Introduction

In today’s global and integrated economy, the long-term value and success of a company are inevitably linked to its environmental, social and corporate governance (ESG) performance. The relevant corporate policies and ensuing practices are frequently summarized under the term Corporate Social Responsibility (CSR). The Economist (2008) acknowledges “with regret” that “CSR has arrived”. A survey conducted by Oppenheim and colleagues (2007) further proves that social and environmental issues have climbed to the top of the socio-political agenda of senior executives around the globe. Today’s “climate of heightened scrutiny toward corporate behaviour” (Basu and Palazzo, 2008, p. 122) has pressured corporations no longer to ignore their responsibility to protect the communities and the environment in which they operate (Sparkes, 2002; Waddock, 2000). The current financial crisis and the widespread lack of trust in the private sector added further momentum to this quest for social legitimacy. Hence, by engaging in CSR initiatives, such as reducing carbon gas emissions, fighting against child labour, or establishing a clear governance structure, corporations are trying to fulfil societal demands, and, at the same time, legitimize their business operations (Gilbert and Rasche, 2007).