Tag Archives: CSR

Sustainability accounting and disclosures of responsible restaurant practices in environmental, social and governance (ESG) reports

This is an excerpt from one of my latest open-access articles published via International Journal of Hospitality Management

Suggested citation: Camilleri, M.A. (2025). Sustainability accounting and disclosures of responsible restaurant practices in environmental, social and governance (ESG) reports, International Journal of Hospitality Management, 126, https://doi.org/10.1016/j.ijhm.2024.104051

Currently, humanity is generating more than one billion tons of food waste, including packaging, biodegradable edible food scraps, fruits and vegetables, among others. Together, these items accumulate about one hundred and thirty-two (132) kilograms per capita and almost one-fifth (1/5) of all food available to consumers (Department of Energy, 2024). Out of the total food that was wasted in 2022, sixty per cent (60 %) was produced by private households, twenty-eight per cent (28 %) originated from food and beverage service providers including hotels, restaurants, pubs and cafes, and twelve percent (12 %) came from retail stores (UNEP, 2024).

Frequently, food items and their ingredients are wasted because of a decline in quality, due to contamination, overstocking and/or spoilage issues, as they are not consumed before their expiry date, resulting in their decay (Pearson et al., 2025). Notwithstanding, the preparers of food tend to over-produce perishable items that are uneaten by consumers. Such spoilt products and surplus food will usually end up in municipal landfills, resulting in negative repercussions for our fragile natural environments, bio diversities and ecosystems (EuroStat, 2023). In other words, the piling up of food waste is inevitably causing pollution and irreparable damage| including global greenhouse gas emissions (GHG) that can exacerbate climate change for our planet.

At the time of writing, food loss and waste are triggering eight to ten per cent (8–10 %) of annual (GHG) emissions and are taking up the equivalent of almost a third of the world’s agricultural land. The disposal, handling and accumulation of food waste is costing the global economy about USD 1 trillion (UNEP, 2024). Therefore, the reduction of food loss is critical to increase the efficiency of the globe’s food systems, to improve food security for every nation and its citizens, whilst decreasing production costs in the value chain.

In this light, the rationale of this contribution is to raise awareness on responsible food and beverage operations in the hospitality industry. Primarily, it identifies sustainable practices that are intended to reduce food loss and waste from the value chain through sustainable sourcing of food products, by implementing sound inventory management systems as well as by promoting ecofriendly behaviors during responsible food preparation and consumption practices. A thorough review of the extant literature suggests that, currently, there are just a few articles that shed light on responsible food and beverage operations (Oke et al., 2023Yong et al., 2024), although a number of institutions and organizations are raising the agenda on sustainable food production behaviors among practitioners (EU, 2021HOTREC, 2017).

Secondly, this article highlights the importance of sustainability accounting and reporting during each stage of food preparation, production and consumption (Huang et al., 2023Lee et al., 2024Lin et al., 2024). It clearly explains in a pragmatic manner how environmental, social and governance (ESG) accountability standards, like the ones formulated by Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) and the Food Loss and Waste Accounting and Reporting Standard (FLW Standard) among others, could be applied in the hospitality industry context.

Therefore, the research objectives of this contribution are threefold: (i) It identifies and discusses about sustainable practices that hotels, restaurants and cafes can implement to minimize food loss and waste; (ii) It sheds light on different regulatory instruments including guiding principles and standards, that can be utilized for ESG accounting, disclosures, audit and assurance of food and beverage services, including those operated by hospitality practitioners; (iii) It advances a theoretical model that clearly summarizes different aspects related to ESG dimensions.

This paper is also available through ResearchGate, Academia, Social Science Research Network (SSRN) and Open Access Repository.

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Filed under CSR, ESG Reporting, food loss, food waste, Hospitality, hotels, restaurants, Sustainable Consumption, sustainable production, sustainable supply chains

Ethical considerations of service organizations in the information age

This is an excerpt from one of our latest contributions published through The Service Industries Journal. It features snippets from the ‘Introduction’, ‘Theoretical Implications’, ‘Practical Implications’ as well as from the ‘Limitations and Future Research Avenues’ sections.

Suggested Citation: Camilleri, M.A., Zhong, L., Rosenbaum, M.S. & Wirtz, J. (2024). Ethical considerations of service organizations in the information age, The Service Industries Journal, Forthcoming. https://www.tandfonline.com/doi/full/10.1080/02642069.2024.2353613

Introduction

Ethics is a broad field of study that refers to intellectual and moral philosophical inquiry concerned with value theory. It is clearly evidenced when individuals rely on their personal values, principles and norms to resolve questions about appropriate courses of action, as they attempt to distinguish between right and wrong, good and evil, virtue and vice, justice and crime, et cetera (Budolfson, 2019; Coeckelbergh, 2021; Ramboarisata & Gendron, 2019). Several researchers contend that ethics involves a set of concepts and principles that are meant to guide community members in specific social and environmental behaviors (De Bakker et al., 2019; Hermann, 2022). Very often, commentators argue that a persons’ ethical dispositions are influenced by their upbringing, social conventions, cultural backgrounds, religious beliefs, as well as by regulations (Vallaster et al., 2019).

Individuals, groups, institutions, non-government entities as well as businesses are bound to comply with the rule of law in their society (Groß & Vriens, 2019). As a matter of fact, the businesses’ organizational cultures and modus operandi are influenced by commercial legislation, regulations and taxation systems (Bridges, 2018). For-profit entities are required to adhere to the companies’ acts of the respective jurisdictions where they are running their commercial activities. They are also expected to follow informal codes of conduct and to observe certain ethical practices that are prevalent in the societies where they are based. This line of reasoning is synonymous with mainstream “business ethics” literature, that refer to a contemporary set of values and standards that are intended to govern the individuals’ actions and behaviors in how they manage and lead organizations (DeTienne et al., 2021).

