Public Relations Leadership in Corporate Social Responsibility

Many of the negative connotations of corporate social responsibility (CSR) are linked to its perceived role as a public relations exercise. Following on calls for more positive engagement by public relations professionals in organisational strategic planning and given the rapidly increasing interest in CSR as a business strategy, this article addresses the question of how the theory and practice of public relations can provide direction and support for CSR. To this end, this article explores leadership styles and motivations of a sample of corporate leaders from prominent Australian-based corporations in relation to their chosen CSR activities to examine the current position of, and potential for, professional communicators’ impact in shaping CSR-driven policies at a strategic level. We find that while public relations theory has evolved, many leaders still see public relations professionals only as a source of positive publicity. Our findings suggest that the model of distributive leadership has more relevance to an emerging idea of public relations involvement in CSR than more traditional understandings of leadership. We conclude that the public relations profession needs to develop a greater understanding of senior management approaches to the development and dissemination of CSR activities to support organisational leadership as it currently operates with respect to CSR.     

Leadership Styles and CSR Practice: An Examination of Sensemaking,Institutional Drivers and CSR Leadership

This article examines the explicit and implicit corporate social responsibility (CSR) framework and its implications for leadership style, in a major banking institution. Evidence for existence of the framework’s key concepts in relation to leadership styles was explored through the self-reported sensemaking of leaders charged with CSR programme introduction. Qualitative data analysis indicated that explicit CSR is linked to an autocratic leadership style, whereas implicit CSR is more closely aligned with emergent and authentic styles. Although our results reinforced key aspects of the explicit and implicit CSR framework, they demonstrated conflicting systems of both CSR and leadership within our case organisation and highlighted the difficulty in categorising such a complex concept as CSR according to specific frameworks. Overall, our data suggest that the leadership styles, needed to successfully implement explicit and implicit CSR programmes, are in conflict. Given our finding that these CSR systems can coincide within one organisation, we suggest that the debating style of transformational leadership may be the required linchpin.     

Ethical Leadership,Organic Organizational Cultures and Corporate Social Responsibility: An Empirical Study in Social Enterprises

While recent studies have increasingly suggested leadership as a major precursor to corporate social responsibility (CSR), empirical studies that examine the impact of various leader aspects such as style and ethics on CSR and unravel the mechanism through which leadership exerts its influence on CSR are scant. Ironically, paucity of research on this theme is more prevalent in the sphere of social enterprises where it is of utmost importance. With the aim of addressing these gaps, this research empirically examines the interaction between ethical leadership and CSR and, in addition, investigates organic organizational cultures (clan culture and adhocracy culture) as mediators in the above interaction. To this end, a model was developed and tested on the sample of 350 middle- and top-level managers associated with 28 Indian healthcare social enterprises, using Structural Equation Modeling Analysis, Bootstrapping and PROCESS. Results reveal that ethical leadership both directly and indirectly influences CSR practices. The indirect influence of ethical leadership involves nurturing clan and adhocracy cultures, which in turn influence CSR. These findings are significant for social enterprise leaders seeking to encourage their organizations’ socially responsible behavior.     

Feeling Good by Doing Good: Employee CSR-Induced Attributions, Job Satisfaction, and the Role of Charismatic Leadership

Interest in corporate social responsibility (CSR) is gaining momentum in academic and managerial circles. However, prior work in the area has paid little attention to how CSR initiatives should be implemented inside the organization. Against this backdrop, this study examines the impact of CSR initiatives on an important stakeholder group—employees. We build and test a comprehensive multilevel framework that focuses on whether employees derive job satisfaction from CSR programs. The proposed model predicts that a manager’s charismatic leadership influences employees’ interpretations about the motives underlying their companies’ engagement in CSR initiatives (intrinsic and extrinsic CSR-induced attributions) which, in turn, influence employee job satisfaction. Hierarchical linear modeling of data from 47 organizational units comprising 438 employees from three world-leading manufacturing organizations shows that when employees think that their manager possesses charismatic leadership qualities, they tend to attribute the organization’s motives for engaging in CSR activities to intrinsic values, which, in turn, are positively associated with job satisfaction. Also, the extent to which managers are perceived as charismatic leaders relates positively to job satisfaction. Interestingly, CSR-induced extrinsic attributions are neither explained by charismatic leadership nor do they predict job satisfaction. Implications for both theory and practice are discussed.     

