Category Archives: CSR

Integrated Reporting: Valuing the Financial, Social and Natural Capital

The end of year financial statements usually focus on financial capital, whereas organisational performance relies on resources – such as the expertise of people, intellectual property that was developed through research and development, and interactions with the environment and the societies in which they operate.  In this light, Integrated Reporting (<IR>) was developed to fill such reporting gaps. The IR Framework categorises different stocks of value, including; Financial Capital; Manufactured Capital; Intellectual Capital; Human Capital; Social (and Relationship) Capital; as well as Natural Capital.

 

 

The International Integrated Reporting Council (IIRC) has promoted the concept of integrated thinking and reporting. In 2013, the International Integrated Reporting Council (IIRC) released a framework for integrated reporting. By doing so, IIRC has paved the way for the next generation of annual reports that enable stakeholders to make a more informed assessment of the organisation’s strategy, governance, performance and prospects. IIRC has aligned capital allocations and corporate behaviours with the wider goals of financial stability and  sustainable development. Its framework established the following ‘Guiding Principles’ and ‘Content Elements’:

Guiding Principles

  1. Strategic focus and future orientation –gives an insight of the organisation’s strategy;
  2. Connectivity of information – provides a holistic picture of the combination, inter relatedness and dependencies between the factors that affect the organisation’s ability to create value over time;
  3. Stakeholder relationships – describes the nature and quality of the organisation’s relationships with its key stakeholders;
  4. Materiality – discloses relevant information about matters that substantively affect the organisation’s ability to create value over the short, medium and long term;
  5. Conciseness – provides sufficient context to understand the organisation’s strategy, governance and prospects without being burdened by less relevant information;
  6. Reliability and completeness – includes all material matters, both positive and negative, in a balanced way and without material error;
  7. Consistency and comparability – ensures consistency over time and enabling comparisons with other organisations to the extent material to the organisation’s own ability to create value.

Content Elements

  1. Organisational overview and external environment – What does the organisation do and what are the circumstances under which it operates?
  2. Governance – How does an organisation’s governance structure support its ability to create value in the short, medium and long term?
  3. Business model – What is the organisation’s business model?
  4. Risks and opportunities – What are the specific risk and opportunities that affect the organisation’s ability to create value over the short, medium and long term, and how is the organisation dealing with them?
  5. Strategy and resource allocation – Where does the organisation want to go and how does it intend to get there?
  6. Performance – To what extent has the organisation achieved its strategic objectives for the period and what are its outcomes in terms of effects on the capitals?
  7. Outlook – What challenges and uncertainties is the organisation likely to encounter in pursuing its strategy, and what are the potential implications for its business model and future performance?
  8. Basis of preparation and presentation – How does the organization determine what matters to include in the integrated report and how are such matters quantified or evaluated?

The ‘Guiding Principles’ underpin the preparation of an integrated report, whilst, the ‘Content Elements’ are the key categories of information that should be included in an integrated report according to the IR Framework. There are no bench marking for the above matters and the report is primarily aimed at the private sector; but IR could be adapted to the public sector and to not-for-profit organisations. The IIRC has set out a principle-based framework rather than specifying a detailed disclosure and measurement standard. This way each company sets out its own report rather than adopting a checklist approach. Hence, the report acts as a platform which explains what creates value to the business and how management protects this value. This gives the report more business impetus rather than mandating compliance-led approaches.

For the time being, the integrated reporting is not going to replace other forms of reporting but the vision is that large undertakings, including corporations, state-owned entities and government agencies, among others, may be expected to pull together relevant information already produced to explain the key drivers of their non-financial performance. Relevant information will only be included in the report where it is material to the stakeholder’s assessment of the business. The term ‘materiality’ suggests that there are legal connotations that may be related to environmental, social and governance (ESG) reporting, Yet, some entities out of their own volition are already including ESG information in their integrated report.

In sum, the integrated reports aim to provide an insight into the company’s resources, relationships (that are also known as the capitals) and on how the company interacts with its external environment to create value.

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A Conceptual Model of Corporate Sustainability and Responsibility

The corporate sustainability and responsibility concept is linked to improvements to the companies’ internal processes, including; environmental management, human resource management, operations management and marketing (Porter & Kramer, 2011; Fombrun, 2005; Maignan & Ferrell, 2004). At the same time, it raises awareness on the businesses’ responsible behaviours toward stakeholders, including the government, suppliers, customers and the community, among others (Carroll & Shabana, 2010; Freeman, 1984). The fundamental motivation behind this approach is the view that creating connections between stakeholders in the value chain will open-up unseen opportunities for the competitive advantage of responsible businesses, as illustrated here:

(Camilleri, 2017a)

Corporate sustainability and responsibility focuses on exploiting opportunities that reconcile differing stakeholder demands as many corporations out there are investing in corporate sustainability and responsible business practices (Camilleri , 2017b). Their active engagement with multiple stakeholders (both internal and external stakeholders) will ultimately create synergistic value for all (Camilleri, 2017a).

Multinational organizations are under increased pressures from stakeholders (particularly customers and consumer associations) to revisit their numerous processes in their value chain activities. Each stage of the company’s production process, from the supply chain to the transformation of resources could add value to their businesses’ operational costs as they produce end-products. However, the businesses are always expected to be responsible in their internal processes, toward their employees or toward their suppliers’ labour force. Therefore, this corporate sustainability and responsibility perspective demands that businesses create economic and societal value by re-aligning their corporate objectives with stakeholder management and environmental responsibility. In sum, corporate sustainability and responsibility may only happen when companies demonstrate their genuine willingness to add corporate responsible dimensions and stakeholder engagement to their value propositions. This occurs when businesses opt for responsible managerial practices that are integral to their overall corporate strategy. These strategic behaviours create opportunities for them to improve the well-being of stakeholders as they reduce negative externalities on the environment.  The negative externalities can be eliminated by developing integrated approaches that are driven by ethical and sustainability principles. Very often, multinational businesses are in a position to mitigate risk and to avoid inconveniences to third parties. For instance, major accidents including BP’s Deep Horizon oil spill in 2010; or the collapse of Primark’s Rana Plaza factory in Bangladesh, back in 2013 could have been prevented if the big businesses were responsible beforehand.

In conclusion, the corporate sustainability and responsibility construct is about embedding sustainability and responsibility by seeking out and connecting with the stakeholders’ varied interests. As firms reap profits and grow, there is a possibility that they generate virtuous circles of positive multiplier effects (Camilleri, 2017a). Therefore, corporate sustainability and responsibility can be considered as strategic in its intents and purposes. Indeed, the businesses are capable of being socially and environmentally responsible ‘citizens’ as they are doing well, economically. This contribution explains the foundations for corporate sustainability and responsibility. Although this concept is still evolving; the debate among academic commentators is slowly but surely raising awareness on responsible managerial practices and on the skills and competences that are needed to deliver strategic results that create value for businesses, society and the environment.