Employers ought to ensure that they are managing their organization in a fair, transparent and responsible manner, by treating their employees with dignity and respect (Saks, 2022). They have to provide decent working environments and appropriate conditions of employment by offering equitable extrinsic rewards to their workers, that are commensurate with their knowledge, skills and competences (Gaur & Gupta, 2021). Moreover, it is in the employers’ interests to nurture their members of staff’s intrinsic motivations if they want them to align with their organizational values and corporate objectives (Camilleri et al., 2023). Notwithstanding, all businesses, including those operating in service industries have ethical as well as environmental, social and governance (ESG) responsibilities to bear towards other stakeholders in society (Aksoy et al., 2022).

This article raises awareness on a wide array of ethical considerations affecting service organizations in today’s information age. Specifically, its research objectives are threefold: (i) It presents the findings from a rigorous and trustworthy systematic review exercise, focused on “ethics” in “service(s)” and/or “ethical services”. This research involves a thorough scrutinization of the most-cited articles published in the last five (5) years; (ii) It utilizes a thematic analysis to determine which paradigms are being associated with service ethics. The rationale is to identify some of the most contemporary topics related to ethical leadership in service organizations. (iii) At the same time, it puts forward theoretical and practical implications that clarify how, why, where, when and to what extent service providers are operating in a legitimate and ethical manner.

A thorough review of the literature reveals that, for the time being, there are just a few colleagues who have devoted their attention to relevant theoretical underpinnings linked to the service ethics literature (Liu et al., 2023; Wirtz et al., 2023). For the time being, there is still limited research that has outlined popular research themes from the most cited articles published in the past five (5) years. It clearly differentiates itself from previous studies as this contribution’s rigorous and transparent systematic review approach clearly recognizes, appraises and describes the methodology that was used to capture and analyze data focused on the provision or lack thereof of ethical services. In addition, unlike other descriptive literature reviews, this paper synthesizes the findings from the latest contributions on this topic and provides a discursive argumentation on their implications. Hence, this article addresses a number of knowledge gaps in academic literature. In conclusion, it identifies the limitations of this review exercise, and outlines future research avenues to academia.

Theoretical implications

This contribution raises awareness of the underexplored notion of service ethics. A number of commentators are making reference to various theories and concepts to clarify how they can guide service organizations in their ethical leadership. In many cases, a number of theories indicate that decision makers ought to be just and fair with individuals or entities in their actions.  Appendix A features a list of ethical theories and provides a short definition for them. For instance, the justice theory suggests that all individuals including service employees should have the same fundamental rights based on the values of equality, non-discrimination, inclusion, human dignity, freedom and democracy. Human rights as well as employee rights and values ought to be protected and reinforced by the respective jurisdictions’ rule of law, for the benefit of all subjects (Grégoire et al., 2019).

Business ethics literature indicates that just societies are characterized by fair, trustworthy, accountable and transparent institutions (and organizations). For instance, the fairness theory raises awareness on certain ethical norms and standards that can help policy makers as well as other organizations including businesses, to ensure that they are continuously providing equal opportunities to everyone. It posits that all individuals ought to be treated with dignity in a respectful and equitable manner (Wei et al., 2019).

This is in stark contrast with the favoritism theory that suggests that certain individuals including employees, can receive preferential treatment, to the detriment of others (Bramoullé & Goyal, 2016). This argumentation is synonymous with the nepotism theory. Like favoritism, nepotism is a phenomenon that is manifested when institutional and organizational leaders help and support specific persons because they are connected with them in a way or another (e.g. through familial ties, friendships, financial, or social factors). Arguably, such favoritisms clearly evidence their conflict(s) of interest, compromise or cloud their judgements, decisions and actions in workplace environments and/or in other social contexts. Many business ethics researchers contend that decision makers ought to be guided by the principle of beneficence (Brear & Gordon, 2021), as they should possess the competences and abilities to recognize between what is morally right and ethically wrong.

This research confirms that frequently, organizational leaders have to deal with difficult and challenging situations, where they are expected to make hard decisions (Islam et al., 2021a; Islam et al., 2021b; Latan et al., 2019; Naseer et al., 2020; Schwepker & Dimitriou, 2021). In such cases, the most reasonable ethical approach would be to follow courses of action that will result in the least possible harm to everyone (Heine et al., 2023). The service organizations’ members of staff are all expected to be collaborative, productive and efficient in their workplace environment. This line of reasoning is related to the attributional theory (Bourdeau et al., 2019) and/or to the consequentialism theory (Budolfson, 2019). Very often, the proponents of these two theories contend that while honest, righteous and virtuous behaviors may yield positive outcomes for colleagues, subordinates and other stakeholders, wrong behaviors can result in negative repercussions to them (Deci & Ryan, 1987; Francis & Keegan, 2020; Lee et al., 2020; Paramita et al., 2021)

Other researchers who contributed to the ethics literature related to the utilitarianism theory, suggest that people tend to make better decisions, when they focus on the consequences of their actions. Hence, they will be in a better position to identify laudable behaviors and codes of conduct that add value to their organization (Coeckelbergh, 2021; Michaelson & Tosti-Kharas, 2019; Ramboarisata & Gendron, 2019). Very often, they argue that there are still unresolved issues in social sciences including the unpredictability of events and incidents from happening (Du & Xie, 2021), and/or the difficulty in measuring the consequences when/if they occur. For example, this review indicated that various authors discussed about the challenges, risks and possible dangers of adopting various technologies including AI, big data, et cetera (Breidbach & Maglio, 2020; Chang et al., 2020; Flavián & Casaló, 2021; Rymarczyk, 2020). In many cases, they hinted that the best ethical choice is to identify which decisions and actions could lead to the greatest good, in terms of positive, righteous and virtuous outcomes (Budolfson, 2019; Gong et al., 2020; Paramita et al., 2021).

