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Investing pension funds as if the long term really did matter
Sally Bridgeland.  Journal of Asset Management London:Feb 2005.  Vol. 5,  Iss. 5,  p. 351-359 (9 pp.)

Abstract

In 2003, the Universities Superannuation Scheme and Hewitt Bacon & Woodrow ran a global competition for innovation in pension fund investment. The aim was to encourage the development of investment approaches which combined the two aims of being genuinely long term and genuinely responsible. This paper reviews the changing demands of investors which motivated the competition and presents some of the ideas included in the 88 entries to the competition for the critical review of asset management professionals keen to meet those demands.

Finance and accounting: Meeting objectives and resisting conventions: A focus on institutional investors and long-term responsible investing
Danyelle Guyatt.  Corporate Governance Bradford:2005.  Vol. 5,  Iss. 3,  p. 139-150 (12 pp.)

Abstract

This paper seeks to unravel some of the challenges associated with responsible investment from the institutional investor’s perspective, focusing on how dominant conventions influence investor behavior and their ability to invest responsibly. The research draws from three longitudinal case studies that were carried out on UK institutions that have adopted a responsible investment policy. Evidence of behavioral obstacles to responsible investing were found, including short-termism, gravitation towards defensible decisions and reluctance to integrate corporate responsibility factors into the core investment process. Based on the case study evidence these appear to be driven by the influence of prevailing dominant conventions, reinforced by institutional herding tendencies. The paper introduces some preliminary thoughts as to how conventions might be resisted and changed over time through the institutional herding mechanism. Further research is required (and is currently under way) to more closely examine the potential impact of investor collaboration for challenging dominant conventions. Collaboration amongst institutional investors is key for mobilizing institutional herding tendencies so that responsible investment might get built into conventions. The research combines responsible investment literature with behavioral finance studies on investor behavior, herding tendencies and the influence of conventions. It also illuminates the complexities in investor behavior from which other institutional investors might learn in implementing a responsible investment policy.

The Eco-Efficiency Premium Puzzle
Jeroen Derwall,  Nadja Guenster,  Rob Bauer,  Kees Koedijk.  Financial Analysts Journal Charlottesville:Mar/Apr 2005.  Vol. 61,  Iss. 2,  p. 51-63 (13 pp.)

Abstract

Does socially responsible investing (SRI) lead to inferior or superior portfolio performance? This study focused on the concept of “eco-efficiency,” which can be thought of as the economic value a company creates relative to the waste it generates, and found that SRI produced superior performance. Based on Innovest Strategic Value Advisors’ corporate eco-efficiency scores, the study constructed and evaluated two equity portfolios that differed in eco-efficiency. The high-ranked portfolio provided substantially higher average returns than its low-ranked counterpart over the 1995-2003 period. This performance differential could not be explained by differences in market sensitivity, investment style, or industry-specific factors. Moreover, the results remained significant for all levels of transaction costs, suggesting that the incremental benefits of SRI can be substantial.

“Doing Well While Doing Good” Revisited: A Study of Socially Responsible Firms’ Short-Term versus Long-term Performance
Todd Shank,  Daryl Manullang,  Ron Hill.  Managerial Finance Patrington:2005.  Vol. 31,  Iss. 8,  p. 33-46 (14 pp.)

Abstract

This article reexamines the “doing well while doing good” debate within the financial management literature, using comparisons among socially responsible mutual funds (SRMF), the NYSE Composite Index, and a portfolio made up of firms most valued by SRMF managers (MostSRF). The performance of MostSRF did no better or no worse than the overall market or SRMF in three to five year comparisons. However, results from the ten-year performance comparison refute earlier studies and indicate that the market prices social responsibility characteristics in the long run. Given MostSRF outperformed the other two indices in this timeline, a new paradigm for understanding the impact of SRI is revealed.

Retirement Investment, Fiduciary Obligations, and Socially Responsible Investing
George R Gay,  Johann A Klaassen.  Journal of Deferred Compensation New York:Summer 2005.  Vol. 10,  Iss. 4,  p. 34-49 (16 pp.)

Abstract

In the past 30 years, the face of American retirement has changed dramatically. Today, defined contribution plans have begun to replace the older system, and 401(k) plans are commonplace — as are IRAs and similar self-directed options. Within the mammoth scope of the retirement investment industry, the question of the permissibility of socially responsible investing (SRI) must be addressed with increasing frequency. Despite what the media may imply, SRI is neither an asset class of its own nor a simple investment style. SRI strategies tend to fall into three categories: screening (both negative and positive), shareholder advocacy, and community investment. From this description alone, it should be clear that SRI is not one simple thing that can be debunked — or defended, for that matter. Considerations of fiduciary duty do not prevent retirement plan trustees from implementing basic SRI strategies in the plans for which they are responsible.

Sustainable Development and Private Global Governance
Douglas A Kysar.  Texas Law Review Austin:Jun 2005.  Vol. 83,  Iss. 7,  p. 2109-2166 (58 pp.)

Abstract

The Coca-Cola Company’s regional website for India proclaims that the company exists to benefit and refresh everyone it touches, and that the company strives to deliver on this promise every day, creating a stronger and more sustainable future for our business and for the communities we serve. Since 1993, Coca-Cola has invested more than $1 billion throughout India in production facilities, wastewater treatment plants, distribution systems, and marketing equipment, making it one of the country’s most important international investors. This Article utilizes recent controversy over Coca-Cola’s alleged depletion of groundwater resources in India as a vehicle for exploring competing conceptions of global environmental governance and the role of private actors within them. Initially, it uses the Coca-Cola groundwater situation to identify core substantive and procedural meanings that lurk within the otherwise ingeniously ambiguous concept of sustainable development. Through this exercise, it is shown that- when properly understood – the sustainable development paradigm requires at a minimum some collective response to the question, Sustainability of what? This necessity of collective response, however, stands in considerable tension with the premises of market liberalism that drive such political and economic trends as global market integration; privatization and commodification of water and other natural resources; and cost-benefit review of environmental, health, and safety regulations. By clarifying this and other points of normative and empirical disagreement between sustainable development and market liberalism – including points that previously have been unidentified or underappreciated in the literature – this Article aims to provide an impetus and an outline for more searching inspection of both frameworks. In addition, this Article seeks to describe, and to a lesser extent defend, a growing effort among proponents of sustainable development to adapt their sustainability goals to the framework of market liberalism itself.

A BRIDLE, A PROD, AND A BIG STICK: AN EVALUATION OF CLASS ACTIONS, SHAREHOLDER PROPOSALS, AND THE ULTRA VIRES DOCTRINE AS METHODS FOR CONTROLLING CORPORATE BEHAVIOR
Adam J Sulkowski,  Kent Greenfield.  St. John’s Law Review Brooklyn:Fall 2005.  Vol. 79,  Iss. 4,  p. 929-954 (26 pp.)

Abstract

This study focuses on efforts to remedy and prevent employment discrimination and draws upon data from recent cases. The lessons derived from this analysis, however, may be applied in other contexts, including efforts to improve the conduct of American corporations with regard to labor relations, environmental protection, and human rights in the developing world. The methods of influencing corporate behavior that will be evaluated include class action lawsuits and shareholder proposals to amend corporate policy. Studying attempts to alter corporate behavior in the context of employment discrimination over the past decade yields several key insights that activists and shareholders can learn from and can apply to other contexts: 1. Class actions are increasingly difficult to have certified by a court due to the Supreme Court’s 1997 decision that adequacy of representation must be rigorously scrutinized. 2. Shareholder proposals are an increasingly frequent means for shareholder activists to prod corporate policy in a certain direction.

Realigning the Corporate Building Blocks: Shareholder Proposals as a Vehicle for Achieving Corporate Social and Human Rights Accountability
Aaron A Dhir.  American Business Law Journal Austin:Summer 2006.  Vol. 43,  Iss. 2,  p. 365-412 (48 pp.)

Abstract

At both the national and transnational levels, the issue of corporate accountability presently carries a distinct resonance. As a result, there has been a renewed focus on mechanisms for achieving corporate governance practices that protect the rights and interests of investors. The aim of this article is to step outside of the discussion and to revisit some of the building blocks (allocation of agenda and decision-making powers between shareholders and management) pertaining to the role of corporations in the area of international human rights. At the level of pressure and engagement, there is cause to be optimistic given the increased use of the shareholder proposal mechanism in the post-Canada Business Corporations Act amendment period. While the trend is still in its infancy, it appears that the submission process, and the resulting dialogue between proposing shareholders and management, has begun to play a role in the formulation of corporate policy with respect to human rights/social policy issues.

Engage, Embed, and Embellish: Theory Versus Practice in the Corporate Social Responsibility Movement
John M Conley,  Cynthia A Williams.  Journal of Corporation Law Iowa City:Fall 2005.  Vol. 31,  Iss. 1,  p. 1-38 (38 pp.)

Abstract

One of the most striking developments in the business world over the last decade has been the emergence of a coherent and energetic corporate social responsibility (CSR) movement. This article reports the results of an empirical study of that movement. CSR, as it is universally referred to, has as its theoretical base the notion that the responsibility of a corporation extends beyond the traditional Anglo-American objective of providing financial returns to its shareholders. Instead, CSR proponents have argued, the legitimate concerns of a corporation should include such broader objectives as sustainable growth, equitable employment practices, and long-term social and environmental well-being. Corporate managers, it is argued, should consider not only their shareholders in making their decisions but also a variety of “stakeholder” constituencies, including employees, residents of communities affected by their activities, governments, and organizations advocating for various social and environmental interests. From theory to practice, the new governance paradigm provides an excellent account of the CSR movement.

Corporate Social Performance, Corporate Financial Performance, and Firm Size: A Meta-Analysis
Meng-Ling Wu.  Journal of American Academy of Business, Cambridge Hollywood:Mar 2006.  Vol. 8,  Iss. 1,  p. 163-171 (9 pp.)

Abstract

Corporate social performance (CSP) and corporate finance performance (CFP) have been the focus of many prior studies. However, previous research has shown that there are no consistent linkages among CSP, CFP, and size. In response to these findings, the meta-analyses of 121 empirical studies are conducted to investigate the relationships among CSP, CFP, and size. There are four major findings: (1) Results revealed an average effect size of .166 between CSP and CFP. (2) Market-based measures are weaker predictors of CSP than other financial measure. (3) Perceptually based measures reported a stronger CSP-CFP relationship than performance based measures. (4) Fortune ratings have greater effect sizes on financial performance than KLD ratings.

The Critical Importance of Sustainability Risk Management
Dan R Anderson.  Risk Management New York:Apr 2006.  Vol. 53,  Iss. 4,  p. 66-68,70,72,74 (6 pp.)

Abstract

Sustainability risk management deals with emerging environmental and social justice risks. Risk managers will need to anticipate these risks and develop appropriate risk mitigation and financing strategies for them, but since many sustainability risks are new and emerging, the best strategies for dealing with corporate sustainability might not be apparent. A brief look at sustainability risk management techniques demonstrates how risk costs can be reduced. An effective sustainability risk assessment strategy is to prepare a corporate sustainability report. Preparing a report helps to assemble, organize and benchmark sustainability data and efforts of the firm. While some companies develop sustainability strategies based on ethical motives, most firms do so for business reasons. Risk managers have a tremendous opportunity to contribute to their firms’ overall management strategy by implementing sound sustainability risk management practices.

Business Ethics and Corporate Social Responsibility
Ronald E Berenbeim.  Vital Speeches of the Day New York:Jun 2006.  Vol. 72,  Iss. 16/17,  p. 501-504 (4 pp.)

Abstract

A speech entitled “Business Ethics and Corporate Social Responsibility,” addressed by Ronald E. Berenbeim, principal researcher, The Conference Board, is presented. Berenbeim said that most of the world does not distinguish between Corporate Ethics and Corporate Social Responsibility (CSR) when it comes to determining what it means for a company to be ethical. Despite the merging of ethics and CSR in the stakeholder mind and the proliferation of writings and conferences on both subjects, conversation between practitioners in these two areas is rare. Business ethics and corporate social responsibility initiatives for the furtherance of corporate purpose are also the product of different world views. Although CSR initiatives also have risk avoidance as an intended consequence, its proponents emphasize the positive. They see their efforts as creating new forms of value. Cooperative relations with diverse stakeholder groups provide valuable social capital that may be essential to the company’s long-term survival.

Mainline Protestants Begin to Divest from Israel: A Moral Imperative or “Effective” Anti-Semitism?
Duncan L. Clarke.  Journal of Palestine Studies Washington:Autumn 2005.  Vol. 35,  Iss. 1,  p. 44-59

Abstract

A campaign to divest selectively in corporations doing business in Israel, which began on American university campuses and then ebbed, has been adopted and reinvigorated by important mainline Protestant churches, especially the Presbyterian Church in the United States (PC[USA]). This article examines the PC(USA)’s catalytic role in the divestment movement, the backlash within church ranks, and the evolving positions of other Protestant denominations. The determined opposition by Jewish groups and the dampening effect of accusations of “functional anti-Semitism” are also discussed. While its ultimate effectiveness is impossible to predict, the divestment movement is in motion and is gaining consequential advocates.

Corporate social responsibility in Portugal: empirical evidence of corporate behaviour
Rute Abreu,  Fátima David,  David Crowther.  Corporate Governance Bradford:2005.  Vol. 5,  Iss. 5,  p. 3-18 (16 pp.)

Abstract

The purpose of this research is to explore corporate social responsibility (CSR) evidence and, especially, the experience and practice of enterprises in Portugal. As a generally accepted principle, the corporate social report is a communication and measurement object. But there are limitations concerning availability and accuracy of the data that could create constraints and diminish the scope of this report. Thus, the methodology for this paper is subdivided into two different aspects of research: First, an individual perspective about each enterprise studied and second, a general perspective applied to CSR in Portugal. The sample used was based on the survey developed by the Instituto ETHOS, applied to a sample of enterprises carried out in Portugal, during the year 2002. It was published by Exame in a special edition – “The guide of socially responsible enterprises”. So, the authors analyze and present the results that are of interest in the area of CSR activity. In order to do so the authors develop a principal component analysis to sort and group the original data. The preliminary analysis generated three components of CSR: the external influence (CSR external), the market influence (CSR market) and the operative influence (CSR operative) of the enterprises in Portugal. This research shows cultural differences and helps to highlight the importance of more research in this area in the newly expanded European Community. It also highlights the relationship between CSR activity and corporate image and performance.

The Market For Virtue: The Impact of Corporate Social Responsibility
Anonymous.  Multinational Monitor Washington:Jan/Feb 2006.  Vol. 27,  Iss. 1,  p. 37-41 (5 pp.)

Abstract

David Vogel, a professor at the Haas School of Business at the University of California, is interviewed. Among other things, Vogel analyzes the forces driving corporate social responsibility initiatives and their impact on business behavior.

The Effects of Corporate Social Responsibility and Price on Consumer Responses
Lois A Mohr,  Deborah J Webb.  The Journal of Consumer Affairs Madison:Summer 2005.  Vol. 39,  Iss. 1,  p. 121-147 (27 pp.)

