Jeanne M. Logsdon

How corporate social responsibility pays off

Abstract Proponents of corporate social responsibility (CSR) are convinced that it ‘pays off’ for the firm as well as for the organizations stakeholders and society. This paper examines social responsibility programmes which create strategic benefits for firms. Five strategy dimensions are identified which help to assess the value created for the firm by CSR programmes: centrality, specificity, proactivity, voluntarism and visibility. Guidelines for managers to incorporate these dimensions into a strategic analysis of their social responsibility are presented to encourage more support for these mutually beneficial programmes.

Business Citizenship: From Domestic to Global Level of Analysis

In this article we first review the development of the concept of global business citizenship and show how the libertarian political philosophy of free-market capitalism must give way to a communitarian view in order for the voluntaristic, local notion of “corporate citizenship†to take root. We then distinguish the concept of global business citizenship from “corporate citizenship†by showing how the former concept requires a transition from communitarian thinking to a position of universal human rights. In addition, we link global business citizenship to global business strategy and to three analytical levels of ethical norms. Finally, we trace a process whereby global businesses can implement fundamental norms and learn to accommodate to legitimate cultural differences.

Corporate social performance, stakeholder orientation, and organizational moral development

This article begins with an explanation of how moral development for organizations has parallels to Kohlbergs categorization of the levels of individual moral development. Then the levels of organizational moral development are integrated into the literature on corporate social performance by relating them to different stakeholder orientations. Finally, the authors propose a model of organizational moral development that emphasizes the role of top management in creating organizational processes that shape the organizational and institutional components of corporate social performance. This article represents one approach to linking the distinct streams of business ethics and business-and-society research into a more complete understanding of how managers and firms address complex ethical and social issues.

Software Piracy: Is It Related to Level of Moral Judgment?

The possible relationship between widespread unauthorized copying of microcomputer software (also known as software piracy) and level of moral judgment is examined through analysis of over 350 survey questionnaires that included the Defining Issues Test as a measure of moral development. It is hypothesized that the higher ones level of moral judgment, the less likely that one will approve of or engage in unauthorized copying. Analysis of the data indicate a high level of tolerance toward unauthorized copying and limited support for the hypothesis. The most plausible explanation for these findings is that software copying is perceived as an issue of low moral intensity. This study calls into question the software industrys strategy of concentrating exclusively on institutional compliance with copyright rules, rather than working to raise the perceived moral intensity about software piracy at the individual level. As long as the issue remains low in moral intensity, the industry cannot expect significant shifts in copying behaviors. Individuals must become more aware of and concerned about the nature and magnitude of harm to society and to the rightful copyright owners from unauthorized copying before their attitudes and behaviors come to reflect higher levels of moral judgment.

Interests and Interdependence in the Formation of Social Problem-Solving Collaborations:

Cross-sectoral collaboration to address social problems is becoming more widespread. To assess the potential for the formation of cross-sectoral collaborations, this article explores the two most critical factors that influence an organizations willingness to participate: its stakes in solving the problem relative to its fundamental interests, and its degree of perceived interdependence with other groups in devising a solution. Two patterns of evolution toward collaborative formation are identified: movement from interdependence to interests, and movement from interests to interdependence. These patterns are illustrated by two case studies about successful cross-sectoral collaborations, one to improve a regional transportation system and one to create the first comprehensive regulations for underground chemical storage tanks.

Reputation as an Emerging Construct in the Business and Society Field: An Introduction

