Showing papers in "Journal of Business Ethics in 2009"

Measuring Corporate Social Responsibility: A Scale Development Study

Abstract: Corporate social responsibility (CSR) is one of the most prominent concepts in the literature and, in short, indicates the positive impacts of businesses on their stakeholders. Despite the growing body of literature on this concept, the measurement of CSR is still problematic. Although the literature provides several methods for measuring corporate social activities, almost all of them have some limitations. The purpose of this study is to provide an original, valid, and reliable measure of CSR reflecting the responsibilities of a business to various stakeholders. Based on a proposed conceptual framework of CSR, a scale was developed through a systematic scale development process. In the study, exploratory factor analysis was conducted to determine the underlying factorial structure of the scale. Data was collected from 269 business professionals working in Turkey. The results of the analysis provided a four-dimensional structure of CSR, including CSR to social and nonsocial stakeholders, employees, customers, and government.

Determinants of Corporate Social Responsibility Disclosure Ratings by Spanish Listed Firms

Abstract: The aim of this paper is to analyze whether a number of firm and industry characteristics, as well as media exposure, are potential determinants of corporate social responsibility (CSR) disclosure practices by Spanish listed firms. Empirical studies have shown that CSR disclosure activism varies across companies, industries, and time (Gray et al., Accounting, Auditing & Accountability Journal 8(2), 47–77, 1995; Journal of Business Finance & Accounting 28(3/4), 327–356, 2001; Hackston and Milne, Accounting, Auditing & Accountability Journal 9(1), 77–108, 1996; Cormier and Magnan, Journal of International Financial Management and Accounting 1(2), 171–195, 2003; Cormier et al., European Accounting Review 14(1), 3–39, 2005), which is usually justified by reference to several theoretical constructs, such as the legitimacy, stakeholder, and agency theories. Our findings evidence that firms with higher CSR ratings present a statistically significant larger size and a higher media exposure, and belong to more environmentally sensitive industries, as compared to firms with lower CSR ratings. However, neither profitability nor leverage seem to explain differences in CSR disclosure practices between Spanish listed firms. The most influential variable for explaining firms’ variation in CSR ratings is media exposure, followed by size and industry. Therefore, it seems that the legitimacy theory, as captured by those variables related to public or social visibility, is the most relevant theory for explaining CSR disclosure practices of Spanish listed firms.

How Corporate Social Responsibility Influences Organizational Commitment

Abstract: A growing number of studies have investigated the various dimensions of corporate social responsibility (CSR) in the literature. However, relatively few studies have considered its impacts on employees. The purpose of this study is to analyze how CSR affects the organizational commitment of employees based on the social identity theory (SIT). The proposed model was tested on a sample of 269 business professionals working in Turkey. The findings of the study revealed that CSR to social and non-social stakeholders, employees, and customers were the significant predictors of organizational commitment. However, there was no link between CSR to government and the commitment level of employees.

Strengthening Stakeholder-Company Relationships Through Mutually Beneficial Corporate Social Responsibility Initiatives

Abstract: Corporate social responsibility (CSR) continues to gain attention atop the corporate agenda and is by now an important component of the dialogue between companies and their stakeholders. Nevertheless, there is still little guidance as to how companies can implement CSR activity in order to maximize returns to CSR investment. Theorists have identified many company-favoring outcomes of CSR; yet there is a dearth of research on the psychological mechanisms that drive stakeholder responses to CSR activity. Borrowing from the literatures on means-end chains and relationship marketing, we propose a conceptual model that explains how CSR provides individual stakeholders with numerous benefits (functional, psychosocial, and values) and how the type and extent to which a stakeholder derives these benefits from CSR initiatives influences the quality of the relationship between the stakeholder and the company. The paper discusses the implications of these␣insights and highlights a number of areas for future research.

