How Do Board Size and Occupational Background of Directors Influence Social Performance in For-profit and Non-profit Organizations? Evidence from California Hospitals

This study investigates how board size and occupational background of directors differentially influence social performance in for-profit and non-profit organizations. Using data from California hospitals, we develop a quantitative measure of social performance and provide the following empirical evidence. First, board size is negatively (positively) associated with social performance in for-profit (non-profit) hospitals. Second, the presence of government officials on the board is negatively (positively) related to social performance in for-profit (non-profit) hospitals. Third, representation of physicians on the board is positively associated with social performance in for-profit hospitals, whereas their presence is not significantly related to social performance in non-profit hospitals. Our findings highlight the different effects of governance mechanisms on social performance in for-profit and non-profit organizations.     

Together and Apart: Exploring Structure of the Corporate–NPO Relationship

Financially significant relationships between corporations and non-profit organizations (NPOs) have increased in recent years. NPOs offer access to interests and ideologies that are lacking within most for-profit organizations. These partnerships form a unique bridge between for-profit and non-profit goals and offer significant potential to produce innovative ways of “doing business by doing good.” Exploration of the structural implications of these relationships, however, has been limited. The potential for ideological imbalance in these relationships, particularly for the NPO, has been poorly described. We explore the structure of Corporate–NPO relationships from the NPO's perspective under high pressure conditions such as large relational investments or negative pressure from stakeholders. Using data collected from 20 NPOs in Australia, we identified the use by NPOs of both formal and informal governance mechanisms within their partnerships. These mechanisms acted to align and defend important goals of the NPO. They allowed the NPO and their corporate partners to be simultaneously “together and apart.” Our study offers important insight toward the study of cross-sector relationships and the role of governance mechanisms.     

A hybrid approach to international market selection: The case of impact investing organizations

Social enterprises are hybrid organizations that concurrently pursue social and economic goals and hence are mid-way between conventional capitalistic firms and non-profit organizations. Many social enterprises are becoming international; delivering services across borders. With the objective of understanding the internationalization of these unconventional organizations, this paper examines their international market selection decision based on host countries’ macroeconomic conditions. Generally, we hypothesize that the international market selection decision of social enterprises is tied to their hybridity, an overarching characteristic that sets them apart from other types of organizations. We build an original dataset with information on 41 European and North American impact investing organizations and 153 developing countries. Largely, our findings support the hypothesis, suggesting that social enterprises operate in foreign countries that offer a desirable balance between their social and financial goals. However, they avoid contexts with high country risk, factors that could cause a shortfall in expected returns.     

Business models for people, planet (& profits): exploring the phenomena of social business, a market-based approach to social value creation

This article explores the hybrid phenomenon of social business, that is, both a form of organization and a practice that deliberately harnesses market dynamics to address deeply rooted social issues through the design and implementation of a core product or service. This new form of hybrid venture melds the social purpose traditionally associated with non-profit organizations with the economic purpose and market-based methods traditionally associated with for-profit firms. This exploratory research inductively explores the process by which social businesses are designed. The result suggests that clear intentionality around social purpose drives the design of these ventures and their associated missions and business models such that they can creatively synthesize competing paradigms (economic and social purpose) within one venture. The tight coupling of mission, method, and operationalization allows for the multi-stakeholder promise of the business model to be fulfilled.     

Understanding Non-Profit and For-Profit Social Marketing on Social Media: The Case of Anti-Texting While Driving

Previous studies suggest that consumers tend to infer more negative motives of for-profit sponsorship on social cause than to non-profits. The current study is aimed at identifying potential effective strategies for for-profit organizations to engage in social marketing efforts. Results showed that participants expressed lower texting while driving intentions when the message was initiated by a non-profit than a for-profit organization. For-profit messages were more likely to elicit desirable persuasive effects if their business offering was congruent with the social cause. Participants' intentions to interact with promotion messages on social media predicted their offline behavioral intentions regarding the promoted behaviors.     

