Showing papers in "Journal of Business Ethics in 2007"
TL;DR: In this article, two robust CSR conceptualizations, one by Carroll (1979, "A Three-Dimensional Conceptual Model of Corporate Performance" and the other by Wood (1991, "Corporate social performance Revisited" have been adopted for this research and their integration explored.
Abstract: After providing an overview of Corporate Social Responsibility (CSR) research in different contexts, and noting the varied methodologies adopted, two robust CSR conceptualizations – one by Carroll (1979, ‘A Three-Dimensional Conceptual Model of Corporate Performance’, The Academy of Management Review
4(4), 497–505) and the other by Wood (1991, ‘Corporate Social Performance Revisited’, The Academy of Management Review
16(4), 691–717) – have been adopted for this research and their integration explored. Using this newly synthesized framework, the research critically examines the CSR approach and philosophy of eight companies that are considered active in CSR in the Lebanese context. The findings suggest the lack of a systematic, focused, and institutionalized approach to CSR and that the understanding and practice of CSR in Lebanon are still grounded in the context of philanthropic action. The findings are qualified within the framework of existing contextual realities and relevant implications drawn accordingly.
1,128 citations
TL;DR: In this paper, a model that reflects the multifaceted relationship between stakeholder engagement and corporate responsibility is proposed, which not only allows the coincidence of engagement with corporate responsibility, but also allows for the development of the notion of corporate irresponsibility.
Abstract: The purpose of this article is to transcend the assumption that stakeholder engagement is necessarily a responsible practice. Stakeholder engagement is traditionally seen as corporate responsibility in action. Indeed, in some literatures there exists an assumption that the more an organisation engages with its stakeholders, the more it is responsible. This simple ‹more is better’ view of stakeholder engagement belies the true complexity of the relationship between engagement and corporate responsibility. Stakeholder engagement may be understood in a variety of different ways and from a variety of different theoretical perspectives. Stakeholder engagement may or may not involve a moral dimension and, hence, is primarily a morally neutral practice. It is therefore argued that stakeholder engagement must be seen as separate from, but related to, corporate responsibility. A model that reflects the multifaceted relationship between the two constructs is proposed. This model not only allows the coincidence of stakeholder engagement with corporate responsibility, but also allows for the development of the notion of corporate irresponsibility.
768 citations
TL;DR: In this paper, the authors examine whether business performance is affected by the adoption of practices included under the term Corporate Social Responsibility (CSR), and they find that a short-term negative impact on performance is produced.
Abstract: The goal of this paper is to examine whether business performance is affected by the adoption of practices included under the term Corporate Social Responsibility (CSR). To achieve this goal, we analyse the relation between CSR and certain accounting indicators and examine whether there exist significant differences in performance indicators between European firms that have adopted CSR and others that have not. The effects of compliance with the requirements of CSR were determined on the basis of firms included in the Dow Jones Sustainability Index (DJSI), and specific accounting indicators were applied to measure performance. For the purposes of this study, we selected one group of firms belonging to the DJSI and another comprised of firms quoted on the Dow Jones Global Index (DJGI) but not on the DJSI. The sample was made up of two groups of 55 firms, studied for the period 1998–2004. Empirical analysis supports the conclusion that differences in performance exist between firms that belong to the DJSI and to the DJGI and that these differences are related to CSR practices. We find that a short-term negative impact on performance is produced.
711 citations
TL;DR: In this article, the authors make a comparison of SME and large firm CSR strategies, and study the factors that influence specific choices in the CSR field by means of a sample of 3,680 Italian firms.
Abstract: While corporate social responsibility (CSR) is becoming a mainstream issue for many organizations, most of the research to date addresses CSR in large businesses rather than in small- and medium-sized enterprises (SMEs), because it is too often considered a prerogative of large businesses only. The role of SMEs in an increasingly dynamic context is now being questioned, including what factors might affect their socially responsible behaviour. The goal of this paper is to make a comparison of SME and large firm CSR strategies. Furthermore, size of the firm is analyzed as a factor that influences specific choices in the CSR field, and studied by means of a sample of 3,680 Italian firms. Based on a multi-stakeholder framework, the analysis provides evidence that large firms are more likely to identify relevant stakeholders and meet their requirements through specific and formal CSR strategies.
