Corporate social responsibility as a participative process

Corporate social responsibility is frequently defined primarily in terms of the social and environmental impact of systemic organisational activity. This misses the point. To be applicable, corporate responsibility should be understood as a process , through which individuals ' moral values and concerns are articulated. Moreover, there are important grounds for asserting that such a process should be participative, involving employees (and perhaps other stakeholders). It seems inconsistent not to respect such groups' right to an opinion, while at the same time purporting to be ethical and responsible; also, a better alignment of organisational policy and employees' values holds possibilities for enhanced motivation and work performance. Through such a participative process, matters of social responsibility may be identified in the expectations and moral claims of an organisation's stakeholders. Such claims constitute prima facie obligations to which those responsible for corporate policy should attend, and where such demands conflict then dialogue is required in order to establish an appropriate course of action.     

Managing Brand in the New Stakeholder Environment

The corporate sustainability, and responsibility, movement has considerable implications for and impact on the discipline of brand management. It creates pressures to which the discipline must adjust, and new growth opportunities for it to enjoy.In Maio's view, "brand" permeates all aspects of the corporation and therefore the values of the brand can serve as an effective touchstone for all corporate behaviours: in the Boardroom, in financial markets, in negotiations with employees, in customer interactions, in dialogue with other stakeholders. Moreover, most corporations already have "plumbing" in place (the organizational substructures and processes to manage their brand), that can serve as effective conduits for nurturing values-driven behaviours and measuring them.     

Stakeholder engagement through empowerment: The case of coffee farmers

While most studies on stakeholder engagement focus on high‐power stakeholders (typically, employees), limited attention has been devoted to the engagement of low‐power stakeholders. These have been defined as vulnerable stakeholders for their low capacity to influence corporations. Our research is framed around the engagement of low‐power stakeholders in the coffee industry who are, paradoxically, critical resource providers for the major roasters. Through the case study of Lavazza—the leading Italian roaster—we investigate empowerment actions addressed to smallholder farmers located in Brazil, India, East Africa, Haiti, and the Dominican Republic. We contribute to the theoretical discussion around engagement and empowerment by developing a framework linking together areas of empowerment (defined in the literature) and specific empowerment actions (emerging from our interviews). Our insights shed light on how organizations can design empowerment strategies leading to more effective stakeholder engagement and how empowerment actions can contribute to turn low‐power stakeholders into active business partners. We demonstrate that moving from a traditional competitive view of corporate–stakeholder relationships to a stakeholder theory view based on a logic of cooperative partnerships reinforces the idea that stakeholder engagement and empowerment are both entangled with the value creation process.     

Effect of Stakeholders’ Pressure on Transparency of Sustainability Reports within the GRI Framework

Transparency is a quality of corporate social responsibility communication that enhances the relationship between the investors and the company. The objective of this paper is to analyze if the transparency of the sustainability reports is affected by the relationship of companies in different industries with their stakeholders. If this were the case, it would indicate that the pressure of significant stakeholders determines the required level of transparency of the reports. We find that the pressure of some groups of stakeholders (customers, clients, employees, and environment) improves the quality of transparency of the reports. We extend previous research by studying the effect of stakeholder group pressure on transparency when reporting sustainability. Our results show that transparency is affected by ownership, along with size and global region.     

Using Country Sustainability Risk to Inform Sustainable Supply Chain Management: A Design Science Study

The sustainability of our global supply chains is an essential concern in strategic supply chain management research. Modern information and communication technologies enable stakeholders to punish buying firms for any sustainability‐related grievances at their suppliers, even in remote locations. This study investigates how the notion of country sustainability risk can inform sustainable supply chain management, in particular with respect to sustainability risk assessment at the individual supplier level. Drawing on institutional theory, we provide insights surrounding the emergence of environmental, social, and governance‐related country‐level sustainability risks and show their implications for and application in sustainable supply chain management. The study employs a design science methodology, based on cooperation with a multidivisional German technology firm, to develop a supply chain sustainability risk (SCSR) map as technological solution design. This article contributes to the study of SCSR by reconciling the scholarly SCSR discourse with the buying firms’ pursuit of efficiency. Moreover, it elucidates the augmentation of a research agenda through a design science approach. In practical terms, the technological solution design can directly inform managers about SCSR at the country level and serves as a decision basis for the management of individual suppliers.     

