Constructing Illegitimacy? Cartels and Cartel Agreements in Finnish Business Media from Critical Discursive Perspective

During the last decade, any questionable or illegal behaviour on the part of businesses has received considerable attention in the media. Using a critical discursive perspective, we here investigate how the media constructs one type of questionable business as illegitimate. Our data draw upon articles dealing with cartels and cartel agreements in Finnish business media covering the five year period 2002–2007. Our contributions are following: We add to the current literature on CSR and national businesses, suggesting that regardless of globalization socio-cultural history plays an important role in constructing the illegitimacy of business practices. We therefore emphasize the importance of media as an arena where social actors construct the social contract between business and society. We further contribute to studies on questionable business by reconstructing a discursive framework used to construct cartels and cartel agreements.     

The consequences of social responsibility for small business owners in small towns

This paper focuses on three under‐researched subjects in the corporate social responsibility literature: small businesses, small towns, and consequences of social responsibility for the business owner personally. Small businesses are the vast majority of businesses and make a significant contribution to national economic vitality. Their value to the survival of small towns, where they are often the only businesses, is even more important. Research indicates that the social performance of big and small businesses alike is dependent upon the values and disposition of the top decision maker. Therefore, insight into the owner's motivations for contributing to community betterment and the consequences of that behavior for the business and the owner will add to this literature. Equally important, this knowledge can inform policies aimed at increasing good citizenship for all sizes of businesses regardless of location.     

Investigating the Impact of Firm Size on Small Business Social Responsibility: A Critical Review

The impact of smaller firm size on corporate social responsibility (CSR) is ambiguous. Some contend that small businesses are socially responsible by nature, while others argue that a smaller firm size imposes barriers on small firms that constrain their ability to take responsible action. This paper critically analyses recent theoretical and empirical contributions on the size–social responsibility relationship among small businesses. More specifically, it reviews the impact of firm size on four antecedents of business behaviour: issue characteristics, personal characteristics, organizational characteristics and context characteristics. It concludes that the small business context does impose barriers on social responsibility taking, but that the impact of the smaller firm size on social responsibility should be nuanced depending on a number of conditions. From a critical analysis of these conditions, opportunities for small businesses and their constituents to overcome the constraining barriers are suggested.Jan Lepoutre is a PhD candidate in Applied Economics at Ghent University, Belgium. His dissertation focuses on the competences associated with small business social responsibility.Aimé Heene is a professor at the Faculty of Economics and Business Administration at Ghent University, Belgium. He teaches strategic management for private and for public organizations and currently focuses his research on (competence-based) management in public and social profit organizations.     

Social responsibility in micro businesses in an African context: Towards a theoretical understanding

Small businesses often engage in social responsibility (SR) without knowing it or without referring to their actions as SR. This is particularly the case in developing countries where the idea of SR is seen as synonymous with philanthropy. While the literature on small business social responsibility is growing, our understanding of the context-specific determinants of responsible practices in microbusinesses (those that employ less than 10 employees) that dominate the business landscape in many developing countries is still limited. In this paper, we address this gap and offer a theoretical understanding of how microbusiness owner-managers understand and approach SR by drawing on rich qualitative data collected from Nigeria—Africa's largest economy. We utilise Social Representations Theory to understand (1) how and why microbusiness owner-managers limit their understanding of SR to philanthropic activities and (2) the wide range of practices, including philanthropic activities, that account for their overall Responsible Business Practices (RBPs)—those practices that enable them to act responsibly towards their stakeholders and/or operating environments. We find that owner-managers' representations of SR are anchored primarily on an idiosyncratic ethical tendency and inclination towards the creation of social/communal harmony by ‘giving back to society’ and objectified via actions deriving from three ‘giving back’ orientations, namely Core Philanthropism, Social Problem Solving, and Empowering. We model microbusiness owner-managers' RBPs, highlighting the intersectional interplay of the voluntary (SR as philanthropy) and non-voluntary (self-regulatory and legal) dimensions of RBPs. Finally, we discuss the key findings in relation to the extant literature and to policymakers and managers.     

