A Broader Look at Firms’ Corporate Social Performance in 2000-2010

 

10310820984_fb57a27068_z[We’re pleased to welcome Elise Perrault of College of Charleston. Elise recently published an article in Business & Society, entitled “What have firms been doing? Exploring what KLD data report about firms’ corporate social performance (CSP) in the period 2000-2010,” with co-author Michael Quinn of Bentley University.]

With a strong interest for firms’ relationship with stakeholders and, more broadly, society, we constantly read about how firms address – or not – a wide variety of social issues. However, this stream of research generally provides anecdotal evidence or analyzes antecedents and consequences of firms’ involvement in a targeted issue (such as philanthrophy or environmental management, for example). In short, we felt the need for a broad, 30,000 ft, view of how firms generally engage with stakeholders through addressing social issues. At the same time, with the soaring popularity of KLD data in the field, we wanted to gain a more precise appreciation of how this data source pictured firms’ actions in society.

We find our results quite revealing and at times surprising. For instance, the results show that firms are increasingly attending to secondary stakeholders, even while garnering more concerns on primary stakeholder dimensions. This points us to question whether managers are experiencing shifting beliefs regarding the value of BAS CoverCSR; specifically that it represents less a mechanism to attract stakeholder support and more a cornerstone to their risk management approach in terms of how society values the firm’s existence. We also find, as expected, that firms generally nurture strengths in the same dimensions in which they present concerns.

The most surprising finding is the extent to which prior corporate social performance (CSP) in a given dimension is linked to CSP in other dimensions over time. This suggests that as firms engage in CSP, they find rewards that drives them to further invest in yet other dimensions of CSP. As a result, we are led to reconsider the notion of a “virtuous circle” (Waddock & Graves, 1997) and suggest that future research examines in greater depth the real benefits that firms perceive from CSP and the motives that drive their increasing commitment to CSP.

Having provided this broader view of firms’ involvement with stakeholders and social issues, we hope this research will serve as a foundation for future research in several ways. For starters, we note the significance of industry dummies in the analysis. This finding confirms what previous research indicates, that industry matters to CSP strenghts and concerns. However, the extent to which industry affiliation predisposes a population of firms to certain CSP strenghts or concerns remains unaddressed. Pushing further in this direction would be to explore how industry affiliation affects stakeholders’ perceptions, and whether stakeholders are more forgiving or scrutinizing of firms in certain industries, for example.

Another insight from our analyses is the importance of using a long time frame when analyzing firms’ CSP, which has seldom been used in previous research. Doing so would enable researchers to see patterns and connections between various dimensions of CSP, answering questions such as “Do strengths (concerns) on certain dimensions of CSP generally prompt firms to subsequently perform better or worse on these and other dimensions?” While this would shed light on the ways in which firms can be primed to address certin social issues, on a broader scale, these analyses contribute to the conversation debating the fundamental question regarding the purpose of the firm and its obligations to shareholders and stakeholders.

The abstract for the paper:

With the blossoming of research on corporate social performance (CSP), the data produced by Kinder, Lydenberg, Domini (KLD) have become the standard to measure firms’ social and stakeholder actions. However, to date, only a few studies have focused on examining the data directly, and have done so largely in terms of validating the concepts and methods in the data set’s construction. The present study seeks to complement these efforts by contributing knowledge about what the KLD data report on firms’ actions toward primary and secondary stakeholders, and the dimensions of CSP that firms generally engage in, together or sequentially. With data on 3,073 firms over the period 2000-2010, results show that firms expend more resources on garnering strengths in primary stakeholder dimensions, although this trend is sharply deteriorating to the benefit of secondary stakeholders—notably the natural environment. Results also show that firms generally approach CSP with a mixed behavior, with strengths and concerns in the same dimensions, especially as it pertains to secondary stakeholders. These are the same dimensions in which firms show the longer, more intrinsic commitments, suggesting that secondary stakeholder strengths and concerns may be structural in nature. However, there is also evidence of relationships across dimensions, indicating that firms’ involvement in CSP can generate momentum. The rich implications of these findings are discussed.

You can read “What have firms been doing? Exploring what KLD data report about firms’ corporate social performance (CSP) in the period 2000-2010” from Business & Society free for the next two weeks by clicking here. Want to stay current on the latest research published by Business & SocietyClick here to sign up for e-alerts!