Reputation is a powerful concept for business, government, and nonprofit organizations, just as it is for individuals. Executives, administrators, external and internal stakeholders, critics, and supporters of organizations all use the concept of reputation routinely to evaluate and communicate their perceptions about organizations. Students, too, typically pay more attention when their teachers link scholarly theories and empirical studies to an organization’s reputation. Despite this high level of interest in reputation in the so-called real world, business and society scholars have not focused much explicit attention on the concept, except for Wartick (1992). The applied fields of strategic management (e.g., Fombrun, 1996; Fombrun & Shanley, 1990), marketing (e.g., Bromley, 1993; Dowling, 2001), and communication (e.g., Argenti, 1998; Morley, 1998) have developed conceptual definitions and empirical measures to a much greater extent. We wondered whether reputation is a relevant and useful construct to integrate more explicitly into theories about business and society relationships. One of the field’s central concepts, corporate social performance (Carroll, 1979; Wartick & Cochran, 1985; Wood, 1991), is a source of a firm’s reputation, and widespread consensus within the field is that managers should consider the expectations and judgments of various external and internal stakeholders when they make decisions. Many business and society scholars also conduct empirical studies of firm performance that use various sources of data that may reflect some aspects of reputation, such as survey data published in Fortune about the “most admired” corporations and evaluative data from Kinder, Lydenberg, and Domini and the Investor Responsibility Research Center. These studies, reported in Wood and Jones (1995) , Margolis and Walsh (2001), and Orlitzky and Benjamin (2001), make occasional reference to reputation but do not explicitly explore the concept. An additional problem relates to limitations in the databases currently used for gathering information about social performance and whether they are adequate and comprehensive measures of a company’s reputation (e.g., Baucus, 1995; Brown & Perry, 1994, 1995;

Business ethics in the NAFTA countries: A cross-cultural comparison

Abstract This article examines the nature and extent of similarities and differences in cultural values among managers in the three nations that signed the North American Free Trade Agreement (NAFTA). One component of a culture is ethics, with this aspect of a culture existing as a potentially strong influence on the success of business organizations. In order to explore the impact of culture on ethical decision making in the NAFTA countries, we review the literature and develop propositions concerning the dimensions of culture that would be expected to influence the ethical standards applied to business decisions and organizational practices. The analysis applies Hofstedes [Cultures consequences. Beverly Hills, CA: Sage, 1980.] four cultural dimensions in the three NAFTA countries, which include individualism vs. collectivism, uncertainty avoidance, power distance, and masculinity. We also examine three additional cultural factors — attitude toward work, problem solving, and view of human nature. Propositions are presented involving the prevalence of codes of ethics, issues relating to bribery of public officials, and treatment of low-level employees. Finally, we discuss research design issues relevant for empirical investigation of the propositions.

Corporate Philanthropy: Strategic Responses to the Firm's Stakeholders

Corporate decisions about philanthropic contributions have become more strategic in recent years. Contributions aim not only to benefit recipient nonprofit organizations but also to fulfill major business objectives. This article develops a typology of strategic corporate philanthropy that distinguishes between strategic process and three strategic outcomes. It reports the extent of strategic philanthropy categories in an exploratory study of large firms headquartered in the San Francisco Bay Area. Relationships between strategic philan thropy and industry sector, organizational placement of the phil anthropy function, firm age, and firm size are identified.

Justice and Large Corporations What Do Activist Shareholders Want

Shareholder resolutions filed by socially concerned investors are a rich and underused source of data for research in social issues in the business and society field. This article examines how shareholder activists use the resolution process to advocate for issues related to social justice and corporate activities. After briefly reviewing the justice and shareholder activism literatures, the authors report the results of a study of 1,719 shareholder resolutions filed during the 1999—2005 period by members and affiliates of the Interfaith Center on Corporate Responsibility, a coalition of approximately 275 religious organizations and other partners that seeks to use their investments to achieve social change. Among the findings is that the majority of justice-related resolutions dealt with employment and economic development issues. The authors conclude with a discussion of implications for corporate managers, shareholder activists, and management researchers.

The Impact of NAFTA on Mexico's Environmental Policy

A major controversy during the debate over the North American Free Trade Agreement focused on the impact of NAFTA on Mexicos environment. This paper examines the evidence of impact specifically on Mexicos environmental policy. Criteria of impact are developed, and comparisons made for three periods: before 1990 as the baseline period; 1990-93 when NAFTA was being negotiated; and beginning in 1994 when NAFTA came into effect. Much evidence indicates that Mexicos environmental policymaking and enforcement did improve in the early 1990s while NAFTA was being debated. Some evidence also suggests that the NAFTA-influenced environmental commitment was sustained during the 1995 financial crisis. Thus, it is concluded that NAFTA has contributed significantly to Mexicos environmental policy.