Corporate Social Responsibility in Challenging and Non-enabling Institutional Contexts: Do Institutional Voids matter?

The extant literature on comparative Corporate Social Responsibility (CSR) often assumes functioning and enabling institutional arrangements, such as strong government, market and civil society, as a necessary condition for responsible business practices. Setting aside this dominant assumption and drawing insights from a case study of Fidelity Bank, Nigeria, we explore why and how firms still pursue and enact responsible business practices in what could be described as challenging and non-enabling institutional contexts for CSR. Our findings suggest that responsible business practices in such contexts are often anchored on some CSR adaptive mechanisms. These mechanisms uniquely complement themselves and inform CSR strategies. The CSR adaptive mechanisms and strategies, in combination and in complementarity, then act as an institutional buffer (i.e. ‘institutional immunity’), which enables firms to successfully engage in responsible practices irrespective of their weak institutional settings. We leverage this understanding to contribute to CSR in developing economies, often characterised by challenging and non-enabling institutional contexts. The research, policy and practice implications are also discussed.     

Sustainable Development: Lost Meaning and Opportunity?

The term Sustainable Development has been used in many different contexts and consequently has come to represent many different ideas. The purpose of this paper was to explore the underlying meaning of the term Sustainable Development, and to assess the dominant ethic behind such meaning. Through this exploration, we uncovered a change in the semantic meaning of the term, and described what that meaning entails. The term Sustainable Development had the potential, we argue, to stimulate discursive engagement with respect to the future development of society within an ethical framework based around the values of inclusivity, diversity, and integration. The importance of philosophical context within which the term is used influences the definitional process of meaning, and has been simulated into the language of the dominant scientific-economic paradigm. We go on to explore how this meaning change has come about. In doing so we looked to the Enlightenment period and the resulting philosophies to explore the foundations of meaning, and then to the work of Jürgen Habermas to explain how the scientific-economic paradigm came to dominate the meaning of Sustainable Development.Andrew Fergus is a Ph.D. Candidate in the Haskayne School of Business, with a double major in Organizational Dynamics (Organizational theory/behaviour) and Environmental Management/Sustainable Development. His research is focused towards the dynamic relationships found at the interface of organizations, society, and the environment. Julie Rowney is a Professor, Human Resources and Organizational Dynamics, in the Haskayne School of Business at the University of Calgary. Dr. Rowney’s research activities lie in the areas of diversity, gender, environmental organizational interactions, human resources (leadership, change, crisis issues) and international/cross-cultural comparisons.     

Institutional Investors on Boards: Does Their Behavior Influence Corporate Finance?

We examine whether the behavior of institutional investors representatives on boards leads to observable differences in corporate finance. We find that directors representing pressure-sensitive investors (i.e., banks and insurance companies) prefer lower financial leverage whereas pressure-resistant directors (i.e., mutual funds and pension funds) show no particular preference. When analyzed separately, directors appointed by banks and insurance firms have different attitudes. Bank representatives on boards increase both the financial leverage and the banking debt. This result suggests that some types of institutional directors provide financial resources to the firms on whose board they sit, supporting the view that boards manage the uncertainty associated with strategic decision making and provide firms with preferential access to resources and financial expertise. This research has interesting academic and policy implications for the debate over the proper degree of institutional involvement in corporate governance. Different institutional investors have different agendas and incentives for corporate governance, and, therefore, both researchers and policy makers should no longer consider institutional investors as a whole. In addition, our paper calls for new research on the causes and implications of institutional investor involvement in the corporate governance of nonfinancial firms. This new research could require new insights on the dynamics within the boards and on the interplay among the knowledge, incentives and attitudes of quite different directors.     

Seasonality: A Problem for Workers in the Tourism Labour Market?

Seasonal workers in areas of tourism such as holiday accommodation are, largely on the basis of the pay and conditions that apply, generally viewed as some of the ‘poorest cousins' of the labour market. In this article, the acceptability of such a view is both disputed and reassessed. It is argued that such jobs are often held by those who voluntarily participate in the seasonal labour market but, aside from this, that involuntary participants may also benefit, perhaps, for example, in gaining respite from the dole. Moreover, and regardless of the motives behind participation, seasonal jobs are often laced with substantial non-pecuniary attractions that set them aside from other, far less satisfactory, forms of intermittent employment.     

The Pricing Kernel Puzzle: A Real Phenomenon or a Statistical Artifact?