573 citations
TL;DR: This article found that corporate social responsibility fully or partially mediated the positive associations between four ethics program variables and individual job satisfaction, suggesting that companies might better manage employees' ethical perceptions and work attitudes with multiple policies.
Abstract: Companies offer ethics codes and training to increase employees’ ethical conduct. These programs can also enhance individual work attitudes because ethical organizations are typically valued. Socially responsible companies are likely viewed as ethical organizations and should therefore prompt similar employee job responses. Using survey information collected from 313 business professionals, this exploratory study proposed that perceived corporate social responsibility would mediate the positive relationships between ethics codes/training and job satisfaction. Results indicated that corporate social responsibility fully or partially mediated the positive associations between four ethics program variables and individual job satisfaction, suggesting that companies might better manage employees’ ethical perceptions and work attitudes with multiple policies, an approach endorsed in the ethics literature.
557 citations
TL;DR: In this article, the authors explored whether any discrepancy exists between the communicated (based on information disclosed in the annual reports) and ideal (disclosure of information deemed vital based on the Islamic ethical business framework) ethical identities and measured this by what they have termed the Ethical Identity Index (EII).
Abstract: Islamic Banks (IBs) are considered as having ethical identity, since the foundation of their business philosophy is closely tied to religion. In this article, we explore whether any discrepancy exists between the communicated (based on information disclosed in the annual reports) and ideal (disclosure of information deemed vital based on the Islamic ethical business framework) ethical identities and we measure this by what we have termed the Ethical Identity Index (EII). Our longitudinal survey results over a 3-year period indicate the overall mean EII of only one IB out of seven surveyed to be above average. The remaining six IBs suffer from disparity between the communicated and ideal ethical identities. We further found the largest incongruence to be related to four dimensions: commitments to society; disclosure of corporate vision and mission; contribution to and management of zakah, charity and benevolent loans; and information regarding top management. The results have important implications for communication management if IBs are to enhance their image and reputation in society as well as to remain competitive.
545 citations
TL;DR: In this article, the authors argue that CSR programs can fall along a continuum between two endpoints: Institutionalized programs and Promotional programs, based on an exploratory study examining the variance of four responses from the consumer stakeholder group toward these two categories of CSR.
Abstract: Corporate Social Responsibility (CSR) programs are increasingly popular corporate marketing strategies. This paper argues that CSR programs can fall along a continuum between two endpoints: Institutionalized programs and Promotional programs. This classification is based on an exploratory study examining the variance of four responses from the consumer stakeholder group toward these two categories of CSR. Institutionalized CSR programs are argued to be most effective at increasing customer loyalty, enhancing attitude toward the company, and decreasing consumer skepticism. Promotional CSR programs are argued to be more effective at generating purchase intent. Ethical and managerial implications of these preliminary findings are discussed.
515 citations
TL;DR: In this paper, the authors explore the positive relationship between green intellectual capital and competitive advantages of firms, and propose a novel construct called green Intellectual Capital (GIC) for green innovation or environmental management.
Abstract: No research explored intellectual capital about green innovation or environmental management. This study wanted to fill this research gap, and proposed a novel construct – green intellectual capital – to explore the positive relationship between green intellectual capital and competitive advantages of firms. The empirical results of this study showed that the three types of green intellectual capital – green human capital, green structural capital, and green relational capital – had positive effects on competitive advantages of firms. Moreover, this study found that green relational capital was the most common among these three types of green intellectual capital, and the three types of green intellectual capital of Medium & Small Enterprises (SMEs) were all significantly less than those of large enterprises in the information and electronics industry in Taiwan. In sum, companies investing many resources and efforts in green intellectual capital could not only meet the trends of strict international environmental regulations and popular environmental consciousness of consumers, but also eventually obtain corporate competitive advantages.
490 citations
TL;DR: In this paper, the authors examine the extent to which a conflict actually exists by examining the relationship between a company's positive (strengths) and negative (concerns) corporate social responsibility (CSR) activities and equity performance.
