Showing papers in "Journal of Business Ethics in 2010"

The Impact of Board Diversity and Gender Composition on Corporate Social Responsibility and Firm Reputation

Abstract: This article explores how the diversity of board resources and the number of women on boards affect firms’ corporate social responsibility (CSR) ratings, and how, in turn, CSR influences corporate reputation. In addition, this article examines whether CSR ratings mediate the relationships among board resource diversity, gender composition, and corporate reputation. The OLS regression results using lagged data for independent and control variables were statistically significant for the gender composition hypotheses, but not for the resource diversity-based hypotheses. CSR ratings had a positive impact on reputation and mediated the relationship between the number of women on the board and corporate reputation.

Corporate Social Responsibility as a Conflict between Shareholders

Abstract: In recent years, firms have greatly increased the amount of resources allocated to activities classified as Corporate Social Responsibility (CSR). While an increase in CSR expenditure may be consistent with firm value maximization if it is a response to changes in stakeholders’ preferences, we argue that a firm’s insiders (managers and large blockholders) may seek to over- invest in CSR for their private benefit to the extent that doing so improves their reputations as good global citizens and has a “warm-glow” effect. We test this hypothesis by investigating the relation between firms’ CSR ratings and their ownership and capital structures. Employing a unique data set that categorizes the largest 3000 U.S. corporations as either socially responsible (SR) or socially irresponsible (SI), we find that on average, insiders’ ownership and leverage are negatively related to the firm’s social rating, while institutional ownership is uncorrelated with it. Assuming that higher CSR ratings is associated with higher CSR expenditure level, these results support our hypothesis that insiders induce firms to over-invest in CSR when they bear little of the cost of doing so.

The Drivers of Green Brand Equity: Green Brand Image, Green Satisfaction, and Green Trust

Abstract: This article proposed four novel constructs – green brand image, green satisfaction, green trust, and green brand equity, and explored the positive relationships between green brand equity and its three drivers – green brand image, green satisfaction, and green trust. The object of this research study was information and electronics products in Taiwan. This research employed an empirical study by use of the questionnaire survey method. The questionnaires were randomly mailed to consumers who had the experience of purchasing information and electronics products. The results showed that green brand image, green satisfaction, and green trust are positively related to green brand equity. Furthermore, the positive relationship between green brand image and green brand equity is partially mediated by green satisfaction and green trust. Hence, investing on resources to increase green brand image, green satisfaction, and green trust is helpful to enhance green brand equity.

Why Ethical Consumers Don’t Walk Their Talk: Towards a Framework for Understanding the Gap Between the Ethical Purchase Intentions and Actual Buying Behaviour of Ethically Minded Consumers

Abstract: Despite their ethical intentions, ethically minded consumers rarely purchase ethical products (Auger and Devinney: 2007, Journal of Business Ethics 76, 361–383). This intentions–behaviour gap is important to researchers and industry, yet poorly understood (Belk et al.: 2005, Consumption, Markets and Culture 8(3), 275–289). In order to push the understanding of ethical consumption forward, we draw on what is known about the intention–behaviour gap from the social psychology and consumer behaviour literatures and apply these insights to ethical consumerism. We bring together three separate insights – implementation intentions (Gollwitzer: 1999, American Psychologist 54(7), 493–503), actual behavioural control (ABC) (Ajzen and Madden: 1986, Journal of Experimental Social Psychology 22, 453–474; Sheeran et al.: 2003, Journal of Social Psychology, 42, 393–410) and situational context (SC) (Belk: 1975, Journal of Consumer Research 2, 157–164) – to construct an integrated, holistic conceptual model of the intention–behaviour gap of ethically minded consumers. This holistic conceptual model addresses significant limitations within the ethical consumerism literature, and moves the understanding of ethical consumer behaviour forward. Further, the operationalisation of this model offers insight and strategic direction for marketing managers attempting to bridge the intention–behaviour gap of the ethically minded consumer.