Abstract

This experiment examined the influence of corporate social responsibility and price on consumer responses. Scenarios were created to manipulate corporate social responsibility and price across two domains (environment and philanthropy). Results from a national sample of adults indicate that corporate social responsibility in both domains had a positive impact on evaluation of the company and purchase intent. Furthermore, in the environmental domain corporate social responsibility affected purchase intent more strongly than price did.

Social and Environmental Responsibility in Small and Medium Enterprises in Latin America
Antonio Vives.  The Journal of Corporate Citizenship Sheffield:Spring 2006.  Iss. 21,  p. 39-50 (12 pp.)

Abstract

The survey reported in this study (which covered over 1,300 firms, included more than 60 questions and was carried out in eight countries) finds that a good number of small and medium enterprises (SMEs) have implemented responsible practices. While those practices are rather traditional in nature and do not spring from the recent concepts of corporate social responsibility, they are nevertheless of similar nature. The survey analyses internal (human resources and the working environment), external (community involvement) and environmental practices (reduction of environmental impact, such as reduction of resource consumption and waste, recycling and the like) and finds that internal practices are the most common. External responsibility activities are less frequent as is concern for environmental issues. Medium-sized firms tend to be more involved in socially responsible activities than smaller firms. Major motivations are religion/ethics, the desire to have a motivated workforce, build relationships and increase profits. To a lesser extent, regulations also play a role. The main obstacles to involvement in external and environmental issues were lack of resources, lack of knowledge and the perception that there is no environmental impact. Many of these results are explained by the characteristics of SMEs, which are discussed in this paper, which concludes with a strategy to foster their involvement.

Corporate social responsibility: the way forward? Maybe not! A preliminary study in Cyprus
Ioanna Papasolomou-Doukakis,  Maria Krambia-Kapardis,  M Katsioloudes.  European Business Review Bradford:2005.  Vol. 17,  Iss. 3,  p. 263-279 (17 pp.)

Abstract

The paper seeks to consider the findings that emerged from a preliminary study into Cypriot businesses and their attitudes and behavior towards corporate social responsibility (CSR). The overarching aim of the discussion is to explore whether Cypriot businesses have realized the opportunity of using CSR to build a strong reputation, a practice embraced and adopted by many successful and profitable corporations, or whether they ignore their social responsibilities and do it at their peril. A total of 4,000 questionnaires were given to the Employers Federation in Cyprus to mail to its members. It appears that local corporations primarily emphasize the importance of meeting their responsibilities and obligations towards their employees and customers. The majority of respondents postulate that their philanthropic donations are made to approved organizations for tax deduction. So, financial gain appears to be a key motive for the adoption of social responsibility by the business sector in Cyprus.

World Review
Jem Bendell.  The Journal of Corporate Citizenship Sheffield:Winter 2005.  Iss. 20,  p. 5-18 (14 pp.)

Abstract

In July, the “Make Poverty History” campaign and associated “Live 8″ musical events marked a new stage in social activism around international summits. Co-ordinated NGO action in the build-up to the summit, combined with initiative by UK Chancellor Gordon Brown, meant that the world’s media expected an announcement on what the G8 leaders would do to improve their role in the aid, trade and debt situation of the global South. One thing the G8 did manage to agree was a common statement on climate change, which was recognized as a “serious long-term challenge” for the entire planet. Oil companies were also in the spotlight in 2005 for lobbying on climate change. ExxonMobil, for example, was criticized for influencing US energy policy in ways that undermine action on carbon emissions. Meanwhile, in the UK, the issue of corporate lobbying became central to the corporate responsibility debate in the late summer.

World Review
Jem Bendell.  The Journal of Corporate Citizenship Sheffield:Autumn 2005.  Iss. 19,  p. 5-19 (15 pp.)

Abstract

A report by the US-based NGO Worldwatch Institute reported that China’s spectacular economic boom is inflicting a terrible toll on the environment. The dramatic impacts of industrialization in China and the rest of Asia on their own peoples and environments, as well as the impact on the global environment, and the increasing importance of the region for the future supply to, and sales of, major transnational corporations, makes the region of central importance for future work on corporate citizenship. The growing interest in social entrepreneurship is driven by a questioning of traditional business practices on the one hand, and traditional forms of charity on the other. Changes to their funding environment have pushed some non-profit organizations to look at potential market-based models of social change. Growing interest in the potential commercial opportunities to be found in providing products and services to the world’s poor is another factor.

CORPORATE SOCIAL RESPONSIBILITY AS INSTITUTIONAL HYBRIDS
Eva Boxenbaum.  Journal of Business Strategies Huntsville:Spring 2006.  Vol. 23,  Iss. 1,  p. 45-63 (19 pp.)

Abstract

This paper empirically examines the impact of societal context on constructs of corporate social responsibility (CSR). The empirical analysis is informed by neo-institutional theory, which conceptualizes CSR constructs as potential or actual institutions. A case study from the Danish business setting identifies the steps that a project group of business actors took to develop a new CSR construct. The steps include the transfer and translation of a foreign institution in response to a field-level problem, major events, and partial deinstitutionalization of an established CSR construct. The findings suggest that the new CSR construct is an institutional hybrid, a combination of foreign and familiar institutions that make a new CSR construct innovative, legitimate, and continuous with existing practice in the business setting. The paper proposes that CSR constructs are malleable institutional hybrids that are most easily implemented if tailored to the social context. It concludes with implications for managers who want to select, design and implement CSR constructs in their own business settings.

A model of socially responsible buying/sourcing decision-making processes
Haesun Park,  Leslie Stoel.  International Journal of Retail & Distribution Management Bradford:2005.  Vol. 33,  Iss. 4,  p. 235-248 (14 pp.)

Abstract

Socially responsible buying/sourcing (SRB) has become a critical issue in many companies. The purpose of this study was to build an exploratory model to describe buying/sourcing professionals’ SRB decision-making process. Adopting business ethics and attitude theories, the SRB process was hypothesized to be a composite of cognitive processing and affective reactions to personal sources of information (e.g. peers). The mail survey data obtained from buying/sourcing professionals in the US apparel/shoe companies were analyzed using a Structural Equation Modeling technique. It was found that SRB generally followed a cognitive decision framework and was partly influenced by the decision maker’s affective reaction to peer buying/sourcing professionals’ behaviors. Emotional reaction to top-management, however, was not significant.

How Social-Cause Marketing Affects Consumer Perceptions
Paul N. Bloom, Steve Hoeffler, Kevin Lane Keller, Carlos E. Basurto Meza.  MIT Sloan Management Review Cambridge:Winter 2006.  Vol. 47,  Iss. 2,  p. 49

Abstract

Case studies suggest that companies including Avon, Stonyfield Farm and Starbucks have benefited from marketing initiatives associating the company with a socially beneficial cause. But how should managers allocate dollars between social-cause marketing and other types of marketing programs? The authors use a market-research technique called conjoint analysis to help managers evaluate the relative benefits of various types of affinity marketing programs, including sponsorship of social causes, sports or entertainment events. Conjoint analysis involves creating a variety of hypothetical brand profiles that contain combinations of brand attributes; by asking consumers to rank the profiles, researchers can gain insights into how different brand attributes affect consumers preferences. In several experiments, the authors used conjoint analysis to examine how consumers responses to a brand of beer, milk or juice would be affected if the brand had a marketing affiliation with a social cause or with a sport or entertainment event. For some of the products studied, affiliations with social causes had more positive effects on consumer rankings than affiliations with sports or entertainment events. However, this was not always true; for example, it was not the case for the milk brands studied, suggesting that the effect of social-cause marketing initiatives may vary by industry. The authors also discuss how brand managers can use conjoint analysis to compare potential marketing initiatives.

Corporate Social Responsibility in Brazil: The Role of the Press as Watchdog*
Veet Vivarta,  Guilherme Canela.  The Journal of Corporate Citizenship Sheffield:Spring 2006.  Iss. 21,  p. 95-106 (12 pp.)

Abstract

The concept of corporate social responsibility (CSR) or corporate citizenship has achieved significant victories in the ongoing battle of ideas. The concept is now well established and, as such, requires closer examination. This leads us into a discussion on the regulatory mechanisms governing CSR actions. Our objective is to consider the oversight role increasingly exercised by one of the significant actors in Western democracies: the press. The data emerging from our study of the coverage of 54 Brazilian newspapers reveals that: (1) these media have only a superficial understanding of CSR; (2) when in-depth coverage is provided, it is not accompanied by critical analyses and/or pluralistic views of the subject; (3) the concept is often confused with social action. Our conclusions point to the need for improved coverage and for journalists and outlets to gain greater mastery over CSR’s different analytical perspectives.

Corporate social responsibility strategy: strategic options, global considerations
Jeremy Galbreath.  Corporate Governance Bradford:2006.  Vol. 6,  Iss. 2,  p. 175-187 (13 pp.)

Abstract

The purpose of this paper is to further the dialogue on corporate strategy and corporate social responsibility (CSR). Specifically, to describe four options with respect to CSR strategies and to offer points of consideration for moving home country CSR strategies to host countries. The approach is based on developing a conceptualization of various CSR strategic options. The paper also incorporates key global considerations for moving home country CSR strategies to host country operations. The analysis suggests that CSR can not be separated from corporate strategy. Thus, firms have several factors to consider with respect to choosing appropriate CSR strategies. Not only are there fundamental strategic goals and outcomes to consider, but also a variety of cross-border factors that can potentially complicate the success of CSR strategies if not examined appropriately.

Corporate Reputation and an Insurance Motivation for Corporate Social Investment
Stephen Brammer,  Stephen Pavelin.  The Journal of Corporate Citizenship Sheffield:Winter 2005.  Iss. 20,  p. 39-51 (13 pp.)

Abstract

This paper explores an under-researched motive for corporate social investment (CSI): that of insurance. Building on a paper by Godfrey (2005), we argue that social investment insures companies against stakeholder reactions to socially irresponsible acts. We offer predictions regarding the distribution of insurance-motivated social investment across firm characteristics, and highlight the possibility that this form of insurance drives firms towards greater social irresponsibility. Thus, we argue that the overall impact on social welfare of insurance-motivated social investment is ambiguous. An exploratory analysis shows the pattern of charitable giving among large UK companies to be broadly consistent with an insurance motivation for such expenditures, and we discuss a case study that is indicative of an insurance function for CSI.

Corporate social responsibility: what role for law? Some aspects of law and CSR
Karin Buhmann.  Corporate Governance Bradford:2006.  Vol. 6,  Iss. 2,  p. 188-202 (15 pp.)

Abstract

The purpose of this article is to discuss the role that law plays for corporate social responsibility (CSR) in substance, action and reporting, including whether CSR functions as informal law. The theoretical point of departure is based in legal science. Through a discussion of various contexts of CSR in which law and legal standards feature, this article questions the conception that CSR is to do more than the law requires. It is argued that CSR functions as informal law, and that important principles of law function as part of a general set of values that guide much action on CSR. Furthermore, it is argued that aspects of law in the abstract as well as in the statutory sense and as self-regulation influence the substance, implementation and communication of CSR, and that the current normative regime of CSR in terms of demands on multinational corporations may constitute pre-formal law.

Assessing corporate environmental risk in China: an evaluation of reporting activities of Hong Kong listed enterprises
Jason Chi-hin Chan,  Richard Welford.  Corporate Social – Responsibility and Environmental Management Chichester:Jun 2005.  Vol. 12,  Iss. 2,  p. 88-104 (17 pp.)

Abstract

Due to its large population, rapid economic growth and the fragility of its environment, China is environmentally more risky than Western countries. Over time we will see tougher and better-implemented environmental regulations in China. At the same time, sound environmental management is being viewed by investors as an essential part of good corporate governance. Hong Kong listed companies have failed to provide sufficient information for investors to assess their positions with respect to environmental management. This increases their vulnerability to possible accusations of poor environmental performance. The lack of environmental activity and accountability identified amongst the companies leads us to conclude that they are taking substantial yet avoidable risks. In the short term, Hong Kong security market regulators should expedite better voluntary environmental reporting. In the long term, a fundamental reform of security regulations in partnership between regulators, professionals and listed companies should be pursued.

Eastern Karma: Perspectives on Corporate Citizenship*
Edwina Pio.  The Journal of Corporate Citizenship Sheffield:Autumn 2005.  Iss. 19,  p. 65-78 (14 pp.)

Abstract

This study uses an Eastern interpretive frame to showcase corporate citizenship through research in a developing country. First, the paper sketches some key strands of Eastern philosophy pertinent to corporate citizenship. Second, it presents the process interventions for practice-oriented change and emergent findings through qualitative research in a labour-intensive organisation in India. The results indicate that corporate citizenship flourishes where it is able to tap into the wellsprings of Eastern philosophy and develop relevant processes for implementation. This underscores the acute potency of linking Eastern philosophies for weaving the tapestry of corporate citizenship in labour-intensive organisations in developing countries.

Analysing Changes to Prioritise Corporate Citizenship: The Case of Sustainability in Perez-Companc, Argentina
Jose Antonio Puppim de Oliveira,  Miguel Angel Gardetti.  The Journal of Corporate Citizenship Sheffield:Spring 2006.  Iss. 21,  p. 71-83 (13 pp.)

Abstract

This paper analyses how sustainability issues were managed in Perez-Companc (PC), a former Argentine conglomerate working mainly in the energy sector and agro-industries, and now part of the Brazilian Petrobras (state-controlled oil company). Historically, Perez-Companc inherited many social and environmental problems when it acquired parts of the state-controlled oil production structure in the beginning of the 1990s. The text examines the external and internal factors that led to changes in management, as well as how environmental and social affairs in the company evolved from being an appendix to the rest of the company to become part of the business strategy.

International Corporate Social Responsibility Rating Systems: Conceptual Outline and Empirical Results
Henry Schäfer.  The Journal of Corporate Citizenship Sheffield:Winter 2005.  Iss. 20,  p. 107-120 (14 pp.)

Abstract

Stakeholders are more frequently demanding information from companies about their economic, environmental and social performance. To measure the triple bottom line of companies, specific concepts are needed. The paper examines rating schemes used worldwide related to corporate social responsibility and sustainable development. The focus is on ratings for capital market participants as well as those that were developed in the interests of consumer organisations or companies themselves. Four groups can be identified as characteristic of current CSR (corporate social responsibility) ratings worldwide: risk assessment approaches, (sustainable) value enhancement approaches, models of industries of the future (companies as so-called innovators/pioneers) and approaches closely related to quality management models.

PANEL THREE: VIABLE MODELS: SHAREHOLDER RESOLUTIONS
Patricia Daly,  Rabbi Mordechai Liebling.  Fordham Journal of Corporate & Financial Law New York:2006.  Vol. 11,  Iss. 3,  p. 619-634 (16 pp.)

Abstract

A panel discussion on issues in viable models for how religious values can be incorporated into corporate decision-making with shareholder resolutions is presented. Rabbi Mordechai Liebling, director of The Shefa Fund, said that the creation of wealth in the world through justice and through a fair means is something that people can share across faith traditions and realize that there are principles that they can bring into the world of business. The major change in the world of shareholder activism in the last two or three years has been the entrance of pension funds, particularly union funds, but also the biggest player is California State Pension Funds. The State of Connecticut now has a very progressive policy on pension funds. So pension funds, along with the funds of religious institutions, can now in fact affect corporate policy in a very serious way. The landscape in the last several years has dramatically changed in terms of the ability of share owners to affect corporate policy.

