Individual Competencies for Corporate Social Responsibility: A Literature and Practice Perspective

Because corporate social responsibility (CSR) can be beneficial to both companies and its stakeholders, interest in factors that support CSR performance has grown in recent years. A thorough integration of CSR in core business processes is particularly important for achieving effective long-term CSR practices. Here, we explored the individual CSR-related competencies that support CSR implementation in a corporate context. First, a systematic literature review was performed in which relevant scientific articles were identified and analyzed. Next, 28 CSR directors and managers were interviewed. The literature review complemented with interview data resulted in the following eight distinct CSR-related competencies: (1)Anticipating CSR challenges; (2) Understanding CSR-relevant systems and subsystems; (3) Understanding CSR-relevant standards; (4) CSR management competencies, including (4a) Leading CSR programs, (4b) Managing CSR programs, and (4c) Identifying and realizing CSR-related business opportunities; (5) Realizing CSR-supportive interpersonal processes; (6) Employing CSR-supportive personal characteristics and attitudes; (7) Personal value-driven competencies, including (7a) Ethical normative competencies, (7b) Balancing personal ethical values and business objectives, and (7c) Realizing self-regulated CSR-related behaviors and active involvement; and (8) Reflecting on personal CSR views and experiences. Based on these results, implications for further research on this topic, as well as implications for practitioners, are discussed.     

Rebuilding Trust: Ireland’s CSR Plan in the Light of <Emphasis Type="Italic">Caritas in Veritate</Emphasis>

This paper seeks to contribute to the discussion on national corporate social responsibility (CSR) plans from the perspectives of the three logics as articulated in Caritas in Veritate, by using the Irish national CSR plan as an example. Good for Business, Good for the Community: Ireland’s National Plan on Corporate Social Responsibility 2014–2016 maintains that CSR activities can enable organisations to build relationships and trust with communities. One of the consequences of the 2008 financial crisis was the decrease in trust in banking systems and in business more broadly. It is well recognised that relationships of trust are essential to the life of the market, the state and civil society. Pope Emeritus Benedict XVI’s Caritas in Veritate contends that corresponding to the life of the market, the state and civil society are three logics: the logic of exchange (i.e. giving to acquire), the logic of public obligation (i.e. giving through duty) and the logic of gift (i.e. giving due to solidarity). This paper proposes that the normative framework of the three logics of Caritas in Veritate can be read into the Irish national CSR plan. This paper argues that the examples of CSR initiatives proffered by the plan could point organisations in the direction of the logic of gift and therefore enable the rebuilding of relationships of trust with citizens and communities.     

Business Cases and Corporate Engagement with Sustainability: Differentiating Ethical Motivations

This paper explores links between different ethical motivations and kinds of corporate social responsibility (CSR) activities to distinguish between different types of business cases with regard to sustainability. The design of CSR and corporate sustainability can be based on different ethical foundations and motivations. This paper draws on the framework of Roberts (Organization 10:249–265, 2003) which distinguishes four different ethical management versions of CSR. The first two ethical motivations are driven either by a reactionary concern for the short-term financial interests of the business, or reputational, driven by a narcissistic concern to protect the firm’s image. The third responsible motivation works from the inside-out and seeks to embed social and environmental concerns within the firm’s performance management systems, and the fourth, a collaborative motivation, works to bring the outside in and seeks to go beyond the boundaries of the firm to create a dialogue with those who are vulnerable to the unintended consequences of corporate conduct. Management activities based on these different ethical motivations to CSR and sustainability result in different operational activities for corporations working towards sustainability and thus have very different effects on how the company’s economic performance is influenced. Assuming that corporate managers are concerned about creating business cases for their companies to survive and prosper in the long term, this paper raises the question of how different ethical motivations for designing CSR and corporate sustainability relate to the creation of different business cases. The paper concludes by distinguishing four different kinds of business cases with regard to sustainability: reactionary and reputational business cases of sustainability, and responsible and collaborative business cases for sustainability.     

Investor Reactions to Concurrent Positive and Negative Stakeholder News

This paper examines the impact on firm value created by investor reaction to same day news of corporate social responsibility (CSR) and corporate social irresponsibility (CSiR) activities. First, using trading volume, the authors establish that the perceived value of moral capital generated by news involving institutional (e.g., environmental and community) stakeholders is less clear to investors than that of the news involving technical (e.g., customers and employees) stakeholders. Subsequently, the authors analyze abnormal returns from 565 unique firm events—each comprising at least one positive and one negative stakeholder news item. Using signaling theory, the authors demonstrate that news of the number of CSR activities involving institutional groups counteracts the effects of same day CSiR news in an inverted U-shaped fashion. In contrast, they find that news of the number of CSR activities involving technical groups mitigates the effects of same day CSiR news in a U-shaped fashion.     