Critical points of CSR‐related stakeholder dialogue in practice

This paper examines the roles of dialogue in the process of communication with stakeholders. The conceptual frameworks of corporate social responsibility (CSR) and stakeholder relationships frequently present the initiation of a dialogue with stakeholders as a way for an organization to respond to criticisms of its social and environmental policies and actions. The paper discusses dialogue in the stakeholder and CSR literature. This is followed by the analysis of in‐depth semi‐structured interviews in the empirical section. Theoretical discussion and empirical examples demonstrate that the role of stakeholder dialogue in implementing CSR strategy is crucial in many ways. The case examples taken from the interviews with the heads of two large companies and two non‐governmental organizations illustrate the practical difficulties that may be encountered in applying the principle and practice of dialogue to the implementation of CSR programs in the real world.     

Building a financial sector in Central and Eastern Europe

The public mission of the European Bank for Reconstruction and Development (EBRD) is to foster the transition toward an open, market‐oriented financial sector. It combines private‐sector principles in making investments, building institutions, privatizing banks, and raising equity with policy dialogue with all stakeholders, lawmakers, central banks, regulators, shareholders, and clients. Wellstructured creative individual projects, tailor‐made for the specific situation and executed in a pragmatic and successful way, provide a strong demonstration effect to market participants. Today the financial sector in Central and Eastern Europe is sound, competitive, and provides the fuel for sustained economic growth. Challenges remain, however. © 2008 Wiley Periodicals, Inc.     

Developing a capstone course on ecological and social sustainability in business education

Sustainability is an important goal of management education, but it has not been integrated properly into all the functional courses. One option for management schools attempting to fix this misalignment is to offer a course that provides an integrated approach to sustainability. This article attempts to structure the contents of a capstone course on sustainability that touches on all the dimensions of sustainability in different management functions. I present the key topics in sustainability and, based on a thorough literature review, identify the categories that constitute the content for a proposed course on business sustainability. The proposed topics pertain to conceptual tools for understanding the issues, different stakeholders, and functional areas. This course will fill the sustainability gap in the current curriculum in management education.     

Managing Organizational Change in Higher Education: Lessons From the University of Botswana

ABSTRACT

Utilizing data collected from a randomly selected sample of 360 academic and managerial staff, regression analysis was performed to identify the determinants of acceptance of change among employees at the University of Botswana. The results showed moderate levels of employee acceptance of innovations and revealed that, of the four categories of substantive factors analyzed, managerial features were the most important determinants of acceptance of organizational change. It was concluded that management action is needed to boost the levels of acceptance of change and that a more participative approach to the management of the change process is necessary to guarantee the involvement of all stakeholders from the decision-making to the implementation and administration stages of the process.     

Governance Structure and the Credibility Gap: Experimental Evidence on Family Businesses’ Sustainability Reporting

This paper examines the success of corporate communication in voluntary sustainability reporting. Existing studies have focused on the perspective of the communicators but lack an understanding of the perspective of information recipients to clearly evaluate this interactive communication process. This paper looks at the issue of a credibility gap perceived by external stakeholders when they doubt the authenticity of communicated information due to the reporting company’s governance structure. The paper uses family businesses to exemplify the emergence of such a gap when outsiders become concerned about the potential agency problem of the integrated ownership and management controlled by a few members of the same family. Following source credibility theory, these concerns raise a credibility gap associated with a family firm’s trustworthiness and goodwill, even if the family has the expertise to carry out sustainability reporting. The findings of two experimental studies indicate that family businesses suffer a greater credibility gap than non-family businesses. An external and independent assurance service can mitigate such gaps, especially when the service is comprehensive and targets family businesses. The paper provides a complete view evaluating corporate communication by looking at the interaction between the communicating company and the information recipients.     