An Empirical Study of Environmental Awareness and Practices in SMEs

Abstract: With increasing awareness of environmental issues, there has been rising demand for environmental-friendly business practices. Prior research has shown that the implementation of environmental management practices is influenced by existing and potential stakeholder groups in the form of external pressures from legislators, environmental groups, financial institutions and suppliers, as well as internally by employees and owner/manager attitudes and knowledge. However, it has been reported that despite business owner/managers having strong “green” attitudes, the level of implementation of environmental-friendly practices is low. In order to explore the connection between pressures for improved practices and the management actions taken, this article examines how influence from various stakeholders is related to awareness of environmental issues, and how this awareness relates to actions taken within the businesses to reduce the environmental impact of their operations. The results indicate that legislation does result in general environmental awareness, and that organizations are then willing to␣change their business processes and environmental strategies. However, despite their actions they have little awareness of the benefits that might arise from cost reductions from their environmental-friendly practices. Those influenced by their suppliers act to reduce waste, but do not put into place formal environmental management systems, or use environmental messages to market their goods or services. Nevertheless, it can be argued that they have a real commitment to environmental issues, as evidenced by a willingness to voluntarily contribute to environmental organizations.

The Role of Identity Salience in the Effects of Corporate Social Responsibility on Consumer Behavior

Abstract: Based on the assumption that consumers will reward firms for their support of social programs, many organizations have adopted corporate social responsibility (CSR) practices. Drawing on social identity theory, a model of influence of CSR on loyalty is developed and tested using a sample of real consumers. Results demonstrate that CSR initiatives are linked to stronger loyalty both because the consumer develops a more positive company evaluation, and because one identifies more strongly with the company. Moreover, identity salience is shown to play a crucial role in the influence of CSR initiatives on consumer loyalty when this influence occurs through consumer-company identification. A strong identifier is not necessarily in a constant state of salience, but activating identity salience of a particular consumer social identity (a company) will affect consumer reactions to product stimuli, increasing consumer loyalty.

The Missing Link Between Corporate Social Responsibility and Consumer Trust: The Case of Fair Trade Products

Abstract: This paper investigates the link between the consumer perception that a company is socially oriented and the consumer intention to buy products marketed by that company. We suggest that this link exists when at least two conditions prevail: (1) the products sold by that company comply with ethical and social requirements; (2) the company has an acknowledged commitment to protect consumer rights and interests. To test these hypotheses, we conducted a survey among the clients of retail chains offering Fair Trade products. The results show that socially oriented companies can successfully leverage their reputation to market products with high symbolic values.

The Stakeholder Model Refined

Abstract: The popularity of the stakeholder model has been achieved thanks to its powerful visual scheme and its very simplicity. Stakeholder management has become an important tool to transfer ethics to management practice and strategy. Nevertheless, legitimate criticism continues to insist on clarification and emphasises on the perfectible nature of the model. Here, rather than building on the discussion from a philosophical or theoretical point of view, a different and innovative approach has been chosen: the analysis will return to the origin of stakeholder theory and will keep the graphical framework firmly in perspective. It will confront the stakeholder model’s graphical representation to the discussion on stakeholder definition, stakeholder identification and categorisation, to re-centre the debate to the strategic origin of the stakeholder model. The ambiguity and the vagueness of the stakeholder concept are discussed from managerial and legal approaches. The impacts of two major shortcomings of the popular stakeholder framework are examined: the boundaries and the level of the firm’s environment, and the ambivalent position of pressure groups and regulators. Working pragmatically, with a focus on the managerial and organisational perspective, an attempt is made to clarify the categorisations and classifications by introducing new terminology with a distinction between stakeholders, stakewatchers and stakekeepers. The analysis will finally lead to a proposed upgraded and refined version of the stakeholder model, with incremental ameliorations close to Freeman’s original model and a return of focus to its essence, the managerial implications in a strategic approach.

Designing and Implementing Corporate Social Responsibility: An Integrative Framework Grounded in Theory and Practice

Abstract: This article introduces an integrative framework of corporate social responsibility (CSR) design and implementation. A review of CSR literature in particular with regard to design and implementation models provides the background to develop a multiple case study. The resulting integrative framework, based on this multiple case study and Lewins change model, highlights four stages that span nine steps of the CSR design and implementation process. Finally, the study identifies critical success factors for the CSR process.