Mainstreaming Green Product Innovation: Why and How Companies Integrate Environmental Sustainability

Abstract: Green product innovation has been recognized as one of the key factors to achieve growth, environmental sustainability, and a better quality of life. Understanding green product innovation as a result of interaction between innovation and sustainability has become a strategic priority for theory and practice. This article investigates green product innovation by means of a multiple case study analysis of 12 small to medium size manufacturing companies based in Italy and Canada. First, we propose a conceptual framework that presents three key environmental dimensions of green product innovation such as energy minimization, materials reduction, and pollution prevention as identified in the life cycle phases of products. Based on insights gained from in-depth interviews, we discuss firms’ motivations to develop green products, environmental policies and targets for products, different dimensions of green product innovation, and challenges faced during developing and marketing of green products. Results from the study are then synthesized and integrated in a toolbox that sheds light on various aspects of green product innovation and provides solutions to challenges and risks that are faced by firms. Finally, implications for managers, academia and public policy makers are discussed.

The Effects of Corporate Social Responsibility on Brand Performance: The Mediating Effect of Industrial Brand Equity and Corporate Reputation

Abstract: In this article, the researchers explore the following question Can corporate social responsibility (CSR) and the corporate reputation of a firm lead to its brand equity in business-to-business (B2B) markets? This study discusses CSR from customers’ viewpoints by taking the sample of industrial purchasers from Taiwan small-medium enterprises The aims of this study are to investigate: first, the effects of CSR and corporate reputation on industrial brand equity; second, the effects of CSR, corporate reputation, and brand equity on brand performance; and third, the mediating effects of corporate reputation and industrial brand equity on the relationship between CSR and brand performance Empirical results support the study’s hypotheses and indicate that CSR and corporate reputation have positive effects on industrial brand equity and brand performance In addition, corporate reputation and industrial brand equity partially mediate the relationship between CSR and brand performance

Does Corporate Social Responsibility Influence Firm Performance of Indian Companies

Abstract: This study examines whether corporate social responsibility (CSR) towards primary stakeholders influences the financial and the non-financial performance (NFP) of Indian firms. Perceptual data on CSR and NFP were collected from 150 senior-level Indian managers including CEOs through questionnaire survey. Hard data on financial performance (FP) of the companies were obtained from secondary sources. A questionnaire for assessing CSR was developed with respect to six stakeholder groups – employees, customers, investors, community, natural environment, and suppliers. A composite measure of CSR was obtained by aggregating the six dimensions. Findings indicate that stock-listed firms show responsible business practices and better FP than the non-stock-listed firms. Controlling confounding effects of stock-listing, ownership, and firm size, a favorable perception of managers towards CSR is found to be associated with increase in FP and NFP of firms. Such findings hold good when CSR is assessed for the six stakeholder groups in aggregate and for each stakeholder group in segregate. Findings suggest that responsible business practices towards primary stakeholders can be profitable and beneficial to Indian firms.

Investigating stakeholder theory and social capital: Csr in large firms and smes

Abstract: The concept of corporate social responsibility (CSR) has been widely investigated, but a generally accepted theoretical framework does not yet exist. This paper argues that the idiosyncrasies of large firms and SMEs explains the different approaches to CSR, and that the notion of social capital is a more useful way of understanding the CSR approach of SMEs, whereas stakeholder theory more closely addresses the CSR approach of large firms. Based on the extant literature, we present a comparison of large firm and SME idiosyncrasies suggesting that both consolidated and emerging strategic orientations toward responsible behaviours exist. Idiosyncrasies of large firms and SMEs are also discussed to provide an assessment of the firm’s strategic CSR orientation, suggesting the key drivers upon which CSR strategies must be based. A twofold consideration emerges. First, the CSR–SME relationship could be better explained if the notion of social capital is taken into account, but this should also be accompanied by a stakeholder view of the SME; second, social capital and stakeholder theory should be taken as alternative ways of explaining CSR in both large firms and SMEs.

Corporate Social Responsibility and Employee–Company Identification

Abstract: This study proposes two identification cuing factors (i.e., CSR associations and CSR participation) to understand how corporate social responsibility (CSR) relates to employees’ identification with their firm. The results reveal that a firm’s CSR initiatives increase employee–company identification (E–C identification). E–C identification, in turn, influences employees’ commitment to their company. However, CSR associations do not directly influence employees’ identification with a firm, but rather influence their identification through perceived external prestige (PEP). Compared to CSR associations, CSR participation has a direct influence on E–C identification. On the basis of these findings, it is argued that CSR performance can be an effective way for companies to maintain a positive relationship with their employees.

