Session 258

Explainng CSR: External Factors

Track D

Date: Monday, October 5, 2015

Track X

Time: 13:45 – 15:00

Paper

Room: Governor's Square 10


Session Chair:

  • Gurneeta Vasudeva, University of Minnesota

Title: CSR in Times of Crisis: How Sustainable Is Sustainability?

Authors

  • Florian Weber, Karlsruhe Institute of Technology
  • Kerstin Fehre, Karlsruhe Institute of Technology

Abstract: Corporate Social Responsibility (CSR) deals with the adoption of social responsibility by firms or in other words the self-selected positioning of firms in society. As CSR enhances company’s legitimacy and long-term licence-to-operate, it is a core topic of strategic management. Based on stakeholder and shareholder theory, this paper examines whether the embeddedness of CSR in corporate strategy is strong enough to beard times of economic crisis, i.e. the question how sustainable sustainability is. CEO letters to shareholders of German HDAX firms from 2003 to 2012, which were analyzed by means of computer-aided text analysis, constitute the basis for this study. We find that CSR is lower in times of crisis indicating that business has not sustainably accepted and taken its societal role.

Title: Culling Black Sheep To Better The Flock: The Positive CSR Outcomes of Negative Screening

Authors

  • Gui Deng Say, University of Minnesota
  • Gurneeta Vasudeva, University of Minnesota

Abstract: This paper explores whether and how negative screening and blacklisting of firms by a prominent institutional investor could lead to broader social welfare benefits. Extending research on negative spillover effects of delegitimizing events, we offer the first systematic study of the effect of censorship, defined as divestments which incorporate public naming and shaming, on non-culpable firms’ corporate social responsibility. Employing a quasi-natural experiment, we show that non-culpable firms proactively respond, invoking differentiation-based competitive advantages, to the Norwegian Sovereign Wealth Fund’s censorship announcements by improving their CSR. Further, we draw on attention-based theory and test a number of mechanisms that moderate the effect of censorship. Our investigation of censorship unites two separate literatures on negative spillovers and institutional activism. From a policy standpoint, these findings suggest that current criticisms toward negative screening and the privileged use of management dialogues alone may be misguided and should be revisited.

Title: Political Participation and the Social Responsibility of Firms: How to Increase Regulatory Compliance in Emerging Economies

Authors

  • Markus Taussig, National University of Singapore
  • Edmund Malesky, Duke University

Abstract: Drawing on theories in management, political science, psychology, and law, this paper argues that firms are more likely to comply with business regulations when government involves them in the design of those regulations. We find empirical support for this hypothesis in the emerging economy setting of Vietnam. Examining the mechanisms behind this relationship, we find that participation in the drafting of regulations increases a firm’s knowledge about the regulatory environment and its belief in the legitimacy of government. However, participation only improves perception of legitimacy when government is seen to take the participation process seriously and actually decreases it when this is not the case.

Title: The Effects of Mandatory CSR Reporting on Corporate Social Performance: Does State Regulation Lead to Desirable Outcomes?

Authors

  • Muhammad Umar Boodoo, London School of Economics and Political Science

Abstract: This paper examines the effect of mandatory sustainability reporting on firms’ social performance in emerging economies. There is a way for firms to overcome the weak institutions problem in their home countries and CSR is one such avenue where both the state and the business community can work together to send a positive signal about their levels of stakeholder commitment and engagement. Using a difference-in-difference approach with propensity score weights, I find that mandatory sustainability reporting leads to higher corporate social performance. Further, high CSR-performing firms in emerging markets are more likely to engage in international trade and are more likely to enter into strategic alliances and joint ventures with peers from the developed world. This could offer them a sustainable comparative advantage through learning and transfer of technology.

All Sessions in Track D...

Mon: 11:15 – 12:30
Session 257: Explaining CSR: Internal Factors
Mon: 13:45 – 15:00
Session 258: Explainng CSR: External Factors
Tue: 11:00 – 12:15
Session 260: CSR Challenges
Tue: 15:45 – 17:00
Session 265: Performance Effects of CSR and Non Market Strategy

All Sessions in Track X...

Sun: 08:00 – 09:15
Session 74: Open Strategy Workshops: Lessons Learned from Practising Strategizing
Sun: 09:45 – 11:00
Session 29: The Elephant in the Room: How public policy and institutions help drive innovation, entrepreneurship, and firm performance
Session 76: The evolution of the strategy as a profession and the field of strategy
Sun: 11:15 – 12:30
Session 12: Environmental Entrepreneurship: How and When do Entrepreneurs address Environmental Degradation?
Session 38: Big Game Hunting: Accessing and Interacting with Senior Executives for Empirical Research
Sun: 13:45 – 14:30
Session 307: Lifetime Achievement Award Recipient
Sun: 14:45 – 15:45
Session 7: New Frontiers in Technologies, Fields, and Business Models: Implications for Academic and Practice Knowledge Creation
Sun: 16:15 – 17:30
Session 61: The Institutional Level of Strategizing Activities
Session 261: Knowledge Creation and Sharing in Virtual Communities
Mon: 08:00 – 09:15
Session 72: External Influences: Audiences and Media
Session 126: Entry Mode & Cross-Border Acquisitions
Session 140: New Perspectives on the Outside Director Selection Process
Mon: 09:45 – 11:00
Session 8: Elevating our Understanding of Organizational Performance: Bridging the Frontiers of Business and Corporate Strategies
Mon: 11:15 – 12:30
Session 149: Management and Coordination of Multinationals
Session 220: Perspectives on CEO Compensation
Mon: 13:45 – 15:00
Session 16: Human Capital and Innovation
Session 37: Political Ties: Knots or Bows?
Session 63: Political and Material Aspects of Strategy Making
Session 97: Accelerators, corporate VCs and new venture creation
Session 258: Explainng CSR: External Factors
Mon: 15:15 – 16:15
Session 227: Mergers, Acquisitions and Divestitures: Reconfiguring Resource Bases for Value Creation and Growth
Session 308: Strategy Beyond the Firm: Creating and Capturing Value from External Resources
Session 310: When the Smoke Clears: The Emergence of the Cannabis Industry
Session 311: Theory Fragmentation in Strategic Management?
Session 312: Climate Change: Why and How Should Strategic Management Care?
Mon: 16:45 – 18:00
Session 42: The Word is Out! Stakeholder Responses to Public Signals of Firms' Behaviors
Session 112: Acquisitions - Before the Deal
Tue: 08:00 – 09:15
Session 309: Looking Good and Sounding Better: Impression Management by CEOs
Tue: 09:45 – 10:45
Session 9: Whatever Happened to Theory in Strategic Management?
Tue: 11:00 – 12:15
Session 70: CEO Characteristics: Microfoundations of Behavioral Strategy
Tue: 14:15 – 15:30
Session 116: Acquisitions - After the Deal
Tue: 15:45 – 17:00
Session 52: Entrepreneurial business models
Session 219: A Tough Crowd: Critical Examinations by Owners and Stakeholders
Session 262: Pioneering Knowledge
Tue: 17:30 – 18:45
Session 144: Board Structure: What Works Best?
Session 208: Internationalization Strategies and Performance


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