Various academic authors who contributed to the formulation of the virtues theory held that there are persons including organizational leaders, whose characters, traits and values drive them to continuously improve and to excel in their duties and responsibilities (Coeckelbergh, 2021; Fatma et al., 2020; Lee et al., 2020). They frequently noted that the persons’ affective feelings as well as their intellectual dispositions enable them to develop a positive mindset, to make the best decisions and to engage in the right behaviors (Gong et al., 2020; Huang & Liu, 2021; Yan et al., 2023). This is congruent with the theory of positivity too, as it explains how the individuals’ optimistic feelings may result in their happiness and wellbeing. Some commentators imply that such positive emotions can influence the individuals’ state of minds and can foster their resilience to engage in productive behaviors (Paramita et al., 2021).

This argumentation is in stark contrast with the emotional labor theory that is manifested when disciplined employees suppress their emotions by engaging in posturing behaviors in order to conform to the organizational culture (Mastracci, 2022). This phenomenon was evidenced in Naseer et al.’s (2020) contribution. In this case, the authors indicated how the employees’ overidentification with unethical organizations can have a negative impact on their engagement, thereby resulting in counterproductive work practices. In addition, Islam et al. (2021b) also suggested that abusive supervision led employees to undesirable outcomes like knowledge hiding behaviors and to low morale in workplace environments.

Several commentators who are focused on psychological issues argue that the individuals’ intrinsic motivations are closely related to their self-determination (Deci & Ryan, 1987). Very often, they contend that individuals should have the autonomy and freedom to make life choices, in order to improve their well-being in the future. The findings from this research reported that organizational leaders who delegated responsibilities to their members of staff, have instilled trust and commitment in their employees, and also improved their intrinsic motivations (Francis & Keegan, 2020; Lee et al., 2020; Schwepker & Dimitriou, 2021).

Hence, organizational leaders of service businesses ought to be aware that there is scope for them to empower their human resources, to help them make responsible choices and decisions relating to their work activities, in a discrete manner (Bourdeau et al., 2019; Islam et al., 2021a; Tanova & Bayighomog, 2022). The employees’ higher levels of autonomy and independence can influence their morale (Paramita et al., 2021; Ramboarisata & Gendron, 2019) and reduce stress levels (Schwepker & Dimitriou, 2021). Various researchers confirmed that employees would be more productive if they were empowered with duties and responsibilities (e.g. Nauman et al., 2023).

This argumentation is congruent with the conservation of resources theory, as business leaders are expected to look after their human resources’ cognitive and emotional wellbeing, if they want to foster their organizational commitment to achieve their corporate objectives. Indeed, their ethical leadership can lead to win-win outcomes, particularly if their employees replicate responsible and altruistic behaviors with one another, and if they strive in their endeavors to develop a caring environment in their organization (Parsons et al., 2021; Saks, 2022). This reasoning is closely related to the social cognition theory that presumes that individuals acquire emotional knowledge and skill sets such as intuition or empathy, among others, through social interactions, including when they are at work (Čaić et al., 2019; Campbell et al., 2020; Rauhaus et al., 2020).

Practical implications

The findings from this research confirm that various service organizations are becoming acquainted with ethical leadership and with social issues in management. Evidently, several listed businesses and large undertakings in service industries are increasingly proving their legitimacy and license to operate, by engaging in ethical behaviors that promote responsible human resources management. Very often, they are fostering an organizational climate that encourages ongoing dialogue, communication and collaboration among members of staff; they empower employees with duties and responsibilities to make important decisions; provide them with equitable compensation that is commensurate with qualifications and experience; and implementing work-life balance policies. Generally, these laudable measures are resulting in motivated, committed and productive employees.

On the other hand, unethical behaviors including abusive organizational practices and coercive leadership styles are generating bitterness and feelings of resentment among employees. The lack of ethical leadership can lead to demotivation, low morale, job stress and even to counterproductive behaviors including wrongdoings like knowledge hiding and abusive supervision in workplace environments. This research reported about irresponsible practices of service businesses operating in the sharing economy, as a number of hospitality companies are subcontracting their food delivery services to independent contractors, who are not safeguarding the rights of their employees. Very often, the workers of the gig economy are offered precarious jobs and unfavorable conditions of employment. Generally, they are not paid in a commensurate manner for their jobs, are not eligible for health or retirement benefits, and cannot affiliate themselves with trade unions.

This discursive review shed light on the service businesses’ dealings with employees and with other stakeholders. It also narrated about their relationships with customers as well as on their ethical and digital responsibilities towards them. For example, it indicated that many businesses are gathering and storing data of customers. Frequently, they are using their personal and transactional information to analyze and interpret shopping behaviors. They may do so to build consumer profiles and/or to retarget them with promotional content. The findings of this research imply that it is the responsibility of service businesses to inform new customers that they are capturing and retaining data from them, when and if they do so (even though in many cases, they are aware that many online users can quickly unsubscribe to marketing messages and/or are becoming adept in blocking advertisements from popping-up in their screens). The authors  contend that service providers ought to explicitly ask their customers’ consent (through opt-in or opt-out choices) to ensure that the former can avail themselves of their consumers’ data.

Currently, certain jurisdictions are not in a position to protect consumers from entities that could use their personal information for different purposes as they did not enact substantive data protection legislation. The European Union’s General Data Protection Regulation (GDPR) or California Consumer Privacy Act (CCPA), are two examples of data regulations that are intended to safeguard the consumers’ interests in this regard. Online users ought to be educated and guided through regulations, policies and data literacy programs, to protect them from potentially unethical technological applications and practices of big data algorithms and advanced analytics. At the moment, various stakeholders including policy makers and academia, among others, are calling for responsible AI governance and for the formulation of (quasi) regulatory frameworks, in order to maximize the benefits of AI and to minimize its negative impacts to humanity.