A Study of Management Perceptions of the Impact of Corporate Social Responsibility on Organisational Performance in Emerging Economies: The Case of Dubai

Abstract: Although a number of studies have shown that corporate social responsibility (CSR) activities often lead to greater organisational performance in western developed economies, researchers are yet to examine the strategic value of CSR in emerging economies. Using survey data from 280 firms operating in Dubai, this study examines the link between CSR activities and organisational performance. The results show that CSR has a positive relationship with all three measures of organisational performance: financial performance, employee commitment, and corporate reputation. These results reinforce the accumulating body of empirical support for the positive impact of CSR on performance and challenge the dominant assumption that, given the weak institutional framework in emerging economies, CSR activities drain resources and compromise firms’ competitiveness.

Assessing the Prerequisite of Successful CSR Implementation: Are Consumers Aware of CSR Initiatives?

Abstract: As a reflection of the values and ethics of firms, corporate social responsibility (CSR) has received a large amount of research attention over the last decade. A growing area of this research is the CSR–consumer relationship. Results of experimental studies indicate that consumer attitudes and purchase intentions are influenced by CSR initiatives – if consumers are aware of them. In order to create this awareness, business is increasingly turning to ‹pro-social’ marketing communications, but such campaigns is met with scepticism and their effectiveness are therefore uncertain. Consequently, researchers in the field (for example, Maignan, 2001; Mohr et al., 2001) have called for empirical studies to determine the level of actual consumer awareness of CSR initiatives. This study examines the Australian banking sector, which engages in and promotes its CSR activities, to help fill this gap. Results from our qualitative study with bank managers, and our quantitative study with consumers, indicate low consumer CSR awareness levels. Consumer understanding of many of the social issues banks engage with is also low. While CSR is effective in eliciting favourable consumer attitudes and behaviour in theory, CSR has not proven its general effectiveness in the marketplace. The low consumer awareness of the various social issues in which firms engage with their CSR programs suggests that firms may need to educate consumers, so they may better contextualise CSR initiatives communicated. However, better context may amount to little if claimed CSR initiatives are perceived as inconsistent with other facets of the business that reflect its values and ethics.

The Virtuous Influence of Ethical Leadership Behavior: Evidence from the Field

Abstract: This study examines a moderated/mediated model of ethical leadership on follower job satisfaction and affective organizational commitment. We proposed that managers have the potential to be agents of virtue or vice within organizations. Specifically, through ethical leadership behavior we argued that managers can virtuously influence perceptions of ethical climate, which in turn will positively impact organizational members’ flourishing as measured by job satisfaction and affective commitment to the organization. We also hypothesized that perceptions of interactional justice would moderate the ethical leadership-to-climate relationship. Our results indicate that ethical leadership has both a direct and indirect influence on follower job satisfaction and affective commitment. The indirect effect of ethical leadership involves shaping perceptions of ethical climate, which in turn, engender greater job satisfaction and affective organizational commitment. Furthermore, when interactional justice is perceived to be high, this strengthens the ethical leadership-to-climate relationship.

"Too Good to be True!". The Effectiveness of CSR History in Countering Negative Publicity.

Abstract: Corporate crises call for effective communication to shelter or restore a company’s reputation. The use of corporate social responsibility (CSR) claims may provide an effective tool to counter the negative impact of a crisis, but knowledge about its effectiveness is scarce and lacking in studies that consider CSR communication during crises. To help fill this gap, this study investigates whether the length of company’s involvement in CSR matters when it uses CSR claims in its crisis communication as a means to counter negative publicity. The use of CSR claims in crisis communication is more effective for companies with a long CSR history than for those with a short CSR history, and consumer skepticism about claims lies at the heart of this phenomenon.

