Top

Journal of Business Ethics

Published in:

01-06-2014

Corporate Social Responsibility and Corporate Governance: Role of Context in International Settings

Authors: Suzanne Young, Vijaya Thyil

Published in: Journal of Business Ethics | Issue 1/2014

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

This research aims to explore the relationship between corporate governance and CSR: What are the major factors that play a direct role in the establishment of this relationship? How does context and institutional background impact upon the relationship between CSR and Governance? Using in-depth semi-structured interviews from two types of governance systems in three countries over three years, this study has demonstrated that in practice, within different settings, CSR is being used both as a strategy as well as a reaction to different drivers. We call this adaptive governance where governance can be defined as a flexible system of action incorporating strategic and monitoring activities that determines the way a company enacts its responsibilities to its shareholders and stakeholders and which is determined at any given time by the interrelationship of institutional drivers and behavioural norms. Governance systems and their interrelationships with CSR are demonstrated as fluid according to the national and institutional context, economic situation and industry impact. In the eyes of practitioners corporate governance includes both structural and behavioural factors as well as responsibilities and actions towards shareholders and stakeholders. Contextual factors that this research highlights to be important to the incorporation of CSR into governance include the economic environment, national governance system, regulation and soft law, shareholders, national culture, behavioural norms and industry impacts. Hypotheses on the impact of institutional contexts, industry impacts and economic situations on different types of CSR actions are proposed for further research.

next article The Role of Business Schools in Ethics Education in Iceland: The Managers’ Perspective

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Available only for authorised users

ACGA. (2010). CLSA-Asia Pacific markets CG watch 2010: Corporate governance in Asia. Available http://www.acga-asia.org/public/files/CG_Watch_2010_Extract.pdf. Accessed 10 Dec 2010.

Aguilera, R. V., Williams, C. A., Conley, J. M., & Rupp, D. E. (2006). Corporate governance and social responsibility: A comparative analysis of the UK and the US. Corporate Governance: An International Review, 14, 147–158.CrossRef

Alvesson, M., & Karreman, D. (2000). Varieties of discourse: On the study of organizations through discourse analysis. Human Relations, 53, 1125–1149.CrossRef

Aras, G., & Crowther, D. (2008). Governance and sustainability: An investigation into the relationship between corporate governance and corporate sustainability. Management Decision, 46, 433–448.CrossRef

Arora, P., & Dharwadkar, R. (2011). Corporate governance and corporate social responsibility (CSR): The moderating roles of attainment discrepancy and organization slack. Corporate Governance: An International Review, 19(2), 136–152.CrossRef

Australian Securities Exchange (ASX). (2007). Corporate governance council corporate governance principles and recommendations (2nd ed.). Sydney: ASX.

Australian Government. (2006). The social responsibility of corporations. Corporations and Markets Advisory Committee (CAMAC). http://www.camac.gov.au. Accessed 7 July 2011.

Balmer, J., & Greyser, S. (2007). Corporate marketing: Integrating corporate identity, corporate branding, corporate communication, corporate image and corporate reputation. European Journal of Marketing, 40(7–8), 730–741.

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99–120.CrossRef

Bertrand, M., Mehta, P., & Mullainathan, S. (2002). Ferreting out tunnelling: An application to Indian business groups. Quarterly Journal of Economics, 117, 121–148.CrossRef

Brickley, J. A., & Zimmerman, J. L. (2010). Corporate governance myths: Comments on Armstrong, Guay and Weber. Journal of Accounting and Economics, 50, 235–245.CrossRef

Carroll, A. B. (2004). Managing ethically with global stakeholders: A present and future challenge. Academy of Management Executive, 18(2), 114–120.CrossRef

Clarke, T. (2007). International corporate governance: A comparative approach. New York: Routledge.

Clarke, D. C. (2011). Nothing but the wind? The past and future of comparative corporate governance. The American Journal of Comparative Law, 59(1), 75–110.CrossRef

Cohen, G., Krishnamoorthy, J., & Wright, A. (2010). Corporate governance in the post-Sarbanes–Oxley era: Auditors’ experiences. Contemporary Accounting Research, 27(3), 751–786.CrossRef

Corley, K. G., & Gioia, D. A. (2011). Building theory about theory building: What constitutes a theoretical contribution? Academy of Management Review, 36(1), 12–32.CrossRef

Crowther, D. (2000). Social and environmental accounting. London: Financial Times Prentice Hall.