This research raises awareness about the importance of disclosing corporate governance procedures, and of regularly reporting CSR/ESG credentials with regulatory stakeholders and with other interested parties. In many cases, the majority of service businesses are genuinely following ethical norms and principles that go beyond their commercial and legal obligations. They should bear in mind that their sustainability accounting, transparent ESG disclosures, as well as their audit and assurance mechanisms, can ultimately reduce information asymmetry among stakeholders, whilst enhancing their reputation and image with interested parties. Their ongoing corporate communications can ameliorate stakeholder relationships and could increase their organizational legitimacy in the long run.

Limitations and future research avenues

The notion of service ethics is gaining traction in academic circles. Indeed, it is considered as a contemporary and timely topic for service researchers specializing in business administration and/or business ethics. In fact, the findings from the bibliographic analysis demonstrate that there were more than eleven thousand (11,000) documents focused on service(s), ethics and ethical service(s), published in the last 5 years. This research adds value to the extant literature as it sheds light on the most cited articles focused on these topics. Yet, it differentiates itself from previous papers, as it identifies the themes of fifty (50) of the most cited papers in this promising area of research, describes the methodology that was employed to capture and analyze the data on this topic, and scrutinizes their content, before synthesizing the findings of this contribution.

This article presents the findings of a rigorous review and evaluation of the latest literature revolving on ethical leadership of service organizations. The authors are well aware that, in the past, other academic colleagues may have referred to synonymous keywords to service ethics or ethical services, including ethical business, business ethos, business ethics, business code of conduct, and even corporate social responsibilities of service businesses, among other paradigms. Therefore, future researchers may also consider using these keywords when they investigate ethical behaviors in services-based sectors. It is hoped that they will delve into the research themes, fields of studies and theoretical bases that were identified in this contribution including on the service organizations’ ethical leadership, as proposed in the following table. This research confirms that it is in the interest of service entities to foster a fair and just working environment, particularly for the benefit of their employees, as well as for other stakeholders including for regulatory institutions, creditors, shareholders and customers, among others.

A future agenda for service ethics research

(Developed by the authors)

Indeed, there is scope to investigate further the service organizations’ roles in today’s societies, as they are being urged by policy makers and other interested parties to communicate about their responsible organizational behaviors, in various contexts. Entities operating in service industries including small and medium-sized businesses as well as micro enterprises are increasingly acquainting themselves with sustainability accounting, non-financial reporting and ongoing assurance exercises, as comprehensive CSR/ESG disclosures can enable them to prove their legitimacy and license to operate with stakeholders. Moreover, prospective researchers are invited to continue raising more awareness about ethical leadership among service organizations, particularly when they are adopting disruptive innovations.

The full list of references are available from the open-access article (published through The Service Industries Journal) and via ResearchGate.

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Creating shared value through open innovation approaches

This is an excerpt from one of my latest articles that was published through Business Strategy and the Environment.

Big businesses are breaking down traditional silos among their internal departments to improve knowledge flows within their organizations and/or when they welcome external ideas and competences from external organizations (Aakhus & Bzdak, 2015; Chesbrough, 2003; Chesbrough & Bogers, 2014). Open innovation is related to the degree of trust and openness with a variety of stakeholders (Chesbrough, 2020; Leonidou et al., 2020; Zhu et al., 2019). Debately, this concept clearly differentiates itself from closed innovation approaches that are associated with traditional, secretive business models that would primarily rely on the firms’ internal competences and resources. In the latter case, the companies would withhold knowledge about their generation of novel ideas, including incremental and radical innovations within their research and development (R&D) department. They would be wary of leaking information to external parties. This is in stark contract with open innovation.

Open innovation is rooted in the belief that the dissemination of knowledge and collaboration with stakeholders would lead to win-win outcomes for all parties. Chesbrough (2003) argued that companies can maximize the potential of their disruptive innovations if they work in tandem with internal as well as with external stakeholders (rather than on their own) in order to improve products and service delivery. His open innovation model suggests that corporations ought to benefit from diverse pools of knowledge that are distributed among companies, customers, suppliers, universities, research center industry consortia, and startup firms.

Chesbrough (2020) distinguished between different types of insider information that could or could not be leaked to interested parties. He cautioned that sensitive information (he referred to as the “Crown Jewels”) ought to be protected and can never be revealed to external stakeholders. Nevertheless, he argued that an organization can selectively share specific communications with a “Middle Group” comprising key customers, suppliers, and/or partners in order to forge closer relationships with them. The companies’ internal R&D departments can avail themselves from their consumers’ insights as well as from external competences, capabilities, and resources, to cocreate value to their business and to society at large.

Chesbrough (2020) went on to suggest that a company should open-up their “long tail of intellectual property to everyone.” He contended that organizations may do so to save on their patent renewal fees. During the coronavirus (COVID-19) pandemic, many businesses joined forces and adopted such an intercompany open innovation approach to mass produce medical equipment. For instance, Ford Motor Co. sent its teams of engineers to consult with counterparts at 3M and General Electric to produce respirators, ventilators, and new 3-D-printed face shields, for the benefit of healthcare employees and COVID-19 patients (Washington Post, 2020).

Corporations are increasingly collaborating with experts hailing from diverse industry sectors to innovate themselves and to search for new sources of competitive advantage (Porter & Kramer, 2011; Roszkowska-Menkes, 2018). They may usually resort to open innovation approaches when they engage with talented individuals who work on a freelance basis or for other organizations, to benefit from their support. There is scope for companies to forge fruitful relationships with external stakeholders, who may be specialized in specific fields, to help them identify trends, penetrate into new markets, to develop new products, or to diversify their business model, to establish new revenue streams for their firm (Camilleri & Bresciani, 2022; Centobelli, Cerchione, Chiaroni, et al., 2020; Su et al., 2022). These stakeholders can add value to host organizations in their planning, organization, and implementation of social and environmentally sustainable innovations (Camilleri, 2019a; Sajjad et al., 2020).