Exploring the Nature of the Relationship between CSR and Competitiveness

Abstract: This paper explores the nature of the relationship between corporate social responsibility (CSR) and competitiveness. We start with the commonly held view that firm competitiveness is defined by the market. That is, the question of what are the critical competitiveness factors is answered by looking at how companies and financial analysts describe and evaluate a firm. To analyze this, we review the current state of the art on the relationship between CSR and competitiveness. Second, CSR criteria used by financial analysts is identified and compared with company valuation methods. Third, the results of a multi-stakeholder dialogue on CSR and competitiveness of the European financial sector are presented. As a conclusion, we argue that CSR and competitiveness relate through a learning and innovation cycle, where corporate values, policies and practices are permanently defined and re-defined. Thus, we propose that learning takes place as CSR is embedded in business processes, and that once it has been integrated, in turn, it generates innovative practices, and finally, competitiveness. At the end of the paper, we propose that CSR in practice consists of managing inherent paradoxes generated by the tension between CSR and business policies.

Is Corporate Responsibility Converging? A Comparison of Corporate Responsibility Reporting in the USA, UK, Australia, and Germany

Abstract: Corporate social reporting, while not mandatory in most countries, has been adopted by many large companies around the world and there are now a variety of competing global standards for non-financial reporting, such as the Global Reporting Initiative and the UN Global Compact However, while some companies (eg, Henkel, BHP, Johnson and Johnson) have a long standing tradition in reporting non-financial information, other companies provide only limited information, or in some cases, no information at all Previous studies have suggested that there are, country and industry-specific, differences in the extent of CSR reports (eg, Kolk et al: 2001, Business Strategy and the Environment10, 15–28; Kolk: 2005, Management International Review45, 145–166; Maignan and Ralston: 2002, Journal of International Business Studies33(3), 497–514) However, findings are inconclusive or contradictory and it is often difficult to compare previous studies owing to the idiosyncratic methods used in each study (Graafland et al: 2004, Journal of Business Ethics53, 137–152) Furthermore, previous studies have relied mainly on simple measures, such as word counts and page counts of reports, to compare the extent of reporting that may not capture significant differences in the content of the reports In this article, we seek to overcome some of these deficiencies by using textual analysis software and a more robust statistical method to more objectively and reliably compare the CSR reports of firms in different industries and countries We examine a sample of leading companies in four countries (US, UK, Australia, and Germany) and test whether or not membership of the Global Compact makes a difference to CSR reporting and is overcoming industry and country specific factors that limit standardization We conclude that GlobalCompact membership is having an effect only in certain areas of CSR reporting, related to the environment and workers, and that businesses from different countries vary significantly in the extent to which they promote CSR and the CSR issues that they choose to emphasize in their reports These country differences are argued to be related to the different institutional arrangements in each country

Ethical Leadership: Examining the Relationships with Full Range Leadership Model, Employee Outcomes, and Organizational Culture

Abstract: Leadership which lacks ethical conduct can be dangerous, destructive, and even toxic. Ethical leadership, though well discussed in the literature, has been tested empirically as a construct in very few studies. An empirical investigation of ethical leadership in Singapore’s construction industry is reported. It is found that ethical leadership is positively and significantly associated with transformational leadership, transformational culture of organization, contingent reward dimension of transactional leadership, leader effectiveness, employee willingness to put in extra effort, and employee satisfaction with the leader. However, it is also found that ethical leadership bears no correlations with transactional leadership. Also, it is negatively correlated with laissez-faire leadership and transactional culture of the organization. The findings also reveal that ethical leadership plays a mediating role in the relationship between employee outcomes and organizational culture. Practical implications of these findings are discussed. Directions for future research are also suggested.

Formal vs. Informal CSR Strategies: Evidence from Italian Micro, Small, Medium-sized, and Large Firms

Abstract: Recent research on corporate social responsibility (CSR) suggests the need for further exploration into the relationship between small and medium-sized enterprises (SMEs) and CSR. SMEs rarely use the language of CSR to describe their activities, but informal CSR strategies play a large part in them. The goal of this article is to investigate whether differences exist between the formal and informal CSR strategies through which firms manage relations with and the claims of their stakeholders. In this context, formal CSR strategies seem to characterize large firms while informal CSR strategies prevail among micro, small, and medium-sized enterprises. We use a sample of 3,626 Italian firms to investigate our research questions. Based on a multi-stakeholder framework, the analysis provides evidence that small businesses’ use of CSR, involving strategies with an important impact on the bottom line, reflects an attempt to secure their license to operate in the communities; while large firms rarely make attempts to integrate their CSR strategies into explicit management systems.