References:

Camilleri, M.A. (2017a) Corporate Sustainability, Social Responsibility and Environmental Management: An Introduction to Theory and Practice with Case Studies. Springer, Heidelberg, Germany. http://www.springer.com/us/book/9783319468488

Camilleri, M.A. (Ed.) (2017b) CSR 2.0 and the New Era of Corporate Citizenship. IGI Global, Hershey, USA. ISBN13: 9781522518426 DOI: 10.4018/978-1-5225-1842-6 http://www.igi-global.com/book/csr-new-era-corporate-citizenship/166426

Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social responsibility: A review of concepts, research and practice. International journal of management reviews, 12(1), 85-105.

Fombrun, C. J. (2005). A world of reputation research, analysis and thinking—building corporate reputation through CSR initiatives: evolving standards. Corporate Reputation Review, 8(1), 7-12.

Freeman, R.E. (1984). Strategic Management: A stakeholder approach. Pitman, Boston, MA. USA.

Maignan, I., & Ferrell, O. C. (2004). Corporate social responsibility and marketing: An integrative framework. Journal of the Academy of Marketing science, 32(1), 3-19.

Porter, M. E. & Kramer, M. R., (2011). Creating shared value. Harvard business review, 89 (1/2), 62-77.

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Special Offer > Get 20% off this Springer business textbook on Corporate Social Responsibility

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*This offer is valid from 1st April to 1st May 2017.

This business text-book can be purchased from Springer or Amazon.

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About Mark Anthony Camilleri, the Author of Springer’s Corporate Sustainability, Social Responsibility and Environmental Management

The University of Malta’s promising academic, Dr Mark Anthony CAMILLERI lectures in an international masters programme run by the University of Malta in collaboration with King’s College, University of London. Mark specialises in strategic management, marketing, research and evaluation. He successfully finalised his PhD (Management) in three years time at the University of Edinburgh in Scotland – where he was also nominated for his “Excellence in Teaching”. During the past years, Mark taught business subjects at under-graduate, vocational and post-graduate levels in Hong Kong, Malta and the UK.

Dr Camilleri has published his research in reputable peer-reviewed journals. He is a member on the editorial board of Springer’s International Journal of Corporate Social Responsibility and Inderscience’s International Journal of Responsible Management in Emerging Economies. He is a frequent speaker and reviewer at the American Marketing Association’s (AMA) Marketing & Public Policy conference, in the Academy of International Business (AIB) and in the Academy of Management’s (AoM) annual gatherings. Mark is also a member of the academic advisory committee in the Global Corporate Governance Institute (USA).

Dr Camilleri’s first book, entitled; “Creating Shared Value through Strategic CSR in Tourism” (2013) was published in Germany. This year Springer will publish his latest book; “Corporate Sustainability, Social Responsibility and Environmental Management: An Introduction to Theory and Practice with Case Studies” (2017). Moreover, he edited a U.S. publication, entitled; “CSR 2.0 and the New Era of Corporate Citizenship” (2017). His short contributions are often featured in popular media outlets such as the Times of Malta, Business2Community, Social Media Today, Triple Pundit, CSRwire and the Shared Value Initiative.

Mark’s professional experience spans from project management, strategic management, business planning (including market research), management information systems (MIS), customer relationship and database marketing to public relations, marketing communications, branding and reputation management (using both conventional tools and digital marketing).

His latest book can be purchased from https://www.amazon.co.uk/Corporate-Sustainability-Responsibility-Environmental-Management/dp/3319468480 or http://www.springer.com/gb/book/9783319468488

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The Responsible Management of Marketplace Stakeholders

Excerpt from: Camilleri, M. (2017). The Rationale for Responsible Supply Chain Management and Stakeholder Engagement. Journal of Global Responsibility, 8(1).

supply chain
(source: GreenBiz)

Generally, firms are becoming more proactive in their engagement with responsible supply chain management and stakeholder engagement. Very often, corporate responsible behaviours could form part of their broader strategic commitment toward stakeholders (Zhu, Sarkis and Lai, 2013; Walker, Di Sisto and McBain, 2008; Walker and Preuss, 2008), This contribution is based on the premise that corporations could make a genuine and sustaining effort to align their economic success with corporate social responsibility in their value chain.

The corporations’ differentiated strategies as well as their proactive engagement in responsible supply chain practices can lead them to achieve a competitive advantage in the long term. In this case, firms may have  sophisticated responsible procurement processes in place. Therefore, they could be in a better position to support their different suppliers. On the other hand, there could be low‐cost producers that may be neglecting socially responsible supply chain management. In a similar vein, niche operators may not necessarily adopt responsible supply chain practices. Nevertheless, such firms tend to exhibit stronger ties with their suppliers; they may be relatively proactive vis-a-vis their socially responsible behaviours.

Previous studies indicated that there are significant gaps between policy and practice
(Govindan, Kaliyan, Kannan and Haq 2014; Preuss, 2009; Yu, 2008; Egels-Zanden, 2007), For the time being; firms may (or may not) be inclined to implement responsible supply chain and manufacturing processes on a voluntary basis. However, the big businesses are increasingly becoming aware that they are susceptible to negative media exposure, stakeholder disenfranchisement, particularly if they are not responsible in their supplier relationships (or if their social and environmental policies are not fully-implemented),

Arguably, a differentiated strategy can serve as a powerful competitive tool in the global marketplace as the customers’ awareness of social and responsibility rises. Notwithstanding, many stakeholders are increasingly becoming acquainted with fair trade and sustainability issues; as empowered consumers and lobby groups could enforce firms to invest in a more responsible supply chain.

Undoubtedly, there are opportunities for the proactive firms who are keen on integrating
responsible practices into their business operations. It is in these firms’ interest to report about their responsible supply chain management, social performance and sustainable innovations to their stakeholders. The corporations’ environmental, social and governance disclosures will help them raise their profile in their value chain.

The responsible businesses can possibly achieve a competitive advantage as they build (and protect) their reputation with stakeholders. Of course, there are different contexts and social realities. The global supply chain and the international NGOs also play a critical role in the enforcement of responsible behaviours in the supply chain.

In conclusion, this paper contended that the responsible supply chain management as well as forging stakeholder relationships with suppliers and distributors enable businesses to create shared value to society and for themselves.

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Springer’s latest book on Strategic Management; Corporate Sustainability, Social Responsibility and Environmental Management

csr2This book provides a concise and authoritative guide to corporate social responsibility (CSR) and its related paradigms, including environmental responsibility, corporate sustainability and responsibility, creating shared value, strategic CSR, stakeholder engagement, corporate citizenship, business ethics and corporate governance, among others. It is primarily intended for advanced undergraduate and / or graduate students. Moreover, this publication is highly relevant for future entrepreneurs, small business owners, non-profit organisations and charitable foundations, as it addresses the core aspects of contemporary strategies, public policies and practices. It also features case studies on international policies and principles, exploring corporate businesses’ environmental, social and governance reporting.