Socially Responsible Mutual Funds: Issues to Consider When Investing with Your Conscience
Suzanne K Hayes.  Journal of Financial Service Professionals Bryn Mawr:Sep 2005.  Vol. 59,  Iss. 5,  p. 59-63 (5 pp.)

Abstract

Socially responsible investment (SRI) represents one of the fastest growing equity investments. This article examines SRI characteristics, reviews current literature, and presents new SRI mutual fund selection information. The results suggest that SRI mutual funds have a misclassification problem similar to conventional mutual funds. The level of social screening vanes dramatically within stated style classifications; thus, verification of consistency between fund selections and social principles is necessary.

Should All Companies Report on Their Corporate Responsibility?
Curtis C Verschoor.  Strategic Finance Montvale:Nov 2005.  Vol. 87,  Iss. 5,  p. 17-18 (2 pp.)

Abstract

In spite of general inattention, corporate responsibility (CR) has long been a subject of interest to some investors. CR is becoming recognized as the principal indicator of nonfinancial performance as well as a factor that is associated with superior financial results to shareowners, and it is no longer viewed as a public relations exercise designed to improve image. KPMG International has surveyed CR reporting on a global basis five times since 1993. In qualitative terms, the 2005 version of the KPMG International Survey of Corporate Responsibility Reporting maintains that CR issues are being viewed less as isolated functions and more as integrated into the core values of an entity and its business strategies. In today’s world, companies should recognize their responsibilities to be accountable to society.

JEWISH LAW AND SOCIALLY RESPONSIBLE CORPORATE CONDUCT
Steven H Resnicoff.  Fordham Journal of Corporate & Financial Law New York:2006.  Vol. 11,  Iss. 3,  p. 681-695 (15 pp.)

Abstract

Jewish law pervasively impacts corporate conduct, but does so without positing any distinct doctrinal rules pertaining to corporations. Instead, the foci of Jewish law are the individual, on the one hand, and the community as a whole, on the other. Jewish law comprehensively controls corporate conduct from within by imposing pervasive rules on the actions that corporate employees, managers, directors, and shareholders may and must take. These rules prevent a panoply of socially irresponsible actions and require many affirmatively responsible deeds. Jewish law theoretically authorizes and, as to some matters, requires, Jewish communities to legislate additional measures to regulate commercial conduct. But sociological circumstances have, at least for the present, made this mechanism ineffective. Jewish law does to a large extent recognize the validity of secular law. Consequently, the secular political process remains a viable way to impose socially responsible duties on corporations from without.

Perspectives of Corporate Governance in the U.S. and Abroad
Balasundram Maniam,  Geetha Subramaniam,  Jim Johnson.  The Business Review, Cambridge Hollywood:Summer 2006.  Vol. 5,  Iss. 2,  p. 36-42 (7 pp.)

Abstract

Financial scandals have rocked the financial world both in the United States and across the globe. This paper briefly explores Enron, WorldCom and some of the other major scandals that have occurred. It uses these cases as a backdrop to a discussion of corporate governance worldwide. This paper reviews previous work and discusses the governance of exchanges, boards, internal auditing and compensation packages. A discussion debating the box checking methods of Sarbanes-Oxley versus the “comply or explain” mentality of Europe is also found in this paper.

Venture capitalists and entrepreneurs become venture philanthropists:[1]
John Pepin.  International Journal of Nonprofit and Voluntary Sector Marketing London:Aug 2005.  Vol. 10,  Iss. 3,  p. 165-173 (9 pp.)

Abstract

Non-traditional charitable sources of revenue may be categorised as follows: Venture philanthropy: Human resources and funding invested as donation in the charity by entrepreneurs, venture capitalists, trusts and corporations in search of a social return on their investment. It involves high engagement over many years with fixed milestones and tangible returns and exit achieved by developing alternative, sustainable income. Commercial ventures: They seek a financial return on investment by creating a social enterprise operated by charities and their trading/holding companies alone or in partnership with the corporate sector, venture capitalists or investors to provide funding. Venture philanthropists may also invest without establishing an equity position in the commercial enterprise. Any profits are re-directed to mission-related activity, although the business activity may or may not be mission related. Social venture capital: It funds commercial ventures (as above) but may not seek a complete return on investment; instead the investor may off set some or all of the investment against social outcomes. Within the context of venture philanthropy, this paper demonstrates how charities, venture capitalists and entrepreneurs may work together in strategic alliances. It explores venture philanthropy from the perspective of venture capitalists and entrepreneurs, giving examples. Charities are shown how to prepare themselves to take advantage of these entrepreneurial opportunities. Although the emphasis in this paper is on venture philanthropy, the processes outlined may be used to help a charity take advantage of opportunities within the broader social entrepreneurial context. Successful venture capitalists and entrepreneurs have demonstrated the ability to turn outline business ideas into big results, frequently in highly competitive business environments. A common characteristic that appears to unite these individuals when they divert their interest toward social ventures is a desire to apply their business-like approach, which includes planning processes, milestones and outcome measurement to their social venture activity.

Corporate social responsibility strategy: strategic options, global considerations
Jeremy Galbreath.  Corporate Governance Bradford:2006.  Vol. 6,  Iss. 2,  p. 175-187

Abstract

Purpose – To further the dialogue on corporate strategy and corporate social responsibility (CSR). Specifically, to describe four options with respect to CSR strategies and to offer points of consideration for moving home country CSR strategies to host countries. Design/methodology/approach – The approach is based on developing a conceptualization of various CSR strategic options. The paper also incorporates key global considerations for moving home country CSR strategies to host country operations. Findings – The analysis suggests that CSR can not be separated from corporate strategy. Thus, firms have several factors to consider with respect to choosing appropriate CSR strategies. Not only are there fundamental strategic goals and outcomes to consider, but also a variety of cross-border factors that can potentially complicate the success of CSR strategies if not examined appropriately. Practical implications – As with any good decision-making exercise, managers would do well to explore a variety of options before making a final decision. This paper offers four CSR strategic options from which managers can explore the development of a CSR strategy. However, recognizing the increasing influence of globalization and the need to expand operations overseas for many, if not most companies, the paper also suggests a number of salient factors that can effect the movement of CSR strategies from a home to host country. Thus, the paper offers a useful framework for making strategic decisions with respect to CSR. Originality/value – The value of the paper rests in its dialogue of CSR in the context of corporate strategy and global business. With few exceptions, CSR and strategy have been given short shrift in the literature. Thus, by expanding an important component of corporate strategy and placing it in a global context, the paper properly expands on an essential topic in business.

Making the intangible count – counting the intangible: A report on current learning from a UK food retailer
J F Cumming.  International Journal of Productivity and Performance Management Bradford:2005.  Vol. 54,  Iss. 3/4,  p. 288-292 (5 pp.)

Abstract

The purpose of this paper is to examine the practical application of two emerging guidelines for the disclosure and assurance of corporate sustainability performance – the ABI Disclosure Guidelines on Socially Responsible Investment and the AA1000 Assurance Standard. The need for a flexible application of these tools to provide a multi-lensed view of organisational performance is emphasized, but also emphasises the importance of a unifying analysis that has resonance across an organisation – from boardroom to shop-floor – and with external stakeholders. This paper fulfils an identified information/resources need and offers practical help to an individual starting out on this type of programme.

“Minding Our Business”: What the United States Government has done and can do to Ensure that U.S. Multinationals Act Responsibly in Foreign Markets
Susan Ariel Aaronson.  Journal of Business Ethics Dordrecht:Jun 2005.  Vol. 59,

Abstract

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.

Beyond Philanthropy: Community Enterprise as a Basis for Corporate Citizenship
Paul Tracey,  Nelson Phillips,  Helen Haugh.  Journal of Business Ethics Dordrecht:Jun 2005.  Vol. 58,  Iss. 4,  p. 327-344

Abstract

In this article we argue that the emergence of a new form of organization – community enterprise – provides an alternative mechanism for corporations to behave in socially responsible ways. Community enterprises are distinguished from other third sector organisations by their generation of income through trading, rather than philanthropy and/or government subsidy, to finance their social goals. They also include democratic governance structures which allow members of the community or constituency they serve to participate in the management of the organisation. Partnerships between corporations and community enterprises therefore raise the possibility of corporations moving beyond philanthropic donations toward a more sustainable form of intervention involving long-term commitments to communities. At the same time they change substantively the nature of any collaboration by allowing relationships to proceed on the basis of mutual advantage, thereby broadening their appeal and scope. In doing so, partnerships build capacity and enfranchise communities in a way that avoids the paternalism that has traditionally characterised relationships between corporations and voluntary sector organisations. Power relations are transformed because partners are seen as sources of valuable assets, knowledge and expertise, rather than recipients of patronage or charity.

A Preliminary Investigation into the Role of Positive Psychology in Consumer Sensitivity to Corporate Social Performance
Robert A. Giacalone,  Karen Paul,  Carole L. Jurkiewicz.  Journal of Business Ethics Dordrecht:Jun 2005.  Vol. 58,  Iss. 4,  p. 295-305

Abstract

Research on positive psychology demonstrates that specific individual dispositions are associated with more desirable outcomes. The relationship of positive psychological constructs, however, has not been applied to the areas of business ethics and social responsibility. Using four constructs in two independent studies (hope and gratitude in Study 1, spirituality and generativity in Study 2), the relationship of these constructs to sensitivity to corporate social performance (CSCSP) were assessed. Results indicate that all four constructs significantly predicted CSCSP, though only hope and gratitude interacted to impact CSCSP. Discussion focuses upon these findings, limitations of the study, and future avenues for research.

The Future of Corporate Social Responsibility
Fred Robins.  Asian Business & Management Houndmills:Jun 2005.  Vol. 4,  Iss. 2,  p. 95-115

Abstract

This paper offers a contemporary look at that part of corporate community involvement which in recent years has become known as ‘corporate social responsibility’. The author adopts a broader perspective than Michael Porter’s prominent article on ‘corporate philanthropy’. Here, the voluntary and discretionary expenditures of business on social and environmental projects are seen to be more closely aligned with corporate risk management and reputation-building than with corporate strategy. After some observations about terminology and philosophical attitudes, the paper notes the growing pressure on business to undertake discretionary social and environmental expenditures and to account publicly for such activities through institutionalized annual reporting. Some recent international initiatives to foster and popularize corporate social responsibility are summarized and their features briefly assessed, as is one attempt to measure corporate social responsibility. The paper seeks to illuminate the ‘hidden’ issues in this increasingly popular contemporary movement. The most important of these are to identify who ultimately pays for such expenditures and who ultimately makes decisions about them. At the same time it is noted that the capabilities of private business in the social arena may sometimes exceed those of government. The paper concludes with a number of judgements about the nature and legitimacy of this contemporary development and also about its future.

The Silence of the Stakeholders: Zero Decibel Level at Enron
John Trinkaus,  Joseph Giacalone.  Journal of Business Ethics Dordrecht:May 2005.  Vol. 58,  Iss. 1-3,  p. 237-248

Abstract

While the demise of Enron has raised a number of interesting issues, such as proper governance of large corporations, and the effectiveness and efficiency of statutory direction and regulatory mechanisms, the lack of meaningful vocal stakeholder stewardship has not beenone of them. While the relative silence of Enrons stakeholders (watchdogs) could simply have been a communication glitch, or a temporary lapse in social morality, an understanding of that was not said and why, could well be a significant requisite in formulating meaningful measures to preclude future Enrons. Why werent the watchdogs barking? Why had the stakeholder alert system shut down? Further, what are the implications for then and now of this quiescence? Since Enrons demise many questions have been asked and answered about what went wrong. But little has been said about why the stakeholders failed to speak out by exercising their fiduciary responsibilities. This paper takes acloser look at the behavior of some key Enron stakeholders.

Corporate social responsibility: what role for law? Some aspects of law and CSR
Karin Buhmann.  Corporate Governance Bradford:2006.  Vol. 6,  Iss. 2,  p. 188-202

Abstract

Purpose – The purpose of this article is to discuss the role that law plays for corporate social responsibility (CSR) in substance, action and reporting, including whether CSR functions as informal law. Design/methodology/approach – The theoretical point of departure is based in legal science. Through a discussion of various contexts of CSR in which law and legal standards feature, the article questions the conception that CSR is to do “more than the law requires”. CSR is discussed with the triple bottom line as a point of departure, focussing on social (esp. labour and human rights) and environmental dimensions. Findings – It is argued that CSR functions as informal law, and that important principles of law function as part of a general set of values that guide much action on CSR. Furthermore, it is argued that aspects of law in the abstract as well as in the statutory sense and as self-regulation influence the substance, implementation and communication of CSR, and that the current normative regime of CSR in terms of demands on multinational corporations may constitute pre-formal law. Originality/value – Through its discussion, observations and examples of the role played in CSR by law in the abstract as well as the statutory sense, by international, supranational and national soft and hard law and documents, and by public regulation as well as corporate self-regulation, the paper is of value to corporate managers, public regulators, NGOs and individuals with an interest in CSR, including as an aspect of corporate governance.

Sustainability benchmarking of European banks and financial service organizations
Olaf Weber.  Corporate Social – Responsibility and Environmental Management Chichester:Jun 2005.  Vol. 12,  Iss. 2,  p. 73-87 (15 pp.)

Abstract

A benchmark study of European banks and financial service organizations is presented, inquiring into the extent to which they have integrated sustainability into their policies, strategies, products, services and processes. Using a multi-level analysis beginning with a screening of 127 organizations and finishing with in-depth interviews of eight of them, approaches to integrating sustainability were analysed. Furthermore, five models for successful integration of sustainability into the banking business were found: event related integration of sustainability, sustainability as a new banking strategy, sustainability as a value driver, sustainability as a public mission and sustainability as a requirement of clients.

Corporate Law, Profit Maximization, and the “Responsible” Shareholder
Ian B Lee.  Stanford Journal of Law, Business & Finance Stanford:Spring 2005.  Vol. 10,  Iss. 2,  p. 31-72 (42 pp.)

Abstract

This article explores the relationship between shareholder ethical responsibility and corporate law. The article outlines the debate concerning the legality and desirability of corporate social responsibility and discusses the underlying theoretical framework. It articulates the view that shareholders have a degree of responsibility for the conduct of incorporated business, because they are the people for whose benefit the conduct occurs, and no one forces them to invest. The article discusses the implications of the foregoing for three specific questions arising in the context of ethical investing, namely: 1. whether corporate management should be permitted (or required) to take into account the expressed ethical views of groups of shareholders, 2. whether corporate law should filter out ethically-motivated shareholder proposals, and 3. whether disclosure of matters relevant to ethical analysis of corporate conduct should be mandatory. Corporate law is at worst, ambiguous as to the legality of departures from profit maximization on account of corporate social responsibility.

Finance and accounting: Corporate social responsibility and financial performance
Eveline Van de Velde,  Wim Vermeir,  Filip Corten.  Corporate Governance Bradford:2005.  Vol. 5,  Iss. 3,  p. 129-138 (10 pp.)