Leadership styles and corporate social responsibility management: Analysis from a gender perspective

Companies' perceptions of corporate social responsibility (CSR) have been only partially analyzed from an individual perspective that focuses on personal characteristics and professional backgrounds. However, a gap exists in the research on manager leadership styles and CSR perceptions from a gender perspective. Therefore, this article analyzes differences in attitudes toward various dimensions of CSR by focusing on the leadership styles—transformational, dominance, and dual perspectives—of male and female managers in Spain. A total of 391 respondents in top management positions in Spain were surveyed. The findings revealed similarities and differences between genders with respect to leadership styles and CSR perceptions by dimension using a univariate analysis. A causal model that employed structural equation modeling was also estimated. The findings suggest that for transformational and dual leadership styles, Spanish women may be more adaptable and effective at pursuing company sustainability than Spanish men. However, dominance leadership was found to be the worst leadership style for deploying a CSR strategy. A number of conclusions for business management can be drawn, and some directions for future research are provided.     

An Empirical Study of Leader Ethical Values,Transformational and Transactional Leadership,and Follower Attitudes Toward Corporate Social Responsibility

Several leadership and ethics scholars suggest that the transformational leadership process is predicated on a divergent set of ethical values compared to transactional leadership. Theoretical accounts declare that deontological ethics should be associated with transformational leadership while transactional leadership is likely related to teleological ethics. However, very little empirical research supports these claims. Furthermore, despite calls for increasing attention as to how leaders influence their followers’ perceptions of the importance of ethics and corporate social responsibility (CSR) for organizational effectiveness, no empirical study to date has assessed the comparative impact of transformational and transactional leadership styles on follower CSR attitudes. Data from 122 organizational leaders and 458 of their followers indicated that leader deontological ethical values (altruism, universal rights, Kantian principles, etc.) were strongly associated with follower ratings of transformational leadership, while leader teleological ethical values (utilitarianism) were related to follower ratings of transactional leadership. As predicted, only transformational leadership was associated with follower beliefs in the stakeholder view of CSR. Implications for the study and practice of ethical leadership, future research directions, and management education are discussed.     

Corporate Governance and Firm Value: The Impact of Corporate Social Responsibility

This study investigates the effects of internal and external corporate governance and monitoring mechanisms on the choice of corporate social responsibility (CSR) engagement and the value of firms engaging in CSR activities. The study finds the CSR choice is positively associated with the internal and external corporate governance and monitoring mechanisms, including board leadership, board independence, institutional ownership, analyst following, and anti- takeover provisions, after controlling for various firm characteristics. After correcting for endogeneity and simultaneity issues, the results show that CSR engagement positively influences firm value measured by industry-adjusted Tobin’s q. We find that the impact of analyst following for firms that engage in CSR on firm value is strongly positive, while the board leadership, board independence, blockholders’ ownership, and institutional ownership play a relatively weaker role in enhancing firm value. Furthermore, we find that CSR activities that address internal social enhancement within the firm, such as employees diversity, firm relationship with its employees, and product quality, enhance the value of firm more than other CSR subcategories for broader external social enhancement such as community relation and environmental concerns.     

Predictors of Organizational Citizenship Behavior: Ethical Leadership and Workplace Jealousy

This paper analyzes how national institutions impact corporate social responsibility (CSR) practices for small- and medium-sized enterprises (SMEs) in the food-processing industries of France and Morocco. In this study, CSR practices are defined around two main dimensions: corporate performance (financial vs. global) and the CSR approach (defensive vs. active). Qualitative data were collected during semi-structured interviews with SME managers in charge of CSR issues. We then performed a content analysis. Our study shows that there is a distinct difference between the CSR practices adopted by SMEs in France and Morocco. Indeed, the findings suggest that under the rule-based governance system of France, most SMEs view CSR as an economic tool and it is adopted as an opportunity-seeking perspective anchored in the search for global performance. The findings also show that under the relationship-based governance system of Morocco, SMEs mainly see CSR from a constraint-reducing perspective. However, some Moroccan SMEs have begun to see the economic opportunities of CSR, especially in accessing foreign markets.     

Values,Authenticity, and Responsible Leadership

Of the many ethical corporate marketing practices, many firms use corporate social responsibility (CSR) communication to enhance their corporate image. Yet, consumers, overwhelmed by these more or less well-founded CSR claims, often have trouble identifying truly responsible firms. This confusion encourages ‘greenwashing’ and may make CSR initiatives less effective. On the basis of attribution theory, this study investigates the role of independent sustainability ratings on consumers’ responses to companies’ CSR communication. Experimental results indicate the negative effect of a poor sustainability rating for corporate brand evaluations in the case of CSR communication, because consumers infer less intrinsic motives by the brand. Sustainability ratings thus could act to deter ‘greenwashing’ and encourage virtuous firms to persevere in their CSR practices.     