The Influence of Personality Traits and Demographic Factors on Social Entrepreneurship Start Up Intentions

Abstract: The sheer impact of the recent global financial turmoil and scandals (such as Enron and WorldCom) has demonstrated that unbridled commercial entrepreneurs who are allowed to pursue their short-term opportunities regardless of the consequences has led to a massive depreciation of the wealth of nations, social livelihood and environmental degradation. This article suggests that the time has come for entrepreneurs to adopt a more integrative view of business that blends economic, social and environmental values. Social entrepreneurs present such a proposition through their deep commitment towards the social vision, appreciation of sustainable practices, innovativeness, ability to build social networks and also generate viable financial returns. It could be expected that social entrepreneurs often possess certain distinct personality characteristics which define their behaviours/actions. Personality traits are partly developed by innate nurturing, socialization and education. These tacit traits are also formed values/beliefs held and play an important role in driving social entrepreneurial decision making. Thus, personality traits may influence the intentions and the manner in which the individual acts. We hold that if social entrepreneurship is to be effective and impactful, business and management education can facilitate the development of these critical personality traits. Thus, this study primes at determining the personality traits that influence social entrepreneurs’ start-up intentions. It also reinforces the findings that personality traits do influence entrepreneurship in general. This study examines the influence of the Big Five personality traits on social entrepreneurship dimensions. The findings reveal that agreeableness positively influences all dimensions of social entrepreneurship, whereas openness exerts a positive influence on social vision, innovation and financial returns. Methodologically, this study develops valid and reliable scales for social entrepreneurship and verifies the adopted Big Five personality measure of Schmit et al. (Pers Psychol 53:153–193, 2000) using the five-point Likert scale. The implication of this study is that element of appreciation of social responsibility, sustainability and character development needs to be integrated within the business education curriculum to support social entrepreneurs in realizing genuine value and impact to the causes and communities they serve. Future business leaders also need to be equipped with entrepreneurship skills, while exuding independent and reflective thinking in the pursuit life-long learning. The originality of this study lies in its focus on personality traits on social rather than commercial entrepreneurship. It is hoped that the findings will trigger a paradigm shift towards greater social entrepreneurship through education by nurturing sustainable development values in future business graduates.

Corporate Social Responsibility in Western Europe: An Institutional Mirror or Substitute?

Abstract: In spite of extensive research on corporate social responsibility (CSR) and its link with economic and social performance, few studies have investigated the institutional determinants of CSR. This article draws upon neo-institutional theory and comparative institutional analysis to compare the influence of different institutional environments on CSR policies of European firms. On the basis of a dataset of European firms, we find that firms from the more liberal market economies of the Anglo-Saxon countries score higher on most dimensions of CSR than firms in the more coordinated market economies (CMEs) in Continental Europe. This result lends support to the view of voluntary CSR practices in liberal economies as being a substitute for institutionalized forms of stakeholder participation. Meanwhile, CSR tends not to mirror more institutionalized forms of stakeholder coordination. Instead, in CMEs, CSR often takes on more implicit forms. Our analysis also shows that national institutional and sectoral-level factors have an asymmetric effect – strongly influencing the likelihood of firms adopting ‘minimum standards’ of CSR, but having little influence on the adoption of ‘best practices’.

Spirituality and Performance in Organizations: A Literature Review.

Abstract: The purpose of this article is to review spirituality at work literature and to explore how spirituality improves employees’ performances and organizational effectiveness. The article reviews about 140 articles on workplace spirituality to review their findings on how spirituality supports organizational performance. Three different perspectives are introduced on how spirituality benefits employees and supports organizational performance based on the extant literature: (a) Spirituality enhances employee well-being and quality of life; (b) Spirituality provides employees a sense of purpose and meaning at work; (c) Spirituality provides employees a sense of interconnectedness and community. The article introduces potential benefits and caveats of bringing spirituality into the workplace; providing recommendations and suggestions for practitioners to incorporate spirituality positively in organizations.