Cruz, J. M., & Wakolbinger, T. (2008). Multiperiod effects of corporate social responsibility on supply chain networks, transaction costs, emissions, and risk. International Journal of Production Economics, 116, 61–74.CrossRef

Dahlsrud, A. (2008). How corporate social responsibility is defined: An analysis of 37 definitions. Corporate Social Responsibility and Environmental Management, 15, 1–13.CrossRef

DiMaggio, P., & Powell, W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48, 147–160.CrossRef

Donaldson, T., & Dunfee, T. W. (1994). Toward a unified conception of business ethics: Integrative social contracts theory. Academy of Management Review, 19(2), 252–284.

Du, S., Bhattacharya, C. B., & Sen, S. (2010). Maximizing business returns to corporate social responsibility (CSR): The role of CSR communication. International Journal of Management Reviews, 12(1), 8–20.CrossRef

Fairclough, N., & Wodak, R. (1997). Critical discourse analysis. In T. Van Dijk (Ed.), Discourse as social interaction (pp. 258–284). London: Sage.

Financial Reporting Council Limited (FRC). (2010). The UK approach to corporate governance. http://www.frc.org.uk/images/uploaded/documents/UK%20approach%20to%20corporate%20governance%20Oct%2020101.pdf. Accessed 30 May 2011.

Fort, T. L. (2000). A review of Donaldson and Dunfee’s ties that bind: A social contracts approach to business ethics. Journal of Business Ethics, 28(4), 383–387.CrossRef

Freeman, R. E. (1984). Strategic management: A stakeholder approach. London: Pitman.

FTSE4 Good ESG Index. (2011). FTSE4Good ESG ratings: Global and regional leaders, March 2011. Available http://www.ftse.com/Indices/FTSE4Good_ESG_Ratings/Downloads/Regional_Leaders.pdf. Accessed 20 Aug 2011.

FTSE4 Good. (2011). 10 years of impact and investment. Available http://www.ftse.com/Indices/FTSE4Good_Index_Series/Downloads/FTSE4Good_10_Year_Report.pdf. Accessed 20 Aug 2011.

Galbraeth, J. (2006). Corporate social responsibility strategy: Strategic options, global considerations. Corporate Governance, 6(2), 175–187.CrossRef

Gettler, L. (2008). Blame perversity for the meltdown. The age. http://business.theage.com.au/business/blame-perversity-for-the-meltdown-20081029. Accessed 30 Oct 2008.

Grant, D., & Hardy, C. (2004). Introduction: Struggles with organizational discourse. Organization Studies, 25(5), 5–13.CrossRef

Habermas, J. (1996). Between facts and norms: Contributions to a discourse theory of law and democracy, W. Rehg (Trans). Cambridge, MA: MIT Press.

Harjoto, M. A., & Jo, H. (2011). Corporate governance and CSR nexus. Journal of Business Ethics, 100(1), 45–67.CrossRef

Healy, M., & Perry, C. (2000). Comprehensive criteria to judge validity and reliability of qualitative research within the realism paradigm. Qualitative Market Research, 3, 118–126.CrossRef

Hooghiemstra, R. (2000). Corporate communication and impression management-new perspectives. Why companies engage in corporate social reporting. Journal of Business Ethics, 27(1–2), 55–68.CrossRef

Jackling, B., & Johl, S. (2009). Board structure and firm performance: Evidence from India’s top companies. Corporate Governance: An International Review, 14, 492–509.CrossRef

Jamali, D., & Neville, B. (2011). Convergence versus divergence of CSR in developing countries: An embedded multi-layered institutional lens. Journal of Business Ethics, 102(4), 599–621.CrossRef

Jamali, D., Safieddine, A., & Rabbath, M. (2008). Corporate governance and corporate social responsibility: Synergies and inter-relationships. Corporate Governance: An International Review, 16(5), 443–459.CrossRef

Johnson, R., & Greening, D. (1999). The effects of corporate governance and institutional ownership types on corporate social performance. Academy of Management Journal, 42, 564–576.CrossRef

Khanna, P., & Gupta, G. (2011). Status of corporate social responsibility: In Indian context. Asia Pacific Journal of Research in Business Management, 2(1), 178–187.