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*Conference sponsorship image attributed to Fortune Live Media (CC)

Does Social Activism Disrupt Corporate Political Activity?

The use and efficacy of corporate political activity has been well researched in the past, but a new paper published in Administrative Science Quarterly from authors Mary-Hunter McDonnell and Timothy Werner is taking a new perspective of corporate political activity. The paper, entitled “Blacklisted Businesses: Social Activists’ Challenges and the Disruption of Corporate Political Activity,” focuses on how large scale activist protests disrupt corporations’ ability to influence political stakeholders. Mary-Hunter McDonnell dives into the findings of the paper in the video below:

The abstract for the paper:

This paper explores whether and how social activists’ challenges affect politicians’ willingness to associate with targeted firms. We study the effect of public protest on corporate political activity using a unique database that allows us to analyze empirically the Current Issue Coverimpact of social movement boycotts on three proxies for associations with political stakeholders: the proportion of campaign contributions that are rejected, the number of times a firm is invited to give testimony in congressional hearings, and the number of government procurement contracts awarded to a firm. We show that boycotts lead to significant increases in the proportion of refunded contributions, as well as decreases in invited congressional appearances and awarded government contracts. These results highlight the importance of considering how a firm’s sociopolitical environment shapes the receptivity of critical non-market stakeholders. We supplement this analysis by drawing from social movement theory to extrapolate and test three key mechanisms that moderate the extent to which activists’ challenges effectively disrupt corporate political activity: the media attention a boycott attracts, the political salience of the contested issue, and the status of the targeted firm.

You can read “Blacklisted Businesses: Social Activists’ Challenges and the Disruption of Corporate Political Activity” from Administrative Science Quarterly free for the next two weeks by clicking here. Want to keep current on all of the latest research from Administrative Science QuarterlyClick here to sign up for e-alerts!

Book Review: The Globalization of Inequality

The Globalization of Inequality. By François Bourguignon . Translated by Thomas Scott-Railton . Princeton, NJ: Princeton University Press, 2015. 224 pp. ISBN 978-0691160528, $27.95 (Cloth).

Gary Fields of Cornell University recently wrote a book review in ILR Review for The Globalization of Inequality. An excerpt from the book review:

In this book, he [François Bourguignon] has produced a concise and nontechnical masterpiece of exceptional analytical and policy clarity. His professional expertise and policy involvement shine through in every chapter. Although the book is written for concerned global citizens, professional economists and other social scientists can learn much from reading it.

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Bourguignon begins by posing some provocative questions. Is globalization responsible for rising inequality in the world? Does this represent the death knell for equality? If it continues, will the quest for social justice be squelched?

His analysis makes a crucial distinction between three types of inequality in standards of living: inequality between countries, inequality within countries, and inequality among the world’s people. It is the last of these—what he terms “global inequality”—that is his primary concern and is at the heart of the book.

You can read the full review from ILR Review by clicking here. Like what you read? Click here to sign up for e-alerts and have all the research and reviews like this sent directly to your inbox!

How Do Small Businesses in Developing Countries Participate in Social Irresponsibility?

10127264163_3280e1b6e0_z[We’re pleased to welcome Vivek Soundararajan of Birmingham Business School. Vivek recently published an article in Business & Society entitled “Small Business and Social Irresponsibility in Developing Countries: Working Conditions and ‘Evasion’ Institutional Work” with co-authors Laura J. Spence and Chris Rees of University of London.]

This article is an outcome of my ongoing research about working conditions in developing country supplier facilities. My fieldwork observations in small knitwear exporting facilities located in Tirupur, India shook numerous assumptions drawn largely from a developed country perspective that we usually work with when dealing with small businesses. This prompted me to write this article along with my co-authors Prof. Laura J. Spence and Prof. Chris Rees. A prevailing notion among scholars BAS Coverand policy makers about developing country small suppliers of developed country buyers is that they are resource dependent, powerless and passive. Indeed, small suppliers are resource dependent and may hesitate to retaliate against multinational corporations’ requirements or other institutional demands related to working conditions. But, they do not simply agree with everything or abandon the relationship. They discreetly bypass various institutional demands by engaging in numerous irresponsible business practices which we refer to as ‘evasion work’ – a form of institutional work. In this article, we illustrate numerous ways in which they engage in ‘evasion work’ and the conditions that enable them to engage in such work. We believe that our study highlights the need for a more critical research on the organization of working conditions in small businesses that are part of global supply chains. Our study also adds to the ongoing conversation about the agency of resource-dependent and powerless actors. In terms of practical implications, we emphasize the need for sustainability initiatives tailored to meet the capabilities and characteristics of suppliers in developing countries.