Corporate Sustainability Reporting: A Study in Disingenuity?

Abstract: Over recent years, there has been a focus in corporate activity upon the concept of corporate social responsibility (CSR) and one of its central platforms, the notion of sustainability, and particularly sustainable development. We argue in this article that the use of such a term has the effect of obfuscating the real situation regarding the effect of corporate activity upon the external environment and the consequent implications for the future. One of the effects of persuading that corporate activity is sustainable is that the cost of capital for the firm is reduced as investors are misled into thinking that the level of risk involved in their investment is lower than it actually is. We analyse the effects of this misrepresentation and argue for a fuller debate about sustainability.

Corporate Social Responsibility in the International Banking Industry

Abstract: This article aims at providing a framework to assess corporate social responsibility with international banks Currently, it is mainly rating institutions like EIRIS and KLD that provide information about firms’ social conduct and performance However, this is costly information and it is not clear how the rating institutions arrive at their conclusion We develop a framework to assess the social responsibility of internationally operating banks We apply this framework to more than 30 institutions and find significant differences among individual banks, countries, and regions Furthermore, it appears that social responsibility of these banks has significantly improved between 2000 and 2005

Implementing CSR Through Partnerships: Understanding the Selection, Design and Institutionalisation of Nonprofit-Business Partnerships

Abstract: Partnerships between businesses and nonprofit organisations are an increasingly prominent element of corporate social responsibility implementation. The paper is based on two in-depth partnership case studies (Earthwatch–Rio Tinto and Prince’s Trust–Royal Bank of Scotland) that move beyond a simple stage model to reveal the deeper-level micro-processes in the selection, design and institutionalisation of business–NGO partnerships. The suggested practice-tested model is followed by a discussion that highlights management issues within partnership implementation and a practical Partnership Test to assist managers in testing both the accountability and level of institutionalisation of the relationship to address any possible skill gaps. Understanding how CSR partnerships are implemented in practice contributes to the broader CSR and partnership literatures a context-specific level of detail in a systematic way that allows for transferable learning in both theory and practice.

The Supply of Corporate Social Responsibility Disclosures Among U.S. Firms

Abstract: Corporate social responsibility (CSR) is a dramatically expanding area of activity for managers and academics. Consumer demand for responsibly produced and fair trade goods is swelling, resulting in increased demands for CSR activity and information. Assets under professional management and invested with a social responsibility focus have also grown dramatically over the last 10 years. Investors choosing social responsibility investment strategies require access to information not provided through traditional financial statements and analyses. At the same time, a group of mainstream institutional investors has encouraged a movement to incorporate environmental, social, and governance information into equity analysis, and multi-stakeholder groups have supported enhanced business reporting on these issues. The majority of research in this area has been performed on European and Australian firms. We expand on this literature by exploring the CSR disclosure practices of a size- and industry-stratified sample of 50 publicly traded U.S. firms, performing a content analysis on the complete identifiable public information portfolio provided by these firms during 2004. CSR activity was disclosed by most firms in the sample, and was included in nearly half of public disclosures made during that year by the sample firms. Areas of particular emphasis are community matters, health and safety, diversity and human resources (HR) matters, and environmental programs. The primary venues of disclosure are mass media releases such as corporate websites and press releases, followed closely by disclosures contained in mandatory filings. Consistent with prior research, we identify industry effects in terms of content, emphasis, and reporting format choices. Unlike prior research, we can offer only mixed evidence on the existence of a size effect. The disclosure frequency and emphasis is significantly different for the largest one-fifth of the firms, but no identifiable trends are present within the rest of the sample. There are, however, identifiable size effects with respect to reporting format choice. Use of websites is positively related to firm size, while the use of mandatory filings is negatively related to firm size. Finally, and also consistent with prior literature, we document a generally self-laudatory tone in the content of CSR disclosures for the sample firms.