Supply Chain Transparency as a Consumer or Corporate Tool: The Case of Nudie Jeans Co

Outsourcing has led both to the embedding of questionable sustainability practices in opaque supply chains and to anti-sweatshop challenges demanding more transparent supply chains. Previous research has argued that supply chain transparency can be both a consumer tool empowering consumers to pressure disclosing firms to improve sustainability conditions and a corporate tool for increasing revenues. Based on a study of the transparency project of Swedish company Nudie Jeans, the authors demonstrate that consumers do not leverage transparency but that transparency improves consumer willingness to buy. In doing this, the authors contribute to the literature in two important ways. First, the authors provide one of the first, if not the first, studies of whether consumers in practice leverage increased supply chain transparency, challenging the previous research claim that supply chain transparency is a useful consumer tool. Second, the authors move beyond studies of purchasing intentions and willingness to buy in experimental settings and confirm that supply chain transparency is a useful corporate tool in practice. The authors conclude by discussing the policy implications of companies being able to use transparency to increase sales without subjecting themselves to increased consumer pressure.     

Unraveling the Competence Development of Corporate Social Responsibility Leaders: The Importance of Peer Learning,Learning Goal Orientation,and Learning Climate

The implementation of corporate social responsibility (CSR) objectives within companies is often managed by a CSR leader or a small team of CSR leaders. The effectiveness of these CSR leaders depends to a large extent on their competencies. Previous studies have identified the competencies these professionals need, yet it remains unclear how these competencies can be developed. Therefore, the aim of this survey study was to reveal how CSR leaders develop their competencies and to explore which learning activities CSR leaders (N = 176) engage in. The results showed that informal learning activities that center on learning with and from peers outside the company are particularly emphasized. In addition, this study examines whether and how dimensions of companies’ learning climates (i.e., facilitating, awarding, and error-avoiding learning climates) and CSR leaders’ learning goal orientation (LGO) affect the competence of CSR leaders. We found significant interaction effects between the learning climate dimensions. Furthermore, we found an even stronger and positive connection between LGO and CSR competence, highlighting the importance of attracting CSR leaders with a strong LGO for driving the CSR implementation process. Moreover, a supportive learning climate further stimulates CSR leaders’ engagement in continuous learning, which is necessary for coping with the complexities associated with implementing CSR.     

A Falling of the Veils: Turning Points and Momentous Turning Points in Leadership and the Creation of CSR

Contemporary organizations often reciprocate to society for using resources and for affecting stakeholders by engaging in corporate social responsibility (CSR). It has been shown that CSR has a positive impact on employee attitudes. However, not all employees may react equally strongly to CSR practices. Based on socio-emotional selectivity theory (Carstensen in Science 312:1913–1915, 2006), we contend that the effect of CSR on employee satisfaction will be more pronounced for older than for younger employees, because CSR practices address those emotional needs and goals that are prioritized when people’s future time perspective decreases. In one multi-source field study (N = 143) and one experimental study (N = 500), we demonstrate that CSR indeed has a stronger positive effect on employee satisfaction for older relative to younger employees. Accordingly, engaging in CSR can be an attractive tool for organizations that aim to keep their aging workforce satisfied with their job.     

The Relation Between Policies Concerning Corporate Social Responsibility (CSR) and Philosophical Moral Theories – An Empirical Investigation

This article examines the relation between policies concerning Corporate Social Responsibility (CSR) and philosophical moral theories. The objective is to determine which moral theories form the basis for CSR policies. Are they based on ethical egoism, libertarianism, utilitarianism or some kind of common-sense morality? In order to address this issue, I conducted an empirical investigation examining the relation between moral theories and CSR policies, in companies engaged in CSR. Based on the empirical data I collected, I start by suggesting some normative arguments used by the respondents. Secondly, I suggest that these moral arguments implicitly rely on some specific moral principles, which I characterise. Thirdly, on the basis of these moral principles, I suggest the moral theories upon which the CSR policies are built. Previous empirical studies examining the relation between philosophical moral theories and the ethical content of business activities have mainly concentrated on the ethical decision-making of managers. Some of the most prominent investigations in that regard propose that managers mainly act in accordance with utilitarian moral theory (Fritzsche, D. J. and H. Becker: 1984, Academy of Management Journal 27(1), 166–175; Premeaux, S. and W. Mony: 1993, Journal of Business Ethics 12, 349–357; Premeaux, S.: 2004, Journal of Business Ethics 52, 269–278). I conclude that CSR policies are not based on utilitarian thinking, but instead, on some kind of common-sense morality. The ethical foundation of companies engaged in CSR, thus, does not mirror the ethical foundation of managers.     