Abstract

This paper aims to investigate the interaction between sustainability and financial performance. Can socially responsible investors, integrating environmental, social and ethical issues in their investment policy, expect the same return as traditional investors? Based on the sustainability ratings of a specialized rating agency, Vigeo, a Fama and French approach is performed to adapt for style biases in the performances. The results indicate that, on a style-adjusted basis, high sustainability-rated portfolios have performed better than low-rated portfolios, but, probably due to the short horizon, not to a significant extent. The same results are found for four out of the five sub-ratings of which the sustainability rating is composed, suggesting that sustainability is a broad and multidimensional concept that cannot be attributed to one specific theme or topic. The results also indicate that investors are ready to pay a premium for companies with good management of their relations with shareholders, clients and suppliers. Owing to the rather new concept of socially responsible investing and in order to avoid survivorship bias, only a relative time horizon is considered. There is no cost involved in integrating sustainable dimensions in the investment policy. The paper shows the relevance of socially responsible investing when one adjusts for style differences within the portfolio.

Stakeholder Influence Strategies: The Roles of Structural and Demographic Determinants
Jeff Frooman,  Audrey J Murrell.  Business and Society Chicago:Mar 2005.  Vol. 44,  Iss. 1,  p. 3-31 (29 pp.)

Abstract

Using Frooman’s typology of stakeholder influence strategies, this research examines the strategies that stakeholders select to exert influence on a firm. Using an experimental approach, the responses of actual environmental leaders to a series of hypothetical vignettes were examined. The results of the experiment suggest how both structural and demographic variables can act as determinants of strategy choice along with how these two types of variables may both complement and inhibit one another. Specifically, the results suggest that repertoires of strategies play a critical role in stakeholder behavior. Demographic variables appear to define the repertoires of strategies the stakeholder will typically choose among, whereas structural variables further refine choice from within that repertoire.

Mutual Funds: Temporary Problem or Permanent Morass?
Paula A Tkac.  Economic Review – Federal Reserve Bank of Atlanta Atlanta:Fourth Quarter 2004.  Vol. 89,  Iss. 4,  p. 1-22 (21 pp.)

Abstract

Mutual funds pose a temporary problem with respect to the current market timing and late trading charges. These particular forms of misconduct will largely be addressed via legal remedies and market discipline and are unlikely to occur again in the foreseeable future. In the long run, however, mutual funds are a permanent morass. There will never be complete alignment of advisers’ and investors’ interests. In this respect, mutual funds are no different than any other service. There will always be a conflict between the profitability goals of producers and their customers, who wish to maximize their own surplus. The best solution to such an agency problem is a pool of effective monitors armed with observable information on manager actions and activities. Investors are best viewed as customers of mutual fund services, so by far the strongest weapon investors have is their own demand.

The ethical, social and environmental reporting-performance portrayal gap
Carol A Adams.  Accounting, Auditing & Accountability Journal Bradford:2004.  Vol. 17,  Iss. 5,  p. 731-757

Abstract

The purpose of this article is twofold. First, it assesses in detail the extent to which corporate reporting on ethical, social and environmental issues reflects corporate performance in case study company Alpha. This “reporting-performance” portrayal gap is a key measure of the extent to which an organisation is accountable to its stakeholders. Alpha’s disclosures concerning its ethical, social and environmental performance for the years 1993 and 1999 were compared with information obtained on Alpha’s performance from other sources. Two different pictures of performance emerged leading to the conclusion that, in the case of Alpha, reports do not demonstrate a high level of accountability to key stakeholder groups on ethical, social and environmental issues. Of particular concern is the lack of “completeness” of reporting. Second, the article assesses the potential of recent standards or guidelines developed by the Global Reporting Initiative (GRI) and the Institute of Social and Ethical AccountAbility (AccountAbility) as well as the industry’s own “responsible care” initiative to reduce this “reporting-performance” portrayal gap and improve corporate accountability. The conclusions point to the need for other measures to improve accountability including mandatory reporting guidelines, better developed audit guidelines, a mandatory audit requirement for MNCs and a radical overhaul of corporate governance systems.

SOCIAL ETHICS
Mary Elsbernd.  Theological Studies Washington:Mar 2005.  Vol. 66,  Iss. 1,  p. 137-158 (22 pp.)

Abstract

[The survey addresses recent publications in five areas: (1) foundational resources and approaches; (2) Catholic social thought; (3) faith and public life; (4) reconciliation and social conflict; and (5) environmental and economic ethics. Recurring issues include: praxis-based approaches, the common good and human rights, religion's role in public life, restorative justice, as well as attention to the marginalized.]

Policy making and the role of government: Realigning business, government and civil society: Emerging embedded relational governance beyond the (neo) liberal and welfare state models
Atle Midttun.  Corporate Governance Bradford:2005.  Vol. 5,  Iss. 3,  p. 159-174 (16 pp.)

Abstract

This article aims to explore the character of an emerging model of corporate social responsibility (CSR)-oriented societal governance in an exchange theoretical perspective and to examine the distinctive characteristics of the relations between civil society, business and government in the new model and the drivers behind it. By analyzing typical roles and role-sets in political, commercial and regulatory exchange, the article pin-points characteristics of the embedded relational governance/CSR model contrasted against liberal governance and the Keynesian welfare state. The analysis is stylized and conceptually based, in line with the Weberian ideal type concept and brings out stylized juxtapositions of the three governance models based on previous studies. An emerging model of corporate social responsibility (CSR) or embedded relational governance seems to share the basic market orientation of the liberal model, yet, at the same time, sharing many of the social and collective goals of the welfare state. This combination is apparently achieved by embedding the social dimension into civil society and self-regulatory market processes. Finally, the paper reflects on the drivers behind the new governance approach, in the context of a globalizing economy.

The Relationship Between Perceptions of Corporate Citizenship and Organizational Commitment
Dane K Peterson.  Business and Society Chicago:Sep 2004.  Vol. 43,  Iss. 3,  p. 296-319 (24 pp.)

Abstract

The results of a survey of business professionals verified a relationship between perceptions of corporate citizenship and organizational commitment. More important, the results demonstrated that the relationship between corporate citizenship and organizational commitment was stronger among employees who believe highly in the importance of the social responsibility of businesses. The results also indicated that the ethical measure of corporate citizenship was a stronger predictor of organization commitment than the economic, legal, and discretionary measures. Last, the results revealed that the discretionary measure was more strongly associated with organizational commitment among female employees.

Social reporting in the tobacco industry: all smoke and mirrors?
Lee Moerman,  Sandra Van Der Laan.  Accounting, Auditing & Accountability Journal Bradford:2005.  Vol. 18,  Iss. 3,  p. 374-389 (16 pp.)

Abstract

The purpose of this paper is to examine the process of social reporting as a proactive management strategy to bridge the divide between the social and the economic. In July 2002 British American Tobacco (BAT) launched its first social report coinciding with the release of the WHO’s Framework Convention on Tobacco Control. A case study, utilizing textual analysis of publicly available documents examined through a legitimacy perspective, was used to explore this issue. This paper asserts that the process, guidelines and assurance employed by BAT for its social report are a management strategy to enter the contested domain of public policy.

Between Self-Regulation and the Alien Tort Claims Act: On the Contested Concept of Corporate Social Responsibility
Ronen Shamir.  Law & Society Review Amherst:Dec 2004.  Vol. 38,  Iss. 4,  p. 635-663 (29 pp.)

Abstract

Using Alien Tort Claims Act suits against multinational corporations as an immediate context for discussion, this article explores the emerging field of corporate social responsibility. The article argues for an understanding of concrete legal struggles as part of broader competing strategies for regulating corporate obligations to a multitude of stakeholders. By identifying and analyzing the positions of concrete actors who operate in the field, the main thesis of this article is that the field strongly tilts in the direction of voluntary and self-reliant models of corporate responsibility. The article identifies this process as consistent with the privatization of regulative structures in general and with extant modeling of corporate governance in particular, and points at the correlation between these trends and the interests of multinational corporations.

BUILDING INCLUSIVE FINANCIAL SECTORS: THE ROAD TO GROWTH AND POVERTY REDUCTION
Kathryn Imboden.  Journal of International Affairs New York:Spring 2005.  Vol. 58,  Iss. 2,  p. 65-86 (22 pp.)

Abstract

In most countries, financial services are available only to a small percentage of the population and the majority of “bankable” people in the world do not yet have access to them. Various constraints hamper or block the inclusion of different population groups that need access to financial services, notably women. Yet access to well-functioning and efficient financial services can empower individuals economically and socially, allowing them to better integrate into a country’s economy and actively contribute to its growth. Microfinance plays an important role in expanding that access. Critical to global development efforts, it has a vital role to play as part of the Millennium Development Goals, in which, in 2000, United Nations member states agreed to halve by 2015 the more than a billion people worldwide who live in extreme poverty and hunger. For microfinance to play this role fully, recognition must be given to the fact that financial services for the poor are an integral part of an inclusive financial sector.

Purchasing social responsibility and firm performance: The key mediating roles of organizational learning and supplier performance
Craig R Carter.  International Journal of Physical Distribution & Logistics Management Bradford:2005.  Vol. 35,  Iss. 3/4,  p. 177-194 (18 pp.)

Abstract

This paper aims to examine how socially responsible supply management activities, a term labeled purchasing social responsibility (PSR) in the extant literature, affect a firm’s costs. There has been much debate, and mixed empirical findings, regarding whether socially responsible behavior on the part of companies improves or reduces firm performance. A survey methodology and structural equation modeling are used to assess the relationship between PSR and supplier performance, including the mediating role of organizational learning. The theoretical scope is developed through an integration of literature from logistics, corporate social responsibility, the resource-based view of the firm, and organizational learning. No direct relationship is found between PSR and costs; however, organizational learning and supplier performance act as key, mediating variables between PSR and costs, with PSR leading to organizational learning, improved supplier performance, and ultimately reduced costs.

How can SMEs effectively implement the CSR agenda? A UK case study perspective
Pavel Castka,  Michaela A. Balzarova,  Christopher J. Bamber,  John M. Sharp.  Corporate Social – Responsibility and Environmental Management Chichester:Sep 2004.  Vol. 11,  Iss. 3,  p. 140 (10 pp.)

Abstract

This paper focuses on implementation of the CSR agenda in small-to-medium enterprises (SMEs) and reports on research findings from an action research case study that has been conducted in a UK based SME. The case study research demonstrates how the CSR agenda has been implemented using ISO 9001:2000 as a platform and what benefits the case study organization has gained from this approach. These results are compared with a UK survey on feasibility of CSR for SMEs conducted by the UK’s Department of Trade and Industry and parallels are drawn.

Towards the relational corporation: from managing stakeholder relationships to building stakeholder relationships (waiting for Copernicus)
Josep M Lozano.  Corporate Governance Bradford:2005.  Vol. 5,  Iss. 2,  p. 60-77 (18 pp.)

Abstract

The starting point of this paper is the traditional view of stakeholders (encompassing the binomial affecting – affected by the company), and identifies the analytical, managerial and normative dimensions implicit in this view. It goes on to suggest that all stakeholder approaches should make explicit their models, what we call a company model, a management model, a description model, a values clarification model and a legitimacy model. The next issue raised is how far most stakeholder approaches are constructed from a view of the corporation focused inwards, at the center of a universe with stakeholders revolving round it. The complexity of contemporary society (the network society) may require us to learn how to interpret the company’s economic and social relationships system, so that thinking about the company means thinking about it both within and without the network. This is why we propose the term relational corporation, to refer to a corporation that changes its approach to links with its stakeholders, moving from managing relationships to building relationships.

What drives socially responsible investment? The case of the Netherlands
Bert Scholtens.  Sustainable Development Chichester:Apr 2005.  Vol. 13,  Iss. 2,  p. 129-137 (9 pp.)

Abstract

This paper asks what determines the growth of socially responsible savings and investments in the Netherlands. We find that special tax regulation can be held responsible for more than half of the growth in socially responsible savings and investments during the period 1995-2001. It has resulted in socially and environmentally worthwhile projects that would otherwise not have had access to finance. Furthermore, it appears that investors in the Netherlands are sensitive to changes in the underlying regulation. However, an important fraction of the investors is likely to keep their investments if the favourable tax treatment were to be abandoned. This paper also investigates the financial performance of socially responsible savings and investments. We find that the investments earn returns that do not significantly differ from the return on their benchmarks. The risk, however, is significantly above that of the benchmark. In contrast, socially responsible savings earn a higher (after-tax) return and have equal risk in comparison with ordinary savings.

Responsible Riches [Global Profit and Global Justice: Using Your Money to Change the World]
Abbey, Deb.  Alternatives Journal Waterloo:Jan/Feb 2005.  Vol. 31,  Iss. 1,  p. 26-28

Abstract

If you’ve thought about this at all, you’ve probably started channeling your hard-earned money away from business activities you can’t support and toward business activities that you can. You’ve taken care of your financial destiny while harmonizing your pocketbook with your concerns for society.

Historically, for most social investors, it has been all about screening – because we all want to feel good about our investments. We want to sleep at night knowing that we aren’t contributing to the problem. I’ve heard hundreds of investors say, “I don’t want to own the banks or the resource companies in my portfolio.” This isn’t a new phenomenon. For hundreds of years, religious investors have avoided investing in businesses that profit from products designed to kill their fellow human beings. The “sin” stocks – alcohol, tobacco and military.

To address this need, social investing is evolving from negative screening (avoiding bad companies) to solution-oriented engagement with companies – and from an exclusive focus on moral values to looking at corporate accountability in the context of risk to long-term shareholder and stakeholder value. It isn’t enough to separate the good companies from the bad companies. If we just concentrate on screening out the bad ones, they might try a little harder to obey the laws of the land – but then the companies that already meet our screening criteria will just continue to do business as usual. And business as usual just isn’t good enough anymore. We need to focus on the good companies and encourage them to become even better companies. In so doing, we’ll raise the bar for everyone and the laggards will have to improve their practices just as a rising tide raises all ships.

Stakeholder theory, society and social cohesion
François Lépineux.  Corporate Governance Bradford:2005.  Vol. 5,  Iss. 2,  p. 99-110 (12 pp.)

Abstract

Stakeholder theory is a “weak” theory, which suffers from a number of flaws. This article is based on the intuition that many of these problems are linked together, and that they are fundamentally due to the fact that stakeholder theory fails to appreciate the place of civil society as a stakeholder. It starts with an examination of the confusing status of society in stakeholder theory, and suggests that civil society should be on top of the stakeholder list. It then underlines the emergence of a global society, distinct from national societies. An extended classification system is presented, which comprises a binary categorization, an intermediate taxonomy, and a developed typology; this system is illustrated in the form of a mapping. The article then addresses the issue of the theory’s normative underpinnings: the concept of social cohesion is proposed as an alternative justification. The meaning of this concept is specified, and its relevance as a normative foundation is justified. Eventually, this reinterpretation of stakeholder theory, which emphasizes the importance of civil society and social cohesion, provides some rationales for the connection of its empirical and normative streams – thus rendering it more consistent and more robust.

Corporate Citizenship in South Africa: A Review of Progress since Democracy
Wayne Visser.  The Journal of Corporate Citizenship Sheffield:Summer 2005.  Iss. 18,  p. 29-38 (10 pp.)