Open innovation holds great potential to create shared value opportunities for business and society (Aakhus & Bzdak, 2015; Alberti & Varon Garrido, 2017; Roszkowska-Menkes, 2018). This argumentation is closely related to the strategic approach to corporate social responsibility (CSR) and to the discourse about corporate sustainability (Camilleri, 2022a; Eweje, 2020). Previous literature confirmed that open innovation processes can have a significant effect on the companies’ triple bottom line in terms of their economic performance as well as on their social and environmental credentials (Gong et al., 2020; Grunwald et al., 2021; Mendes et al., 2021; Testa et al., 2018).

The businesses’ ongoing engagement with their valued employees may result in a boost in their intrinsic motivations, morale, job satisfaction, and low turnover levels and could increase their productivity levels (Camilleri, 2021; Chang, 2020; Kumar & Srivastava, 2020; Schmidt-Keilich & Schrader, 2019). Their collaboration with external (expert) stakeholders may lead to positive outcomes including to knowledge acquisition, operational efficiencies, cost savings, and to creating new revenue streams from the development of innovative projects, among others (Ghodbane, 2019; Huizingh, 2011). Open innovation agreements are clearly evidenced when businesses forge strong relationships with internal and external stakeholders to help them plan, develop, promote, and distribute products (Bresciani, 2017; Camilleri, 2019b; Chesbrough & Bogers, 2014; Greco et al., 2022; Loučanová et al., 2022; Troise et al., 2021). They may do so to be in a better position to align corporate objectives (including to increase their bottom lines) with their social and environmental performance (Alberti & Varon Garrido, 2017; Herrera & de las Heras-Rosas, 2020; Mendes et al., 2021).

This paper provides a clear definition of the most popular paradigms relating to the intersection of open innovation approaches and corporate sustainability, as reported in Table 1.

Table 1. A list of the most popular paradigms relating to the intersection of open innovation approaches and corporate sustainability

“The following section synthesizes the content that was reported in past contributions. The researchers deliberate about open innovation opportunities and challenges for host organizations as well as for their collaborators”.

Open innovation opportunities

In the main, many commentators noted that open innovation approaches have brought positive outcomes for host organizations and their collaborators. The research questions of the extracted contributions (that are reported in Table 2) indicated that in many cases, companies are striving in their endeavors to build productive relationships with different stakeholders (Mtapuri et al., 2022; Peña-Miranda et al., 2022; Shaikh & Randhawa, 2022), to create value to their businesses as well as to society (Döll et al., 2022; Ghodbane, 2019; Roszkowska-Menkes, 2018). Very often, they confirmed that open innovation practitioners are promoting organizational governance (Aakhus & Bzdak, 2015; Sánchez-Teba et al., 2021), fair labor practices (Chang, 2020; Herrera & de las Heras-Rosas, 2020; Kumar & Srivastava, 2020; Schmidt-Keilich & Schrader, 2019), environmentally responsible investments (Aakhus & Bzdak, 2015; Cigir, 2018; Mendes et al., 2021; van Lieshout et al., 2021; Yang & Roh, 2019), and consumer-related issues (Greco et al., 2022; Loučanová et al., 2022; Wu & Zhu, 2021; Yang & Roh, 2019), among other laudable behaviors.

Many researchers raised awareness on the corporate sustainability paradigm (van Marrewijk, 2003) as they reported about the businesses’ value creating activities that are synonymous with the triple bottom line discourse, in terms of their organizations’ social, environment, and economic performance (Chang, 2020; Döll et al., 2022; Su et al., 2022; van Lieshout et al., 2021; Yang & Roh, 2019).

Other authors identified strategic CSR (Fontana, 2017; Porter & Kramer, 2006) practices and discussed about shared value perspectives (Abdulkader et al., 2020; Porter & Kramer, 2011) that are intended to improve corporate financial performance while enhancing their social and environmental responsibility credentials among stakeholders (Ghodbane, 2019; Roszkowska-Menkes, 2018; Sánchez-Teba et al., 2021).

Mendes et al. (2021) argued that strategic CSR was evidenced through collaborative approaches involving employees and external stakeholders. They maintained that there is scope for businesses to reconceive their communication designs with a wide array of stakeholders. Similarly, Aakhus and Bzdak (2015) contended that stakeholder engagement and open innovation processes led to improved decision making, particularly when host organizations consider investing in resources and infrastructures to be in a better position to address the social, cultural, and environmental concerns.

Firms could implement open innovation approaches to benefit from outsiders’ capabilities and competences (of other organizations, including funders, partners, and beneficiaries, among others) (Alberti & Varon Garrido, 2017). They may benefit from the external stakeholders’ support to diversify their business and/or to develop innovative products and services. Their involvement could help them augment their financial performance in terms of their margins and return on assets (Ben Hassen & Talbi, 2022).

Ongoing investments in open and technological innovations in terms of process and product development can result in virtuous circles and positive multiplier effects for the businesses as well as to society. Practitioners can forge cooperative agreements with social entrepreneurs, for-profit organizations, or with non-profit entities. Many companies are increasingly recruiting consultants who are specialized in sustainable innovations. Alternatively, they engage corporate reporting experts to help them improve their ESG credentials with stakeholders (Holmes & Smart, 2009).

Such open innovation approaches are intrinsically related to key theoretical underpinnings related to CSR including the stakeholder theory, institutional theory, signaling theory, and to the legitimacy theory, among others (Authors; Freudenreich et al., 2020). Firms have a responsibility to bear toward societies where they operate their business (in addition to their economic responsibility to increase profits). Their collaborative stance with knowledgeable professionals may provide an essential impetus for them to improve their corporate reputation and image with customers and prospects.