Peculiar Strengths and Relational Attributes of SMEs in the Context of CSR

Abstract: The spotlight in the CSR discourse has traditionally been focused on multinational corporations (MNCs) This paper builds on a burgeoning stream of literature that has accorded recent attention to the relevance and importance of integrating small and medium enterprises (SMEs) in the CSR debate The paper begins by an overview of the CSR literature and a synthesis of relevant evidence pertaining to the peculiarities and special relational attributes of SMEs in the context of CSR Noting the thin theoretical grounding in the literature on offer, the paper then presents relevant CSR theoretical perspectives that could be useful in conducting further research on SMEs In light of this framework, the paper outlines the findings of an empirical study highlighting the peculiar CSR orientations of SMEs in a developing country context in comparison to some of their MNC counterparts The study is qualitative in nature, capitalizing on a comparative research design to highlight differences in CSR orientations between SMEs and MNCs The findings are presented and implications are drawn regarding the peculiar relational attributes of SMEs in the context of CSR generally, and developing countries more specifically, and how this inclination can be further nurtured and leveraged

Marketing Communications and Corporate Social Responsibility (CSR): Marriage of Convenience or Shotgun Wedding?

Abstract: This paper aims to examine the role(s) that the various vehicles of marketing communications can play with respect to communicating, publicising and highlighting organisational CSR policies to its various stakeholders. It will further endeavour to evaluate the impact of such communications on an organisation’s corporate reputation and brand image. The proliferation of unsubstantiated ethical claims and so-called ‘green washing’ by some companies has resulted in increasing consumer cynicism and mistrust. This has made the task of communicating with, and more importantly convincing, an organisation’s stakeholders vis-a-vis its CSR credentials even more difficult. This paper argues that marketing communications tools can play a major role in conveying a company’s CSR messages and communicating a more socially responsible image.

Theorising Corporate Social Responsibility as an Essentially Contested Concept: Is a Definition Necessary?

Abstract: Corporate social responsibility (CSR) has become indispensable in modern business discourse; yet identifying and defining what CSR means is open to contest. Although such contestation is not uncommon with concepts found in the social sciences, for CSR it presents some difficulty for theoretical and empirical analysis, especially with regards to verifying that diverse application of the concept is consistent or concomitant. On the other hand, it seems unfeasible that the diversity of issues addressed under the CSR umbrella would yield to a singular universal definition. Gallie, an eminent philosophical scholar, proposed the essentially contested concepts (ECC) theory in 1956 to address concepts that by their very nature engender perpetual disputes. He pointed out that there are certain concepts which by their very nature are inevitably contested and prescribed seven criteria for evaluating such concepts. This article examines these criteria to discover if CSR is an essentially contested concept and in that case, to construe if such a change in perception will resolve the definitional crisis. The analysis suggests that CSR is an ECC and this explains the potential for several conceptions of CSR, however, it does not totally obviate the need for a definition of its core or common reference point, if only to ensure that the contestants are dealing with an identical subject matter.

The Impact of Chinese Culture on Corporate Social Responsibility: The Harmony Approach

Abstract: Although the history of adopting the Western Corporate Social Responsibility (CSR) concept in China spans less than 20 years, the core principles of CSR are not new and can be legitimately interpreted within traditional Chinese culture We find that the Western CSR concepts do not adapt well to the Chinese market, because they have rarely defined the primary reason for CSR well, and the etic approach to CSR concepts does not take the Chinese reality and culture into consideration This article resolves these problems and contributes a new definition of CSR, called here – the Harmony Approach to CSR Simply, the Chinese harmony approach to CSR means ‘respecting nature and loving people’ It is the first time CSR has been defined in relation to Confucian interpersonal harmony and Taoist harmony between man and nature Conceptually, this definition will broaden our understanding and will fit the characteristics of the Chinese market better The idea of incorporating cultural contexts into CSR concepts could also contribute to future CSR studies In business practice, it will help corporations to adopt CSR on their own initiative The proposed virtues of traditional Chinese wisdom, in particular, will guide corporations to a new way of improving their CSR performance

Corporate Motives for Social Initiative: Legitimacy, Sustainability, or the Bottom Line?