The Effects of CEO Trustworthiness on Directors’ Monitoring and Resource Provision

This research investigates the interplay between leadership styles and institutional corporate social responsibility (CSR) practices. A large-scale field survey of managers reveals that firms with greater transformational leadership are more likely to engage in institutional CSR practices, whereas transactional leadership is not associated with such practices. Furthermore, stakeholder-oriented marketing reinforces the positive link between transformational leadership and institutional CSR practices. Finally, transactional leadership enhances, whereas transformational leadership diminishes, the positive relationship between institutional CSR practices and organizational outcomes. This research highlights the differential roles that transformational and transactional leadership styles play for a firm’s institutional CSR practices and has significant implications for theory and practice.     

Does integrity matter for CSR practice in organizations? The mediating role of transformational leadership

Scholars have long debated whether leader's integrity affects managerial decision making with respect to social responsibility. In this paper, we propose a model in which transformational leadership mediates integrity and corporate social responsibility (CSR) and examine the relationship between these concepts. A survey of 170 senior managers from 50 organizations was conducted. Results indicate that integrity is a predictor of transformational leadership behavior and that transformational leaders’ behaviors are linked to CSR practices. It was also found that leaders rated with higher integrity are engaged in CSR because they exhibit more transformational leadership behaviors. These findings add to the extant literature by demonstrating that integrity is important as transformational leaders engage more actively on ‘responsible’ behaviors. Practical implications call for an understanding among corporate leaders of the benefits of integrity and how it relates to transformational leadership. Organizations can improve their selection and leadership development processes by focusing on these two dimensions.     

CEOs’ Poverty Experience and Corporate Social Responsibility: Are CEOs Who Have Experienced Poverty More Generous?

Journal of Business Ethics - This study examines whether the chief executive officer’s (CEO’s) poverty experience has an impact on firms’ corporate social responsibility (CSR). We...     

The Masculinisation of Ethical Leadership Dis/embodiment

Using a worldwide sample, we examine whether corporate social responsibility (CSR) performance has an impact on the value of cash holdings. We find that investors assign a higher value to cash held by firms that have a high CSR rating. This result is consistent with the idea that CSR policies are a means for managers to act in the shareholders’ interests by mitigating conflicts with stakeholders. Finally, we reveal that CSR performance has a positive impact on the value of cash holdings only for firms which operate in countries where shareholders are well protected from expropriation by managers and in countries where the institutional quality is high.     

Strategic and Regulatory Approaches to Increasing Women in Leadership: Multilevel Targets and Mandatory Quotas as Levers for Cultural Change

While substantial evidence is emerging internationally of positive increases in the participation of women on company boards, there is less evidence of any significant change in the proportion of women in senior executive ranks. This paper describes evidence of positive changes in the number of women on boards in Australia. Unfortunately these changes are not mirrored in the senior executive ranks where the proportion of women remains consistently low. We explore some of the reasons for these disproportionate changes and examine the likely effect of the recent amendments to the Australian stock exchange’s corporate governance code designed to improve gender diversity both on boards and throughout organisations. Based on the early corporate response to these regulatory changes, it is interesting to consider whether Australia’s approach in promoting voluntary self-regulation at the corporate level may be as effective in the long run as the emerging trend in Europe to apply legislated quotas for female corporate board representation. Interview evidence is presented suggesting that the primary reasons for the lack of women in leadership are not simply lack of opportunity at the apex of the corporation, but issues at mid-management level that are unlikely to be resolved by mandatory board quotas. In some circumstances carefully monitored voluntary targets may be more effective at promoting cultural and strategic change at the heart of the corporation. In summary, mandatory quotas (set through hard law usually with sanctions for noncompliance) may achieve early and significant results in terms of female board representation. However, voluntary targets for women’s participation on boards and in executive ranks (proposed in soft regulation such as corporate governance codes and set as part of corporate strategy) may promote more effective cultural and practical change in support of greater representation of women in leadership.     

Why Do Managers Leave Their Organization? Investigating the Role of Ethical Organizational Culture in Managerial Turnover

This study contributes to the corporate social responsibility, stakeholder theory, and executive succession literature by examining the effect of corporate social irresponsibility (CSiR) on strategic leadership turnover. We theorize that firms’ CSiR increases the likelihood of executive turnover. We also investigate the nature of succession (non-voluntary or voluntary succession) and successor origin (internal candidate or external candidate) following CSiR. We further examine how the CSiR–CEO succession relationship is moderated by firm visibility to stakeholders and industry dynamism. Our results, based on a dataset of 248 U.S. public firms between 2001 and 2008, provide evidence that firms’ CSiR affects what is conventionally seen as primarily a market-driven decision on executive turnover, especially when firms operate in a more dynamic industry. Research contributions and implications are discussed.     