Abstract: Corporate management is torn between either focusing solely on the interests of stockholders (the neo-classical view) or taking into account the interests of a wide spectrum of stakeholders (the stakeholder theory view). Of course, there need be no conflict where taking the wider view is also consistent with maximising stockholder wealth. In this paper, we examine the extent to which a conflict actually exists by examining the relationship between a company’s positive (strengths) and negative (concerns) corporate social responsibility (CSR) activities and equity performance. In general, we find little evidence to suggest that managers taking a wider stakeholder perspective will jeopardise the interest of its stockholders. However, our findings do suggest that the market is not only influenced by the independent CSR activities, but also the totality of these activities and that the facets that they value do vary over time. It seems that␣most recently, the market has valued most firms that satisfied minimum requirements in the areas of diversity and environmental protection but were most proactive in the area of employee-relations.
490 citations
TL;DR: The authors analyzed the content of corporate environmental disclosures with respect to the following seven areas: environmental planning considerations, top management support to the institutionalization of environmental concerns, environmental structures and organizing specifics, environmental leadership activities, environmental control, external validations or certifications of environmental programs, and forms of corporate Environmental disclosures.
Abstract: Today, more corporations disclose information about their environmental performance in response to stakeholder demands of environmental responsibility and accountability. What information do corporations disclose on their websites? This paper investigates the environmental management policies and practices of the 200 largest corporations in the world. Based on a content analysis of the environmental reports of Fortune’s Global 200 companies, this research analyzes the content of corporate environmental disclosures with respect to the following seven areas: environmental planning considerations, top management support to the institutionalization of environmental concerns, environmental structures and organizing specifics, environmental leadership activities, environmental control, external validations or certifications of environmental programs, and forms of corporate environmental disclosures.
479 citations
TL;DR: The authors argue that responsible leadership in a global stakeholder society is a relational and inherently moral phenomenon that cannot be captured in traditional dyadic leader-follower relationships (e.g., to subordinates) or by simply focusing on questions of leadership effectiveness.
Abstract: I argue in this article that responsible leadership (Maak and Pless, 2006) contributes to building social capital and ultimately to both a sustainable business and the common good. I show, first, that responsible leadership in a global stakeholder society is a relational and inherently moral phenomenon that cannot be captured in traditional dyadic leader–follower relationships (e.g., to subordinates) or by simply focusing on questions of leadership effectiveness. Business leaders have to deal with moral complexity resulting from a multitude of stakeholder claims and have to build enduring and mutually beneficial relationships with all relevant stakeholders. I contend, second, that in doing so leaders bundle the energy of␣different constituencies and enable social capital building. Social capital can be understood as actual or potential resources inherent to more or less institutionalized relationships of mutual recognition (Bourdieu 1980). By drawing on network analysis I suggest, third, that responsible leaders weave durable relational structures and ultimately networks of relationships which are rich in ties to otherwise unconnected individuals or groups. Against this background I argue, fourth, that responsible leadership may result in the creation of value networks (Lord and Brown, 2001) of multiple stakeholders, which enhance social capital and thereby contribute to both a sustainable business and the common good.
TL;DR: This article investigated how deans and directors at the top 50 global MBA programs responded to questions about the inclusion and coverage of the topics of ethics, corporate social responsibility, and sustainability at their respective institutions.
Abstract: This paper investigates how deans and directors at the top 50 global MBA programs (as rated by the Financial Times in their 2006 Global MBA rankings) respond to questions about the inclusion and coverage of the topics of ethics, corporate social responsibility, and sustainability at their respective institutions. This work purposely investigates each of the three topics separately. Our findings reveal that: (1) a majority of the schools require that one or more of these topics be covered in their MBA curriculum and one-third of the schools require coverage of all three topics as part of the MBA curriculum, (2) there is a trend toward the inclusion of sustainability-related courses, (3) there is a higher percentage of student interest in these topics (as measured by the presence of a Net Impact club) in the top 10 schools, and (4) several schools are teaching these topics using experiential learning and immersion techniques. We note a fivefold increase in the number of stand-alone ethics courses since a 1988 investigation on ethics, and we include other findings about institutional support of centers or special programs; as well as a discussion of integration, teaching techniques, and notable practices in relation to all three topics.