Abstract: This article presents results of exploratory research conducted with managers from over 500 Norwegian companies to examine corporate motives for engaging in social initiatives. Three key questions were addressed. First, what do managers in this sample see as the primary reasons their companies engage in activities that benefit society? Second, do motives for such social initiative vary across the industries represented? Third, can further empirical support be provided for the theoretical classifications of social initiative motives outlined in the literature? Previous research on the topic is reviewed, study methods are described, results are presented, and implications of findings are discussed. The article concludes with the analysis of study limitations and directions for future research.

The Role of Personal Values in Fair Trade Consumption

Abstract: Research in the U.S. on fair trade consumption is sparse. Therefore, little is known as to what motivates U.S. consumers to buy fair trade products. This study sought to determine which values are salient to American fair trade consumption. The data were gathered via a Web-based version of the Schwartz Value Survey (SVS) and were gleaned from actual consumers who purchase fair trade products from a range of Internet-based fair trade retailers. This study established that indeed there are significant interactions between personal values and fair trade consumption and that demographics proved to be useless in creating a profile of the American fair trade consumer.

Greening the Corporation Through Organizational Citizenship Behaviors

Abstract: Organizational citizenship behaviors have been the topic of much research attempting to understand the motivations, manifestations, and impacts of these behaviors on organizational development. However, studies have been based essentially on an anthropocentric and intra-organizational perspective that tends to ignore broader environmental issues. Due to the complexity of environmental issues and their human, informal, and preventive aspects, consideration of these issues requires voluntary and decentralized initiatives that draw on organizational citizenship behaviors. The role of these behaviors has been neglected, or even ignored, in studies of environmental management, which have focused mainly on the explicit, formal, and prescriptive aspects of organizations. The aim of this article is to shed light on the pertinence of organizational citizenship behaviors in improving the efficacy and efficiency of environmental management. The article discusses how the principal dimensions of these behaviors can be applied to the environmental practices of organizations and underlines their importance in responding to essential challenges of environmental management, including the complexity of environmental issues, limitations of formal management systems, the need to consider tacit knowledge, the importance of helping relationships, and the promotion of␣social legitimacy among organizations. Measures to encourage eco-efficiency and establish a favorable context for the emergence of citizenship behaviors are also proposed.

Corporate Social Responsibility: An Empirical Investigation of U.S. Organizations

Abstract: Organizations that believe they should “give something back” to the society have embraced the concept of corporate social responsibility (CSR) Although the theoretical underpinnings of CSR have been frequently debated, empirical studies often involve only limited aspects, implying that theory may not be congruent with actual practices and may impede understanding and further development of CSR The authors investigate actual CSR practices related to five different stakeholder groups, develop an instrument to measure those CSR practices, and apply it to a survey of 401 US organizations Four different clusters of organizations emerge, depending on the CSR practice focus The distinctive features of each cluster relate to organizational demographics, perceived influence of stakeholders, managers’ perceptions of the influence of CSR on performance, and organizational performance

Causality Between Corporate Social Performance and Financial Performance: Evidence from Canadian Firms

Abstract: This study assesses the causal relationship between corporate social performance (CSP) and financial performance (FP). We perform our empirical analyses on a sample of 179 publicly held Canadian firms and use the measures of CSP provided by Canadian Social Investment Database for the years 2004 and 2005. Using the “Granger causality” approach, we find no significant relationship between a composite measure of a firm’s CSP and FP, except for market returns. However, using individual measures of CSP, we find a robust significant negative impact of the environmental dimension of CSP and three measures of FP, namely return on assets, return on equity, and market returns. This latter finding is consistent, at least in the short run, with the trade-off hypothesis and, in part, with the negative synergy hypothesis which states that socially responsible firms experience lower profits and reduced shareholder wealth, which in turn limits the socially responsible investments.