The promise and problems of price subsidization in social entrepreneurship

Social entrepreneurship research has often focused on the benefits and challenges of designing hybrid organizations that integrate competing institutional logics to tackle social problems using market-based methods, especially in developing economies. Drawing on case evidence from the Safe Water for Africa program, we show how and why pricing new products at other than market prices offers a seductive but dangerous mechanism for managers seeking to pursue dual objectives in hybrid organizations. We identify five strategic and operational challenges with ethical implications that manifest as pricing dilemmas and show how and why they are likely to elicit moral dilemmas among stakeholders of social entrepreneurship who are not equally committed to both social and economic objectives.     

Funding the story of hybrid ventures: Crowdfunder lending preferences and linguistic hybridity

Prosocial crowdfunding platforms are venues for individual lenders to allocate resources to ventures that specifically pursue economic and social value. In a setting where hybridity is expected, do crowdfunders respond positively to category-spanning ventures, or do they prefer to fund ventures that are more clearly situated within a single category? Drawing on theory rooted in category membership and spanning, our hypotheses test whether prosocial crowdfunding lenders will more quickly allocate resources to hybrid microenterprises that communicate their hybridity, or to those that communicate a single one of their dual aims. Our study demonstrates that even in such a setting, crowdfunders lend more quickly to microenterprises that position themselves within a single linguistic category in which the social is emphasized over the economic. This suggests that how hybrid organizations position themselves in their linguistic narratives has a significant impact on resource allocation by external prosocial audiences.     

How do Universities Make Progress? Stakeholder-Related Mechanisms Affecting Adoption of Sustainability in University Curricula

This paper develops a theoretical model to explicate stakeholder-related mechanisms that affect university adoption of sustainability in curricula. This work combines stakeholder and institutional theories so as to extend both. By examining change in the university context wherein there is confusion about sustainability adoption, this research adds to previous institutional theory focusing on strongly contested practices, primarily in the for-profit firm setting. Sustainability is a transformational challenge and may be adopted reactively or proactively. Also, stakeholder theory is extended in a mixed profit and non-profit context. Propositions suggest how the extent of embeddedness affects an organizations’ selection of stakeholders, consequently affecting the type of adoption. This facilitates a greater understanding of why two competing definitions of stakeholders may operate. Moreover, extrinsic and intrinsic motivations are discussed as affecting adoption in different ways. A responsible leader organization is newly defined and intrinsic motivation is proposed as underlying its choice of the widest set of stakeholders leading to broad, proactive adoption.     

Navigating imposed innovation: A decision-making framework

Modern economies are characterized by the rising role of nonmarket actors (e.g., regulatory agencies, social activists, labor unions, media) that are gaining influence over the behavior of for-profit firms. These nonmarket stakeholders use their clout over industry players to impose innovations that require costly changes in business practices or technological trajectories while lacking firm-level economic justification. How should a company respond when it is pressured to adopt a new practice or change its products, while the economic calculations suggest that this is going to be a pure cost? Our study suggests alternative strategic responses to imposed innovation pressures and explores the factors determining the choice of an optimal strategy. Grounding the argument on the outside-in approach to pursuing imposed innovations, we propose a framework of organizational responses to external pressures to innovate, with varying degrees of firm engagement and different levels of cooperation with other industry actors. We also present a decision tree approach, allowing organizational decision makers to analyze the contextual determinants and ultimately arrive at the most appropriate, context-determined strategy.     

Managing relational conflict in Korean social enterprises: The role of participatory HRM practices,diversity climate,and perceived social impact

Social enterprises are hybrid organizations that primarily pursue social missions while also seeking economic gains. Drawing on workplace diversity and conflict theories, this article addresses recent calls for further research to explore how employees within social enterprises experience internal conflicts arising from the organizational pursuit of dual, competing missions (i.e., social and economic), and how social enterprises manage, and potentially overcome, these challenges. In the context of Korean social enterprise, we conducted a quantitative study that built on an initial explorative qualitative study. Our research examined whether perceived participatory human resource management practices and diversity climate increase employees’ affective commitment by reducing their relational conflict. We further explored a boundary condition, perceived social impact, which strengthened this mediation relationship. Our results offer significant insights into social enterprise, business ethics, and broader management literature. Implications for future research and practice are also discussed.     

