The purpose of this paper is to provide a theoretical framework to investigate ‘CSP-FP relationship’ as a social construction on financial markets. The construction of such a relationship has become a crucial business problem since the legitimacy-building process of actors implied in markets related to corporate social responsibility evaluation and management is closely associated to the belief that ‘ethics and/or social responsibility pay’ – at least in the long run. Consequently, actors’ behaviours and beliefs on these markets can no longer be considered as external to the CSP-FP debate, but should be integrated as an endogenous variable. Moreover, the diffusion of these behaviours and beliefs could also contribute to the effective realization of such a relationship on financial markets and, to some extent, in the business arena. These facts offer the opportunity to reframe theoretically the classical and over-studied debate around ‘the CSP-FP link’ and to propose a new framework describing the various processes of performativity through which actors enact and construct the positive relationship between CSP and FP.

The purpose of this paper is to provoke a debate on the management of social issues building on the analysis of a well known illegal organization, namely theSicilian Mafia. According to the analytical framework provided by Gambetta (1993), the Sicilian Mafia could be considered as a business on its own dealing a specific commodity: the ‘protection of people’. That approach of ‘Mafia as a corporation’ allows investigating the social responsibility of that organization and the way the Mafia managed its key stakeholders. As we will argue, the recent spate of corporate scandals reveals the risk of normal corporations turning into a Mafia type of organization. One of the key drivers of those scandals is the overstretched instrumental interpretation of a corporation's societal responsibilities. By caricaturing and perverting some established practices of the mainstream approach to CSR perspective, we will demonstrate the potential pathologies of a CSR approach that is mainly based on the neoliberal foundation of individual and organizational self-interest.

Fairclough’s (1992) model of critical discourse analysis can be used to show how corporate social responsibility, stakeholder identity and the social relations between organisations and stakeholders are socially constructed in the social and environmental reports prepared by companies. An example from doctoral work-in-progress is provided. Preliminary findings suggest the Royal Dutch/Shell Group of Companies construct corporate social responsibility as functionalist and economically-based. Stakeholders, rather than equal partners, are pacified and persuaded to Shell’s understandings about corporate social responsibility.

The decision to internalize corporate social responsibility (CSR) activities, to outsource them in the form of corporate philanthropy, or to collaborate with otherorganizations is of great significance to the ability of the firm to reap benefits from such activity. Using insights provided by the new institutional economics and the resourcebased view of the firm, this paper describes how the variables of centrality and specificity affect CSR governance choice. This framework is tested using data collected from Central America and Mexico. Support is found for the relevance of centrality, but not for specificity. The paper discusses directions for future research and concludes with the managerial implications of this research.

Both positive and negative consequences typically result from business activities for all types of stakeholders. How these consequences are judged is at the heart of economics and ethics, sociology and political economy. For example, the poorly run supermarket in a low-income community that charges exorbitantly high prices rarely gets our sympathy, and we often call for more competition to bring down prices and improve customer service. At the same time, small businesses that serve their customers well and provide a modest living to the owners may well be threatened by the entry of a large efficient competitor, and we often call for less competition in order to preserve small firms. Such paradoxes are worth pondering and sorting out. We offer our assessment of the paradox by examining morally mature management and socially efficient political economies through the lens of global business citizenship.

The purpose of this paper is to investigate the legitimacy-building processes of Social Rating Organizations (SRO) and the role of objects in these processes. SROs have played a key role in the development of SRI in Europe by providing social and environmental rating to financial investors. However, little is known about the processes through which they have acquired their legitimacy, i.e. their ‘right-to-rate’ corporations. We provide here an in-depth empirical analysis of the legitimacy-building process of two European SROs and demonstrate the role played by objects in these processes of legitimacy construction.

This is an exploratory study of corporate social performance in firms with family members in executive, governance, or strong ownership positions. Family firmsdominate the economy in most countries, including the United States, and families are thought to be more concerned with personal wealth creation and risk avoidance than social performance. Although such firms have been shown to have superior financial performance, I found no evidence of superior (or inferior) social performance among family firms in the S&P 500. In a departure from the methodological norm in business and society, I used KLD data as dependent variables instead of independent variables. I was able to predict KLD scores from firm size, industry, and strategy variables, but family firm status rarely played a role.

This paper reports on comparative research on how textual representations of issues related to corporate social responsibility (CSR) in corporate annual reports from Sweden, Canada and the Netherlands have changed over time. The results show a substantial increase on a number of topics that can be linked to the general CSR-discourse in the 2001 sample in comparison to the 1991 and 1981 samples. The rise in the CSR-discourse appears to be related to a drop in other discourses related to issues of social responsibility regarding the social, economic and political development of a company’s native country.