Khanna, T., & Palepu, K. (2000). Is group affiliation profitable in emerging markets? An analysis of diversified Indian business groups. Journal of Finance, 55, 867–891.CrossRef

Knox, S., & Maklan, S. (2004). Corporate social responsibility: Moving beyond investment towards measuring outcomes. European Management Journal, 22, 508–516.CrossRef

Kolk, A., & Pinkse, J. (2010). The integration of corporate governance in corporate social responsibility disclosures. Corporate Social Responsibility and Environmental Management, 17, 15–26.

Kuada, J. (2009). Paradigms in international business research—classifications and application, Working Paper Series 53. https://www.business.auc.dk/ivo/publications/working/wp53.pdf. Accessed 26 May 2011.

Maon, F., Lindgreen, A., & Swaen, V. (2010). Organizational stages and cultural phases: A critical review and a consolidative model of corporate social responsibility development. International Journal of Management Reviews, 12(1), 20–38.CrossRef

Marnet, O. (2004). Behavioural aspects of corporate governance. In M. Hirschey, K. John, & A. K. Makhija (Eds.), Corporate governance (advances in financial economics) (Vol. 9, pp. 265–285). Bingley: Emerald Group Publishing Limited.CrossRef

Martin, G. (2009). Driving corporate reputations from the inside: A strategic role and strategic dilemmas for HR. Asia Pacific Journal of Human Resources, 47(2), 219–235.CrossRef

McWilliams, A., Siegel, D. S., & Wright, P. M. (2006). Guest editors’ introduction. Corporate social responsibility: Strategic implications. Journal of Management Studies, 43(1), 1–18.CrossRef

Moon, J. (2002). Corporate social responsibility: An overview. In C. Hartley (Ed.), The international directory of corporate philanthropy (pp. 3–14). London: Europa Publications.

Muthuri, J. N., & Gilbert, V. (2010). An institutional analysis of corporate social responsibility in Kenya. Journal of Business Ethics, 98, 467–483.CrossRef

North, D. (1990). Institutions, institutional change, and economic performance. Cambridge: Cambridge University Press.CrossRef

Orr, R. J., & Scott, W. R. (2008). Institutional exceptions on global projects: A process model. Journal of International Business Studies, 39, 562–588.CrossRef

Patton, M. Q. (1990). Qualitative evaluation and research methods. Newbury Park, CA: Sage.

Pendleton, A. (2009). The liberal market model of finance, ownership and governance: An evaluation of its effect on labour. Asia Pacific Journal of Human Resources, 47(2), 133–149.CrossRef

Porter, M., & Kramar, M. (2006). Strategy and society: The link between competitive advantage and corporate social responsibility. Redefining Corporate Social Responsibility Harvard Business Review: Onpoint Collection, 84(12), 78–92.

Pralahad, C., & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, 63, 79–91.

Purdy, J. M., Alexander, E. A., & Neill, S. (2010). The impact of national institutional context on social practices: Comparing Finnish and US business communities. European Journal of International Management, 4(3), 234–256.CrossRef

Reich, R. (1998). The new meaning of corporate social responsibility. California Management Review, 40(2), 8–17.CrossRef

Richter, U. H. (2011). Drivers of change: A multiple-case study on the process of institutionalization of corporate responsibility among three multinational companies. Journal of Business Ethics, 102(2), 261–279.CrossRef

Robertson, D. C. (2009). Corporate social responsibility and different stages of economic development: Singapore, Turkey, and Ethiopia. Journal of Business Ethics, 88(Supplement 4), 617–633.CrossRef

Sacconi, L. (2010). A Rawlsian view of CSR and the game theory of its implementation: The multistakeholder model of corporate governance. Econometrica Working Paper No. 22. Paper available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1777922. Accessed 9 Sep 2011.