Increasing the Number of Women on Boards: The Role of Actors and Processes

In this article, we offer an approach of how participative stakeholder innovation can be evaluated in complex multistakeholder settings that address wicked issues. Based on the principle of mutual value creation, we present an evaluation framework that accounts for the social interaction process during which stakeholders integrate their resources and capabilities to develop innovative products and services. To assess this evaluation framework, we collected multiple data from the case study of the Swiss Cardiovascular Network, which represents a multistakeholder setting related to the prevention of cardiovascular disease. Our findings indicate that the evaluation dimensions of the stakeholders’ mindsets, the process and context of the stakeholder interactions, as well as the outcomes are useful concepts to account for a cooperative process of innovation in a multistakeholder setting. We discuss both the theoretical and practical insights of our analysis for participative stakeholder innovation.     

Organizational performance with a broader focus: The case for a stakeholder approach to leadership

In 2019, BlackRock CEO Larry Fink, Apple CEO Tim Cook, and the other 179 CEO members of the Business Roundtable argued that the purpose of a corporation must reflect not only the fiduciary interests of owners but also the varied interests of all stakeholders: employees, customers, partners, and broader society. This idea challenges a decades-old norm of shareholder primacy, so it is reasonable for organizational leaders to wonder whether doing so is truly in their firms’ best interests, and if so, how to implement this approach to leadership. To answer these questions, we draw on over 200 peer-reviewed articles covering leadership research to demonstrate how servant leadership, a stakeholder-focused approach to management, outperforms other leadership approaches across both shareholder and stakeholder criteria. We leverage case studies of organizational leaders from SAS, Zappos, Starbucks, and Jason’s Deli, financially successful organizations that exemplify how managers provide value and sustainability to stakeholders and shareholders through servant leadership. We also include practical steps managers can take to begin putting this form of leadership into practice.     

Collectivistic and Individualistic Values: Their Effects on Group Dynamics and Productivity in China

Collectivistic and individualistic values are theorized to have far reaching effects on teamwork and organizations. This study proposes that cooperative and competitive goal interdependence mediates the relationship between these values and group interaction and outcomes. Working in State Owned Enterprises in three regions of China, 689 employees in 194 teams indicated their group's values, goal interdependence, constructive controversy, and productivity. Their managers also reported on the extent these teams were productive. Structural equation analysis suggested that collectivistic values may reinforce cooperative goals and an open-minded discussion of views which in turn results in strong relationships and team productivity, as experienced from both the team's and manager's perspectives. Individualistic values, especially the horizontal version, can have contrasting effects through fostering competitive goals and closed-minded discussion. These results, coupled with previous research, suggest that collectivist values, cooperative goals, and constructive controversy provide an important foundation for productive teamwork.     

Do collective bargaining institutions crowd out discussion and implementation of firm‐related training programs? Evidence from Japan

The paper empirically examines labor‐management communication concerning in‐house training programs and its relation to the actual on‐ and off‐the‐job training policy and wage structure. Using governmental datasets from Japan, we study how different labor‐management communication institutions may affect the training interests of employers and employees differently. We classify these institutions in terms of whether they have a legal (i.e. statutory) foundation (‘de jure’) or not (‘de facto’). We find that collective bargaining, with legal grounds, may crowd out employees’ willingness to communicate about training. However, the existence of ‘de facto’ communication channels such as joint labor‐management councils or shop floor committees is positively correlated with both on‐ and off‐the‐job of training. At the same time, the existence of unions is positively correlated with the steepness of wage profiles for mid‐career workers, which is consistent with the fact that employers and employees assume a long‐term relationship. Thus, we show that a multi‐tiered structure of labor‐management communication, together with a long‐term orientation toward the employment relationship, contributes to strengthen employees’ voice in training matters.     

和谐社会中抽象会计价值观的测度

和谐社会需要和谐会计,体现和谐文化的会计价值观的测度研究对构建和谐会计具有重要的意义。本文梳理了价值观的测量工具与方法,分析了价值观测量研究的经验与启示,提出了以价值观测量为导向开发具有中国特色的会计价值观测度工具。     

De-Fusing Organizational Power Using Anonymity and Cognitive Factions in a Participative Strategic Planning Setting

When an organization is facing disruptive change or the need for new capabilities to fit new conditions, the creation of a democratic strategic plan can be useful. However, strategic plans typically only reflect the beliefs and values of their architects; not all stakeholders. To include the beliefs of all stakeholders requires a participative environment. Due to the potential deleterious effects that organizational power may have in a participative setting, anonymity and cognitive factions is proposed to reduce the possible negative effects associated with power in a participative strategic planning setting. Group support systems have been shown to protect relationships and retain the social order in these settings. In this specific case, through the use of a group support system that supports anonymity and cognitive faction identification, we found that the sources of power typically found and used to drive group decisions in an academic setting did not drive the content of the strategic plan.     