Corporate Sustainability, Social Responsibility and Environmental Management: An Introduction to Theory and Practice with Case Studies – by Mark Anthony Camilleri,PhD (Edinburgh)

Google Scholar Citation

Google Books

The book includes a foreword by Professor Emeritus Archie B. Carroll, who is one of the pioneers of the CSR paradigm. It also features numerous endorsements from accomplished academic researchers:

“There’s a revolution taking place, one that’s percolating from the uncoordinated efforts of activist consumers/NGOs, regulators/moralists, and corporate/institutional investors. Mark Camilleri’s new book provides an excellent overview of the eclectic academic literature in this area, and presents a lucid description of how savvy companies can embed themselves in circular systems that reduce system-wide externalities, increase economic value, and build reputation. A valuable contribution.”

Charles J. Fombrun, Founder of Reputation Institute and a former Professor of Management at New York University and The Wharton School, University of Pennsylvania, USA.

 

“I am pleased to recommend Dr. Camilleri’s latest book, Corporate Sustainability, Social Responsibility, and Environmental Management. The book is a rich source of thought for everyone who wants to get deeper insights into this important topic. The accompanying five detailed case studies on a wide array of corporate sustainable and responsible initiatives are helpful in demonstrating how theoretical frameworks have been implemented into practical initiatives. This book is a critical companion for academics, students, and practitioners.”

Adam Lindgreen, Professor and Head of Department of Marketing, Copenhagen Business School, Denmark.

 

“This book is an essential resource for students, practitioners, and scholars. Dr. Mark Camilleri skillfully delivers a robust summary of research on the business and society relationship and insightfully points to new understandings of and opportunities for responsible business conduct. I highly recommend Corporate Sustainability, Social Responsibility, and Environmental Management: An Introduction to Theory and Practice with Case Studies.”

Diane L. Swanson, Professor and Chair of Distinction in Business Administration and Ethics Education at Kansas State University, KS, USA.

 

“Mark’s latest book is lucid, insightful, and highly useful in the classroom. I strongly recommend it.”

Donald Siegel, Dean of the School of Business and Professor of Management at the University at Albany, State University of New York, NY, USA.

 

“The theory and practice of corporate sustainability, social responsibility and environmental management is complex and dynamic. This book will help scholars to navigate through the maze. Dr Camilleri builds on the foundations of leading academics, and shows how the subject continues to evolve. The book also acknowledges the importance of CSR 2.0 – or transformative corporate sustainability and responsibility – as a necessary vision of the future.”

Wayne Visser, Senior Associate at Cambridge University, UK. He is the author of CSR 2.0: Transforming Corporate Sustainability & Responsibility and Sustainable Frontiers: Unlocking Change Through Business, Leadership and Innovation.

 

“Corporate Sustainability, Social Responsibility and Environmental Management: An Introduction to Theory and Practice with Case Studies” provides a useful theoretical and practical overview of CSR and the importance of practicing corporate sustainability.”

Geoffrey P. Lantos, Professor of Business Administration, Stonehill College. Easton, Massachusetts, USA.

 

“This book offers a truly comprehensive guide to current concepts and debates in the area of corporate responsibility and sustainability. It gives helpful guidance to all those committed to mainstreaming responsible business practices in an academically reflected, yet practically relevant, way.”

Andreas Rasche, Professor of Business in Society, Copenhagen Business School, Denmark.

 

“A very useful resource with helpful insights and supported by an enriching set of case studies”

Albert Caruana, Professor of Marketing at the University of Malta, Malta and at the University of Bologna, Italy.

 

“A good overview of the latest thinking about Corporate Social Responsibility and Sustainable Management based on a sound literature review as well as useful case studies. Another step forward in establishing a new business paradigm.”

René Schmidpeter, Professor of International Business Ethics and CSR at Cologne Business School (CBS), Germany.

 

“Dr. Camilleri’s book is a testimony to the continuous need around the inquiry and advocacy of the kind of responsibility that firms have towards societal tenets. Understanding how CSR can become a modern manifestation of deep engagement into socio-economic undercurrents of our firms, is the book’s leading contribution to an important debate, that is more relevant today than ever before”

Mark Esposito, Professor of Business and Economics at Harvard University, MA, USA.

 

“Mark’s book is a great addition to the literature on CSR and EM; it will fill one of the gaps that have continued to exist in business and management schools, since there are insufficient cases for teaching and learning in CSR and Environmental Management in Business Schools around the globe.”

Samuel O. Idowu, Senior Lecturer in Accounting at London Metropolitan University, UK; a Professor of CSR at Nanjing University of Finance and Economics, China and a Deputy CEO, Global Corporate Governance Institute, US

 

“Corporate Social Responsibility has grown from ‘nice to have’ for big companies to a necessity for all companies. Dr Mark Camilleri sketches with this excellent book the current debate in CSR and CSR communication and with his cases adds valuable insights in the ongoing development and institutionalization of CSR in nowadays business”.

Wim J.L. Elving, A/Professor at the University of Amsterdam, Netherlands.

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Mark Camilleri edited a book on sustainable and responsible business

Dr Mark Anthony Camilleri, Ph.D. (Edinburgh) has recently edited a business textbook entitled; ‘CSR 2.0 and the New Era of Corporate Citizenship’.
csr
This contribution is an authoritative reference source (for the latest scholarly research) on the ways in which corporate entities can implement responsible strategies that create synergistic value for both businesses and society. The authors (hailing from leading European universities) contend that responsible behaviors in the realm of business continue to remain a crucial component of organizational development.
By exploring core aspects of contemporary corporate strategies, businesses can create more value through social welfare and sustainable initiatives. This publication features an extensive coverage across a wide range of perspectives and topics, including corporate citizenship, corporate sustainability and responsibility, stakeholder engagement, business ethics, public spending, total responsibility management and social value co-creation, among others.
This publication is ideally designed for students, academics and researchers seeking current concise and authoritative research on the business case for corporate social responsibility.

Chapter 1 presents a thorough literature review on corporate social responsibility and its other related constructs, including corporate citizenship, stakeholder engagement and business ethics. Hence, this chapter reports on how CSR has evolved to reflect the societal realities.

Chapter 2 reviews the different definitions of the corporate responsibility paradigms and draws comparisons between related concepts. The author contends that organization studies; economic, institutional, cultural and cognitive perspectives are shaping the corporate responsibility agenda. She cleverly presents the benefits of integrating multiple perspectives and discusses about the possible research avenues in the realms of corporate responsibility.

Chapter 3 suggests that the field of CSR is ushering a new era in the relationship between business and society. The author puts forward a Total Responsibility Management (TRM) approach that may be useful for business practitioners who intend adopting CSR behaviors. This chapter posits that CSR strategies including managing relationship with stakeholders will contribute to the companies´success and will also bring community welfare.