The open innovation paradigm suggests that it is in the businesses’ interest to engage with stakeholders through outside-in (to benefit from external knowledge and expertise), inside-out (to avail themselves of their extant competences and capabilities), and coupled (cocreation) processes with internal and external stakeholders (Enkel et al., 2009; Roszkowska-Menkes, 2018). Its theorists claim that outside-in processes are intended to enhance the company’s knowledge as they source external information from marketplace stakeholders including suppliers, intermediaries, customers, and even competitors, among others.

Many researchers emphasize that there are a number of benefits resulting from coopetition among cooperative competitors. Their inside-out collaborative processes stimulate innovations, lead to improvements in extant technologies, and provide complementary resources, resulting in new markets and products. Competing businesses can exchange their ideas and innovations with trustworthy stakeholders, outside of their organizations’ boundaries in order to improve their socio-emotional wealth (Herrera & de las Heras-Rosas, 2020). The proponents of open innovation advocate that businesses ought to foster an organizational culture that promotes knowledge transfer, ongoing innovations, and internationalization strategies.

Michelino et al. (2019) held that organizations ought to engage in ambidextrous approaches. These authors commended that practitioners should distinguish between exploratory and traditional units of their business model. They posited that it would be better for them if they segregated the former from the latter ones, especially if they want to develop new processes, products, and technologies in mature markets. The organizations’ exploratory units could be in a better position to flexibly respond to ongoing changes in their marketing environment.

Other researchers noted that it would be better if the businesses’ R&D activities are attuned with the practitioners’ expertise and/or with their stakeholders who are involved in their open innovation knowledge sharing strategies (Talab et al., 2018). Companies can generate new sources of revenue streams, even in areas that are associated with social issues and/or with green economies, if they reach new customers in different markets (Centobelli, Cerchione, & Esposito, 2020; Chang, 2020; Su et al., 2022; Yang & Roh, 2019). They may partner with other organizations to commercialize their (incremental or radical) innovations through licensing fees, franchises, joint ventures, mergers and acquisitions, spinoffs, and so forth.

Many commentators made reference to coupled processes involving a combination of outside-in and inside-out open innovation processes (Roszkowska-Menkes, 2018). The businesses’ transversal alliances involving horizontal and vertical collaborative approaches with external stakeholders can help them co-create ideas to foster innovations (Greco et al., 2022; Rupo et al., 2018). Several open innovation theorists are increasingly raising awareness on how collaborative relationships with stakeholders including consumers, lead users, organizations who may or may not be related to the company per se, universities as well as research institutions, among others, are supporting various businesses in their R&D stages and/or in the design of products (Khan et al., 2022; Naruetharadhol et al., 2022). Very often, their research confirmed that such cocreation processes are utilized in different contexts, for the manufacturing of a wide range of technologies.

The findings from this review reported that, for the time being, just a few researchers are integrating open innovation’s cocreation approaches with corporate sustainability outcomes. A number of contributing authors insisted that there are many advantages for socially and environmentally responsible companies to embrace open innovation approaches (Carayannis et al., 2021; Cigir, 2018; Mendes et al., 2021; Yang & Roh, 2019). In many cases, they argued that the practitioners’ intentions are to broaden their search activities and to avail themselves from talented employees and external experts in exchange for enhanced social legitimacy, thereby availing themselves of innovation capital for future enterprising activities (Greco et al., 2022; Holmes & Smart, 2009).

Hence, businesses may benefit from the competences and capabilities of individual consultants and organizations (from outside their company) to tap into the power of co-creation, to source ideas for social and green innovations (van Lieshout et al., 2021). These alliances are meant to support laudable causes, address the deficits in society, and/or to minimize the businesses’ impact on the natural environment (Altuna et al., 2015; Khan et al., 2022). For-profit organizations can resort to open innovation approaches to avail themselves of resources and infrastructures that are not currently available within their firm. This way they can reduce their costs, risks, and timescales when diversifying into sustainable business ventures, including those related to social entrepreneurship projects (Peredo & McLean, 2006; Shapovalov et al., 2019). They may do so to leverage their business, to gain a competitive advantage over their rivals.

Open innovation challenges

Open innovations could expose the businesses to significant risks and uncertainties associated with enmeshed, permeable relationships with potential collaborators (Gomes et al., 2021; Madanaguli et al., 2023). Various authors contended that practitioners should create an organizational culture that is conducive to open innovation (Herrera & de las Heras-Rosas, 2020; Mohelska & Sokolova, 2017). Generally, they argued that host organizations should communicate and liaise with employees as well as with external partners, during the generation of ideas and in different stages of their R&D projects. Some researchers noted that open innovation practitioners tend to rely on their external stakeholders’ valuable support to diversify their business models, products, or services (Chalvatzis et al., 2019; Park & Tangpong, 2021; Su et al., 2022).

A number of academic commentators argued that practitioners have to set clear, specific, measurable, attainable, relevant, and timely goals to them before they even start working on a project together (Alberti & Varon Garrido, 2017). In many cases, they maintained that host organizations are expected to foster a strong relationship with collaborators. At the same time, they should ensure that the latter ones comply with their modus operandi (Dahlander & Wallin, 2020). In reality, it may prove difficult for the business leaders to trust the new partners. Unlike their employees, the external parties are not subject to the companies’ codes of conduct, rules, and regulations (Chesbrough, 2020; Shamah & Elssawabi, 2015). A few authors indicated that senior management may utilize extrinsic and intrinsic incentives to empower and motivate internal as well as external stakeholders to pursue their organization’s open innovation objectives (Chang, 2020; Greco et al., 2022; Holmes & Smart, 2009; Roszkowska-Menkes, 2018; Schmidt-Keilich & Schrader, 2019).