TL;DR: In this article, a comparison between traditional survey questions of intention to purchase and estimates of individuals willingness-to-pay for social attributes in products reveal that simple survey questions are too "noisy" to provide operationally meaningful information and overstate intentions to a considerable extent.
Abstract: Nearly all studies of consumers’ willingness to engage in ethical or socially responsible purchasing behavior is based on unconstrained survey response methods. In the present article we ask the question of how well does asking consumers the extent to which they care about a specific social or ethical issue relate to how they would behave in a more constrained environment where there is no socially acceptable response. The results of a comparison between traditional survey questions of “intention to purchase” and estimates of individuals willingness-to-pay for social attributes in products reveal that simple survey questions are too “noisy” to provide operationally meaningful information and overstate intentions to a considerable extent.
TL;DR: In this paper, the authors investigated the effect of tacit knowledge sharing on business ethics and found that tacit knowledge-sharing is affected by distributive justice, procedural justice, and cooperativeness indirectly via organizational commitment.
Abstract: Tacit knowledge sharing discussed in this study is important in the area of business ethics, because an unwillingness to share knowledge that may hurt an organization’s survival is seen as being seriously unethical In the proposed model of this study, distributive justice, procedural justice, and cooperativeness influence tacit knowledge sharing indirectly via two mediators: organizational commitment and trust in co-workers Accordingly, instrumental ties and expressive ties influence tacit knowledge sharing indirectly only via the mediation of trust in co-workers The model is assessed by using data from different companies’ employees, who attend an evening college in Taiwan for advance study The test results of this study indicate that tacit knowledge sharing is affected by distributive justice, procedural justice, and cooperativeness indirectly via organizational commitment Additionally, tacit knowledge sharing is also affected by distributive justice, instrumental ties, and expressive ties via trust in co-workers The paths from procedural justice and cooperativeness to trust in co-workers are shown to be insignificant Managerial implications of the empirical findings are also provided
TL;DR: In this paper, the authors propose an analytical framework to analyze CSR public policies, which provide a perspective on the relationships between governments, businesses, and civil society stakeholders, and enable them to incorporate the analysis of public policies into a broader approach focused on social governance.
Abstract: Over the last decade, Corporate Social Responsibility (CSR) has been defined first as a concept whereby companies decide voluntarily to contribute to a better society and cleaner environment and, second, as a process by which companies manage their relationship␣with stakeholders (European Commission, 2001. Nowadays, CSR has become a priority issue on governments’ agendas. This has changed governments’ capacity to act and impact on social and environmental issues in their relationship with companies, but has also affected the framework in which CSR public policies are designed: governments are incorporating multi-stakeholder strategies. This article analyzes the CSR public policies in European advanced democracies, and more specifically the EU-15 countries, and provides explanatory keys on how governments have understood, designed and implemented their CSR public policies. The analysis has entailed the classification of CSR public policies taking into consideration the actor to which the governments’ policies were addressed. This approach to the analysis of CSR public policies in the EU-15 countries leads us to observe coinciding lines of action among the different countries analyzed, which has enabled us to propose a ‹four ideal’ typology model for governmental action on CSR in Europe: Partnership, Business in the Community, Sustainability, and Citizenship, and Agora. The main contribution of this article is to propose an analytical framework to analyze CSR public policies, which provide a perspective on the relationships between governments, businesses, and civil society stakeholders, and enable us to incorporate the analysis of CSR public policies into a broader approach focused on social governance.
TL;DR: In this article, the antecedents of company identity attractiveness in a consumer-company context were investigated and the results demonstrate that the Corporate Social Responsibility (CSR) contribution to company IA is much stronger than that of Corporate Ability (CA).
Abstract: The extent to which people identify with an organization is dependent on the attractiveness of the organizational identity, which helps individuals satisfy one or more important self-definitional needs. However, little is known about the antecedents of company identity attractiveness (IA) in a consumer–company context. Drawing on theories of social identity and organizational identification, a model of the antecedents of IA is developed and tested. The findings provide empirical validation of the relationship between IA and corporate associations perceived by consumers. Our results demonstrate that the Corporate Social Responsibility (CSR) contribution to company IA is much stronger than that of Corporate Ability (CA). This may be linked to increasing competition and of decreasing CA-based variation in the marketplace.