The abstract for the paper:

Small businesses in developing countries, as part of global supply chains, are sometimes assumed to respond in a straightforward manner to institutional demands for improved working conditions. This article problematizes this perspective. Drawing upon extensive qualitative data from Tirupur’s knitwear export industry in India, we highlight owner-managers’ agency in avoiding or circumventing these demands. The small businesses here actively engage in irresponsible business practices and “evasion” institutional work to disrupt institutional demands in three ways: undermining assumptions and values, dissociating consequences, and accumulating autonomy and political strength. This “evasion” work is supported by three conditions: void (in labor welfare mechanisms), distance (from institutional monitors), and contradictions(between value systems). Through detailed empirical findings, the article contributes to research on both small business social responsibility and institutional work.

You can read “Small Business and Social Irresponsibility in Developing Countries: Working Conditions and ‘Evasion’ Institutional Work” from Business & Society free for the next two weeks by clicking here. Want to know about all of the latest research from Business & Society? Click here to sign up for e-alerts!

*Bazar image attributed to michael_swan (CC)

Vivek Soundararajan (PhD, Royal Holloway, University of London) is a research fellow at Birmingham Business School, University of Birmingham, United Kingdom and a visiting lecturer at Royal Holloway University of London. His research interests include corporate responsibility, multistakeholder initiatives, labor and environmental standards, sustainable global supply chains, small business responsibility, and emerging country contexts. He has obtained various grants, honors and awards for excellence in research, including two prestigious awards for his doctoral dissertation, namely, “Best Dissertation Award, Social Issues in Management (SIM) Division, the Academy of Management, USA” and “Honourable Mention, Thomas A. Kochan & Stephen R. Sleigh Best Dissertation Competition, Labor and Employment Relations Association (LERA), USA.”

Laura J. Spence (PhD, Brunel University/Buckinghamshire College) is professor of business ethics in the School of Management at Royal Holloway, University of London. Her research includes a wide range of critical approaches to understanding corporate social responsibility and business ethics. In particular, she is known for her work on small- and medium-sized enterprises and the emerging concept of small business social responsibility. Her articles have been published in Accounting, Organizations and Society; Business Ethics Quarterly; California Management Review; and Organization Studies.

Chris Rees (PhD, University of Warwick) is professor of employment relations in the School of Management at Royal Holloway, University of London. His research interests include the sociology of work, employee voice, and transnational and European labor regulation. His work has appeared in journals such as European Journal of Industrial Relations, Human Resource Management Journal, Transfer: European Review of Labour and Research, and Public Management Review.

How Coca-Cola Uses Social Media to Promote Corporate Social Initiatives

19792301106_fa09faba36_zWhat is the most effective way for companies to implement corporate social marketing (CSM)? In the Social Marketing Quarterly article “Examining Public Response to Corporate Social Initiative Types: A Quantitative Content Analysis of Coca-Cola’s Social Media,” authors Lucinda L. Austin and Barbara Miller Gaither suggest that the effectiveness depends upon the the corporate social initiative (CSI) type and the message content more than anything else. The abstract for the paper:

Corporate social initiatives (CSIs) are increasingly important in boosting public acceptance for companies, and emerging research suggests corporate social marketing (CSM) could be Current Issue Coverthe most effective type of CSI. However, scholars caution that CSM is not a one-size-fits-all. Through a content analysis of Coca-Cola’s social media posts on potentially controversial topics related to sustainability, health, and social change, this study explores how CSI type and message content influence public response to an organization’s social media corporate social responsibility posts. Posts emphasizing socially responsible business practices generally received the most favorable public response, while posts focused on cause promotion were received the most negatively. Findings also suggest that CSM is less effective when the issue and advocated behavior change appears to be acting against the company’s interests.

You can read “Examining Public Response to Corporate Social Initiative Types: A Quantitative Content Analysis of Coca-Cola’s Social Media” from Social Marketing Quarterly free for the next two weeks by clicking here. Want to know all about the latest research from Social Marketing Quarterly? Click here to sign up for e-alerts!