Inverting the Pyramid of Values? Trends in Less-Developed Countries

The authors discuss the consistency of transnational companies in their home, as well as in less developed host countries, concerning ethics, values and social responsibility. Ethical behavior offers good reputation, credibility and tradition to the corporation. It leads to corporate social, environmental and economic responsibilities, cooperating to the desired sustainability. This paper analyzes the inversion of values that corporate governance systems have suffered. The meaning and implication of the corporate social responsibility is investigated and discussed. A “pyramid of values” is built upon individual ethical values at the basis. Over them, the organizational ethical values should indicate the limits of operations, so that the corporate social responsibility can be sustained, in the top. The authors comment that ethical values no longer lead the organization. Its communication with the stakeholders, specifically through reports, has been gradually replacing the code of ethics and corporate values. These reports have taken the basis of the pyramid leading the organizations to socially irresponsible and unethical behavior. They do not guarantee transparency or communicate the needs of the society. It appears that transnational companies do not behave the same way in their home country as they do in host countries, particularly in less developed regions like Latin America and Africa. Lack of communication and transparency may induce employees to unethical decisions and transform the reporting system into a marketing instrument. In order to guarantee compliance with the codes, transparency and ethical responsibility, communication within the organization is essential.     

Conflict,Participative Decision‐Making,and Generational Ownership Dispersion: A Multilevel Analysis*

This study examines how participative decision‐making and generational ownership dispersion affect conflict in a sample of privately held U.S. family firms. Our study utilizes a hierarchical linear model approach to investigate “cross‐level” effects between variables from different levels of analysis. Participative decision‐making among family members was found to be associated with cognitive and relationship conflict. Furthermore, the relationship between participative decision‐making and conflict as individual‐level variables was moderated by generational ownership dispersion, a firm‐level variable. When ownership was dispersed through multiple generations, participative decision‐making was found to be positively related to cognitive and relationship conflict; however, in one‐ and two‐generation ownership firms participative decision‐making was found to be negatively related to cognitive and relationship conflict.     

Two Decades of Sustainability Management Tools for SMEs: How Far Have We Come?

Many scholars have emphasized the importance of sustainability management in small and medium‐sized enterprises (SMEs). Although various publications discuss different approaches and potential barriers of implementation, a review of the existing research on sustainability management tools for SMEs is nonetheless missing. Based on a systematic review of the academic literature, this paper discusses reasons why SMEs should implement sustainability management tools. A further analysis reveals that most such tools are perceived to have little to no implementation in SMEs. The main implementation barriers and facilitating criteria are discussed. In addition, implications for future research, SME management, and public policy are drawn.     

Stakeholder Relationships,Engagement, and Sustainability Reporting

The concept of sustainability was developed in response to stakeholder demands. One of the key mechanisms for engaging stakeholders is sustainability disclosure, often in the form of a report. Yet, how reporting is used to engage stakeholders is understudied. Using resource dependence and stakeholder theories, we investigate how companies within the same industry address different dependencies on stakeholders for economic, natural environment, and social resources and thus engage stakeholders accordingly. To achieve this objective, we conducted our research using qualitative research methods. Our findings suggest that the resource dependencies on different stakeholders lead to development of different stakeholder relationships and thus appropriate resources within the company to execute engagement strategies that are informing, responding, or involving. Our research explains why diversity exists in sustainability disclosure by studying how it is used to engage stakeholders. We find that five sustainability reporting characteristics are associated with the company’s stakeholder engagement strategy: directness of communication, clarity of stakeholder identity, deliberateness of collecting feedback, broadness of stakeholder inclusiveness, and utilization of stakeholder engagement for learning. Our study develops the literature by providing insight into companies’ choices of stakeholder engagement strategy thus explaining diversity in sustainability reporting based on the characteristics and relationships with specific stakeholders.