A large literature finds evidence that the pricing kernels estimated from option prices and historical returns are not monotonically decreasing in market returns. We show that the inevitable coalescence of contingencies, especially in the left‐tail, associated with estimating a distribution function may give rise to a nonmonotonic empirical pricing kernel even if the actual pricing kernel is monotonic. Hence, the observed nonmonotonicity of pricing kernels may be a statistical artifact rather than a real phenomenon. We argue that empirical work should explicitly correct for this effect by widening the option pricing bounds associated with monotonic pricing kernels.     

Corporate Social Responsibility in SMEs: A Shift from Philanthropy to Institutional Works?

For Aristotle, virtues are neither transcendent nor universal, but socially interdependent; they need to be understood chronologically and with respect to character and context. This paper uses an Aristotelian lens to analyse an especially interesting context in which to study virtue—the state’s response when social order breaks down. During such periods, questions relating to right action by citizens, the state, and state agents are pronounced. To study this, we analyse data from interviews, observation, and documents gathered during a 3-year study of riot policing in the U.K. In doing so, we contribute by joining a number of other conversations within JBE, suggesting detailed empirical examination of this context is useful in opening up considerations relevant to ‘virtue’ elsewhere. This extreme context helps us raise interesting and empirically informed questions that can encourage future theoretical and empirical contributions to virtue in business ethics. One such question is on the role of habituation in virtue, which is not just the inculcation of a reflex or automaticity, but can also refer to a trained and developed tendency to behave in the right way, for the right reasons, at the right time. Whilst we stop short of a simplistic alignment of habituation and virtue, we show ways in which it can inform understanding of both courage and phronēsis.     

Internalization of Environmental Practices and Institutional Complexity: Can Stakeholders Pressures Encourage Greenwashing?

This paper analyzes the determinants underlying the internalization of proactive environmental management proposed by certifiable environmental management systems (EMSs) such as those set out in ISO 14001 and the European Management and Auditing Scheme (EMAS). Using a study based on 232 usable questionnaires from EMAS-registered organizations, we explored the influence of institutional pressures from different stakeholders and the role of corporate strategy in the “substantial” versus “symbolic” integration of environmental practices. The results highlighted that although institutional pressures generally strengthen the internalization of proactive environmental practices, the influence of stakeholders can either support the integration of these practices or encourage their superficial adoption. For example, while pressure from suppliers and shareholders contribute to corporate greening, pressure from customers and industrial associations tend to encourage greenwashing (i.e., the superficial and misleading adoption of environmental practices). Product quality-oriented strategies also positively influence EMS internalization. The paper sheds light on the institutional complexity underlying the substantial versus symbolic implementation of environmental practices, and questions the dominant isomorphic view of EMS adoption. The paper also bridges the gap between complementary approaches on corporate greening, notably neo-institutional and stakeholder theories.     

Constancy and integrity: (un)measurable virtues?

Positive psychology seeks to establish a classification of character strengths and virtues based on objective measures, and so to provide guidance on how good character might be developed. However, it offers no substantive theory of the good life. A short critique of this approach is offered, and an alternative mode of empirical enquiry is explored following Alasdair MacIntyre's philosophy. The virtues of constancy and integrity as they appear in the career narratives of leaders in Scottish banking illustrate this mode of enquiry. Empirical enquiry into these virtues reveals a process of interpretation, which is dependent on an understanding of structures in virtue ethics and an understanding of the way that particular agents pursue their own ideas of human flourishing in some particular social milieu. One consequence of this is that, while behavioural tendencies or dispositions might be measurable through statistical method, virtues are not.     

Competition and Environmental Policy in the EU: Old Foes,New Friends?

European competition authorities consider environmental and competition policy to be complementary, as each has the objective of improving social welfare. Naturally, one would imagine that environmental considerations have already been accounted for in competition policy practice, but thus far, only in the case of voluntary environmental agreements. This paper analyzes the extent to which the two types of policy are complementary by examining the legal framework of competition policy, voluntary environmental agreements and three competition cases with equal relevance to the environment and then examines the basic theoretical economic observation that less competition implies lower pollution levels relative to more competition. This trade-off between the benefits of reduced emissions on the one side and increased competition on the other implies that disregarding environmental considerations in the implementation of competition policy entails a negative externality, which can be eliminated if environmental considerations are internalized in competition policy. The impact of the externality is found to depend on the emission level, the emission damage, and market size. Further, this implies that if competition authorities were to adopt a broad definition of the relevant market in competition cases, then environmental considerations would play a limited role in competition policy, whereas a narrow definition implies that environmental considerations should have a much more important place than competitive considerations in competition policy.     

Ethnocentrism and Its Effect on the Chinese Consumer: A Threat to Foreign Goods?