“Minding Our Business”: What the United States Government has done and can do to Ensure that U.S. Multinationals Act Responsibly in Foreign Markets

The United States Government does not mandate that US based firms follow US social and environmental law in foreign markets. However, because many developing countries do not have strong human rights, labor, and environmental laws, many multinationals have adopted voluntary corporate responsibility initiatives to self-regulate their overseas social and environmental practices. This article argues that voluntary actions, while important, are insufficient to address the magnitude of problems companies confront as they operate in developing countries where governance is often inadequate. The United States can do more to ensure that its multinationals act responsibly everywhere they operate. First, policymakers should define the social and environmental responsibilities of global companies. They must consistently make their expectations for global business clear – and underscore that this objective can often be accomplished without mandates. Second, the US should closely examine the policies that undermine global Corporate Social Responsibility (CSR) and address the many conflicting signals sent by policymakers. Third, the President should make the US government a CSR model by examining how to use its purchasing power to promote human rights. Finally, the US government should require pension funds to report on the social and environmental consequences of their investments. In these ways, Americans can mind our business – and thus make sure that US based firms do not undermine social and environmental progress when they operate in the developing world. Susan Aaronson is Senior Fellow and Director of Globalization Studies at the Kenan Institute Washington Center, an arm of the Kenan-Flagler Business School, University of North Carolina Chapel Hill. Her scholarly research focuses on international investment and social responsibility issues. Aaronson devised and directed a study, funded by the Ford, UN and Levi Strauss Foundations, that examined how U.S. public policies can promote or undermine global corporate social responsibility. She is now beginning a Levi-Strauss funded project on trade and human rights. Aaronson is a frequent speaker on public understanding of globalization issues and the author of four books on globalization including, Taking Trade to the Streets: The Lost History of Public Efforts to Shape Globalization (Michigan: 2001).     

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.     

Responsibility and Informal CSR in Formal Cameroonian SMEs

In this article, we explore the implicit conceptions of business ethics and social responsibility of owners?managers of small and medium enterprises (SME) in Cameroon. While using a hermeneutical approach, our main objective is to clarify how Sub-Saharan African business people themselves understand and define corporate responsibility in their particular economic and political environment. Our aim is not to deliver an empirical study of business practices and management behavior in SMEs. We wish to discuss which responsibilities they themselves judge to be relevant and which can legitimately be attributed to them by third parties. Secondly, we relate our findings to other empirical work on SMEs, in Africa and elsewhere. It is shown that there are similarities with the way in which SMEs in Europe interpret their responsibility, but also striking differences. Further, we relate our findings to some theoretical controversies around corporate social responsibility (CSR) in SMEs, to questions about evaluation tools for CSR in the SME context, and to the role of CSR with respect to poverty alleviation in developing countries.     

Effects of Entrepreneurial and Environmental Sustainability Orientations on Firm Performance: A Study of Small Businesses in the Philippines

Why do small businesses in developing countries embrace sustainable business practices and what are the effects on their performance? We address these questions by drawing on the natural‐resource based view of the firm to argue that the environmental sustainability orientation of small businesses can be explained by their entrepreneurial orientation. Our study of 197 small businesses in the Philippines shows that an entrepreneurial strategic orientation enables them to develop a more proactive stance toward environmental sustainability practices which lead to superior firm performance. The implications of the findings for future research and for public policy for small businesses are also discussed.     

Fostering Responsible Communities: A Community Social Marketing Approach to Sustainable Living

Just as socially irresponsible organizational behavior leaves a punitive legacy on society, socially responsible organizations can foster curative change. This article examines whether small organizations can foster societal change toward more sustainable modes of living. We contend that consumption is deeply intertwined with social relations and norms, thus making individual behavioral change toward sustainability a matter of facilitating change in individual behavior, as well as in social norms and relations between organizations and consumers. We argue that it is in this facilitation process that small firms can play a major role, by adopting upstream and downstream approaches to diffuse behavioral change. By synthesizing four key strands of literature – small businesses and corporate social responsibility, ethical consumption, community social marketing, and the diffusion of innovation – and using the exemplar case of Modbury, the iconic “plastic bag-free” town, we demonstrate how responsible small firms can influence communities, and the individuals therein, to encourage environmentally sustainable practice to diffuse and support change in society.     