Corporate Social Responsibility and Ethical Leadership: Investigating Their Interactive Effect on Employees’ Socially Responsible Behaviors

This research investigates the interlinkage between corporate social responsibility (CSR) and ethical leadership in inducing employees’ socially responsible behaviors (SRBs). Specifically, building on organizational identification theory and cue consistency theory, we develop and test an integrated moderated mediation framework in which employees’ perception of ethical leadership moderates the mediating mechanism between their perceptions of CSR (i.e., perceived CSR–environment and perceived CSR–community), organizational identification, and SRBs (i.e., green and societal behaviors). The findings highlight the need for consistency between employees’ perceptions of CSR and ethical leadership to foster their propensity to further social good through relationship-building activities with their organization. The results, which largely verify the theoretical framework, contribute to and have implications for both research and practice.     

A New Scale to Measure Executive Servant Leadership: Development,Analysis, and Implications for Research

This article introduces a new scale to measure executive servant leadership, situating the need for this scale within the context of ethical leadership and its impacts on followers, organizations and the greater society. The literature on servant leadership is reviewed and servant leadership is compared to other concepts that share dimensions of ethical leadership (e.g., transformational, authentic, and spiritual leadership). Next, the Executive Servant Leadership Scale (ESLS) is introduced, and its contributions and limitations discussed. We conclude with an agenda for future research, describing ways the measure can be used to test hypotheses about organizational moral climate, ethical organizational culture, corporate responsibility, and institutional theory.     

The Impact of Corporate Social Responsibility Disclosure on Corporate Reputation: A Non-professional Stakeholder Perspective

This paper examines the impact of corporate social responsibility (CSR) disclosure on corporate reputation as perceived by non-professional stakeholders. Proponents of CSR disclosure argue that CSR disclosure can be considered as a tool for reputation management. We empirically investigate this claim using a reputation index which tracks the general public’s perceptions of corporate reputation over time. In our analysis, we focus on disclosure in stand-alone CSR reports and control for CSR performance. We find that, in contrast to the common belief, stand-alone CSR reports do not influence corporate reputation among non-professional stakeholders. However, we are able to document that stand-alone CSR reports influence corporate reputation among professional stakeholders. We also provide some evidence that transparent CSR disclosure on corporate websites can influence corporate reputation among non-professional stakeholders.     

Investigating the direct and indirect effects of corporate hypocrisy and perceived corporate reputation on consumers’ attitudes toward the company

Consumers are placing increasing importance on the social responsibility of firms when making purchase decisions. Nonetheless, corporate irresponsibility has become more prevalent in the corporate world. Through corporate social responsibility (CSR), companies can showcase their virtues and appear as good citizens while ignoring many internal standards. Hence, the primary purpose of this study was to explore the impact of corporate hypocrisy on CSR belief, corporate reputation, and consumers’ attitudes toward a company that may have a bad reputation. Second, we investigated the mediating effect of CSR belief and perceived corporate reputation on the relationships between corporate hypocrisy and consumers’ attitudes toward the company. We asked a sample of respondents in Australia (n =518) to respond to a real CSR campaign launched by a beer company. The results showed that CSR belief mediates the relationship between corporate hypocrisy and consumers’ attitudes toward the company. The results indicated a perception that companies may use CSR to try to shift the blame from producers to users. The results of this study provide guidelines for managers, social marketers, and public policy makers on how to create and evaluate companies’ CSR campaigns. The results of this study contribute to the debate on how consumers respond to various CSR campaigns as well as the intended or unintended consequences of CSR in directing consumers’ attention away from the negative impacts businesses have on society.     

Moving Forward with the Concept of Responsible Leadership: Three Caveats to Guide Theory and Research

Integrating corporate social responsibility (CSR) initiatives in business is one of the great challenges facing firms today. Societal stakeholders require much more from the firm than pursuing profitability and growth. But these societal stakeholders often simply assume that increased societal expectations can easily be accommodated within efficiently run business operations, without much attention devoted to process issues. We build upon the core–periphery thesis to explore potential avenues for firms to add recurring CSR initiatives to their existing business practices. Based on Siggelkow’s (Admin Sci Quart 47:125–159, 2002) analysis of organizational change, we conceptualize seven major patterns of CSR initiative adoption. We develop a new organizing framework showing how a firm can integrate CSR initiatives in business. Within the new framework, each of the seven patterns represents an idiosyncratic path through which recurring CSR initiatives can be included as practices into conventional operations. We also explore the nature of the resulting internal fit between recurring CSR initiatives and business practices.