Chapter 4 focuses on the national governments’ regulatory role of raising awareness on CSR behaviors among businesses. The author suggests that there is scope for the state agencies to promote CSR as a business case for companies. She provides an outline of the current state of “supranational regulative policies on public procurement” within the European Union context.

Chapter 5 uses a stakeholder perspective to encapsulate the CSR concept. The authors investigated social value cocreation (SVCC) through a qualitative study among different stakeholders (customers, employees, and managers). They implied that businesses ought to clarify their motives, by opening channels of communication with stakeholders. This way, there will be a higher level of SVCC with increased (stakeholder) loyalty toward the firms.

Chapter 6 sheds light on Porter and Kramer’s (2011) shared value proposition. The author explains how collaborative stakeholder interactions could lead to significant improvements in the supply chain.

Chapter 7 involved a longitudinal study that investigated how four different State Owned Enterprises communicated with Māori communities between 2008 and 2013. This study contributes to the extant research on the legitimacy theory and CSR communication with ethnic minorities in the Aotearoa (New Zealand) context.

Chapter 8 links the CSR paradigm with risk management. The author suggests that Serbian businesses ought to adopt corporate sustainable and responsible approaches in terms of their disaster risk reduction prior to environmental emergencies.

Chapter 9 involved a quantitative analysis that explored the CSR practices within the hospitality industry. The authors suggested that there were distinct social and environmentally responsible behaviors in different geographical areas. They argued that institutions can take their results into account when drawing up policies that are aimed at fostering responsible tourism practices.

Chapter 10 examined how CSR communication of self-serving motives can lead to more trust and credibility among stakeholders as well as corporate reputation. The authors implied that the marketers should be aware of how the public perceive CSR behaviors.

Chapter 11 reports that corporate (or organizational) storytelling is increasingly being used as a promotional tool to communicate CSR information to stakeholders. The authors present four companies that have used storytelling with the aims of transmitting values, fostering collaboration, leading change and sharing knowledge on responsible practices.

Chapter 12 relates corporate sustainability to the construct of emotional capital. The authors maintain that emotional capital enables businesses to attract and retain talent. They maintain that there are significant improvements to the firms’ bottom lines If they invest in responsible human resources management.

Chapter13 suggests that the transition from the CSR to CSR 2.0 requires the adoption of five new principles – creativity, scalability, responsiveness, glocality and circularity. The authors posit that these principles ought to be embedded within the organizations’ management values and culture. The authors propose a new framework that can be used to manage the processes of socially responsible organizations.

Chapter 14 investigated the banks’ behaviors during the economic crisis in Turkey. The authors reported on the bank’s CSR strategies as they supported small and medium sized enterprises, as well as local communities during the financial turmoil.

Chapter 15 offers insights on sustainable tourism as the authors investigated the constraints that explain why an attitude–behavior gap exists in responsible tourists’ behaviors.

Chapter 16 examines three leading networks that are intended to promote corporate sustainability and responsibility. The author explores their growing influence as he reviews their objectives, organizational structures, types of activities, practices and impacts.

Further details on this contribution is available here: http://www.igi-global.com/book/csr-new-era-corporate-citizenship/166426


About the Editor:

Dr. Mark Anthony Camilleri is a resident academic in the Department of Corporate Communication at the University of Malta. He specializes in strategic management, stakeholder engagement, corporate social responsibility and sustainable business. Mark successfully finalized his PhD (Management) in three years’ time at the University of Edinburgh in Scotland – where he was nominated for his “Excellence in Teaching”. During the past years, Mark taught business subjects at under-graduate, vocational and post-graduate levels in Hong Kong, Malta and the UK.

Dr Camilleri has published his research in peer-reviewed journals, chapters and conference proceedings. He is also a member on the editorial board of Springer’s International Journal of Corporate Social Responsibility and a member of the academic advisory committee in the Global Corporate Governance Institute (USA). Mark is a frequent speaker and reviewer at the American Marketing Association’s (AMA) Marketing & Public Policy conference and in the Academy of Management’s (AoM) Annual Meeting.

The Authors’ Biographies

Ozan Nadir ALAKAVUKLAR is a lecturer in management at Massey University School of Management. His research interests are based on sustainability, community organizing and social movements.

Marcello ATZENI received his PhD at the University of Cagliari. His research interests are related to tourism authenticity and consumer behavior.

Elisa BARAIBAR DIEZ is a Lecturer in Business Administration at the University of Cantabria. Her fields of research are corporate transparency, CSR, corporate governance and reputation. She focuses on transparency and its effects not only in a business context but also in other contexts such as universities.

Jesús BARRENA MARTINEZ is an Assistant Professor postdoctoral in the Department of Business Management at the University of Cadiz. He has a PhD in the field of Economics and Business Management. His teaching and research interests include Human Resource Management, Corporate Social Responsibility and Intellectual Capital. He has presented papers at international and national conferences and published in journals such as Corporate Social Responsibility and Environmental Management, International Journal of Management and Enterprise Development, Journal of Human Values, Tourism and Management Studies and Intangible Capital.

Roland BERBERICH is Independent researcher in Project Management with additional MRes degree from Heriot Watt University. He has acquired more than 10 years of project experience.

Claudiu George BOCEAN is Associate Professor at and PhD supervisor Faculty of Economics and Business Administration within University of Craiova. In 2000, graduated Bachelor Degree, major in Accountancy and Informatics, Faculty of Economics, University of Craiova, Romania. In 2004, graduated Master program in Business Administration, Faculty of Economics, University of Craiova, Romania. In 2007, PhD in Economics, Faculty of Economics, University of Craiova, Romania. In 2015, Habilitation title in Management, Academy of Economic Sciences Bucharest, Romania. Since 2002 – present, teaching and researching in Faculty of Economics and Business Administration, University of Craiova on topics such as Human Resource Management, Corporate Social Responsibility, Organization Theory, Business Economics, and co-operating within projects with national and international universities and organizations.

Michael Devereux obtained both Master in Business Administration (MBA) from University of North Carolina at Wilmington and a Master in International Business from Universitat de Valencia. Prior to graduate school, he gained a Bachelor in Economics and Geography focusing on international economics and Central/South America from Weber State University. Additionally, he has studied in Costa Rica, and in Guatemala participating in a microfinance and economic development project for indigenous women in Guatemala. His current interests are focused on international affairs, humanitarian components, health and well-being, economic development, community engagement, energy and environmental sustainability.

José Ignacio ELICEGUI REYES is Graduate in Management Business Administration and Business Sciences, as well as he has studied a Masters in Human Resource Management at the University of Cadiz. Currently, he is studying a Masters in Teacher Training in Secondary Schools and High Schools, Vocational Training and Language Training for the specialty of Business Administration at the University of Cadiz. Also, he is developing his PhD in the Human Resource Management field.