Ethics and Law: Guiding the Invisible Hand to Correct Corporate Social Responsibility Externalities

Tokenistic short-term economic success is not good indicia of long-term success. Sustainable business success requires sustained existence in a corporation’s political, economic, social, technological, legal and environmental contexts. Far beyond the traditional economic focus, consumers, governments and public interest groups alike increasingly expect the business sector to take on more social and environmental responsibilities. Corporate social responsibility (CSR) is the model in which economic, social and environmental responsibilities are fulfilled simultaneously. However, there is insufficient empirical evidence that demonstrates genuine widespread adoption of CSR in practice, and its underlying reasons. Though research in CSR has been rapidly growing, its commercial reality and implications need to be further improved if it is to inspire corporations to voluntarily adopt CSR. In the literature, Carroll’s four-dimensional (economic, legal, ethical and discretionary) CSR framework offers a theoretical basis for developing an empirically based model to explain why and how profit-motivated managers take up CSR voluntarily. Our study has developed a structural equation model to identify the key factors and their interactions that influence economically motivated managers to take on voluntary CSR, and validate Carroll’s four-dimensional construct. The results support Carroll’s four-dimensional CSR framework, with the exception of the link pertaining to the relationship between economic and discretionary/voluntary responsibility. This characterises the economic reality that financial market-driven economic responsibility does not automatically translate into social responsibility. Nevertheless, the empirical results demonstrate that corporations can be led to engage in more voluntary CSR activities to achieve social good when appropriate legal and ethical controls are in place.     

Keeping at Arm’s Length or Searching for Social Proximity? Corporate Social Responsibility as a Reciprocal Process Between Small Businesses and the Local Community

This article examines the relationship between corporate social responsibility and locality in the small business context. This issue is addressed by studying the interplay between small businesses and local community based on the embeddedness literature and using the concept of social proximity. On the basis of 25 thematic interviews with owner-managers a typology is constructed which illustrates the owner-managers’ perceptions of the relationship between the business and the local community. The findings emphasize the importance of reciprocity as it is suggested that corporate social responsibility in relation to locality is constructed as a response to the interpretations of reciprocal community support between small business owner-managers and local community.     

Exploring Corporate Social Responsibility in the U.K. Asian Small Business Community

Within the limited, but growing, literature on small business ethics almost no attention has been paid to the issue of social responsibility within ethnic minority businesses. Using a social capital perspective, this paper reports on an exploratory and qualitative investigation into the attitudinal and behavioural manifestations of CSR within small and medium-sized Asian owned or managed firms in the U.K., with particular reference to the distinctive factors motivating organisational responses. It offers alternative explanations of entrepreneurial behaviour and suggests areas for further research.     

Corporate social responsibility towards human development: A capabilities framework

The starting point of this paper is the need to promote a people‐centred corporate social responsibility (CSR) framework in a context where many human needs and rights remain unsatisfied and where businesses may have both a positive and a negative impact on the quality of life of human beings today and tomorrow and may even lead to irreversible damage. Our normative definition of CSR is consistent with the criteria established by the EU Commission in 2011. We conceive CSR as a responsibility towards human development in two complementary ways: (a) a holistic responsibility shared by companies together with other actors to safeguard humanity and (b) a direct liability of each company for its impact on stakeholders' capabilities. We apply Nussbaum's list of central capabilities and concept of thresholds to specify the nature and extent of corporate responsibilities towards employees, subcontractors, investors, customers, and humanity as a whole. In addition, we leverage fieldwork in developing and developed countries to analyse the effect of business activities on human capabilities. We demonstrate that by quantifying the impact of businesses' activities on various dimensions of stakeholders' lives, and especially on the most vulnerable ones, these businesses can be held accountable for the negative externalities they produce.     