Abstract

This descriptive paper provides a brief overview of the emergence of corporate citizenship (CC) in South Africa since 1994. The paper is divided into three main sections: (i) the scope of academic research on CC in South Africa; (2) the main catalysts for the increasing focus on CC over the past decade in South Africa, including legislative reform, globalisation, stakeholder activism and codification; and (3) the general trend of CC in South Africa, including sustainability reporting and socially responsible investment. The paper concludes that South Africa has made significant strides towards maturity in CC practice.

In Defence of Corporate Responsibility
Chris Marsden.  Zeitschrift für Wirtschafts- und Unternehmensethik Mering:2005.  Vol. 6,  Iss. 3,  p. 359-373 (15 pp.)

Abstract

Two serious criticisms of CSR have emerged from separate ends of the political spectrum. They are levelled at the heart of the purpose of business and what companies, particularly large companies are responsible for. From the Left, Joel Bakan, in his book and subsequent film, The Corporation, alleges that CSR is a smokescreen, enabling companies to hide their bad practices and strengthen their ability to resist regulation by government, from the Right, The Economist, building on arguments that hark back to Milton Friedman and even Adam Smith, has argued that CSR is a waste of resources, distracting companies from their core roles of producing goods and services, and making profits. These criticisms are misguided but they have intellectual foundations; as such they risk undermining much that is important and require rebuttal.

Biz-War and Socially Responsible Investing
Jarol B Manheim.  Review – Institute of Public Affairs Jolimont:Dec 2004.  Vol. 56,  Iss. 4,  p. 26-29 (4 pp.)

Abstract

Socially responsible investing (SRI) is all the rage these days, and who could quarrel with the impetus to channel investment funds toward pro-social applications and away from antisocial ones? It is a movement that, by its very name, has an inherent claim on the moral high ground of the global economy, a claim that gives to the movement its legitimacy, its appeal, its dynamism and its growing power. It is a claim to moral authority that deserves closer examination. The SRI movement is designed to generate leverage on corporate behaviours through the pooling and application of wealth in sufficient volume to force changes in corporate governance, in corporate behaviour, and, collectively, in public policy. More than that, it is designed to take maximal advantage of the growing interconnectedness of the global economy.

Renewing the Commitment to the Rule of Law and Human Rights in the United States
Mary Robinson.  Global Governance Boulder:Jan-Mar 2005.  Vol. 11,  Iss. 1,  p. 1-8 (8 pp.)

Abstract

Robinson calls for a renewed commitment to the Rule of Law and human rights in the US. With a dangerous array of threats to peace and security, she emphasizes that what is needed now is a major course correction that begins with a broader understanding of what defines human and global security. Governments must craft policies that manage and balance increasing interdependence with increased vulnerability, among other things.

Values-driven performance: Seven strategies for delivering profits with principles
Ira A Jackson,  Jane Nelson.  Ivey Business Journal Online London:Nov/Dec 2004.  p. B1

Abstract

Some companies are making sincere, concerted efforts to fundamentally reshape markets and governance structures. In the process, they are changing the rules of the game. However, mastering these new rules and constantly changing expectations of society requires the articulation and adoption of clear business principles, and the design and successful use of new tools and management competencies. Sixty multinational companies that are taking a lead in responding to these challenges are studied. Drawing on their experiences, seven strategies have been developed that move the concept of corporate responsibility beyond the boundaries of compliance, public relations and philanthropy, to become a more integral part of corporate governance, strategy, risk management and reputation. They are: 1. Harness innovation for the public good. 2. Put people at the centre. 3. Spread economic opportunity. 4. Engage in new alliances. 5. Be performance-driven in everything. 6. Practice superior governance. 7. Pursue purpose beyond profit.

Leadership, learning and human resource management: The meanings of social entrepreneurship today
Juliet Roper,  George Cheney.  Corporate Governance Bradford:2005.  Vol. 5,  Iss. 3,  p. 95-104 (10 pp.)

Abstract

This paper explores the historical development and current usages of the concept of social entrepreneurship. The paper first examines the socio-political conditions leading to business repositioning in the traditionally governmental role of catering to the financial needs of civil society. It then reviews several models of social entrepreneurship and the leaders who have emerged as social entrepreneurs within those frameworks. In discussion the paper questions some of the motives of social entrepreneurs and warns against uncritical acceptance of a blurring of the boundaries between sectors of society. This is a theoretical paper. Follow-up research will examine in detail case studies of social entrepreneurship. Social entrepreneurship is a new and rapidly rising field of practice that is, as yet, under-researched. This paper synthesizes the limited yet diverse current literature on social entrepreneurship. It also offers a critical perspective that needs to be taken into account before the practice is accepted as a common-sense salve to social difficulties.

Why Teach Corporate Citizenship Differently?
Derick de Jongh,  Paul Prinsloo.  The Journal of Corporate Citizenship Sheffield:Summer 2005.  Iss. 18,  p. 113-122 (10 pp.)

Abstract

In this paper the impact of present business school curricula on corporate citizenship practices is questioned and the need for alternative corporate citizenship education is explored. We believe that education can redefine the role business plays in society. The paradoxes facing corporate citizenship in Africa challenges us to think (and teach) differently. For education to really make a difference in the way we perceive the responsibility of business, we propose a critical pedagogy for corporate citizenship. Critical corporate citizenship in Africa can contribute immensely towards effectively addressing the growing levels of unemployment, poverty, HIV/AIDS, corruption and crime. We conclude that, for education to really inform (and change) corporate citizenship practices in Africa, it should embrace a pedagogy of critique, possibility and engagement.

The Transnational Corporation, Corporate Social Responsibility and the ‘Outsourcing’ Debate
Marc T Jones.  Journal of American Academy of Business, Cambridge Hollywood:Mar 2005.  Vol. 6,  Iss. 2,  p. 91-97 (7 pp.)

Abstract

Current popular debates in the United States and Australia on the topics of ‘jobless recoveries’ and the ‘outsourcing’ of skilled IT jobs to India (most conspicuously) evidence a confusion as to the institutional role of the business firm and its obligations to the broader stakeholder community, as well as to the more specific differences between outsourcing and the spatial restructuring of corporate value-chains. This paper will take up several issues in the hope of clarifying this confusion, including the essential nature of the business firm as an economic, political and social institution; the possibilities for social responsibility and stakeholder management in large internationalised firms; and the critical distinctions between domestic and international outsourcing and spatial restructuring. Data from the ‘outsourcing’ debate will be referenced to illustrate the differing logics/rationalities of relevant stakeholder groups.

The role of corporate social responsibility in an oil company’s expansion into new territories
Christina L. Anderson,  Rebecca L. Bieniaszewska.  Corporate Social – Responsibility and Environmental Management Chichester:Mar 2005.  Vol. 12,  Iss. 1,  p. 1-9 (9 pp.)

Abstract

The nature of the oil industry demands that it be proactive and socially responsible in addition to operating in an ethical and environmentally friendly manner. The aims of this study were to analyse the role of corporate social responsibility (CSR) in BP’s overall business strategy and its practices in relation to oil developments in the Faroe Islands as well as examining the benefits of employing CSR as an integral part of business strategy when operating in new territories and cultures. The findings suggest that BP’s awareness of the relationship between socially responsible investment and reputation, linked to their desire to have a positive impact on the societies in which they operate, mean that CSR is an important component of their business strategy. However, while BP perceive CSR as having a positive effect on their expansion into new territories and the host country may require licence bids to include social and environmental factors, these are secondary to operational performance and technical capacity in determining licence awards.

The Tsunami and Corporate Social Responsibility…
Jim “Gus” Gustafson.  Organization Development Journal Chesterland:Spring 2005.  Vol. 23,  Iss. 1,  p. 1-3 (8 pp.)

Abstract

In the blink of an eye, an entire region of the world was completely devastated. On December 26, 2004, an earthquake centered off the west coast of Indonesia triggered obliterating tsunamis in one of the world’s worst natural disasters. This helps remind many Organization Development Practitioners just why they got into OD in the first place – a compelling call to help others. But this kind of global tragedy is going to require Herculean relief efforts thousands of times more powerful than the collective individual efforts of every single member of the OD Institute. There is absolutely no question that with the beginning of the 21st century has come a swelling societal demand for increased corporate social responsibility and environmental accountability. Companies are being called upon to actively take responsibility and positively engage in their community, the global society and the environment. Corporate social responsibility is simply the right thing for global corporations to do (who have more capital and human resources at their disposal than many governments). At least five million human lives are counting on it.

Stock Options
Benedicta Cipolla.  Commonweal New York:Jan 28, 2005.  Vol. 132,  Iss. 2,  p. 17-18 (2 pp.)

Abstract

Cipolla presents a discussion on shareholder advocacy, investors who have agitated for corporate reform by initiating dialogue on issues like corporate governance, the environment, and human rights. Among other things, she cites that shareholder resolutions are the most effective way for activists to make their voice known within a company, because just a 5% vote can force a company to take notice, if not action.

Spirituality and ethics in business
Corinne McLaughlin.  European Business Review Bradford:2005.  Vol. 17,  Iss. 1,  p. 94-101 (8 pp.)

Abstract

This paper examines a new approach to business practice that seeks to erode the conceptual barriers between ethical ways of living and the pursuit of profit. It does this through the mediumn of spiritual awareness and practices such as mediation, as well as addressing more traditional issues such as workers’ rights and environmental concerns. The paper makes a detailed survey of business mostly transnational, but some small and medium-sized, which are beginning to adopt holistic approaches to their workforce and their relationship with the wider human community and the environment. It also examines the growing body of literature on holistic business practices and it growing influence on management. This influence is strongest in North America, but is beginning to gather momentum in Europe. This paper demonstrates that a wide variety of businesses are finding that ethical policies do not detract from profitability, but tend to increase it. They have discovered as well that holistic or “spiritual” approaches to issues of social and environmental responsbility work better than traditional political campaigns. Such approaches also have the effect of stregthening corporate identity and workforce loyalty.

Jewish Groups Criticize Presbyterian Vote To Divest From Israel
Allan C Brownfeld.  The Washington Report on Middle East Affairs Washington:Jan/Feb 2005.  Vol. 24,  Iss. 1,  p. 54-55 (2 pp.)

Abstract

Leaders of America’s largest Presbyterian denomination, believing that Israel is denying human rights to Palestinians in the occupied territories, have voted to review their investments in Israel. With the decision, approved in a 431-62 vote at the annual General Assembly of the Presbyterian Church (USA), the church, with nearly three million members, is believed to be the largest institution to join the divestment campaign against Israel. It is the first Christian denomination to do so, according to Sister Patricia Wolfe, executive director of the Interfaith Center for Corporate Responsibility, a coalition of 275 Christian denominations.

Editorial: Can environmental factors improve stock selection?
Kimberly Gluck,  Ying Becker.  Journal of Asset Management London:Dec 2004.  Vol. 5,  Iss. 4,  p. 220-222 (3 pp.)

Abstract

The concern over the sustainability of mankind’s use of natural resources has found a receptive audience in many parts of the world. As evidence of environmental challenges continue to grow, it is likely that sustainability issues will be raised by financial institutions, especially those exposed to property loss or product liability. Given this backdrop, it is not surprising that there have been a number of studies attempting to answer the question of whether “social responsibility” or “sustainability” improves or detracts from investment performance. While a number of studies based on the performance of socially responsible mutual funds have attempted to answer the performance question, they have limitations, since there are a number of factors, such as manager skill, that also meaningfully affect returns. However, the results of analysis support the assertion that sensitivity to environmental issues, particularly for the extreme performers, may enhance return of an active strategy over time.

Corporate Social Responsibility and Long-term Compensation: Evidence from Canada
L. S. Mahoney,  Linda Thorne.  Journal of Business Ethics Dordrecht:Mar 2005.  Vol. 57,  Iss. 3,  p. 241-253

Abstract

This paper examines the association between long-term compensation and corporate social responsibility (CSR) for 90 publicly traded Canadian firms. Social responsibility is considered to include concerns for social factors and the environment (e.g. Johnson, R. and D. Greening: 1999, Academy of Management Journal 42(5), 564-578; Kane, E. J. (2002, Journal of Banking and Finance 26:, 1919-1933; McGuire, J. et al. 2003, Journal of Business Ethics 45 (4), 341-359). Long-term compensation attempts to focus executives’ efforts on optimizing the longer term, which should direct their attention to factors traditionally associated with socially responsible executives (Mahapatra, S. 1984, Journal of Financial Economicsit 20, 347-376). As hypothesized, we found a significant relationship between the long-term compensation and total CSR weakness as well as the product/environmental weakness dimension of CSR. In addition, we found a marginally significant relationship between long-term compensation and total corporate responsibility. Our findings are that executives’ long-term compensation is associated with a firm’s environmental actions, and that firms that utilize long-term compensation are more likely to mitigate product/environment weaknesses than those that do not. Implications for practice and research are discussed.

The Role of Idealism and Relativism as Dispositional Characteristics in the Socially Responsible Decision-Making Process
Haesun Park.  Journal of Business Ethics Dordrecht:Jan 2005.  Vol. 56,  Iss. 1,  p. 81-98

Abstract

This study investigated how decision-makers differ in processing their organizational environment (peers and organizational control systems), depending on the levels of their idealism and relativism. Focusing on socially responsible buying/sourcing issues, responses from buying/sourcing professionals from U.S. apparel and shoe companies were analyzed, using a series of regression analyses. The results generally supported the proposition that the degrees of idealism and relativism determine involvement levels that, in turn, result in varying levels of reactions to the organizational environment and corresponding amounts of information processing. Highly idealistic (relativistic) individuals were influenced by only idealistic (relativistic) signals of organizational environment. Further analysis showed highly idealistic and relativistic individuals were more likely to evaluate the organizational environment in terms of its business merit. The results suggest that organizations need to carefully plan how to communicate underlying meanings of organizational initiatives with their employees, knowing that individuals who have strong ethical opinions will only react to what they believe and elaborate its value for business. Further theoretical and practical implications and suggestions are discussed.

Fostering Corporate Social Responsibility Through Public Initiative: From the EU to the Spanish Case
Marta De La Cuesta González,  Carmen Valor Martinez.  Journal of Business Ethics Dordrecht:Dec 2004.  Vol. 55,  Iss. 3,  p. 275-293

Abstract

Should CSR be approached only on a voluntary basis or should it be complemented with a compulsory regulatory framework? What type of government intervention is more effective in fostering CSR among companies? This paper is an attempt to answer these questions, reviewing the debate between proponents of the voluntary case and the obligatory case for CSR, and critically analysing current international government-led initiatives to foster CSR among companies, and national government-led initiatives in the EU area. Finally, the paper focuses on the Spanish case, as an example of the failure of an exclusively voluntary approach. Despite the rapid uprise of CSR, Spain is still far behind late in CSR promotion strategies. Most action has been undertaken by companies themselves with no common guidelines, governmental support, or independent verification. The lack of a regulatory framework for CSR or ethical investment issues and the virtual absence of other indirect incentives, explains the misbalance between private, public and Third Sector initiatives. Based on the Spanish context which is quite similar to other non-OECD countries, the authors call for a more proactive government position in CSR related issues.