Corporate Social Responsibility, Ownership Structure, and Political Interference: Evidence from China

Abstract: Prior research suggests that ownership structure is associated to corporate social responsibility (CSR) in developed countries. This article examines whether and how ownership structure affects CSR in emerging markets using Chinese firms’ social responsibility ranking. Our empirical evidences show that for non-state-owned firms, corporate ownership dispersion is positively associated to CSR. However, for state-owned firms, whose controlling shareholder is the state, this relation is reversed. We attribute the reversed relationship to political interferences and further test this hypothesis by demonstrating that regional economic development is negatively related to CSR for state-owned firms due to decreased political interference in more developed areas. This study is the first to directly examine the relationship between the dispersion of corporate ownership and CSR in emerging markets, and our results depict that it is important to consider ownership type in assessing CSR in emerging market where state ownership is still prevalent such as China. The results also reveal that firm size, profitability, employee power, leverage, and growth opportunity affect CSR in China.

The Role of the Board of Directors in Disseminating Relevant Information on Greenhouse Gases

Abstract: In today’s world, the corporate image of the largest companies is closely linked to their performance in the field of corporate social responsibility and the disclosure of information on that topic, specifically, on climate change. Since the Board of Directors is the body responsible for this process, the aim of this article is to show the role that companies’ Boards of Directors play in the accountability process vis-a-vis stakeholders in relation to one specific aspect which has enormous significance in environmental information: practices used to monitor greenhouse gas emissions. In order to achieve this, we shall verify certain business characteristics, in addition to the size and activity of the Board of Directors, and we shall take different dependence models into consideration. These models will include variables related to the level of independence and diversity of the Board of Directors, which interact with dummy variables representing the company’s litigation risks regarding environmental behavior and the institutional macro-context of the organization’s country of origin. The results make it clear that Boards of Directors are basically focused on the traditional responsibility of creating economic value, instead of dealing with today’s broader business world concepts, which include social responsibility. This focus, therefore, does not favor the accountability process before other stakeholders, if this makes it more difficult to protect the interests of shareholders.

On the Determinants of Corporate Social Responsibility: International Evidence on the Financial Industry

Abstract: This article sets out to undertake a thorough, point-by-point examination of the theory postulated by Campbell (2007), in which an attempt is made to specify the conditions under which corporations may or may not act in socially responsible ways. In order to ensure the overall reliability of our study, and to attempt to provide a new understanding of, and greater insights into, whether corporate social responsibility (CSR) is affected by financial and institutional variables, we empirically investigate a total of 520 financial firms in 34 countries, between the years 2003 and 2005. Our empirical findings are: (i) firms with larger size are more CSR minded, and the financial performance and CSR are not related; (ii) firms would actually act in more socially responsible ways to enhance their competitive advantages when the market competitiveness is more intense; (iii) financial firms in countries with stronger levels of legal enforcement tend to engage in more CSR activities; however, interestingly and rather strikingly, those firms in countries with stronger shareholder rights tend to engage in less CSR activities; and (iv) self-regulation within the financial industry has a significantly positive effect on CSR, with firms being found to act in more socially responsible ways in those countries which have more cooperative employer–employee relations, higher quality management schools, and a better macroeconomic environment.

Does Social Performance Really Lead to Financial Performance? Accounting for Endogeneity

Abstract: The empirical relationship between a firm’s social performance and its financial performance is still not well established in the literature. Despite more than 30 years of research and more than 100 empirical studies on the issue, the results are still mixed. We argue that the heterogeneous results found in previous studies are not due exclusively to problems related with the measurement instruments or the samples used. Instead, we posit that a more fundamental problem related with the endogeneity of social strategic decisions could be driving most of the empirical findings. We show that, using a panel data of 658 firms from 1991 to 2005, how some of the results found in previous research change, and some are even reversed when endogeneity is properly taken into account.

Examining the Link Between Ethical Leadership and Employee Misconduct: The Mediating Role of Ethical Climate

Abstract: Drawing on theory and research on ethical leadership and ethical climate, we examine ethical climate as a mediator of the relationship between ethical leadership and employee misconduct. Using a sample of 1,525 employees and their supervisors in 300 units in different organizations, we find support for our hypothesized model. We discuss theoretical and practical implications of these findings.