TL;DR: In this article, the authors examined the performance and risk sensitivities of Canadian ethical mutual funds vis-a-vis their conventional peers and concluded that any performance difference between ethical mutual fund and their conventional counterparts is statistically insignificant.
Abstract: Although the academic interest in ethical mutual fund performance has developed steadily, the evidence to date is mainly sample-specific. To tackle this critique, new research should extend to unexplored countries. Using this as a motivation, we examine the performance and risk sensitivities of Canadian ethical mutual funds vis-a `-vis their conventional peers. In order to overcome the methodological deficiencies most prior papers suffered from, we use performance measurement approaches in the spirit of Carhart (1997, Journal of Finance 52(1): 57-82) and Ferson and Schadt (1996, Journal of Finance 51(2): 425-461). In doing so, we investigate the aggregated performance and investment style of ethical and conventional mutual funds and allow for time variation in the funds' systematic risk. Our Canadian evidence supports the conjecture that any performance differential between ethical mutual funds and their conventional peers is statistically insignificant.
TL;DR: This article used best-worst scaling experiments to examine differences across six countries in the attitudes of consumers towards social and ethical issues that included both product related issues (such as recycled packaging) and general social factors such as human rights.
Abstract: This study uses best–worst scaling experiments to examine differences across six countries in the attitudes of consumers towards social and ethical issues that included both product related issues (such as recycled packaging) and general social factors (such as human rights). The experiments were conducted using over 600 respondents from Germany, Spain, Turkey, USA, India, and Korea. The results show that there is indeed some variation in the attitudes towards social and ethical issues across these six countries. However, what is more telling are the similarities seen and the extent to which individual variation dominates observable demographics and country-based variables.
TL;DR: In this paper, the authors developed a model for fair trade buying behavior in a sample of 615 Belgians and assessed the impact of fair trade knowledge, general attitudes towards fair trade, attitudes toward fair trade products, and the perception of the quality and quantity of fairtrade information on the reported amount of money spent on fair trade items.
Abstract: In a sample of 615 Belgians a model for fair trade buying behaviour was developed. The impact of fair trade knowledge, general attitudes towards fair trade, attitudes towards fair trade products, and the perception of the quality and quantity of fair trade information on the reported amount of money spent on fair trade products were assessed. Fair trade knowledge, overall concern and scepticism towards fair trade, and the perception of the perceived quantity and quality of fair trade information, influence buying behaviour directly and indirectly through product attitudes. Interest in fair trade products, price acceptability and product liking have a significant impact on fair trade buying behaviour. Product interest is the most important variable influencing buying behaviour. Implications for the campaigns of governments and for the marketing strategy of fair trade organisations are offered.
TL;DR: In this article, an empirical study that focuses on the United Nations (UN) Global Compact (GC) initiative as a Corporate Social Responsibility (CSR) mechanism was conducted among GC participants, of which 29 responded.
Abstract: The aim of this paper is to shed some light on understanding why companies adopt environmentally responsible behavior and what impact this adoption has on their performance. This is an empirical study that focuses on the United Nations (UN) Global Compact (GC) initiative as a Corporate Social Responsibility (CSR) mechanism. A survey was conducted among GC participants, of which 29 responded. The survey relies on the anticipated and actual benefits noted by the participants in the GC.
TL;DR: In this article, a case study of two large-scale sporting event organizing committees, with a particular focus on interviews with managers at three hierarchical levels, was conducted to examine stakeholder identification and prioritization by managers using the power, legitimacy, and urgency framework.
Abstract: The purpose of this article is to examine stakeholder identification and prioritization by managers using the power, legitimacy, and urgency framework of Mitchell et al. (Academy of Management Review22, 853–886; 1997). We use a multi-method, comparative case study of two large-scale sporting event organizing committees, with a particular focus on interviews with managers at three hierarchical levels. We support the positive relationship between number of stakeholder attributes and perceived stakeholder salience. Managers’ hierarchical level and role have direct and moderating effects on stakeholder identification and perceived salience. We also found that most stakeholders were definitive, dominant, or dormant types – the other five types were rare. Power has the most important effect on salience, followed by urgency and legitimacy. Based on our case study, we offer several ways to advance the theory of stakeholder identification and salience.