Industry Specific Sustainability Benchmarks: An ECSF Pilot Bridging Corporate Sustainability with Social Responsible Investments
Timo W. M. van den Brink,  Frans van der Woerd.  Journal of Business Ethics Dordrecht:Dec 2004.  Vol. 55,  Iss. 2,  p. 187-203

Abstract

This paper investigates the state of the art with respect to sustainability reporting, its linkages with the corporations, internal measurement and monitoring systems and their combined impact on the quality of contemporary sustainability benchmarks, developed by SRI analysts and so-called rating and screening agencies. This research originated from the EU-funded research initiative to create a new generation management framework for corporate sustainability and responsibility (CS-R). The aim of it is to develop a coherent set of assessment- measurement- and monitoring tools. The sustainability benchmark tool should align the interests of corporations implementing CS-R and various organizations supporting SRI, such as fund managers, analysts and screening agencies. This paper show the essentials features of an actual sustainability benchmark which is currently under construction. This approach will have significance impact on the further development of SRI and CS-R practices, as well as support the development of sustainability reporting standards.

The Relationship between the Environmental and Financial Performance of Public Utilities
Greg Filbeck,  Raymond F. Gorman.  Environmental and Resource Economics Dordrecht:Oct 2004.  Vol. 29,  Iss. 2,  p. 137-157

Abstract

A growing body of research has centered on the issue of the relationship between financial and environmental performance. The lack of consensus in this literature can be attributed to several factors. The cost of complying with environmental regulation can be significant and detrimental to shareholder wealth maximization. Conversely, a firm that can effectively control pollution might also be able to effectively control other costs of production and hence earn a higher rate of return. We utilize data from the Investor Responsibility Research Center as well as a proprietary database to investigate the relationship between environmental performance and financial performance in electric utilities. Utilities, as producers and distributors of energy, produce substantial amounts of pollution. However, since public utilities are regulated, studying the financial and environmental performance of utilities affords us the opportunity to see what role regulation plays in enhancing or diminishing the relationship between financial and environmental performance. Our results differ from earlier studies in that we find do not find a positive relationship between holding period returns and an industry-adjusted measure of environmental performance nor do we find that regulatory climate appears to explain returns. While there does not appear to be a clearly defined relationship between regulatory climate and a compliance based measure of environmental performance, there is evidence of a negative relationship between financial return and a more pro-active measure of environmental performance. We offer several possible interpretations of these results and extensions for future research.

Corporations, the UN and Neo-liberal Bio-politics
Ewa Charkiewicz.  Development: The millenium development goals Houndmills:Mar 2005.  Vol. 48,  Iss. 1,  p. 75-83

Abstract

Ewa Charkiewicz shares with readers a think piece that puzzles out the ever increasing popularity of corporate social responsibility (CSR). She is interested in why it appealed so strongly to the UN and civil society and asks what problems did it help to solve, on what terms does it operate and in particular, how has the consent and engagement with the discourse on CSR been generated? She warns that there is a double game being played, and that behind the caring face of CSR a war is being played out against ‘bare life’ and peoples’ livelihoods.

Corporate Social Responsibility in Mining in Southern Africa: Fair accountability or just greenwash?
Ralph Hamann,  Paul Kapelus.  Development: Corporate Social Responsibility Houndmills:Sep 2004.  Vol. 47,  Iss. 3,  p. 85-92

Abstract

Ralph Hamann and Paul Kapelus argue that Corporate Social Responsibility (CSR)-related narratives and practices can be fruitfully assessed with reference to accountability and fairness as key criteria. Brief case studies of mining in South Africa and Zambia suggest that there are still important gaps between mining companies’ CSR activities, on the one hand, and accountability and fairness, on the other. The conclusion is that companies’ CSR-related claims, and particularly the reference to a business case for voluntary initiatives, need to be treated with caution. CSR is not necessarily or only greenwash, but there is a need to engage business critically towards more sincere versions of CSR.

Return of the Socially Conscious Corporation
Paul M Clikeman.  Strategic Finance Montvale:Apr 2004.  Vol. 85,  Iss. 10,  p. 22-27 (6 pp.)

Abstract

Good corporate citizenry may be a throwback to a tumultuous era 3 decades ago, but it’s on the rise today just as public faith in corporations descends. It’s surprising how many leading corporations are now increasing investor loyalty, enhancing brand value, and bolstering their reputations by practicing, documenting, and disclosing their “sustainable development.” Beyond the financial bottom line, practicing sustained development – and reporting it publicly – brings a plethora of other benefits. Attracting “patient” shareholders and enhancing the firm’s reputation and brand value are 2 of the most tangible benefits, according to a monograph by the World Business Council for Sustainable Development called Sustainable Development Reporting: Striking the balance. The Global Reporting Initiative is the leading organization working to establish standards for sustainability reporting. The GRI Guidelines recommend that sustainability reports include 5 sections: 1. vision and strategy, 2. profile, 3. governance structure and management systems, 4. GRI Content Index, and 5. performance indicators.

New frontiers in international strategy
Joan Enric Ricart,  Michael J Enright,  Pankaj Ghemawat,  Stuart L Hart,  Tarun Khanna.  Journal of International Business Studies Washington:May 2004.  Vol. 35,  Iss. 3,  p. 175-200

Abstract

This paper studies a new frontier in the understanding of International Strategy (IS). To explore it, we propose the analogy of the ecology of firms and places as a way to emphasize that the real problem is the colocation of different places with different types of firms. Locations are in fact the distinctive content of International Business Strategy. We deal with this problem with four different perspectives. First, differences across countries must be addressed with integrative frameworks able to represent the multidimensionality of ‘semiglobalization’, or intermediate states between total localization and total integration. Second, differences in the development of intermediary markets in a particular place influence firm positioning and industry structure in that place, but their impact also crosses different places, and it is endogenous to the ecology of places and firms in a systemic, integrative way that makes simplifications extremely risky in the design of competitive strategy in an international context. Third, places, firms, and strategies form a complex ecology that can be studied with a framework focused in understanding the geography-strategy link that incorporates different levels of analysis, new economic actors, and a set of primitives. Finally, firms around the ecology of places face the challenge of developing strategies and business models to serve the majority of humanity today excluded from world trade. It is a fundamentally different way to think about the ecology of places and firms. Overall, we present an intriguing New Frontier, with the capacity to impact both research and practice in the field of international strategy, based in understanding the interplay among firms and places.

Beyond “Unlimiting” Shareholder Liability: Vicarious Tort Liability For Corporate Officers
Timothy P Glynn.  Vanderbilt Law Review Nashville:Mar 2004.  Vol. 57,  Iss. 2,  p. 0_11-433 (106 pp.)

Abstract

Although limited liability is the primary benefit of the corporate form, it continues to generate controversy. In this article, Glynn argues that extending vicarious tort liability to corporate officers is the best way to retain the benefits of limited shareholder liability while reducing its social costs. Glynn argues that extending vicarious liability to high-ranking corporate officers, rather than to shareholders, is the most efficient and realistic way to ensure that firms internalize tort risks. Given their unique role, these officers are the firm’s most efficient risk bearers: they are best situated to monitor and avoid risks, and to implement efficient levels of risk spreading among customers, shareholders, and insurers. And officer liability, unlike shareholder liability, cannot be evaded through judgment proofing techniques. Ultimately, Glynn’s proposal synthesizes modern tort theory and corporate law theory, and offers a viable resolution to the lingering tension between limited liability and the aims of the US tort regime.

Empirical evidence on corporate governance in Europe: The effect on stock returns, firm value and performance
Rob Bauer,  Nadja Guenster,  Rogér Otten.  Journal of Asset Management London:Aug 2004.  Vol. 5,  Iss. 2,  p. 91-104 (14 pp.)

Abstract

This paper analyses whether good corporate governance leads to higher common stock returns and enhances firm value in Europe. Throughout, this study uses Deminor Corporate Governance Ratings for companies included in the FTSE Eurotop 300. Following the approach of Gompers et al. (2003, ‘Corporate Governance and Equity Prices’, Quarterly Journal of Economics, 118, 107-55), portfolios are built consisting of well-governed and poorly governed companies and their performances are compared. The impact of corporate governance on firm valuation is also examined. The results show a positive relationship between these variables and corporate governance. This relationship weakens substantially after adjusting for country differences. Finally, the relationship between corporate governance and firm performance is analysed, as approximated by net profit margin and return on equity. Surprisingly, and contrary to Gompers et al. (2003), a negative relationship is found between governance standards and these earnings-based performance ratios for which possible implications are discussed.

TOWARDS AN ISO FOR CORPORATE SOCIAL RESPONSIBILITY
Gwen Charles,  Timothy D Hill.  Quality Congress. ASQ’s … Annual Quality Congress Proceedings Milwaukee:2004.  Vol. 58,  p. 135-145 (11 pp.)

Abstract

The authors have held leading positions in both corporate social responsibility and leading production and quality practices. What they have noticed is that the recent socio-political interest in corporate social responsibility is not unlike older conversations about quality. Corporate social responsibility has evolved from its earlier and narrower definitions that focused on social marketing. Social marketers offered claims of “environmentally friendly” and “first world wages for first world goods” in the 1980s. When profits were high, “doing good” was easy. Organizations expected their audiences to accept – at face value -that self-professed claims regarding business ethics, corporate social responsibility and more were all true and verifiable. Now, people are bringing a closer set of examination tools to claims of business ethics and corporate social responsibility. No longer satisfied with self-nominations of excellence from organizations, people are demanding accountability. Canada’s leading newspaper, the Globe and Mail, recently published an issue of its Report on Business Magazine as a single-theme issue dealing with corporate social responsibility. The magazine claimed that this was likely the most important issue they ever printed. This paper agrees with the importance of corporate social responsibility. A model for developing and discussing transparent, sustainable and measurable approaches to corporate social responsibility are introduced. The measurement problem of criterion deficiency (our concepts being vague or underdefined) is introduced, as is the fundamental concept of construct validity. This paper concludes that self-nominations for excellence are no longer sufficient or acceptable. Organizations need to follow the model outlined in this paper in order to deliver viable corporate social responsibility and not just deliver conversation.

ONE NATION, INDIVISIBLE: THE USE OF DIVERSITY REPORT CARDS TO PROMOTE TRANSPARENCY, ACCOUNTABILITY, AND WORKPLACE FAIRNESS
Cyrus Mehri,  Andrea Giampetro-Meyer,  Michael B Runnels.  Fordham Journal of Corporate & Financial Law New York:2004.  Vol. 9,  Iss. 2,  p. 395-448 (54 pp.)

Abstract

A wave of workforce diversity failures and scandals has put at risk the trust that investors, employees and all Americans have in human resources systems, which are meant to judge and reward employees based upon their effort, initiative, and merit, rather than upon the color of their skin. The purpose of this article is to provide support for the proposition that the Securities and Exchange Commission (SEC) adopt a proposal for improved information gathering and reporting of specific kinds of employment data. Now that the SEC is in the midst of major reform efforts to improve information gathering and reporting of financial data as a response to recent corporate scandals, the agency should also mandate improved information gathering and reporting of workforce diversity and fairness data. Improved information gathering and reporting of financial and employment data allows critical information to bubble up to the attention of senior management, boards of directors, and other corporate stakeholders, especially investors.

Measuring the unmeasured: An institutional entrepreneur strategy in an emerging industry
Frédérique Déjean,  Jean-Pascal Gond,  Bernard Leca.  Human Relations New York:Jun 2004.  Vol. 57,  Iss. 6,  p. 741-764 (24 pp.)

Abstract

The organizational literature on emerging industries has emphasized the need for institutional entrepreneurs – actors who give the new activity legitimacy and determine its patterns of behavior. However, little empirical research has been carried out on the strategies that institutional entrepreneurs employ in order to achieve legitimacy for their activity. In this article, we suggest that an institutional entrepreneur can use the development of measurement tools as a strategy to develop its own legitimacy and power. By looking at a French entrepreneurial company’s development of tools to measure corporate social performance, we analyze how measurement tools influence the legitimacy of an industry and the systemic power within it. Finally, we discuss the implications of our findings for research into measurement tools in the areas of management or business and society.

New Tools to Foster Corporate Socially Responsible Behavior
Antonio Tencati,  Francesco Perrini,  Stefano Pogutz.  Journal of Business Ethics: Building Ethical Institutions for Business (Guest Editors: Dordrecht:Aug 2004.  Vol. 53,  Iss. 1-2,  p. 173-190

Abstract

According to the Green Paper presented by the European Commission in July 2001, corporate social responsibility (CSR) is “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis” (Commission of the European Communities, 2001b, p. 6). On this basis, in 2002, the Italian Government, and especially the Italian Ministry of Welfare, launched an initiative called CSR-SC (social commitment) in order to foster the proactive social role of Italian enterprises, with great attention on SME involvement. The technical partner of the Italian Ministry of Welfare for this initiative is Bocconi University. The goal of this contribution is to present the main results of CSR-SC research project developed by Bocconi University. The paper provides a detailed picture of the general scheme designed to carry out the research project and a review of the different methodologies used to support the solutions proposed.

Globalisation, Free Trade and Corporate Citizenship in Pacific Forum Island Countries: How Relevant is the United Nations Global Compact?
Biman C Prasad.  The Journal of Corporate Citizenship Sheffield:Spring 2004.  Iss. 13,  p. 65-76

Abstract

The UN Global Compact is a well-intentioned appoarch to convince corporate entities, particularly transnational corporations, to adopt principles that would lead to an improvement in the quality of life of people and maintain sustainable environment policies. Although there is some evidence of good corporate responsibility and citizehsip, mainly the developed countries, it is far from satisfactory in the developing countries. Pacific Forum Island Countries (FIC) are small, have fragile environments, large subsistence and rural populations and, additionally, have large numbers of households living in poverty. This paper suggest that the UN Global Compact will certainly help these countries to articulate their concerns in the global environmental governance debate and perhaps receive some tangible support to ensure that corporate entities pursue their business according to the principles laid down under the UN Global Compact. However, it will not be enough to ensure that FICs are actually protected from environmental degradation or to help them reduce poverty. In their attempt to embrace global capitalism FIC’s would need complementary social and environmental policies to accompany the free-trade policies.

Corporate Voluntarism and Human Rights: The Adequacy and Effectiveness of Voluntary Self-Regulation Regimes
Penelope Simons.  Relations Industrielles Quebec:Winter 2004.  Vol. 59,  Iss. 1,  p. 101-139 (39 pp.)

Abstract

In response to increasing public concern over the accountability of transnational corporations (TNCs) for violations of human rights in the states in which they operate, governments, corporations and NGOs have promoted the development and implementation of voluntary self-regulatory regimes. However, TNC practices under these regimes call into question their adequacy and effectiveness in preventing complicity in egregious violations of human rights by corporations operating in conflict zones and repressive regimes. This article reviews and assesses the language, human rights content and compliance mechanisms of the voluntary policies and/or codes developed by a number of corporations, industry groups, intergovernmental organizations and multistakeholder initiatives, as well as associated corporate practices. The analysis shows that these voluntary regimes are flawed and inadequate, and therefore unable to ensure that TNCs are not complicit in human rights violations in their extraterritorial activities.