Drivers of Environmental Disclosure and Stakeholder Expectation: Evidence from Taiwan

Abstract: This article investigates stakeholder expectations associated with corporate environmental disclosure. Several articles have studied the effect that stakeholder pressure has on environmental disclosing strategies. In this article, we extend previous research to an examination of the influence of external, internal, and intermediary stakeholder groups or constituencies in turn to clarify the demands of multiple stakeholders as to firms’ disclosure of sufficient and adequate environmental information. The sample comprised Taiwanese firms listed on the Taiwan Stock Exchange. Our results show that the level of environmental disclosure is significantly affected by stakeholder groups’ demands. External stakeholder groups, such as the government, debtors, and consumers, exert a strong influence over management intentions regarding the extent of environmental disclosure. Internal stakeholder groups, such as shareholders and employees, impose additional pressures on firms to disclose environmental information. As for intermediate stakeholder groups, environmental protection organizations, and accounting firms, these can greatly influence managerial choices regarding their environmental disclosure strategies.

Toward a More Coherent Understanding of the Organization–Society Relationship: A Theoretical Consideration for Social and Environmental Accounting Research

Abstract: In this study we analyze the overlapping perspectives of legitimacy theory, institutional theory, resource dependence theory, and stakeholder theory. Our purpose is to explore how these theories can inform and be built upon by one another. Through our analysis we provide a broader theoretical understanding of these theories that may support and promote social and environmental accounting research. This article starts with a detailed analysis of legitimacy theory by bringing some recent critical discussions on legitimacy and corporations in the management literature into accounting research. The notion forwarded by legitimacy theory then serves as an overarching concept to examine the relationship between and among theories. We conclude that two theoretical considerations are important for future social and environmental accounting research. First, it must be acknowledged that some business entities initiate social activities based on direct interactions with stakeholders, whereas others may also undertake similar activities to manage their societal level of legitimacy. Second, from analyzing the perspectives of legitimacy theory, institutional theory, resource dependence theory, and stakeholder theory, it is possible to reach compatible interpretations of business social phenomena, and the selection and application of these theories should depend upon the focus of study.

The Impact of CEO Characteristics on Corporate Social Performance

Abstract: While there are growing bodies of research examining both the differences between strongly and poorly socially performing firms, and the impact of firm leaders on other strategic outcomes, little has been done in examining the effect of firm leaders on corporate social performance (CSP). This study directly addresses this issue by using upper echelon theory, and the KLD Research Analytics CSP ratings, to show that observable CEO characteristics predict differences in CSP between firms, even when firm and industry characteristics are controlled for. Using a sample of 650 public US firms I find that strong or exemplary CSP, as measured by the strengths categories of KLD’s ratings, is positively related to the CEO having a bachelor’s degree in humanities, having a breadth of career experience and being female. I find that KLD strength ratings are negatively related to the CEO having a bachelor’s degree in economics and to their level of short-term compensation. Preliminary tests of causality support the assertion that these effects reflect CEO discretion rather than being an artifact of reverse causality. Significant relationships between the CEO characteristics and poor social performance as measured by the concerns categories of KLD’s ratings are not found. This suggests that CEOs have more discretion in influencing strong and exemplary social performance than in impacting poor CSP. Implications, particularly for economics education, are discussed. While there are many fruitful directions for future research, the benefits and challenges to conducting similar studies in other countries is focused upon to correspond to the global nature of this special issue.

When Suits Meet Roots: The Antecedents and Consequences of Community Engagement Strategy

Abstract: Understanding firms’ interfaces with the community has become a familiar strategic concern for both firms and non-profit organizations. However, it is still not clear when different community engagement strategies are appropriate or how such strategies might benefit the firm and community. In this review, we examine when, how and why firms benefit from community engagement strategies through a systematic review of over 200 academic and practitioner knowledge sources on the antecedents and consequences of community engagement strategy. We analytically describe evidence on the rise of the community engagement strategy literature over time, its geographical spread and methodological evolution. A foundational concept underlying many studies is the ‘continuum of community engagement’. We build on this continuum to develop a typology of three engagement strategies: transactional, transitional and transformational engagement. By identifying the antecedents and outcomes of the three strategies, we find that the payoffs from engagement are largely longer-term enhanced firm legitimacy, rather than immediate cost–benefit improvements. We use our systematic review to draw implications for future research and managerial practice.