Martina G. GALLARZA lectures in the Marketing Department of Universidad de Valencia (SPAIN). She has formerly taught at Universidad Católica de Valencia, where she was Dean of the Business Faculty. Her research interests include consumer behavior and tourism services. She has authored more than 40 articles (in Annals of Tourism Research, Tourism Management, Journal of Consumer Behavior, Journal of Services Marketing, International Journal of Hospitality Management, Journal of Hospitality Marketing and Management among others), and has presented more than 70 papers in Congresses (EMAC, MKT TRENDS Conference, AMA Servsig, ATMC). She teaches in several international masters in Europe (MTM in IGC at Bremen (Germany) and MAE at IGR-IAE Rennes (France). Guest scholar for short periods at Columbia University (New York City. USA), ESCP (France), Sassari University (Sardinia. Italia), Strathclyde University (Glasgow, UK), She is member of the American Marketing Association (AMA), Asociación Española de Marketing (AEMARK), Association Française de Marketing (AFM) and formerly of Association Internationale d’Experts Scientifiques en Tourisme (AIEST She is member of the Board of Directors of Pernod Ricard. S.A. since 2012.

Raquel GOMEZ LOPEZ is a Lecturer in Business Management at the University of Cantabria (Spain). Her current research interests include quality management, excellence models, responsible management, family firms, innovation, and tourism. Raquel’s works have been published in journals of international impact such as Cornell Hospitality Quarterly, Total Quality Management & Business Excellence and Journal of Small Business and Enterprise Development among others. She is also author of several chapters in various collective works and one book. She regularly participates in prestigious international and national conferences, such as those organized by FERC, IFERA and ACEDE.

Misra Cagla GUL is an Associate Professor of Marketing and the Vice Director of the Graduate School of Arts and Sciences at Isik University. She holds a PhD degree from Bogazici University, and an MBA degree from Georgia State University. She has published in the fields of marketing and consumer behavior in times of recession, corporate social responsibility, social marketing, status consumption, green consumer behavior and strategic marketing. She teaches various marketing courses including consumer behavior, advertising and services marketing, both at undergraduate and graduate levels. Her professional experience includes over 5 years in marketing in telecommunications and energy sectors. She has a B.Sc. degree in Industrial Engineering from Bogazici University.

Jose Ramon CARDONA received a doctorate in business economics from the University of the Balearic Islands in 2012. He worked as lecturer in marketing at the University of Zaragoza, Pablo de Olavide University and the University of the Balearic Islands. He’s a research associate of the research group Business Management and Tourist Destinations.

Giacomo DEL CHIAPPA is an assistant professor of marketing at the Department of Economics and Business, University of Sassari (Italy), and Associate Researcher at CRENoS. He is also a senior research fellow, School of Tourism and Hospitality, University of Johannesburg, South Africa. His research is related to destination governance and branding, consumer behavior, and digital marketing. He has published articles in several international journals, among others the International Journal of Hospitality Management, Journal of Services Marketing, Journal of Travel Research, International Journal of Tourism Research, International Journal of Contemporary and Hospitality Management, Current Issues in Tourism, and Information Systems and E-Business Management.

Michael DEVEREUX obtained both Master in Business Administration (MBA) from University of North Carolina at Wilmington and a Master in International Business from Universitat de Valencia. Prior to graduate school, he gained a Bachelor in Economics and Geography focusing on international economics and Central/South America from Weber State University. Additionally, he has studied in Costa Rica, and in Guatemala participating in a microfinance and economic development project for indigenous women in Guatemala. His current interests are focused on international affairs, humanitarian components, health and well-being, economic development, community engagement, energy and environmental sustainability.

José Luis FERNANDEZ SANCHEZ, PhD is a Professor of Business Administration at the University of Cantabria. He specializes in CSR, especially social investment.

Paul George HOLLAND, received a Bachelor in Business degree from the Manukau Institute of Technology, Auckland, New Zealand in 2012 and a Master of Business Studies from Massey University, New Zealand in 2015.

Mehmet KAYTAZ is currently professor of economics and the Dean of Faculty of Economics and Administrative Sciences at Işık University, Istanbul, Turkey. He holds a M.A. degree from the University of Manchester (1974) and Ph.D. from the University of Nottingham (1978). He was a faculty member of Boğaziçi University between 1978-2005.He served as President of State Institute of Statistics, Turkey; as Undersecretary of Treasury; as an alternate director in European Bank for Reconstruction and Development, and as Chairman of Board of Directors of Eregli Iron & Steel Factories. He has authored articles and books on small-scale enterprises, income distribution, economic growth, statistics, finance and education.

Valentín-Alejandro MARTINEZ FERNANDEZ is a Permanent Professor at University of A Coruña, Area of Marketing and Market Research. B.A. Information Sciences, Complutense University of Madrid. MBA Management and Business Administration, University of A Coruña. PhD. Information Sciences, Complutense University of Madrid.

Patricia MARTINEZ GARCIA DE LEANIZ is an Assistant Professor at the University of Cantabria (Spain). Her current research interests include corporate social responsibility, consumer behavior, corporate marketing and responsible management. Her research focuses on theoretical and empirical studies in the tourism sector. Patricia’s works have been published in journals of international impact such as International Journal of Hospitality Management, Journal of Business Ethics, International Journal of Contemporary Hospitality Management and Journal of Travel and Tourism Marketing among others. She is also author of several chapters in various collective works and one book. She regularly participates in prestigious international and national conferences, such as those organized by EMAC, AEMARK and ACEDE.

Lars MORATIS is an expert in corporate social responsibility (CSR) affiliated with Antwerp Management School in Belgium as the Academic Director of the Competence Center Corporate Responsibility and with the NHTV University of Applied Sciences in The Netherlands as Professor of Sustainable Business. His research interests lie in the credibility of corporate CSR claims, ISO 26000, CSR strategy, CSR implementation, responsible management education and critical perspectives on CSR. His other interest is the psychology of sustainability. He received an MSc in Business Administration from Erasmus University Rotterdam School of Management and his PhD from the Open University the Netherlands. His PhD dissertation on ISO 26000 carried the title ‘Standardizing a better world? Essays and critical reflections on the ISO 26000 standard for corporate social responsibility’. He publishes on his research interest in both scientific and practitioner-oriented journals and book chapters. He has written several books, among which is ‘ISO 26000: The business guide to the new standard on social responsibility’.

María D. ODRIOZOLA (PhD) is a Lecturer in Business Administration at the University of Cantabria. Her research focuses on Human Resources Management and CSR. Particularly, she is specialized in labor social responsibility practices.

Mariella PINNA is a Research Fellow at the University of Sassari where she teaches in the area of “Ethics”. Her research interest is related to ethical consumption and consumer behavior.