Sarens, G., & Christopher, J. (2010). The association between corporate governance guidelines and risk management and internal control practices: Evidence from a comparative study. Managerial Auditing Journal, 25(4), 288–308.CrossRef

Sarkar, J., & Sarkar, S. (2000). Large shareholder activism in corporate governance in developing countries: Evidence from India. International Review of Finance, 1(3), 161–194.CrossRef

Scott, W. (2000). Institutions and organisations (2nd ed.). Thousand Oaks, CA: Sage.

Scott, W. R. (2008). Approaching adulthood: The maturing of institutional theory. Theory and Society, 37(5), 427–442.CrossRef

Secchi, D. (2007). Utilitarian, managerial and relational theories of corporate social responsibility. International Journal of Management Reviews, 9(4), 347–373.CrossRef

Sehgal, A., & Mulraj, J. (2008). Corporate governance in India: Moving gradually from a regulatory model to a market-driven model—a survey. International Journal of Disclosure and Governance, 5, 205–235.CrossRef

Solomon, J. (2009). Corporate governance and accountability (3rd ed.). Hoboken: Wiley and Sons.

Suchman, M. (1995). Managing legitimacy: Strategic of institutional approaches. Academy of Management Review, 20(3), 571–610.

Thyil, V., & Young, S. (2010). An empirical investigation of hybrid corporate governance systems in large firms: Evidence from India. Corporate Ownership & Control, 8, 430–446.

Tricker, R. I. (1990). Corporate governance: A ripple on the cultural reflection. In S. R. Clegg & S. G. Redding (Eds.), Capitalism in contrasting cultures (pp. 187–213). Berlin: De Gruyter.

Tschopp, D. (2005). Corporate social responsibility: A comparison between the United States and the European Union. Corporate Social Responsibility and Environment Management, 12, 55–59.CrossRef

Tudway, R. (2008). OECD must now tackle corporate governance issues. Financial Times, October 10. http://www.ft.com/cms/s/68d35624-9665-11dd-9dce-000077b07658,dwp_uuid=dafed. Accessed 30 Oct 2008.

United Nations. (1987). Report of the World Commission on Environment and Development. General Assembly Resolution 42/187, 11 December 1987. http://www.un.org/documents/ga/res/42/ares42-187.htm. Accessed 03 July 2012.

Vanhamme, J., & Grobben, B. (2009). Too good to be true! The effectiveness of CSR history in countering negative publicity. Journal of Business Ethics, 85(Supplement 2), 273–283.CrossRef

Windsor, D. (2006). Corporate social responsibility: Three key approaches. The Journal of Management Studies, 43(1), 93–114.CrossRef

World Bank. (2004). Report on the observance of standards and codes (ROSC), corporate governance country assessment, India. http://www.worldbank.org/ifa/rosc_cg_ind.pdf. Accessed 19 June 2009.

Young, S., & Marais, M. (2012). A multi-level perspective of CSR reporting: The implications of national institutions and industry risk characteristics. Corporate Governance: An International Review, 20(5), 432–450.CrossRef

Title: Corporate Social Responsibility and Corporate Governance: Role of Context in International Settings
Authors: Suzanne Young
Vijaya Thyil
Publication date: 01-06-2014
Publisher: Springer Netherlands
Published in: Journal of Business Ethics / Issue 1/2014
Print ISSN: 0167-4544
Electronic ISSN: 1573-0697
DOI: https://doi.org/10.1007/s10551-013-1745-8

Springer Professional

Abstract

Please log in to get access to your license.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Other articles of this Issue 1/2014

Multinational Enterprise Subsidiaries and their CSR: A Conceptual Framework of the Management of CSR in Smaller Emerging Economies

The Role of Business Schools in Ethics Education in Iceland: The Managers’ Perspective

Communicated Accountability by Faith-Based Charity Organisations

The Influence from the Past: Organizational Imprinting and Firms’ Compliance with Social Insurance Policies in China

The Governance of Corporate Sustainability: Empirical Insights into the Development, Leadership and Implementation of Responsible Business Strategy

Creating Satisfied Employees Through Workplace Spirituality: A Study of the Private Insurance Sector in Punjab (India)