This paper explores the relationship between the corporate social performance (CSP) of subsidiaries and the transfer pricing policies at which multinationals trade with their subsidiaries. In this paper I develop a theoretical framework to propose that, to the extent to which those policies and practices shift income out of the subsidiary, transfer pricing policy may undermine the CSP of that subsidiary. In this way, the subsidiary may lose social legitimacy and incur in higher costs to acquire local resources.

This paper examines the influences on differential behaviors of multinational enterprises (MNEs) with respect to the adoption and implementation of voluntary codes of conduct in their host country operating environments. Both external institutional and internal leadership and organizational culture factors are offered as those conditions that are expected to predict the respective ability and willingness of firms to conduct their operations in socially responsible ways. A framework for furthering research in this area is developed.

This paper explores what we can call the paradox of corporate citizenship, that is, it explores the paradoxical dark underbelly created by strategic success in corporations and their efforts to implement voluntary corporate social responsibility initiatives to demonstrate their good corporate citizenship. In this exploration, we will look at the tensions of corporate citizenship and responsibility that are created not when there are crises, scandals, or misdeeds, but when the very success of the company’s strategy is itself the source of concern.

Based on Davenport’s (1998) social audit, we examined six firms’ corporate social responsibility activities within the beer industry in an effort to identify and compare these firms’ industry social standing. The results have implications in our understanding and assessment of corporate citizenship practices both within and across business industry groups.

This is just a brief description of the people involved and activities that occurred during a full-day pre-conference event that included a winery tour, a luncheon, apanel discussion of management systems, and a wine tasting. We completed a facility tour at Gallo’s Frei Ranch Winery that highlighted the environmental performance opportunities that exist for wine production. The rest of the day’s schedule was held at MacMurray Ranch. There was a panel that featured presentations and discussions about Gallo of Sonoma’s sustainability management systems, the Benziger Family Winery’s Biodynamic vineyard practices, and the application of environmental management systems in the wine industry and other industries.

This paper investigates the determinants of the diffusion of the international environmental management system standard ISO 14001 within the chemical industry using a panel of 126 different countries during the period 2000 to 2003. We investigate how institutional pressure originating from different stakeholders such as governments, businesses, and the civil society and forces related to trade will drive the diffusion. Our results show that the level of community involvement within a particular country and the previous experience of businesses with voluntary standards such as Responsible Care and ISO 9000 impacts ISO 14001 adoption in chemical firms.

This study draws on stakeholder management theory and the resource-based view of the firm to determine the factors affecting a facility’s decision to implementenvironmental management systems and practices. Four levels of environmental commitment to the natural environment are proposed including whether a facility has an EMS, whether a facility has a person responsible for environmental issues, whether a facility is ISO 14001 certified and the comprehensiveness of a facility’s EMS as measured by the number of practices undertaken. We empirically test these hypotheses using manufacturing facility-level data from Canada, France, Germany, Hungary, Japan, Norway and the USA.

Voluntary management standards have recently become a new form of industrial coordination. Once an organization implements a management practice, theorganization may then voluntarily apply for a third party certification to demonstrate compliance with a certain standard. Based on the principles of institutional theory, various scholars have analyzed how various elements of the institutional environment influence the adoption of these new management standards. However, missing in the literature, is the analysis of how the combination of different institutional pressures shape (e.g. accelerate or decelerate) adoption patterns. This paper addresses this question by analyzing the adoption of the environmental management standard ISO 14001 among automotive suppliers located in Canada, Mexico and the United States.

We examine how UK listed companies set executive pay, considering the implications of following best practice in corporate governance and how this canconflict with what stakeholders might perceive as good behaviour. We do this by presenting the results of 40 interviews with protagonists in the debate, setting out the dilemmas faced by remuneration-setters, and how the processes they follow can lead to ethical conflicts. Overall, we conclude that although best practice might drive good behaviour, it often does not.

This paper demonstrates the role of the governance system and the governance structure in corporate social performance (CSP). By building on a longitudinal study in Dutch finance, it extends the CSP-model of Wood. The extension enables us to study the impact of the institutional environment and the characteristics of a governance structure on CSP. Furthermore, the study confirms Wood’s assumption that anticipating managers are critical in CSP. However, if stakeholders desire structural influence, the governance structure and the governance system offer important opportunities.

This paper reports the first stage of our research agenda concerning the factors that influence the appointment of individuals to Canadian boards of directors. This particular study begins our examination of the role of women on boards. We focus on three interrelated aspects: the characteristics of the women who are appointed to boards, the characteristics of the firm that appoints a woman to an all-male board of directors, and the relationship, if any, between female directors and corporate social behaviour. The results of our study indicate that (1) women who are currently of the boards of publicly traded companies in Canada are independent and powerful directors, and (2) the firms that appoint a woman to an all-male board tend to be less socially responsible and have small boards of directors. The paper concludes with indications for where we think our research should now proceed.