Engaging values in international business practice

Managerial decisions and behaviors in the international business arena have ethical implications across cultures and countries. The need for ethics and core values in business practice has been heightened by continued business scandals and ethical managerial lapses that have violated public trust. Global businesses can offer practical guidance and set ethical examples for others to follow by establishing corporate values beyond written business codes. Four key work values (Honesty, Fairness, Concern of Others, and Achievement) known to be present in businesses across cultures, are put forth as a baseline start for multinational corporation leaders. Offered is a process for making the core values unique to an organization, and for adopting and training managers in the use of core values. Presented is evidence of managerial implementation of the core work values, and managers’ alignment of work values with organizational strategies. By addressing the values and principles of their workplaces, international businesses can achieve cross-cultural ethical practices, managerial alignment, and global social responsibility.     

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.     

Designing and Implementing Corporate Social Responsibility: An Integrative Framework Grounded in Theory and Practice

This article introduces an integrative framework of corporate social responsibility (CSR) design and implementation. A review of CSR literature – in particular with regard to design and implementation models – provides the background to develop a multiple case study. The resulting integrative framework, based on this multiple case study and Lewin’s change model, highlights four stages that span nine steps of the CSR design and implementation process. Finally, the study identifies critical success factors for the CSR process.     

The Decomposition of the Corporate Body: What Kant Cannot Contribute to Business Ethics

Kant is gaining popularity in business ethics because the categorical imperative rules out actions such as deceptive advertising and exploitative working conditions, both of which treat people merely as means to an end. However, those who apply Kant in this way often hold businesses themselves morally accountable, and this conception of collective responsibility contradicts the kind of moral agency that underlies Kant’s ethics. A business has neither inclinations nor the capacity to reason, so it lacks the conditions necessary for constraint by the moral law. Instead, corporate policies ought to be understood as analogous to legal constraints. They may encourage or discourage certain actions, but they cannot determine a person’s maxim – which for Kant is the focus of moral judgment. Because there is no collective intention apart from any intentions of the individual agents who act as members of the corporation, an organization itself has no moral obligations. This poses a dilemma: either apply the categorical imperative to the actions of particular businesspeople and surrender the notion of collective responsibility, or apply a different moral theory to the actions of businesses themselves. Given the diffusion of responsibility in a bureaucracy, the explanatory usefulness of collective responsibility may force business ethicists to abandon Kant’s moral philosophy.     

The Geographic,Political, and Economic Context for Corporate Social Responsibility in Brazil

This paper provides an overview of corporate social responsibility in Brazil, a country of vast regional and economic differences. Despite abundant natural resources and centers of advanced technology, large numbers of Brazilians live in poverty. Historical factors, which to some extent explain Brazil’s social and economic inequalities – a long period of colonialism, followed by populist reform, repressive military measures, foreign debt, unfair trade agreements, and problems of corruption – have persisted into the current period of democratic reform, marked by economic and political trends toward democratization and corporate social responsibility. This paper considers the civic and business organizations that have been developing strategies to encourage social responsibility and government policies aimed at alleviating poverty. Despite progress, the complexity of the Brazilian context presents challenges for social and economic equality. Margaret Ann Griesse holds a Ph.D. in Education and International Development from the University of Frankfurt. She is currently Coordinator of the Martha Watts Cultural Center at the Methodist University of Piracicaba, Brazil.     

Community Social Responsibility and Its Consequences for Family Business Performance*

Family‐centered businesses may have unique perspectives of socially responsible behavior due to family involvement and ties to the community. This research explored the antecedents and consequences of community social responsibility (CSR) for family firms operating in small and rural markets. Using a national sample from the 2000 wave of the National Family Business Survey (NFBS), researchers profiled family business operators' (n = 221) to determine if their CSR orientation contributed to family business performance. Enlightened self interest and social capital perspectives provide a framework for elaborating the role of CSR in sustaining family businesses in changing small communities. Results indicate that three dimensions, commitment to the community, community support, and sense of community, account for 43 percent of the variation in family business operators' CSR. Size of the business was significantly related to family firms' ability to give and receive community support. Further, commitment to the community was found to significantly explain perceived family business performance while community support explained financial performance. Findings suggest that socially responsible business behaviors can indeed contribute to the sustainability of family businesses in small rural communities.