(Re)discovering the Social Responsibility of Business in Germany

The concept of corporate social responsibility (CSR) is a relatively recent addition to the agenda in Germany, although the country has a long history of companies practicing social responsibilities. The expectations of society had remained stable for many years, encapsulated in laws, societal norms, and industrial relations agreements. But the past decade has seen significant changes in Germany, challenging established ways of treating the role of business in society. This contribution reviews and illustrates the development of diverse forms of social responsibility in German corporations and analyzes how actors in business and society can build on traditional strengths to find new institutional arrangements for sharing tasks and responsibilities in the interests of achieving a better balance between societal, economic, and environmental needs.     

Determinants of Consumer Attributions of Corporate Social Responsibility

Prior research has found attributions to mediate the relationship between the elements of corporate social responsibility (CSR) activities and consumer responses to firms; however, the question of what variables determine consumer attributions of CSR remains partially unaddressed. This article analyzes why consumers make attributions of CSR that are either positive (values-driven or strategic motives), or negative (stakeholder-driven or egoistic motives). The results obtained from two empirical studies (n = 197, n = 222) indicate that company–cause fit, corporate ability, and interpersonal trust have a positive influence on the motives that consumers attribute to CSR, whereas corporate hypocrisy has a negative effect. This research contributes to our understanding of the psychological mechanisms underlying impactful consumer judgments and provides guidance for organizations in responding to such evaluations.     

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

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 (e.g., 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 (e.g., Kolk et al.: 2001, Business Strategy and the Environment 10, 15–28; Kolk: 2005, Management International Review 45, 145–166; Maignan and Ralston: 2002, Journal of International Business Studies 33(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 Ethics 53, 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.     

Business Reputation and Labor Efficiency,Productivity, and Cost

Assumed benefits from improved reputation are often used as motives to drive corporate social responsibility (CSR) initiatives. Are improved cost efficiencies among these reputation benefits? Cost efficiencies and cost management have become more relevant as revenue streams dry up in these tough economic times. Can a good reputation aid these efforts to develop cost efficiencies specifically when managing labor costs? Prior research hypothesizes that good reputation can create labor productivity and efficiency benefits. The purpose of this study is to empirically investigate reputation’s relationship with labor efficiency, labor productivity, and labor cost. Using a sample of highly reputable firms from Fortune’s America’s Most Admired Companies list and a corresponding matched sample of firms, we find that reputation is associated with improved labor efficiency and labor productivity. However, we do not find a significant association between reputation and reduced labor costs. Our study contributes to current research hypothesizing and finding efficiency benefits associated with good reputation. Documenting these potential reputation benefits has important implications for CSR activities and initiatives. It supports recent work that incorporates reputation into a more developed model of the relationship between CSR and performance (Vilanova et al.: 2009, Journal of Business Ethics 87, 57–69). This work is useful to businesses and supports strategies focused on “doing well by doing good” and maintaining healthy reputations.     

Enacted identities in the university spin-off process—bridging an imaginative gap

This paper employs a case study to explore the interdependencies between enacted role identities and behavioural logics of eight inventor-founders embedded in university spin-off venturing. The major tendencies in the findings suggest that the inventor-founders enact their academic role identity following three distinct paths; re-use, return or discard. Based on these findings, two propositions are developed. Firstly, it is proposed that some academic founders may find themselves in an identity dilemma; choosing between returning to their academic roots normatively speaking or discarding their academic role identity to pursue entrepreneurial opportunities. Secondly and as an alternative, it is suggested that effectuation logics allows inventor-founders situated in volatile international environments to re-use their academic role identity as an important means in leveraging new entrepreneurial opportunities. Consequently, practical implications are drawn recommending that services, such as incubators and tech-transfer offices, incorporate tools that accommodate and assist inventor-founders in this kind of identity dilemma or alternatively employ training programs inspired by an effectuation approach.     

