision making, but acknowledges that the case law does not establish these interests as “rights”. There is discussion of the role of a company as a “good corporate citizen” and contemporary community expectations concerning responsible corporate behaviour and sustainable growth that does not harm the environment or society. The author subsequently argues that contemporary community expectations form a policy basis for judges to interpret the law to reflect CSR. The unique legislative approaches to CSR adopted in the United Kingdom, Canada, India and the European Union are analysed, with consideration of the legislative elements that serve to promote CSR, and those that merely allow corporations to carry on with profit maximisation in a “business as usual” manner. The article concludes that CSR obligations should be reviewed in Australia, with a view to potential law reform in this area considering recent international developments.

Willian G. Zikmund

Papers

The Psychological Influence of Political Beliefs and Interpersonal Trust on College Students' Attitudes toward Business Practices.