The Interactive Effect of Internal and External Factors on a Proactive Environmental Strategy and its Influence on a Firm's Performance

Abstract: While the literature on the effective management of business and natural environment interfaces is rich and growing, there are still two questions regarding which the literature has yet to reach a definitive conclusion: (1) what is the interactive effect between internal and external drivers on a proactive environmental strategy (PES)? and (2) does a PES influence firm's performance? Drawing on the resource-based view for the internal drivers’ perspective and institutional and legitimacy theories for the external drivers’ perspective, this study suggests that the effect of entrepreneurial orientation on a PES is moderated by the intensity of government regulations and customers’ sensitivity to environmental issues. The authors also examine the relationship between the PES and a firm's performance in terms of sales and profit growth. Implications are discussed regarding the role of a PES in achieving a competitive advantage in the marketplace.

Communication of Corporate Social Responsibility: A Study of the Views of Management Teams in Large Companies

Abstract: In light of the many corporate scandals, social and ethical commitment of society has increased considerably, which puts pressure on companies to communicate information related to corporate social responsibility (CSR). The reasons underlying the decision by management teams to engage in ethical communication are scarcely focussed on. Thus, grounded on legitimacy and stakeholder theory, this study analyses the views management teams in large listed companies have on communication of CSR. The focus is on aspects on interest, motives/reasons, users and problems related to corporate communication of CSR information. A questionnaire survey and in-depth interviews confirm that there is a distinct trend shift towards more focus on CSR in corporate communication. Whilst this trend shift started as a reactive approach initiated by the many corporate scandals, the trend shift is now argued to be of a proactive nature focussed at preventing legitimacy concerns to arise. These findings are significant and interesting, implying that we are witnessing a transit period between two legitimacy strategies. Furthermore, the findings suggest that the way respondents argue when it comes to CSR activities coincides with consequentialism or utilitarianism, i.e. companies engage in CSR activities to avoid negative impacts instead of being driven by a will to make a social betterment or acting in accordance with what is fundamentally believed to be right to do. This provides new input to the ongoing debate about business ethics. The findings should alert national and international policy makers to the need both to increase the vigilance and capacity of the regulatory and judicial systems in the CSR context and to increase institutional pressure to enhance CSR adoption and CSR communication. Furthermore, stakeholders need to be careful in assuming that CSR communication is an evidence of a CSR commitment influencing corporate behaviour and increasing business ethics.

In the Moment: The Effect of Mindfulness on Ethical Decision Making

Abstract: Many unethical decisions stem from a lack of awareness. In this article, we consider how mindfulness, an individual’s awareness of his or her present experience, impacts ethical decision making. In our first study, we demonstrate that compared to individuals low in mindfulness, individuals high in mindfulness report that they are more likely to act ethically, are more likely to value upholding ethical standards (self-importance of moral identity, SMI), and are more likely to use a principled approach to ethical decision making (formalism). In our second study, we test this relationship with a novel behavioral measure of unethical behavior: the carbonless anagram method (CAM). We find that of participants who cheated, compared to individuals low in mindfulness, individuals high in mindfulness cheated less. Taken together, our results demonstrate important connections between mindfulness and ethical decision making.

The CSR of MNC Subsidiaries in Developing Countries: Global, Local, Substantive or Diluted?

Abstract: With the advent of globalization, the track record of multinational corporations (MNCs) has been mixed at best in relation to their Corporate Social Responsibility (CSR) involvement in developing countries. This article attempts to cross-fertilize insights from the business-society and international business political behavior literature streams to identify relevant dimensions and contingencies that can be used to analyze the CSR of MNCs in developing countries and the extent of standardization or localization of their strategies. The article makes use of the new theoretical framework in the context of an interpretive research methodology to examine the CSR orientations of a sample of MNC subsidiaries in Lebanon. The findings reveal patterns of global CSR being diffused to developing countries, but also being diluted along the way in view of specific subsidiary endowments and host market characteristics.