Actor and Institutional Dynamics in the Development of Multi-stakeholder Initiatives

As forms of private self-regulation, multi-stakeholder initiatives (MSIs) have emerged as an important empirical phenomenon in global governance processes. At the same time, MSIs are also theoretically intriguing because of their inherent double nature. On the one hand, MSIs spell out CSR standards that define norms for corporate behavior. On the other hand, MSIs are also the resultof corporate and stakeholder behavior. We combine the perspectives of institutional theory and club theory to conceptualize this double nature of MSIs. Based on a stage model that looks at the interplay of actor and institutional dynamics, we generate insights into why actors join a voluntary MSI, how the various motivations and intentions of the actors influence the standard development, and how these as well as the MSI design are subsequently influenced by both external (institutional) and internal (club) dynamics.     

On the Credibility Determinants of a Quality Label: a Quasi-Natural Experiment Using the Example of <Emphasis Type="Italic">Stiftung Warentest</Emphasis>

In 2013, Stiftung Warentest, which is one of the most important consumer organizations in Germany, tested hazelnut chocolate for their leading magazine called test. The hazelnut chocolate of Ritter Sport, which is a high-quality producer of chocolate in Germany, failed the test and received the grade “unsatisfactory.” Stiftung Warentest accused Ritter Sport of labelling an artificial flavouring as a natural flavouring. Ritter Sport rejected the accusation, went to court, and won the trial. Stiftung Warentest had to withdraw the issue in question of test magazine. The affair received broad media coverage from December 2013 to September 2014. Using the case Ritter Sport versus Stiftung Warentest, it is analysed whether negative headlines really undermine the credibility of a quality label by examining Stiftung Warentest and their quality label called test. In addition, it is examined what can be done to restore or, more generally, increase the credibility of a quality label. Based on a quasi-natural experiment, it is found that the negative headlines regarding Stiftung Warentest have undermined the credibility of the test label. It is also found that the credibility of the test label can be increased by providing reference values to the tests, strengthening the independence of Stiftung Warentest, and using laboratory methods for the tests. For the most part, the same holds true for any quality label. High-quality producers, quality-conscious consumers, and the awarding organization of the quality label can benefit from an increased credibility of a quality label.     

What is the CSR’s Focus in Healthcare?

The concept of corporate social responsibility (CSR) has been the subject of several academic contributions, but in the health sector the development of an interest in this subject is very recent. Although many practices in healthcare are already socially responsible, progressing from a series of socially responsible behaviours to a socially responsible organization entails a more consolidated awareness of the health sector’s mission and the needs of its participants. In this paper, we will review the different studies published that address the relationship between the healthcare sector’s corporate responsibility and society, with the aims of individuating the prevailing foci that are emerging and categorizing the proposed contributions according to these foci: social responsibility and organization; social responsibility and social impact; social responsibility and competitiveness. Finally, the paper finishes with a personal definition of CSR and its correlated ethical roots.     

Social Responsibility and Social Security: The Foundation of <Emphasis Type="Italic">Caja de Pensiones para la Vejez y de Ahorros</Emphasis>

The concept of corporate social responsibility (CSR) is not new. Many entrepreneurs created and developed companies along the time, with a strong sense of ethical and social responsibility. This article presents an example of how CSR was conceived and put into practice when Caja de Pensiones para la Vejez y de Ahorros was created in Barcelona in 1905, following the life and ideas of its founder, Francesc Moragas, a lawyer with a deep commitment for social action and a successful conception of the technical and economic dimensions of a financial and social institution.     

Harnessing Wicked Problems in Multi-stakeholder Partnerships

Despite the burgeoning literature on the governance and impact of cross-sector partnerships in the past two decades, the debate on how and when these collaborative arrangements address globally relevant problems and contribute to systemic change remains open. Building upon the notion of wicked problems and the literature on governing such wicked problems, this paper defines harnessing problems in multi-stakeholder partnerships (MSPs) as the approach of taking into account the nature of the problem and of organizing governance processes accordingly. The paper develops an innovative analytical framework that conceptualizes MSPs in terms of three governance processes (deliberation, decision-making and enforcement) harnessing three key dimensions of wicked problems (knowledge uncertainty, value conflict and dynamic complexity). The Roundtable on Sustainable Palm Oil provides an illustrative case study on how this analytical framework describes and explains organizational change in partnerships from a problem-based perspective. The framework can be used to better understand and predict the complex relationships between MSP governance processes, systemic change and societal problems, but also as a guiding tool in (re-)organizing governance processes to continuously re-assess the problems over time and address them accordingly.