*Coca-Cola image attributed to Aranami (CC)

Labor Economics and May Day throughout the Year

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As in recent years, work and economic issues have been on the minds of citizens worldwide – and not just on May Day. Almost on a daily basis we’ve seen or read about the challenges faced by employers, employees, unions, policy makers, and governments worldwide. From debates over raising the minimum wage, to discussions of pay equity and discrimination, workplace health risk factors and health insurance, and more, labor and work concerns are affecting us all. On this week set aside to recognize the international labor movement, we are pleased to highlight key journals in Economics, Industrial Relations & Labor.

We invite you to enjoy access to the following journals through June 30th. Click here to access the trial.

NEW TO SAGE IN 2016: We are pleased to publish The American Economist, the official journal of Omicron Delta Epsilon, the International Honor Society in Economics. The American Economist publishes original research from all fields and schools of economic thought, written by young scholars and those who are teaching the next generation of economists, as well as experienced and prominent economists whose influence has shaped the discipline. We invite you to read a special collection of articles from Nobel Peace Prize winning authors here.

Success Story: How the Adelante Program Uses Social Marketing to Engage Latino Youth

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[We’re pleased to welcome William Douglas Evans of George Washington University. Dr. Evans recently published an article in the March 2016 issue of Social Marketing Quarterly with co-authors Elizabeth Louise Andrade, Ricardo Villalba, Idalina Cubilla, I. Rivera, and Mark C. Edberg, entitled “Turning the Corner: Development of the Adelante Program Brand of Latino Youth.”]

My recent publication, Turning the Corner: Development of the Adelante Program Brand for Latino Youth, extends recent work on health branding for behavior change to engagement in positive youth development (PYD) programs. Latino youth face numerous challenges and this project shows that development of a positive brand identity for community behavior change programs based on a PYD model can increase youth engagement. The formative research reported in this paper points the way to implementation strategies including use of role models depicted by local youth to build interest in the program. It also sets the stage for a digital media intervention in which youth role models tell their stories of program engagement within their social networks, creating a program ripple effect and community-wide engagement.

The abstract:

SMQ March 2016This article reports on formative research to develop the Adelante brand, an innovative program for Latino immigrant adolescents and their families. The brand applies social marketing principles used in previous health brands in areas such as tobacco control, substance use, and HIV prevention. Specific objectives were to apply branding principles as an approach to increasing adolescent engagement with, and participation in, a community-based youth development program called Adelante, which is based on positive youth development theory. We collected data in a primarily low-income Latino immigrant community, Langley Park, MD, located near Washington, DC. A total of 39 adolescents, ages 13–19, participated in six focus groups. We designed and tested a brand positioning statement, associations, a logo and graphics, and youth archetypes. We used thematic content analysis to code focus group data into broad topic areas and then analyzed the data using substantive coding to identify themes. The concepts of strength, resilience, and “turning the corner” by overcoming life obstacles and succeeding were the main themes. Latino youth face a challenging environment in which they grow up, finish school, and succeed. Adelante represents a source of support and help to turn the corner. A graphic depicting a city street corner with a darker side (past) and a brighter side (future) was identified as the Adelante logo. Youth characters named Victor and Erika, and an educational entertainment strategy, were conceived as a way to create a brand persona. Adelante is now actively building its brand to increase youth engagement in the program.

You can read “Turning the Corner: Development of the Adelante Program Brand of Latino Youth” from Social Marketing Quarterly free for the next two weeks by clicking here. Want to know all about the latest research from Social Marketing Quarterly? Click here to sign up for e-alerts!

*Classroom image credited to KT King (CC)

 

William Douglas Evans is a Professor of Prevention and Community Health & Global Health at George Washington University. He is lead author of the study and co-PI of the Avance Center.

Elizabeth Louise Andrade is an Assistant Research Professor of Prevention and Community Health at George Washington University. She collaborated on study implementation and is co-PI of the Avance Center.

Ricardo Villalba is a Case Manager at the Maryland Multicultural Youth Center. He participated in youth program activities and moderated youth discussions.

Idalina Cubilla is an Avance Center Doctoral Research Associate. She participated in program activities and assisted in Adelante brand development.

I. Rivera is a Consultant in formative research activities. She moderated focus groups with youth.

Mark C. Edberg is an Associate Professor of Prevention and Community Health at George Washington University. He is PI of the Avance Center.