Responsible Excellence Pays!*
Claude Fussler.  The Journal of Corporate Citizenship Sheffield:Winter 2004.  Iss. 16,  p. 33-44 (12 pp.)

Abstract

Over 1,400 companies have signed the United Nations Global Compact to date. The business benefits of adopting the principles set out by the Compact have already been put forward. But do financial performance indicators vindicate this argument? In collaboration with SAM Sustainable Asset Management it was asked if the group of Global Compact signatories in the DJSI database was doing anything differently from the non-signatories. The question followed: How would a fund, solely based on Global Compact signatories, reward its investors compared to a fund of non-signatories? In SAM’s corporate sustainability assessment, 76 of the Global Compact signatories made it to the DJSI World Index. It was found that, in a declining market, this group of 76 outperformed the mainstream MSCI by 3.7% over the three-year period between June 2001 and June 2004. It is suggested that the reason for this above-average performance on the stock market is not simply the fact that the companies are associated with the Global Compact; rather the commitment to the Compact and the appeal of the companies to traders are symptoms of the same characteristic: responsible excellence. In the first instance, Global Compact engagement is an effect of existing managerial dedication to responsible excellence with all the potential to then become one of its key enhancers through the means of strategic integration.

God’s fund managers: A critical study of stock market investment practices of the Church of England and UK Methodists
Niklas Kreander,  Ken McPhail,  David Molyneaux.  Accounting, Auditing & Accountability Journal Bradford:2004.  Vol. 17,  Iss. 3,  p. 408-441

Abstract

While the literature contains a number of studies of ethical investment funds, relatively little is known about church investment processes and practices despite the significant role they have played in the development of the sector. This paper attempts to address this lacuna by studying the ethical investment programmes of two UK churches: the Methodist Church and the Church of England. The paper initially explores the relationship between the Judaeo-Christian church and the development of the ethical investment movement. This history reveals an engagement both at the institutional and individual level that challenges the assumed sacred secular divide now commonplace within the literature and the more recent guardian-advocate dichotomy. Second, the paper delineates the way in which the churches theologically conceptualise this engagement and describes how these values are proceduralised through the operation of the funds. The final section provides an immanent critique of church investments both at a performative and theological level. The aim of this concluding section is to engage with the churches in exploring the broader potential for the church in effecting social change.

Community development works
C Kendric Fergeson.  American Bankers Association. ABA Banking Journal New York:Mar 2004.  Vol. 96,  Iss. 3,  p. 16 (1 pp.)

Abstract

Two years ago ABA recognized several lenders for their outstanding community development initiatives by presenting them with Action Awards during a conference in Baltimore, co-sponsored by the ABA and the Comptroller’s Office. MC Bank and Trust Company of Morgan City, La., was the recipient of the ABA/OCC Community Projects Award for its “Hometown Spirit Campaign.” Another ABA Action Award winner was Park State Bank in Duluth, Minn. Park State received the ABA’s Main Street Award for its “Designated Investment Fund,” a banking project where customers earmark the use of their deposits strictly for local investments in socially responsible private and public projects.

The Equator Principles: Drawing the line for socially responsible banks? An interim review from an NGO perspective
Andreas Missbach.  Development: Corporate Social Responsibility Houndmills:Sep 2004.  Vol. 47,  Iss. 3,  p. 78-84

Abstract

In June 2003 leading investment banks announced the adoption of the Equator Principles, a voluntary set of guidelines developed by the banks for managing social and environmental issues related to the financing of infrastructure projects. Andreas Missbach discusses the Equator Principles comparing them with a broader NGO-vision on sustainable finance (The Collevecchio Declaration). He shows that there are ways of implementing the Principles in order to make a difference.

Institutional investor power and heterogeneity
Lori Verstegen Ryan,  Marguerite Schneider.  Business and Society Chicago:Dec 2003.  Vol. 42,  Iss. 4,  p. 398-429

Abstract

This article examines the implications of the escalation in institutional investor power and heterogeneity for two dominant theories of corporate governance: agency theory and stakeholder theory. From this analysis, a new view of the agency relationship between institutional investors and their portfolio firms emerges, which recognizes the institutions’ market power, complex role as financial intermediaries, and possible involvement in simultaneous and opposing agency contracts. It is concluded that stakeholder theorists should reconsider these newly empowered shareholders’ moral standing in relation to their portfolio firms, and they should reexamine the identities and goals of these modern investors. To that end, this article demonstrates that a novel, intergroup application of Mitchell, Agle and Wood’s stakeholder framework to heterogeneous institutional investors illuminates their varying levels of stakeholder salience.

Consumer preferences and marketing strategies for “green shares”: Specifics of the Austrian market
Michael Getzner,  Sonja Grabner-Krauter.  The International Journal of Bank Marketing Bradford:2004.  Vol. 22,  Iss. 4/5,  p. 260-278

Abstract

Socially responsible investment (SRI) has gained importance as about one out of eight US dollars is currently invested based on screening in the USA. However, European private investors are generally much more reluctant to invest in shares, and in Austria, only 7 percent of private households hold shares. There is nevertheless some interest in “green shares” (a sub-class of SRI comprising shares that are screened for their least impact on the environment) as a representative survey recently exhibited that 8 percent of respondents were definitely interested in holding “green shares”. Econometric estimates of an empirical model explaining the respondents’ willingness to invest in green shares showed that education, income, environmental awareness and the expected profit are the main explanatory variables. Based on these results, conclusions are drawn regarding marketing strategies for “green shares”. In particular, credibility both regarding financial aspects (competitive return), and environmental and social criteria have to be guaranteed to make more consumers interested in investing in green shares.

What can the Stakeholder Theory Learn from Enron?*
Wayne Norman.  Zeitschrift für Wirtschafts- und Unternehmensethik Mering:2004.  Vol. 5,  Iss. 3,  p. 326-336 (11 pp.)

Abstract

Roughly speaking, Enron has done for reflection on corporate governance what AIDS did for research on the immune system. So far, however, virtually all of this reflection on and subsequent reform of governance has come from those with a stake in the success of modern capitalism. This paper identifies a number of governance challenges for critics of capitalism, and in particular for those who urge corporations to voluntarily adopt missions of broader social responsibility and equal treatment for all stakeholder groups. I argue that by generally neglecting the governance relation between shareholders and senior managers, stakeholder theorists have underestimated the way in which shareholder-focused governance can be in the interests of all stakeholder groups

Maximising the ‘Licence to Operate’: CSR from an Asian Perspective
John Zinkin.  The Journal of Corporate Citizenship Sheffield:Summer 2004.  Iss. 14,  p. 67-80

Abstract

Recognising that CSR (corporate social responsibility) is a moving target, this article discusses the need for multinational companies to rebuild trust lest they appear ‘enemies’ of the countries in which they operate rather than ‘friends’. It examines the difficulties in defining CSR and argues that the ‘licence to operate’ comes from behaving correctly in context along five possible dimensions: global responsibility; sustaining core values of countries in which multinationals operate; creating sustainable employment; handling externalities responsibly; and creating sustainable development. The article illustrates these general points with reference to BP’s activities in Asia, particularly in China and Malaysia.

Managing financial performance at an ethical investment fund
Christopher J Cowton.  Accounting, Auditing & Accountability Journal Bradford:2004.  Vol. 17,  Iss. 2,  p. 249-275

Abstract

Ethical investment funds are retail financial products which explicitly add social or ethical goals or constraints to normal financial criteria in selecting their underlying share portfolio. By means of a case study of a UK fund, this paper explores how the relationship between ethical criteria and financial performance might be handled, which is one of the critical issues that arise in putting ethical investment into practice. The research confirms perceptions of a tension between the implementation of an ethical policy and the achievement of good financial performance, and it identifies some of the ways which fund managers might seek to cope with that tension. However, by studying the financial management of an ethical fund in practice, the paper also reveals the ways in which there might be a positive correlation between the financial performance and the ethical effectiveness of a fund, thus providing a complementary perspective to the earlier empirical studies and discussions which have focused on the possibility of ethical concerns undermining financial success.

Communicating Corporate Responsibility to Investors: The Changing Role of the Investor Relations Function
Kai Hockerts,  Lance Moir.  Journal of Business Ethics Dordrecht:Jun 2004.  Vol. 52,  Iss. 1,  p. 85-98

Abstract

Based on an inductive study we analyse the role of the investor relations (IR) function in the light of rising investor concern about corporate social responsibility (CSR). The study draws on interviews with IR professionals in twenty firms. It highlights their awareness of CSR issues as well as their assessment of concern among mainstream investors and socially responsible investors (SRIs). From these findings we develop suggestions on how the IR function is moving from a mere “broadcasting” mode regarding CSR issues into a much more interactive mode of relationship management.

Running business like a government in the new economy: lessons for organizational design and corporate governance
Bryane Michael,  Randy Gross.  Corporate Governance Bradford:2004.  Vol. 4,  Iss. 3,  p. 32-46 (15 pp.)

Abstract

Principal-agent problems are largely responsible for poor corporate governance. Much work on private sector corporate governance reform seeks to address transparency, accountability and responsiveness to stakeholder interests under the new category of corporate social responsibility (CSR). Yet, these issues are not new. The public sector has been working on these issues for many years – especially in looking at ways of reducing malfeasance and also optimizing use of resources for the benefit of principals. Some lessons from public sector reform include promoting information dissemination, participation, and balancing powers between a corporation’s executive and supervisory entities. While firms should not necessarily be administered like governmental bodies, there are many lessons from public sector organizational reform and institutional governance that may be applicable to large-scale public corporations.

Managing workforce diversity as an essential resource for improving organizational performance
Seyed-Mahmoud Aghazadeh.  International Journal of Productivity and Performance Management Bradford:2004.  Vol. 53,  Iss. 5/6,  p. 521-531

Abstract

Today, human resource management is being renewed in organizations and is gradually affirming its strategic role. The need for highly qualified managers will increase as more organizations globalize their operations. The research presented in this paper highlights the need for management who are sensitive to the concerns of multicultural employees. The effects of cultural diversity on organizational behavior are complex and powerful. Within this perspective, the definition of diversity in the USA and the goals in achieving a more diverse workplace will be discussed. This paper will also examine the different facets involved in managing and developing a diverse human resource base. Organizations take into account their human resource base before hiring employees. One factor they look at is the possible advantages and disadvantages of a multicultural and diverse organization. This paper will examine ways by which managers and employees can learn about diversity, understand it, and respect it on a day-to-day basis when dealing with people from other diverse backgrounds.

An Empirical Examination of Institutional Investor Preferences for Corporate Social Performance
Paul Cox,  Stephen Brammer,  Andrew Millington.  Journal of Business Ethics Dordrecht:Jun 2004.  Vol. 52,  Iss. 1,  p. 27-43

Abstract

This study investigates the pattern of institutional shareholding in the U.K. and its relationship with socially responsible behavior by companies within a sample of over 500 UK companies. We estimate a set of ownership models that distinguish between long- and short-term investors and their largest components and which incorporate both aggregated and disaggregated measures of corporate social performance (CSP). The results suggest that long-term institutional investment is positively related to CSP providing further support for earlier studies by Johnson and Greening (1999, Academy of Management Journal 42, 564-576) and Graves and Waddock (1994, Academy of Management Journal 37, 1034-1046). Disaggregation of CSP into its constituent components suggests that the pattern of institutional investment is also related to the form which CSP takes. Investigation of the impact of investment screens on the selection of stocks suggests that long-term institutional investors select primarily through exclusion, rejecting those firms which have the worst CSP.

An Examination of Socially Responsible Firms’ Board Structure
ELIZABETH WEBB.  Journal of Management & Governance Dordrecht:2004.  Vol. 8,  Iss. 3,  p. 255-277

Abstract

This study investigates the structure of the board of directors at socially responsible (SR) firms. Using a sample of 394 SR firms and comparing these to a matched sample of firms, I find that SR firms have characteristics associated with effective board structures. For instance, SR firms have more outsiders and women directors, and less instance of CEO/Chairman duality than non-SR firms. Results are similar when using a continuous measure of social responsibility. Also, I document that SR firms have higher Governance Index scores than the matched sample. Overall, this suggests that a reason for shareholders’ appeal in socially responsible firms and mutual funds may be because these firms have stronger governance mechanisms in place than do non-SR firms. In addition, it appears that effective governance structures are more likely to exist in firms that focus on a broad range of stakeholders, rather than in firms that have a strict focus on shareholder wealth maximization.

When Responsibility Can’t Do It
A. Gowri.  Journal of Business Ethics Dordrecht:Sep 2004.  Vol. 54,  Iss. 1,  p. 33-50

Abstract

Is being responsible good enough? Stone (1975) argued that we need corporate moral responsibility because neither law nor market is adequate to forestall harmful effects of business activities. However, it is not possible for businesses to become responsible for all forms of foreseeable, preventable harm that they produce. This is illustrated here by cases from insurance, television programming, automobiles and weapons production. Reflection on these examples leads to the formulation of a new conception of unintended harms as moral externalities of business activities. Although one might argue that these (negative) moral external effects are outweighed by the desirable end products of business activities, three reasons not to accept the results of such a “moral subtraction” (or double effect) argument are presented. Instead, the article concludes by offering four techniques for a qualitative, ethical analysis of produced artefacts and their consequences; intended not to displace but to supplement the study of moral responsibility in business.

Corporate social responsibility and structural change in financial services
O Sallyanne Decker.  Managerial Auditing Journal Bradford:2004.  Vol. 19,  Iss. 6,  p. 712-728

Abstract

This paper argues that when corporate social responsibility (CSR) is conceptualised pragmatically as a response by businesses to society’s concerns it acts as an element of structural change with implications for the strategies of firms and ultimately for industry structure. Furthermore, industry specific aspects of CSR are important and governmental influences and financial regulation provide an added dimension to the impact of CSR on the financial services industry. As an element of structural change, CSR acts as an environmental discontinuity and forces firms to realign their positions within their operating environment. A structural change paradigm is developed to examine trends which are emerging within retail banking as a result of CSR. In the UK retail banking sector, the impact of CSR is increasingly manifest in the efforts to create a competitive advantage out of CSR strategies, the growing prominence of mutual financial institutions in government policy and collaborative efforts between a range of financial institutions.

The Ethical Foundations of Responsible Investment*
Paul H Dembinski,  Jean-Michel Bonvin,  Edouard Dommen,  Francois-Marie Monnet.  Journal of Business Ethics Dordrecht:Dec 2003.  Vol. 48,  Iss. 2,  p. 203-213

Abstract

In the area of investment, responsibility may be expressed via 4 types of ethical concern: value-based ethics resulting in the exclusion of so-called “vicious” companies from the investment portfolio; fructification-oriented ethics with a view to long-term investment; consequence-based ethics aimed at initiating a behavioural change in the investment target; and ethics envisaged as a discriminating criterion in the search of the best financial performance. No single formula of responsible investment is available, and the “responsible” approach necessarily implies the active involvement of a free acting subject striving to tackle fundamental ethical issues. The practice of responsible investment cannot be reduced to simply applying a particular legal rule or mathematical formula.

Competing in the marketplace for values
Thomas W. Malone.  Leader to Leader San Francisco:Summer 2004.  Vol. 2004,  Iss. 33,  p. 53-58 (6 pp.)