Responsible Marketing: Can Social Enterprises Show the Way?

In this article, the authors present a new perspective on responsible marketing. We discuss if and how social enterprises can present a new understanding of responsible marketing. Relevant publications (14 on social entrepreneurship, 40 on marketing in non-profit organizations and social enterprises and 41 papers on marketing) are selected and reviewed. The result of the literature analysis and synthesis show that social enterprises can gain from a more formal, systematic approach to marketing. Since social enterprises prioritize social goals over business results, successful adoption of marketing policies and practices can help then create a blueprint for responsible marketing. Marketing of socially relevant products and services by social enterprises thus create a new paradigm of responsible marketing. Such models can also be useful for larger corporations who look at social business and shared value creation as part of their business and marketing strategy.     

Corporate Social Responsibility: Exploring Stakeholder Relationships and Programme Reporting across Leading FTSE Companies

Although it is now widely recognised by business leaders that their companies need to accept a broader responsibility than short-term profits, recent research suggests that as corporate social responsibility (CSR) and social reporting become more widespread, there is little empirical evidence of the range of stakeholders addressed through their CSR programmes and how such programmes are reported. Through a CSR framework which was developed in an exploratory study, we explore the nature of stakeholder relationships reported across leading FTSE companies and the importance they attach to communicating both social and business outcomes. It is evident from the hypotheses tested that the bigger FTSE companies, particularly extraction companies and telecoms, are more adept at identifying and prioritising their stakeholders, and linking CSR programmes to business and social outcomes. However, we draw the general conclusion that building stronger stakeholder relationships through CSR programmes – other than with customers – is not currently a priority for most companies. We also conclude that a limited sophistication in managing multiple stakeholders may compromise the impact of CSR upon business and social results. Finally, the managerial implications and the contribution of our study are discussed before closing with an acknowledgement of the limitations of this work and suggestions for further research.     

Corporate Social Responsibility in Colombia: Making Sense of Social Strategies

As corporate social responsibility (CSR) grows increasingly well known and accepted worldwide, organizations attempt to make sense of their social strategies bridge the gap between their current situation and what their stakeholders expect of them. If social strategies represent a potential stepping stone to more sophisticated forms of CSR, then research must investigate the strategies that organizations have adopted. After defining a framework for classifying and analyzing organizations’ social strategies, this article considers empirical evidence from 10 case studies in Colombia to reveal how organizations might build on their social involvement to engage in more sophisticated CSR practices. The framework also suggests some different trajectories that organizations might follow.     

Making sense of corporate social responsibility in international business: experiences from Shell

International business organizations are regularly addressed on their corporate social responsibility (CSR). As illustrated in this paper, it is not yet clear exactly what CSR means to organizations and how to deal with it. In this paper, the authors explore how a sensemaking approach helps to understand the business challenges of CSR within an organizational context. The theories of Karl Weick are applied to the experiences of CSR in Royal Dutch Shell. The authors argue that the key to CSR in international business organizations is to engage stakeholders and start a process of joint sensemaking. Three main competencies are crucial in this: the competency to engage stakeholders through listening and understanding; the creation of an organizational language so that CSR makes sense to members of the organization; and recognizing the momentum of taking action.     

面向低收入市场的金字塔底层战略研究述评

贫困问题一直是困扰世界经济与社会发展的突出问题,而金字塔底层战略提出企业可通过技术与商业模式创新去开拓低收入市场来缓解与消除贫困,挑战了只有政府、非营利机构或慈善组织才有动机与能力应对贫困问题的传统观点,也体现出创新促进商业与社会包容性发展的最新理念。本文首先区分并比较了把穷人分别视为消费者、生产者与商业合作伙伴的3种金字塔底层战略及其内涵,进而从购买力、消费者行为、生产者行为与制度环境4个方面对低收入市场特质进行梳理与归纳,最后阐述企业实施金字塔底层战略的5种关键策略与方法,并提出未来研究方向。     

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.     