The Effect of R&D Intensity on Corporate Social Responsibility

Abstract: This study examines the impact that research and development (R&D) intensity has on corporate social responsibility (CSR). We base our research on the resource-based view (RBV) theory, which contributes to our analysis of R&D intensity and CSR because this perspective explicitly recognizes the importance of intangible resources. Both R&D and CSR activities can create assets that provide firms with competitive advantage. Furthermore, the employment of such activities can improve the welfare of the community and satisfy stakeholder expectations, which might vary according to their prevailing environment. As expressions of CSR and R&D vary throughout industries, we extend our research by analysing the impact that R&D intensity has on CSR across both manufacturing and non-manufacturing industries. Our results show that R&D intensity positively affects CSR and that this relationship is significant in manufacturing industries, while a non-significant result was obtained in non-manufacturing industries.

Employer’s Use of Social Networking Sites: A Socially Irresponsible Practice

Abstract: The Internet has drastically changed how people interact, communicate, conduct business, seek jobs, find partners, and shop. Millions of people are using social networking sites to connect with others, and employers are using these sites as a source of background information on job applicants. Employers report making decisions not to hire people based on the information posted on social networking sites. Few employers have policies in place to govern when and how these online character checks should be used and how to ensure that the information viewed is accurate. In this article, we explore how these inexpensive, informal online character checks are harmful to society. Guidance is provided to employers on when and how to use these sites in a socially responsible manner.

Corporate Social Responsibility: Is it Rewarded by the Corporate Bond Market? A Critical Note

Abstract: The question of whether corporate social responsibility (CSR) has a positive impact on firm value has been almost exclusively analysed from the perspective of the stock market. We have therefore investigated the relationship between the valuation of Euro corporate bonds and the standards of CSR of mainly European companies for the first time in this article. Generally, the debt market exhibits a considerable weight for corporate finance, for which reason creditors should basically play a significant role in the transmission of CSR into the valuation of financial instruments. Given that socially responsible firms are often regarded as economically more successful and less risky, they should have lower risk premia. The results of the empirical analysis, however, reveal that based on an extensive data panel the risk premium for socially responsible firms – according to the classification by SAM Group – was ceterius paribus higher than for non-socially responsible companies. However, only one case of the models investigated was weakly significant. Thus, largely the relationship has to be classified as marginal; so CSR has apparently not yet been incorporated into the pricing of corporate bonds.

Beyond the Game: Perceptions and Practices of Corporate Social Responsibility in the Professional Sport Industry

Abstract: Corporate social responsibility (CSR) is an area of great interest, yet little is known about how CSR is perceived and practiced in the professional sport industry. This study employs a mixed-methods approach, including a survey, and a qualitative content analysis of responses to open-ended questions, to explore how professional sport executives define CSR, and what priorities teams have regarding their CSR activities. Findings from this study indicate that sport executives placed different emphases on elements of CSR including a focus on philanthropic activities and ethical behaviors. The data suggest that professional sport executives view CSR as a strategic imperative for their business. Sport executives indicated that a number of factors influenced the practice of their CSR including: philanthropy (altruistic giving), an emphasis on the local community, partnerships, and ethical concerns. We also examine important organizational variables for sport (winning, revenues, and team value) and highlight their relationship with reported CSR involvement. We discuss the implications of the findings and propose recommendations for both theory and practice.

Corporate Philanthropic Giving, Advertising Intensity, and Industry Competition Level

Abstract: This article examines whether the likelihood and amount of firm charitable giving in response to catastrophic events are related to firm advertising intensity, and whether industry competition level moderates this relationship. Using data on Chinese firms’ philanthropic response to the 2008 Sichuan earthquake, we find that firm advertising intensity is positively associated with both the probability and the amount of corporate giving. The results also indicate that this positive advertising intensity-philanthropic giving relationship is stronger in competitive industries, and firms in competitive industries are more likely to donate. This study thus provides evidence suggesting that even in the wake of catastrophic events, corporate philanthropic giving is strategic.