Abstract

Many people believe that business is all about economic competition, since that main purpose of business is to make money for shareholders. That’s often true, but it’s only part of the story. Every investor, buyer, seller, and worker is also a person, and its obvious – but easy to forget – that people want many different kinds of things, only some of which can be measured in or purchases with money. In other words, successful businesses need to compete, not just in the economic marketplace, but also in the marketplace for values. This has always been true to some degree but increasing affluence around the world and advances in information technology are likely to make it more important than ever in the years to come.

Should the World Bank and IMF be “Fixed” or “Nixed”? Reformist Posturing and Popular Resistance*
Patrick Bond.  Capitalism, Nature, Socialism Santa Cruz:Jun 2004.  Vol. 15,  Iss. 2,  p. 85-105

Abstract

Bond discusses the issue of globalization and ponders the question of whether the World Bank and the International Monetary Fund (IMF) should be reformed. He says that one solution to the problem is the grassroots movement to decommodify the goods and services which the World Bank and IMF increasingly put out of reach.

CSR and Development: Is business appropriating global justice?
Michael Blowfield.  Development: Corporate Social Responsibility Houndmills:Sep 2004.  Vol. 47,  Iss. 3,  p. 61-68

Abstract

Corporate Social Responsibility (CSR) is being promoted as an approach to international development, but is also being criticized by development organizations. Michael Blowfield examines the evidence of CSR’s supporters and critics, and argues that embedded within CSR is a particular interpretation of social justice that raises specific questions about how far we want business to shape the direction of international development.

Business-Community Partnerships: The Case for Community Organization Capacity Building
Jehan Loza.  Journal of Business Ethics Dordrecht:Sep 2004.  Vol. 53,  Iss. 3,  p. 297-311

Abstract

Globalization processes have resulted in greater complexity, interdependence and limited resources. Consequently, no one sector can effectively respond to today’s business or wider challenges and opportunities. Non-government organizations and corporations are increasingly engaging each other in recognition that shareholder and societal value are intrinsically linked. For both sectors, these partnerships can create an enabling environment to address social issues and can generate social capital. Located in the Australian context, this paper explores the dimensions of community organization capacity building as an aspect of business-community organization partnerships. An Australian case study is used to demonstrate the benefits to business, community organizations and ultimately the communities in which the corporation is embedded and which are serviced by the community organization.

Corporate Social Responsibility and the Development Agenda: The Case for Actively Involving Small and Medium Enterprises
Wilfried Luetkenhorst.  Intereconomics Hamburg:May/Jun 2004.  Vol. 39,  Iss. 3,  p. 157-166 (10 pp.)

Abstract

The European Commission has designated 2005 as the year of corporate social responsibility in EU countries. Likewise, individual EU member states have taken important steps, such as the UK appointing a Minister for CSR within the Department for Trade and Industry, France legally requiring companies to include social and environmental impact in their annual reports, the Netherlands linking financial support schemes for large companies to compliance with the OECD Guidelines for Multinational Enterprises and the Danish Government establishing the Copenhagen Centre (a CSR focused research institution). What is this emphasis on CSR all about? The present paper reviews recent trends in CSR theory and practice placing special emphasis on their relevance for small and medium enterprises (SMEs) and on the context of economic development in developing countries.

Managering in the post-managerialist era: Towards socially responsible corporate governance
John Simmons.  Management Decision London:2004.  Vol. 42,  Iss. 3/4,  p. 601-611

Abstract

This paper uses stakeholder theory to critique the morality of managerialism, and advocates “ethical corporate governance” as an alternative philosophy and practice. Managerialism is seen as morally and commercially inferior to “moral management” in the new era of stakeholder accountable organisations. The alternative philosophy proposed centres on the concept of “the responsible organisation” with a stakeholder systems model of corporate governance offered as the means of operationalising this. The model incorporates organisational justice considerations and measures by which ethical corporate governance can be evaluated.

A Comparison of Socially Responsible and Conventional Investors
Jonathan McLachlan,  John Gardner.  Journal of Business Ethics Dordrecht:Jun 2004.  Vol. 52,  Iss. 1,  p. 11-25

Abstract

Socially responsible investment is a rapidly emerging phenomenon within the field of personal investment. However, the factors that lead investors to choose socially responsible investment products are not well understood, especially in an Australian context. This study provides a comparative examination of conventional and socially responsible investors, with the aim of identifying such factors. A total of 55 conventional investors and 54 ethical investors participated in the study by completing mailed questionnaires about their investment and general behaviour and their attitudes and beliefs. Results indicated some important differences between socially responsible and conventional investors in their beliefs of the importance of ethical issues, their investment decision-making style, and their perceptions of moral intensity. These results support the notion that socially responsible investors differ in critical ways to conventional investors, and are discussed in terms of theoretical and practical implications.

American equity mutual funds in European markets: Hot hands phenomenon and style analysis
Stephanos Papadamou,  Costas Siriopoulos.  International Journal of Finance & Economics Chichester:Apr 2004.  Vol. 9,  Iss. 2,  p. 85-97 (13 pp.)

Abstract

We studied empirically American no-load equity mutual funds that invest in European stocks and keep their managers for more than three years, in order to investigate the persistence of the short-term performance, and the related investment style. The results showed an underperformance compared to the Eurostoxx index and a hot hands phenomenon does not persist, with some exceptions. Mutual funds that performed well in a five-month evaluation period continued to generate superior performance in the next four months. According to style analysis a portfolio constructed by growth-large, growth-medium and value-large capitalization stocks outperformed any other investment style. However, well-diversified funds were the most mean-variance efficient, style-consistent funds.

Governance and the Legitimacy of Corporate Power: A Path for Convergence of Heterodox Economics?
James Ronald Stanfield,  Michael C Carroll.  Journal of Economic Issues Lincoln:Jun 2004.  Vol. 38,  Iss. 2,  p. 363-370 (8 pp.)

Abstract

Corporate power and its accountability and legitimacy is evidently an issue that any economic outlook should take seriously in order to be taken seriously by serious economists. In this necessarily short paper, we seek to set forth some salient aspects of this issue and examine whether it provides a terrain upon which various heterodox groups might tread upon convergent paths.

An Examination of Business Students’ Perception of Corporate Social Responsibilities Before and After Bankruptcies
Rafik Z. Elias.  Journal of Business Ethics Dordrecht:Jul 2004.  Vol. 52,  Iss. 3,  p. 267-281

Abstract

Significant research has found that corporations have a social responsibility beyond maximizing shareholders’ value. This study examines the effect of high-profile corporate bankruptcies on perception of corporate social responsibility. Undergraduate and graduate business students rated the importance of corporate social responsibility on profitability, long-term success and short-term success, before and after high-profile bankruptcies. The results indicated that students in general perceived corporate social responsibility to be more important to profitability and long-term success of the firm and less important to short-term success after media publicity of corporate scandals. Several demographic factors such as gender, age and college major played a role in this perception. These findings have important implications for business education, especially as it relates to corporate social responsibility.

Beyond Globalization and Ethno-religious Fundamentalism
Asoka Bandarage.  Development: The Violence of Development Houndmills:Mar 2004.  Vol. 47,  Iss. 1,  p. 35-41

Abstract

The increase in political violence since September 11 2001 is destabilizing the global social order, intensifying the global security crisis. Asoka Bandarage argues that this situation must be treated not just as a reflection of primordial hatreds which can only be dealt with greater aggression and violence. To deal seriously with the threats represented by ethno-religious extremism, it is necessary to understand their attraction to disaffected social groups around the world. She suggests that it is important to discuss ethno-religious mobilization in relation to corporate-led globalization and to look for solutions within a new global ecological and ethical framework.

The Maturing Of Socially Responsible Investment: A Review Of The Developing Link With Corporate Social Responsibility
Russell Sparkes,  Christopher J Cowton.  Journal of Business Ethics Dordrecht:Jun 2004.  Vol. 52,  Iss. 1,  p. 45-57

Abstract

This paper reviews the development of socially responsible investment (SRI) over recent years and highlights the prospects for an increasingly strong connection with the practice of corporate social responsibility. The paper argues that not only has SRI grown significantly, it has also matured. In particular, it has become an investment philosophy adopted by a growing proportion of large investment institutions. This shift in SRI from margin to mainstream and the position in which institutional investors find themselves is leading to a new form of SRI shareholder pressure. Although this bears some resemblance to lobbying campaigns which might take advantage of shareholder rights, we seek to distinguish it as an important phenomenon in its own right – one to which corporate executives are likely to be paying increasing attention in the years to come. We further argue that this approach potentially meets some of the earlier ethical criticisms of certain forms of SRI but, ironically, probably owes its existence to those pioneering approaches. We conclude with some suggestions for further research to inform discussion of the issues highlighted in the paper.

Ethical investment and the incentives for corporate environmental protection and social responsibility
Iulie Aslaksen,  Terje Synnestvedt.  Corporate Social – Responsibility and Environmental Management Chichester:Dec 2003.  Vol. 10,  Iss. 4,  p. 212-223 (12 pp.)

Abstract

This paper addresses some interrelated questions regarding ethical investments: does ethical screening provide any incentives for improved social responsibility within firms? Are ethical screened portfolios competitive compared with conventional funds with respect to risk-adjusted return? Does the risk-adjusted return of a screened portfolio depend on the screening strategy applied? Considering ethical screening as a kind of segmentation of the equity market, it is shown that screening might create incentives for changes in firms’ behaviour. The strength of this incentive depends on the relative share of screened portfolios, which in turn partially depends on the financial performance of the screened portfolios. While some theoretical arguments suggest that screening imposes a handicap compared with conventional portfolios, the empirical evidence does not suggest that screened portfolios systematically under-perform conventional portfolios.

Financial Markets: A Tool for Social Responsibility?
Matthew Haigh,  James Hazelton.  Journal of Business Ethics Dordrecht:Jun 2004.  Vol. 52,  Iss. 1,  p. 59-71

Abstract

Objectives of socially responsible investment (SRI) are discussed with reference to the two main mechanisms of the SRI ‘movement’: shareholder advocacy and managed investments. We argue that in their current forms, both mechanisms lack the power to create significant corporate change. Shareholder advocacy has been largely unsuccessful to date. Even if resolutions were successful, shareholder advocacy may still be ineffective if underlying economic opportunities remain. Marketing material and investment prospectuses issued by socially responsible mutual funds (SRI funds) commonly contain the claim that, by affecting corporations’ access to capital funding, SRI funds can change corporate practices. This paper makes a contribution by presenting the market share of SRI funds in the regions where they are most developed, being Europe, the U.S. and Australia, to show that this claim is unlikely to eventuate. SRI funds also commonly claim that they will outperform conventional active mutual funds. That the economic performances of both are similar might be explained by their similar portfolio compositions. The paper makes an innovation in the SRI literature by adopting a legitimacy framework to explain the continued presence of SRI funds. To achieve desired social and environmental outcomes, SRI funds are urged to address issues at a more systemic level. A suggested mechanism is the collective lobbying of corporations and, especially, governments.

On Requisitely Holistic Understanding of Sustainable Development from Business Viewpoints
Vojko Potocan,  Matjaz Mulej.  Systemic Practice and Action Research New York:Dec 2003.  Vol. 16,  Iss. 6,  p. 421-436

Abstract

In the new millennium, and in its global economy, everybody will have to be very competitive and hence innovative. For this reason most humans, economies, and businesses must innovate our understanding of economics in all areas and levels of human activity. The new challenges require a thorough innovation of work, including a requisitely3 holistic consideration of sustainable development (SD). In our contribution we would like to shift attention from a principle-based moralizing about relations between the sustainable development and enterprises to a very practical issue: how to support a more requisitely holistic understanding of SD from business viewpoints. The most important or most frequent issues of a new understanding and implementation of SD include the following: SD requires holism, hence professional and political aspects in synergy, hence systems thinking; SD requires linking of different approaches to problem solving; businesses should no longer forget about SD; ISO, etc., standards are not holistic enough concepts to solve all SD problems; A more requisitely holistic methodology is needed for implementation of SD in business. We offer some new suggestions.

Investors in Need of Social, Ethical, and Environmental Information
Harry Hummels,  Diederik Timmer.  Journal of Business Ethics Dordrecht:Jun 2004.  Vol. 52,  Iss. 1,  p. 73-84

Abstract

In this contribution we will briefly discuss the shareholders’ need for social, ethical and environmental information and the efforts of corporations to address this need. Looking at three cases, we will raise some doubt with regard to the adequacy of corporate SEE reporting to meet the needs of shareholders. We will discuss the following three cases: BP’s investments in Azerbaijan, Nike’s management of its labour conditions, of child labour and security issues, and Monsanto’s production of genetically modified seeds.

Institutional Conditions of Corporate Citizenship
Ronald Jeurissen.  Journal of Business Ethics: Building Ethical Institutions for Business (Guest Editors: Dordrecht:Aug 2004.  Vol. 53,  Iss. 1-2,  p. 87-96

Abstract

Exploring the concept of citizenship from the history of political philosophy provides suggestions about what corporate citizenship could mean. The metaphor of corporate citizenship suggests an institutional approach to corporate social responsibility. Citizenship is a social role, characterized by an orientation towards the social contract, collective and active responsibility, as well as a positive attitude towards the juridical state. By analogy, corporate citizenship is a social role, characterized by the social contract of business, a participatory ethics of business, the precautionary principle and the promotion of just international institutions. It is considered that corporate citizenship depends on a number of interacting institutional conditions that hold society partly responsible for the social performance of their companies. Finally, the problem of the dissolution of corporate social responsibility is reviewed in an institutional environment where everyone is considered responsible.

Ethical Investment Processes and Outcomes*
Grant Michelson,  Nick Wailes,  Sandra van der Laan,  Geoff Frost.  Journal of Business Ethics Dordrecht:Jun 2004.  Vol. 52,  Iss. 1,  p. 1-10

Abstract

There is a growing body of literature on ethical or socially responsible investment across a range of disciplines. This paper highlights the key themes in the field and identifies some of the major theoretical and practical challenges facing both scholars and practitioners. One of these challenges is understanding better the complexity of the relationship between such investment practices and corporate behaviour. Noting that ethical investment is seldom characterised by agreement about what it actully constitutes, and that much of the extant research focuses on a narrow set of issues, the paper argues that there are benefits associated with examining ethical investment as a process.

An Exploratory Study of the Impact of Degree of Religiousness Upon an Individual’s Corporate Social Responsiveness Orientation
John Angelidis,  Nabil Ibrahim.  Journal of Business Ethics Dordrecht:May 2004.  Vol. 51,  Iss. 2,  p. 119-128

Abstract

The recent failures and scandals involving many large businesses have highlighted the importance of corporate social responsibility as a fundamental factor in the soundness of the free market system. The corporate social responsiveness orientation of business executives plays an important role in corporate decision making since managers make important decisions on behalf of their corporations. This paper explores whether there is a relationship between an individual’s degree of religiousness and his or her corporate social responsiveness (CSR) orientation. The results of a survey of 473 business students found a significant relationship between degree of religiousness and attitudes toward the economic and ethical components of CSR. Some explanations as well as limited generalizations and implications are developed.