This study examines ethnocentric tendencies including consumer ethnocentrism, country of origin, product judgments, willingness to buy, and animosity toward foreign products among a sample of economically progressive Chinese college students in a coastal port city in northern China. Survey results suggest that these Chinese consumers held a rather positive view of, and little animosity toward, the United States. They also did not show high levels of ethnocentrism or country-of-origin effects. These results would suggest openness toward foreign products. While Chinese consumers report little animosity or ethnocentric tendencies toward U.S. products, animosity, country of origin, and ethnocentrism are significantly correlated with willingness to buy. This suggests managers need to carefully position foreign products with respect to Chinese consumer expectations. Impacts of traditional collectivist views of the Chinese culture are suggested as an avenue for future research with respect to ethnocentrism and willingness to buy foreign products.     

Trick or Treat? Development Opportunities and Challenges in the WTO Negotiations on Industrial Tariffs

Negotiations on industrial tariffs in the current WTO work programme have turned out to be surprisingly difficult. On the one hand, developing countries, particularly in Africa, are concerned about the potential negative effect on their industrial development of developed country efforts to push them into deep cuts in applied tariffs: after the disillusion of the Uruguay Round, promises of welfare gains seem unconvincing. On the other hand, a number of the more complex formula proposals for tariff‐cutting make it difficult for participants to evaluate what they have to do compared with what they hope to receive. The developing countries may achieve greater exports and welfare gains from the more ambitious proposals, but computations show that these also imply greater imports, lower tariff revenues, some labour market adjustments and reduced output in some politically sensitive sectors. Some way of assisting the developing countries in coping with these adjustments is required to take advantage of the opportunities presented by the negotiations.     

Service Sector Development in the Netherlands: A Vision of the Post-Industrial Future?

With the decline in manufacturing employment the term ‘post- industrial society’, although not exactly entering the everyday vernacular, is one that is increasingly used widely to describe economically developed nations such as The Netherlands. This article looks at the framework for the post-industrial society developed by the American social theorist Daniel Bell and applies it to service sector developments in The Netherlands, with a particular concentration on the public sector. It is found that service sector developments in The Netherlands may not be in accord with Bell's vision of our post-industrial future.     

Deans’ Forum on the Globalization of Business Education and Development: Reflections and Directions for the Future

In this special issue of the Journal of Teaching in International Business, a number of deans reflect on the growth and development in global business education and development. The objective of the special issue is to provide insight into where the field originated and where it needs to move to continue advancement. Seven articles, written by current and former business school deans and their colleagues, are presented from a strategic perspective that cover the curricular, research, and business community outreach issues as they relate to international business academic and professional development programs. Through the presentation and discussion of these related issues, a dialogue will be started to set the agenda for continued advancement and sustainability of international business education across the globe.     

Associating Turkey with the Transatlantic Trade and Investment Partnership: A costly (re‐) engagement?

Policy debate on the implications of the Transatlantic Trade and Investment Partnership (TTIP) for Turkey has focused almost exclusively on “how” Turkey can/will take part in a forthcoming transatlantic deal. Turkey's association with a TTIP has largely been conceived as an inevitable and beneficial policy choice to re‐engage Ankara with the Atlantic alliance and emerging transatlantic trade framework. The arguments for extending TTIP to Turkey have mostly been built upon a conventional understanding of preferential trade agreements. The debate has not provided a comprehensive assessment of costs and benefits for Turkey's exclusion from or joining TTIP as it dismissed multiple dimensions of the “deep integration” agenda which underpined the transatlantic talks. This paper intends to contribute to the “why” debate with a thorough analysis of critical issues on the transatlantic agenda by evaluating economic and policy implications of TTIP both for exclusion and association scenarios together with associated compliance and adjustment costs.     

Social interaction via new social media: (How) can interactions on Twitter affect effectual thinking and behavior?

Social interaction plays a central role in effectuation processes, yet we know little about the implications for effectuation when an entrepreneur interacts via particular channels such as social media. To address this gap, our paper uses an inductive, theory-building methodology to develop propositions regarding how effectuation processes are impacted when entrepreneurs adopt Twitter. Twitter is a microblogging platform that can facilitate a marked increase in interaction. We posit that Twitter-based interaction can trigger effectual cognitions, but that high levels of interaction via this medium can lead to effectual churn. We also posit that there is one factor, perceived time affordability, that predicts the level of social interaction in which an entrepreneur engages via Twitter. Further, we propose two factors that moderate the consequences of social interaction through Twitter. These factors are community orientation and community norm adherence. Implications for our understanding of effectuation, of social interaction, and of the impact of social media on entrepreneurial firms are discussed.