TL;DR: In this article, the impact of corporate ethical identity (CEI) on a firm's financial performance was empirically assessed, and revealed ethics has informational worth and enhances shareholder value, whereas applied ethics has a positive impact through the improvement of stakeholder satisfaction.
Abstract: In this article, we empirically assess the impact of corporate ethical identity (CEI) on a firm’s financial performance. Drawing on formulations of normative and instrumental stakeholder theory, we argue that firms with a strong ethical identity achieve a greater degree of stakeholder satisfaction (SS), which, in turn, positively influences a firm’s financial performance. We analyze two dimensions of the CEI of firms: corporate revealed ethics and corporate applied ethics. Our results indicate that revealed ethics has informational worth and enhances shareholder value, whereas applied ethics has a positive impact through the improvement of SS. However, revealed ethics by itself (i.e. decoupled from ethical initiatives) is not sufficient to boost economic performance.
TL;DR: In this paper, the authors explore how neutralisation can explain people's lack of commitment to buying Fair Trade (FT) products, even when they identify FT as an ethical concern.
Abstract: This article explores how neutralisation can explain people’s lack of commitment to buying Fair Trade (FT) products, even when they identify FT as an ethical concern. It examines the theoretical tenets of neutralisation theory and critically assesses its applicability to the purchase of FT products. Exploratory research provides illustrative examples of neutralisation techniques being used in the FT consumer context. A conceptual framework and research propositions delineate the role of neutralisation in explaining the attitude-behaviour discrepancies evident in relation to consumers’ FT purchase behaviour, providing direction for further research that will generate new knowledge of consumers’ FT purchase behaviour and other aspects of ethical consumer behaviour.
TL;DR: The authors examined the relationship between corporate social responsibility (CSR) and company stock valuation across three regions of the world and found that the potential impact of corporate social performance on firm financial performance, including investor characteristics, the rationale behind their choices, and their influence on the marketplace for securities worldwide.
Abstract: This research examines the relationship between corporate social responsibility (CSR) and company stock valuation across three regions of the world. After a brief introduction, the article gives an overview of the evolving definition of CSR as well as a discussion of the ways in which this construct has been operationalized. Presentation of the potential impact of corporate social performance on firm financial performance follows, including investor characteristics, the rationale behind their choices, and their influence on the marketplace for securities worldwide. The unique method used to select socially responsible investments is then provided that also includes a description of the quantitative techniques employed in the analyses. Results are offered subsequently, and the close describes implications for global enterprises as socially responsible investments.
TL;DR: In this paper, the authors examined how the fit between employees moral development and the ethical work climate of their organization affects employee attitudes and found that ethical P-O fit was related to higher levels of affective commitment across all three ethical climate types.
Abstract: This research examines how the fit between employees moral development and the ethical work climate of their organization affects employee attitudes. Person–organization fit was assessed by matching individuals' level of cognitive moral development with the ethical climate of their organization. The influence of P–O fit on employee attitudes was assessed using a sample of 304 individuals from 73 organizations. In general, the findings support our predictions that fit between personal and organizational ethics is related to higher levels of commitment and job satisfaction and lower levels of turnover intent. Ethical P–O fit was related to higher levels of affective commitment across all three ethical climate types. Job satisfaction was only associated with ethical P–O fit for one of the three P–O fit variables and turnover intentions were significantly associated with two of the ethical P–O fit variables. The most consistent effect was found for the Conventional – Caring fit variable, which was significantly related to all three attitudes assessed. The weakest effect was found for the Preconventional – Instrumental fit variable, which was only predictive of affective commitment. The pattern of findings and implications for practice and future research are discussed.
TL;DR: In this article, the authors analyze ethical policies of firms in industrialized countries and try to find out whether culture is a factor that plays a significant role in explaining country differences in ethical policies.
Abstract: We analyze ethical policies of firms in industrialized countries and try to find out whether culture is a factor that plays a significant role in explaining country differences. We look into the firm’s human rights policy, its governance of bribery and corruption, and the comprehensiveness, implementation and communication of its codes of ethics. We use a dataset on ethical policies of almost 2,700 firms in 24 countries. We find that there are significant differences among ethical policies of firms headquartered in different countries. When we associate these ethical policies with Hofstede’s cultural indicators, we find that individualism and uncertainty avoidance are positively associated with a firm’s ethical policies, whereas masculinity and power distance are negatively related to these policies.