Vesela RADOVIC is an associate professor, works in the Institute for Multidisciplinary Research, Belgrade University, Serbia. Dr. Radovic has an MPH in fire safety protection and a PhD in safety, protection and defense from the Faculty of Safety in Belgrade. She has a long record of experience in the area of disaster management. As an expert in the area of disaster management she prepared the handbook, Methodology of Risk Assessment and Emergency Management Planning at the Local Level. This manual was a part of the activities of the USAID, Serbia Preparedness, Planning and Economic Security Program, implemented by the DAI/Washington. She spent a year with the Fulbright/Hubert Humphrey Fellowship, at Tulane University, School of Public Health and Tropical Medicine, Department of International Health and Development, New Orleans, LA. During that year in USA her focus was on public policy making and emergency preparedness. Dr. Radovic will focus her future activities in academic community in order to share acquired knowledge to help her country, Serbia in supporting the necessary reforms in the context of Euro-Atlantic Integrations.

Amir Hossein RAHDARI is one of the top 25 youngest Sustainable Business professionals (2degrees). He is the director of research at Corporate Governance and Responsibility Development Centre, an external reviewer to several Int. peer-reviewed journals (JCR and Scopus indexed), a research contributor to CSRI and some other leading platforms. He is also an independent research & consultant and a member of several leading panels on sustainability including GBI Panel (US), NG Panel (UK), Ministry of Petroleum CSR Committee (Iran).

Pedro M. ROMERO FERNANDEZ is a Professor in the Department of Business Management at the University of Cadiz. His teaching experience (more than 15 years) spans the broad range of strategy, human resources and management. He has published his work in the field of HRM in peer-reviewed top national and international journals, such as the International Journal of Human Resource Management, British Journal of Management, Journal of Business Research and Journal of Business Ethics.

María Dolores SANCHEZ FERNANDEZ is a PhD “Competitiveness, Innovation and Development” and a Lecturer at the University of la Coruña (Spain), Faculty of Economics and Business, Department of Analysis and Business Management, Business Organization area. She is also part of the GREFIN (University of A Coruña) and GEIDETUR (University of Huelva) research groups and associate researcher at the Centre of CICS.NOVA.UMinho and Lab2PT research at the University of Minho, GEEMAT (Brazil) and REDOR Network (Mexico). She has been the author or co-author of several articles published in indexed journals. She has participated in over 100 communications in national and International conferences and is a member of the scientific committee. She reviews international scientific magazines in Spain, United States and Brazil. Her main research topics are: Corporate Social Responsibility, quality, tourism, the hotel industry and human resources.

Katharina SARTER is an Ailsa McKay Postdoctoral Fellow at Glasgow Caledonian University. Previously Research Fellow at Bielefeld University, University of Muenster, and University of Rostock as well as Bernheim Postdoctoral Fellow at the Hoover Chair of Economic and Social Ethics at the Catholic University of Louvain and Visiting Scholar at the Public Procurement Research Group at the School of Law of the University of Nottingham.

Catalina SITNIKOV is Professor at University of Craiova (Romania), Faculty of Economics and Business Administration. She has PhD title in Management since 2000, Habilitation title in Management since 2014 and since February 2015 is PhD supervisor in Management. For 3 years activated as Visiting Lecturer at Helsinki University of Technology, Lahti Center (Finland). Since 1995, she has been teaching undergraduate, master and PhD students. She teaches Quality Management, Total Quality Management and Management. Her main research areas include: management, strategic management, and mostly quality management, instruments and models specific to the stages of quality planning, control and improvement, quality management strategies, ISO standards, CSR from the perspective of specific standards and instruments.

Marius Sorin TUDOR holds a PhD from the Faculty of Economics and Business Administration within University of Craiova. In 1998, graduated Bachelor Degree, major in Accountancy and Informatics, Faculty of Economics, University of Craiova, Romania, In 2001, graduated Master program in Business Administration, Faculty of Economics, University of Craiova, Romania In 2008, PhD in Economics, Faculty of Economics, University of Craiova, Romania Since 2006 – present, teaching and researching in Faculty of Economics and Business Administration, University of Craiova on topics such as Project Management, Environmental Economics, Marketing public, Methods and techniques for decision-making in public organizations, Media management. Since 2015 – present, Manager of Universitaria – Publishing house within University of Craiova.

Başak UCANOK TAN received her B.A. degree in Business Administration from Başkent University. Upon her graduation she was granted the Sunley Management Scholarship and completed MSc in International Management from the University of Northampton, UK. Her master’s dissertation focused on the adverse psychological effects of financial crises on layoff survivors. She continued her academic pursuits in Marmara and Istanbul Bilgi University and earned her PhD in Organizational Behavior with her dissertation on the investigation of organizational citizenship behaviors in Turkish SMEs. Her academic research focus concentrates on the dynamics of micro organizational phenomena including work values, organizational citizenship behavior, organizational commitment, alienation, leadership and cooperative behavior. She has served as coordinator in Public Relations program in Istanbul Bilgi University from 2010 to 2012 and has recently became Associate Professor.

Anya Catharina Eva ZEBREGS is a master student at University of Amsterdam. Last January she completed her masters in Business Administration and currently she is writing her thesis for the Social Psychology masters. The two masters complement each other very well; she gathered knowledge about consumers, organizations, groups of people and how to influence them and combined this with strategic and economic knowledge. She is interested in marketing and consultancy and after her internship, which will start this September, she would like to find a job in either marketing or consultancy. Further, Anya has always been very interested in CSR and the non-profit market, one of the reasons why she chooses to write her first master thesis about CSR. Further, she is president of the board of SOLVE Consulting Amsterdam. SOLVE is a professional student consultancy organization active in social enterprise consulting. The organization advises non-profits and social enterprises in their efficiency and effectiveness.

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Stakeholder engagement for corporate citizenship (in the U.S.A.)

thm3rqcunjThe US government agencies and the bureaus regulatory policies and principles are creating both challenging opportunities and threats for the businesses. Evidently, the institutional legacies are affecting the ways in which civil society, industry and NGOs interact together (Camilleri, 2015). This reasoning echoes the legitimacy theory as heterogenous, competing groups of stakeholders often expect and solicit social and environmentally responsible behaviours from businesses. Debatably, the U.S. government and its agencies should ensure that the true ecological cost of environmental degradation and climate change is felt in the market. In this light, there may be scope for U.S.  authorities to promote responsible behaviors.

 

For instance, recently there is an increased awareness on the circular economies that are characterised by their resource efficiency levels and cleaner production through recycling, reducing and reusing materials (EU, 2015; Geng, Fu, Sarkis and Xue, 2012; Geng and Doberstein, 2008).