Some researchers identified possible threats during and after the implementation of joint projects. Very often, they contended that host organizations risk losing their locus of control to external stakeholders who are experts in their respective fields (Madanaguli et al., 2023). The latter ones may possess unique skills and competences that are not readily available within the organization. A few authors cautioned that the practitioners as well as their collaborators are entrusted to safeguard each other’s intangible assets. A number of researchers warned and cautioned that they may risk revealing insider information about sensitive commercial details relating to their intellectual capital (Gomes et al., 2021). As a result, companies may decide to collaborate on a few peripheral tasks as they may be wary of losing their return on investments if they share trade secrets with their new partners, who could easily become their competitors. Their proprietary knowledge concerns are of course real and vital for their future prospects. Therefore, their relationships with internal and external stakeholders should be based on mutual trust and understanding in order to increase the confidence in the projects’ outcomes (Ferraris et al., 2020; Sánchez-Teba et al., 2021).

CONCLUSIONS

The companies’ ongoing engagement with internal and external stakeholders as well as their strategic CSR initiatives and environmentally sustainable innovations can generate economic value, in the long run. This review confirms that for-profit organizations are increasingly using open innovation approaches. At the same time, they are following ethical practices, adopting responsible human resources management policies, and investing in green technologies to gain institutional legitimacy and to create competitive advantages for their business. Many authors reported that their corporate sustainability behaviors can enhance their organizations’ reputation and image among customers as well as with marketplace stakeholders. At the same time, their laudable practices may even improve their corporate financial performance.

During COVID-19, many businesses turned to open innovation’s collaborative approaches. Various stakeholders joined forces and worked with other organizations, including with competitors, on social projects that benefit the communities where they operate their companies. In many cases, practitioners have realized that such partnerships with certain stakeholders (like researchers, knowledgeable experts, creative businesses, and non-governmental institutions, among others) enable their organizations to find new ways to solve pressing problems and at the same time helped them build a positive reputation. Indeed, open innovation approaches can serve as a foundation for future win-win alliances, in line with sociological research demonstrating that trust develops when partners voluntarily go the extra mile, to create value to their business and to society at large.

Yet, this research revealed that there is still a gap in the academic literature that links CSR/corporate sustainability with open collaborative approaches. At the time of writing, this paper, there were only 45 contributions on the intersection of these notions.

A full version of this open-access paper can be accessed through publisher: https://onlinelibrary.wiley.com/doi/full/10.1002/bse.3377

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Walking the talk about Corporate Social Responsibility Communications

This is an excerpt from one of my latest articles that was accepted for publication by Wiley’s Business Ethics, the Environment and Responsibility (formerly known as Business Ethics: A European Review).

Suggested citation: Camilleri, M.A. (2022). Walking the talk about corporate social responsibility communication: An Elaboration Likelihood Model perspective, Business Ethics, the Environment & Responsibility, https://onlinelibrary.wiley.com/doi/full/10.1111/beer.12427

(Source: Camilleri, 2022)

Theoretical implications

This contribution validated the Elaboration Likelihood Model’s (ELM’s) measures and key constructs relating to the Information Adoption Model (IAM). Specifically, this research identified the effects of information relevance, information accuracy, information accuracy, source trustworthiness and source expertise on the individual’ attitudes toward online CSR communications.

The results confirmed that both central as well as peripheral factors (to a lower extent) were having a significant effect on the targeted audiences’ changing attitudes toward corporate communications. In sum, this study indicated that online users appreciated relevant and timely CSR content from trusted sources – that were curated by experts. This finding is conspicuous with relevant theoretical underpinnings on ELM. For instance, Chen and Chang (2018) and even Rawlins (2008) contended that individuals are usually captivated by current, relevant, complete, accurate, reliable, comparable and clear communications.

Relevant academic literature reported that individuals may choose to pursue ELM’s central route, whenever they evaluate the quality of the arguments/information that is communicated to them (Petty & Cacioppo, 1986). Alternatively, if they are not interested or motivated on the content, they may usually rely on the sources’ credibility to form their attitudes and opinions on their messages. Previous research often utilized ‘source expertise’ and ‘source trustworthiness’ constructs to measure the respondents’ perceptions about the credibility of sources of information.

In this case, this study found that the research participants were more influenced by ELM’s central route processing as information timeliness and information relevance were having nuanced effect on attitudes when compared to the peripheral factors including source expertise. Evidently, the respondents reflected and thought on CSR communications they accessed through the Internet and via social media. This finding implies that the businesses’ elaborated, high-quality content was changing their stakeholders’ attitudes toward CSR information.

Nevertheless, the research model indicated that the participants were somehow affected by peripheral issues, particularly by the source expertise of content curators. Previous literature reported that the recipients of information can still be influenced by the peripheral route’s subjective cues and/or by heuristic inferences (i.e. low elaboration issues). For instance, many individuals are continuously exposed to corporate communications from businesses who have excellent credentials among their followers (Camilleri, 2021a).

The findings from this study revealed that source trustworthiness was the weakest antecedent of the individuals’ attitudes toward CSR communications. This result is similar to previous findings from other studies, where the researchers reported that there were lower effects from peripheral factors like source credibility/source trustworthiness (than from central factors) on information usefulness/attitudes toward information.

This research demonstrated that external stakeholders were mainly processing information relating to the businesses’ CSR activities through the central route, as they considered their communications as elaborate, timely and relevant. However, it also showed that they held positive perceptions about the expertise of content curators who were disseminating information on their CSR credentials via digital media

Managerial implications

This contribution has investigated the online users’ attitudes about CSR communications and revealed their perceptions about the sources’ credibility. It implies that businesses can improve their credentials if they publish quality CSR content that is appreciated by their stakeholders. This research suggests that external stakeholders expected businesses to publish relevant information that is accurate and timely. This finding suggests that there is scope for the businesses to regularly update their CSR webpages with the latest developments. For instance, they can publish certain information and newsfeeds about non-financial matters including on their immediate responses to COVID-19 like sanitization and hygienic measures in their workplace environments. They may disseminate health and safety information through social media sites or via online video sharing platforms. They can use different digital media to promote their businesses’ responsible behaviors toward their employees and the community at large, during different waves of the pandemic.