Correcting analytics maturity myopia

Companies face increasing pressure to compete in the practice of analytics and strive for analytics maturity to sustain their competitive advantage. A single-minded, narrow focus on gaining analytics maturity, however, leads to analytics maturity myopia. Based on our studies of analytical capabilities and numerous conversations with executives and managers, we offer a scorecard for organizations to identify the presence of analytics maturity myopia and propose a framework for organizations to correct this issue. The proposed framework partially explains the mixed and conflicting results regarding the relationship between analytics maturity and business value found in the literature. Specifically, we recommend that companies focus on three factors that are critical to realizing value from analytics initiatives: (1) a balanced view of value to different stakeholders, (2) a continuous expansion of the business ecosystem beyond current stakeholders to identify and pursue new opportunities, and (3) use of an emergent strategy to take advantage of unexpected opportunities and develop organizational agility.     

CSR and the Mediated Emergence of Strategic Ambiguity

We develop a framework for understanding how lack of clarity in business press coverage of corporate social responsibility functions as a mediated and emergent form of strategic ambiguity. Many stakeholders expect CSR to exhibit clarity, consistency, and discursive closure. But stakeholders also expect CSR to conform to varying degrees of both formal and substantive rationality. These diverse expectations conflict with each other and change over time. A content analysis of press coverage in Denmark suggests that the business media reflect and amplify the ambiguity generated by these shifting demands. We propose that this very public lack of discursive closure provides strategic advantages to CSR stakeholders by rendering the concept of CSR adaptable, resilient, and meaningful to diverse interests. From this perspective, strategic ambiguity emerges from a relational and mediated process, not from the direct intentions of individual stakeholders. Our framework suggests that CSR is best understood not as a clear or consistent agenda, but rather as a forum for sensemaking, diversity of opinion, and debate over the conflicting social norms and expectations attached to corporate activity.     

Using Video to Build an Organization's Identity and Brand: A Content Analysis of Nonprofit Organizations' YouTube Videos

Organizational scholarship has increasingly focused its attention to how nonprofit, for-profit, and government agencies develop their unique organizational identity through their strategic communication efforts. As social media continues to become more prominent in communication campaigns due to the high levels of public usage and public involvement with organizations on social media sites, it is important to examine these social media messages as they relate to organizational identity. YouTube videos increasingly are being used by organizations to educate and inform just as much as they are to entertain. Through a content analysis of the most viewed videos on the top 100 official nonprofit YouTube channels, this study found that nonprofit organizations primarily use their YouTube videos to inform and educate viewers about their missions, programs, and services. While the videos also occasionally discuss the organizations' advocacy, volunteering, and fundraising efforts, nonprofit organizations were not living up to their potential in terms of engagement through direct appeals for involvement. Additionally, the organizations were more likely to use outsiders' words and stories to build the videos' narratives rather than using internal stakeholders. The benchmark numbers provided by this study reiterate key rules that are stressed in practitioner-oriented work on video production for branding and identity-building efforts.     

The Social Entrepreneurship Zone

Social entrepreneurship is still in the developmental stage as a field of inquiry. In this article we introduce the concept of the social entrepreneurship zone. This new construct positions social entrepreneurship relative to the ways organizations plan to implement social change and the degrees to which they apply business practices to do so. Two new categories of organizations, social transformation entrepreneurial ventures and social improvement entrepreneurial ventures, reside in the social entrepreneurship zone. This categorization separates social entrepreneurial ventures into 2 distinct groups with their own unique set of characteristics. The social entrepreneurship zone construct should help researchers and other stakeholders better understand this emerging field so it can be further studied and developed.