US corporations should be urged to find alternative ways for sustainable energy generation, energy and water conservation, environmental protection and greener transportation systems. This way, they will be considered as legitimate businesses; as their corporate performance matches their stakeholders’ expectations (Camilleri, 2016; 2015). The organisations’ implementation of their legitimation strategy could include voluntary and solicited CSR disclosures that address norms, values or beliefs of stakeholders (Reverte, 2009). Responsible companies could be in a position to prevent third-party pressures through their engagement in social responsibility practices and sustainable behaviours. At the same time, they could lower the criticisms from the public and minimise their legal cases through their active compliance with regulations and guiding principles.

The organisations’ legitimacy is a critical driver for a dynamic institutional and organisational change (Tost, 2011). The organisations’ evaluative process was also suggested by Scherer et al. (2013) as they discussed about the corporations’ isomorphic adaptation to societal pressures. Yet, such political perspectives have often been considered as being overly normative (Kuhn and Deetz, 2008; Scherer and Palazzo, 2007) and of neglecting the complexity of the debates between corporations and society. Baur and Arenas (2014) also noted that the regulated interactions and the consensus building may not be required if corporations address the sustainable development issues. However, the responsible behavioural issues often call for the re-negotiation of social, economic, and environmental factors among regulatory authorities and other interested parties.

Indeed, addressing the environmental protection often requires shifting through a multitude of complex and often contradictory demands of stakeholders (Camilleri, 2015; Freeman, 2010; Hardy & Phillips, 1998) that are defined beyond nation-state governance institutions. Multiple ethical systems, cultural backgrounds, and rules of behaviour could possibly coexist within the same communities (Scherer & Palazzo, 2007) as the legitimacy of the business community around sustainable development issues is often being challenged (Porter & Kramer, 2011; Scherer & Palazzo, 2011).

Therefore, the stakeholder engagement processes are important instruments for legitimacy building as the pluralist nature of US politics encourages the formation of lobby groups and associations that are often regarded as legitimate representatives (Camilleri, 2016; Doh and Guay, 2006). Other previous research also contended that the legitimacy in resolving social responsibility and sustainable development issues often requires ‘the ability to establish trust-based collaborative relationships with a wide variety of stakeholders especially those with non-economic goals (Sharma & Vredenburg, 1998, p. 735). These stakeholders may have an accepted role in influencing the public policy process.

 

Excerpt from: Camilleri, M.A. (2016) Corporate Citizenship and Social Responsibility Policies in the United States of America. Sustainability Accounting, Management and Policy (Forthcoming)

References

Baur, D. and Arenas, D. (2014), “The value of unregulated business-NGO interaction a deliberative perspective”, Business & Society, Vol. 53 No 2, pp. 157-186.
Camilleri, M..A. (2015), “Valuing Stakeholder Engagement and Sustainability Reporting”, Corporate Reputation Review, Vol. 18 No. 3, pp. 210-222.
Camilleri, M. A. (2016), “Corporate sustainability and responsibility toward education”, Journal of Global Responsibility, Vol. 7, No 1.
Doh, J.P. and Guay, T.R. (2006), “Corporate social responsibility, public policy, and NGO activism in Europe and the United States: An Institutional‐Stakeholder perspective”, Journal of Management Studies, Vol. 43 No. 1, pp. 47-73.
E.U. (2015), “Research and Innovation Industry 2020 in the Circular Economy” (Call identifier: H2020-IND-CE-2016-17. http://ec.europa.eu/research/participants/portal/desktop/en/opportunities/h2020/calls/h2020-ind-ce-2016-17.html#c,topics=callIdentifier/t/H2020-IND-CE-2016-17/1/1/1&callStatus/t/Forthcoming/1/1/0&callStatus/t/Open/1/1/0&callStatus/t/Closed/1/1/0
Freeman, R. E. (2010), “Strategic management: A stakeholder approach”, Cambridge University Press, Cambridge, UK.
Geng, Y. and Doberstein, B. (2008), “Developing the circular economy in China: Challenges and opportunities for achieving’leapfrog development”, The International Journal of Sustainable Development & World Ecology, Vol. 15 No 3, pp. 231-239.
Geng, Y., Fu, J., Sarkis, J. and Xue, B. (2012), “Towards a national circular economy indicator system in China: an evaluation and critical analysis”, Journal of Cleaner Production, Vol. 23 No 1, pp. 216-224.
Hardy, C. and Phillips, N. (1998). “Strategies of engagement: Lessons from the critical examination of collaboration and conflict in an interorganizational domain”, Organization science, Vol. 9 No. 2, pp. 217-230.
Kuhn, T. and Deetz, S. (2008), “Critical theory and corporate social responsibility: Can/should we get beyond cynical reasoning”, In Crane, A., McWilliams, A., Matten, D., Moon, J. and Siegel, D., The Oxford handbook of corporate social responsibility, pp. 173-196.
Porter, M.E. and Kramer, M.R. (2011). “Creating shared value: How to reinvent capitalism and unleash a wave of innovation and growth”, Harvard Business Review, Vol. 89 Nos. 1-2, pp. 62–77.
Reverte, C. (2009), “Determinants of corporate social responsibility disclosure ratings by Spanish listed firms”, Journal of Business Ethics, Vol. 88 No. 2, pp. 351-366.
Sharma, S. and Vredenburg, H. (1998), “Proactive corporate environmental strategy and the development of competitively valuable organizational capabilities”, Strategic Management Journal, Vol. 19 No. 8, pp. 729-753.
Scherer, A. G. and Palazzo, G. (2007), “Toward a political conception of corporate responsibility: Business and society seen from a Habermasian perspective”, Academy of Management Review, Vol. 32 No.4, pp. 1096-1120.
Scherer, A. G. and Palazzo, G. (2011). “The new political role of business in a globalized world: A review of a new perspective on CSR and its implications for the firm, governance, and democracy”, Journal of Management Studies, Vol. 48 No. 4, pp. 899-931.
Tost, L.P. (2011), “An integrative model of legitimacy judgments”, Academy of Management Review, Vol. 36 No. 4, pp. 686-710.

 

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The rationale behind ISO26000 – the standard on social responsibility

In 2010, the development of ISO 26000 has represented a milestone in multi-stakeholder standards development that supported the integration of social responsibility into management processes (Toppinen, Virtanen, Mayer & Tuppura, 2015; Hahn, 2013). Yet, ISO 26000 has never been considered as a management standard as its use cannot be certified unlike the earlier ISO standards, such as ISO 9000 and ISO 14001. The certification requirement has not been incorporated into the development and reinforcement process of ISO 26000 because industry representatives were concerned that costly certification requirements could overburden their businesses. Nevertheless, ISO’s work item proposal for organizational social responsibility was intended to accomplish the following issues:

  • Assist organizations in addressing their social responsibilities while respecting cultural, societal, environmental, and legal differences and economic development conditions;
  • Provide practical guidance related to making social responsibility operational;
  • Assist with identifying and engaging with stakeholders and enhancing credibility of reports and claims made about social responsibility;
  • Emphasize performance results and improvement;
  • Increase confidence and satisfaction in organizations among their customers and other stakeholders;
  • Achieve consistency with existing documents, international treaties and conventions, and existing ISO standards;
  • Promote common terminology in the social responsibility field;
  • Broaden awareness of social responsibility;
  • This standard is not intended to reduce government’s authority to address the social responsibility of organizations.