TL;DR: In this paper, the authors examined the relationship between charitable contributions, firm size and industry and found that small and large firms give more relative to total receipts with lower giving ratios among medium size firms.
Abstract: Recent downward trends in corporate giving have renewed interest in the factors that shape corporate philanthropy. This paper examines the relationships between charitable contributions, firm size and industry. Improvements over previous studies include an IRS data base that covers a much broader range of firm sizes and industries as compared to previous studies and estimation using an instrumental variable technique that explicitly addresses potential simultaneity between charitable contributions and profitability. Important findings provide evidence of a cubic relationship between charitable giving and firm size and evidence of strong industry effects. The plus-minus-plus regression coefficient sign pattern for the cubic firm size model suggests that small and large firms give more relative to total receipts with lower giving ratios among medium size firms. One interpretation for this finding is that small firms are close to the communities they serve while high visibility creates a need for large firm philanthropy. Strong industry effects provide evidence of inter-industry differences in giving culture and/or different public relations requirements across industries.
TL;DR: This article examined the presence and roles of female directors of U.S. Fortune 500 firms, focusing on committee assignments and director background and found that female directors are less likely than male directors to sit on executive and public affairs committees.
Abstract: This study examines the presence and roles of female directors of U.S. Fortune 500 firms, focusing on committee assignments and director background. Prior work from almost two decades ago concludes that there is a systematic bias against females in assignment to top board committees. Examining a recent data set with a logistic regression model that controls for director and firm characteristics, director resource-dependence roles and interaction between director gender and director characteristics, we find that female directors are less likely than male directors to sit on executive committees and more likely than male directors to sit on public affairs committees. There is little if any evidence of systematic gender bias in director assignment to other board committees. We find some evidence that boards evaluate resource dependence differently for women than men.
TL;DR: In this paper, the authors reviewed the performance of sustainable investment indices compared with their benchmark indices, the methodologies employed in compiling the indices, and the impact of the indices on companies and the investment community.
Abstract: Most studies into the performance of socially responsible investment vehicles have focused on the performance of sustainable or socially responsible mutual funds This research has been complemented recently by a number of studies that have examined the performance of sustainable investment indices In both cases, the majority of studies have concluded that the returns of socially responsible investment vehicles have either underperformed, or failed to outperform, comparable market indices Although the impact of sustainable indices to date has been limited, the recent launch of sustainable indices by Dow Jones and FTSE suggests that more attention is being paid to the subject by financial markets, investors, and companies This development raises a number of important issues which are reviewed in this article: (a) the performance of indices compared with their benchmark indices; (b) the methodologies employed in compiling the indices; and (c) the impact of the indices on companies and the investment community The article concludes with a number of suggestions for areas that merit future research
TL;DR: In this article, a cross-cultural analysis of communication of CSR activities in a total of 16 U.S. and European corporations was conducted, and it was found that U. S. companies tend to communicate about and justify CSR using economic or bottom-line terms and arguments whereas European companies would rely more heavily on language or theories of citizenship, corporate accountability, or moral commitment.
Abstract: This study explores corporate social responsibility (CSR) by conducting a cross-cultural analysis of communication of CSR activities in a total of 16 U.S. and European corporations. Drawing on previous research contrasting two major approaches to CSR initiatives, it was proposed that U.S. companies would tend to communicate about and justify CSR using economic or bottom-line terms and arguments whereas European companies would rely more heavily on language or theories of citizenship, corporate accountability, or moral commitment. Results supported this expectation of difference, with some modification. Specifically, results indicated that EU companies do not value sustainability to the exclusion of financial elements, but instead project sustainability commitments in addition to financial commitments. Further, U.S.-based companies focused more heavily on financial justifications whereas EU-based companies incorporated both financial and sustainability elements in justifying their CSR activities. In addition, wide variance was found in both the prevalence and use of specific CSR-related terminology. Cross-cultural distinctions in this use create implications with regard to measurability and evidence of both strategic and bottom-line impact. Directions for further research are discussed.