(Arzova, 2009 in Idowu & Filho, 2009; ASQ, n.d.).

ISO 26000 thus aims to help organizations manage their social responsibility. It helps to improve the individuals’ working and living conditions, whilst fostering better opportunities to different organizations as they benchmark their social responsibility efforts. ISO 26000 has the potential to capture the context-specific nature of social responsibility. Even though the standard aims to unify and standardize social responsibility practices, it also acknowledges that organizations have a responsibility to bear as they are expected to address the strategic areas that are relevant to their business (Hahn, 2013; Figge, Hahn, Schaltegger & Wagner, 2002).

Therefore, the ISO 26000 standard provides guidance on the integration of social responsibility into management processes and on matters relating to stakeholder engagement. Its core subjects represent the most essential areas of social responsibility that an organization should take into consideration in order to maximize its contribution to sustainable development. The standard’s goal is to encourage organizations to adopt socially responsible approaches by reviewing their extant operating practices on organizational governance, human rights, labor practices, environment, fair operating practices, consumer issues and community involvement and development (ISO, 2014). ISO 26000 provides guidance on stakeholder identification and engagement, it assists in improving social responsibility communications and it helps to integrate responsible business practices into strategies, systems and processes. Hence, ISO26000 advises the practicing organizations to take into account their varied stakeholders’ interests. The constructive partnerships agreements with multiple stakeholders are beneficial for the potential of effective consensus building, knowledge sharing, interest representation, and achievement of legitimacy (Fransen & Kolk 2007). According to Castka and Balzarova 2008a; p. 276), ‘ISO 26000 aims to assist organizations and their network in addressing their social responsibilities – as they provide practical guidance that is related to operationalizing CSR, identifying and engaging with stakeholders and enhancing credibility of reports and claims made about CSR’. ISO 26000 can be viewed as an approach to CSR that is rooted in a quality management framework. Moratis (2015) has also reiterated the key contents and tenets of ISO 26000 as he examined strategies that could enhance the credibility of the corporations’ social responsibility claims. He argued that the concept of credibility relates to skepticism, trust and greenwashing. Consequently, the organizations that are renowned for their CSR credentials will have a better reputation and image among stakeholders. This will result in significant improvements to the firms’ bottom lines.

Berman, Wicks, Kotha & Jones (1999) suggested that one approach to how organisations approach stakeholder management is based on an instrumental approach (strategic stakeholder management). They held that the organizations’ concern toward stakeholders is motivated by their self-interest as they strive to improve their financial performance. Yet, there were several empirical studies that have often yielded contradictory results about whether social responsibility can bring financial returns (Camilleri, 2012, Orlitzky, Schmidt & Rynes, 2003; McWilliams & Siegel, 2001; Waddock & Graves, 1997; Russo & Fouts, 1997). Nevertheless, an increasing number of studies reported that the social responsible behaviors should be used strategically (Husted & Salazar, 2006). Others argued that social responsibility offers opportunities for market differentiation, as it could be a source of competitive advantage (Russo & Fouts, 1997).

Donaldson and Preston (1995) maintained that social responsibility is not fully driven by commercial factors. Their altruistic social responsibility perspective (or intrinsic stakeholder commitment) approach assumed that organizations have a normative (moral) commitment to advance their stakeholders’ interests. Similarly, Castka and Balzarova (2008a) have proposed an exhaustive list of social responsibility predictors that were drawn from three perspectives: strategic, altruistic and coercive prior to the formulation of ISO26000. They listed ten propositions in relation to social responsibility orientation of organizations or networks, differences in regulatory systems, and the role of governments and national environments.

One of the mechanisms that led to the development of the social responsibility agenda is a pressure of different groups of activists, consumers and non-governmental organizations. For instance, stakeholders may exert pressure over organizations to adopt social and environmental practices that exceed the minimum requirements that are mandated by legislation and regulation (Christmann & Taylor, 2004; Corbett & Kirsch, 2001). Nevertheless, there may be other stakeholders who could generate new societal expectations and consequently lead to new business practices. In fact, it is a very common practice amongst multinational supply chains to use well established codes of conducts that are imposed on others by the most powerful players (Castka and Balzarova, 2008a).

Organizations ought to consider which aspects of social responsibility to invest in (McWilliams & Siegel, 2001). Their social responsibility can include internal aspects (i.e. physical environment, working conditions, communication and transparency parameters) as well as external aspects (community relations, supplier relations, shareholder relations (Kok, Van der Wiele, McKenna, & Brown, 2001). McWilliams & Siegel (2001) held that there is an ideal level of CSR that managers can determine via cost–benefit analyses.

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An Introduction to Socially Responsible Investment

Socially responsible investment (SRI) is the practice of incorporating social and environmental goals into investment decisions. Therefore, SRI is a strategy that encourages corporate practices that promote social responsibility and laudable initiatives such as impact investing, shareholder advocacy and community investing (Sparkes & Cowton, 2004; Guay, Doh & Sinclair, 2004; Schueth, 2003). At the same time, the rationale behind SRI is to consider both financial return as well as responsible investments for societal development. Its goals are based upon environmental issues, human rights, community involvement and labour relations (Ooi & Lajbcygier 2013; Sparkes, 2003; Friedman & Miles, 2001).

SRI’s professionally managed assets have emerged as a dynamic and quickly growing segment of the U.S. financial services industry (Schueth, 2003). In many cases, responsible and sustainable investments are influencing how asset managers invest in diversified portfolios (Lemke & Lins, 2014). This term refers to responsible investments that seek to avoid negative externalities. In fact, the investment portfolios of listed companies are often screened by SRI contractors (Renneboog, Ter Horst & Zhang, 2008). In fact, in recent years, SRI funds have become a popular investment opportunity. Many investors are attracted to businesses that will yield return on investment. Yet, it may appear that a large and growing segment of the population possess a spiritual yearning to integrate personal values into all aspects of life, including finance and investing (Schueth, 2003). As a result, many conscientious investors were avoiding businesses that are involved in alcohol, tobacco, fast food, gambling, pornography, weapons, contraception and abortion, fossil fuel production, and / or the military industries, among others (Logue, 2009; Ronneborg et al., 2008; Ghoul & Karam, 2007; Statman, 2000). In addition, responsible investors have become increasingly aware about the numerous instances of accounting fraud and other scandals that may have eroded their trust in corporate leadership. The areas of concern recognised by the SRI practitioners are often denoted under the heading of environmental, social and governance (ESG) issues, including social justice, human rights, anti-corruption and bribery issues and diversity on the boards (Camilleri, 2015).

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