Ultimately, it is in the companies’ interest to communicate about appropriate ESG matters with different stakeholders (Camilleri, 2021b). Businesses ought to use corporate websites to disseminate information on commercial aspects, corporate governance policies, CSR and/or environmental sustainability initiatives as well as on COVID-19. In this day and age, they should also utilize social media networks (SNSs) on a regular basis, to raise awareness about their website, and to interact on different issues with their followers, in real time. They can publish appealing content including images and videos about their CSR activities to entice the curiosity of stakeholders. They may also share excerpts from their CSR disclosures and could feature forward-looking statements that shed light on their trajectories for a post COVID-19 era.

Limitations and directions for future research

This study is not without limitations. The measures that were used to capture the data were drawn from ELM and from its related IAM. These theoretical models were mostly referenced in previous studies that were mostly focused on the co-creation of content, including online reviews and electronic word of mouth publicity. Therefore, the survey items were adapted for a study that sought to explore the online users’ attitudes toward CSR communications. In this case, the results confirmed the reliability and validity of the constructs. Hence, prospective researchers are encouraged to replicate this study in other contexts.

Future studies may consider different constructs that may be drawn from other theoretical frameworks, to shed more light on the individuals’ attitudes toward online communications, information adoption and/or intentional behaviors. Researchers may adopt other constructs to evaluate different aspects of online content. They may investigate perceptions about information access, information understandability, data richness, interactivity and customization capabilities or information completeness, among others. Alternatively, they could determine whether the information is rhetoric, difficult to understand, confusing, ineffective or even useless for online users. Furthermore, alternative research methods and sampling frames can be used to capture and analyze the data. Interpretative studies can explore other stakeholders’ in-depth opinions and beliefs on CSR communications and delve deeper into their content.  Inductive studies may reveal other important issues on how to improve the quality and credibility of CSR disclosures in the digital age.

References

Camilleri, M. A. (2021a). Strategic dialogic communication through digital media during COVID-19. In M. A. Camilleri (Ed.), Strategic Corporate Communication in the Digital Age. Bingley: Emerald, pp. 1-18. https://www.researchgate.net/publication/343294285_Strategic_Dialogic_Communication_Through_Digital_Media_During_COVID-19_Crisis

Camilleri, M.A. (2021b). Strategic attributions of corporate social responsibility and environmental management: The business case for doing well by doing good! Sustainable Development, https://onlinelibrary.wiley.com/doi/full/10.1002/sd.2256

Chen, C. C., & Chang, Y. C. (2018). What drives purchase intention on Airbnb? Perspectives of consumer reviews, information quality, and media richness. Telematics and Informatics35(5), 1512-1523.

Petty, R. E., & Cacioppo, J. T. (1986). The elaboration likelihood model of persuasion. In Communication and persuasion (pp. 1-24). Springer, New York, NY.

Rawlins, B. (2008). Give the emperor a mirror: Toward developing a stakeholder measurement of organizational transparency. Journal of Public Relations Research, 21(1), 71-99.

This excerpt was adapted for a blog. The full paper can be downloaded through: https://www.researchgate.net/publication/359186812_Walking_the_talk_about_corporate_social_responsibility_communication_An_Elaboration_Likelihood_Model_perspective

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How can we combat climate change?

This is an excerpt from one of my latest contributions.

Suggested citation: Camilleri, M.A. (2022). The rationale for ISO 14001 certification: A systematic review and a cost-benefit analysis, Corporate Social Responsibility and Environmental Management, https://doi.org/10.1002/csr.2254

Source: UNFCCC.int

During the Paris Climate Conference (COP 21), one hundred ninety-six (196) countries pledged their commitment to implement environmental performance measures to reduce the effects of climate change. This conference has led to the development of the ‘Paris Agreement’ where signatories became legally bound to limit global warming to below 2°C, and possibly 1.5°C (Palea & Drogo, 2020; Secinaro, Brescia, Calandra & Saiti, 2020). They recognized the importance of averting and minimizing the environmental impact that is caused by climate change, by scaling up their efforts and support initiatives to reduce emissions, by building resilience among parties, and by promoting cooperation (Birindelli & Chiappini, 2021; Gatto, 2020).

In the aftermath of COP 21, many countries submitted their plans for climate action (these plans are also known as nationally determined contributions – NDCs), where they communicated about their tangible actions that were aimed to reduce their greenhouse gas emissions and the impacts of rising temperatures (Fatica & Panzica, 2021; Gerged, Matthews & Elheddad, 2021).  Consequentially, intergovernmental organizations including the European Union (EU), among others, are increasingly establishing ambitious carbon neutrality goals and zero-carbon solutions to tackle climate change issues (Benz, Paulus, Scherer, Syryca & Trück, 2021).

Many countries are incentivizing businesses across different economic sectors, to reduce their emissions. For example, the EU member states are expected to reduce their greenhouse gas emissions by 40% before 2030, and by 60% prior to 2050 (EU, 2019). These targets would require the commitment of stakeholders from various sectors including those operating within the energy and transportation industries, among others.

The latest climate change conference (COP26) suggested that progress has been made on the signatories’ mitigation measures that were aimed to reduce emissions, on their adaptation efforts to deal with climate change impacts, on the mobilization of finance, and on the increased collaboration among countries to reach 2030 emissions targets. However, more concerted efforts are required to deliver on these four pledges (UNFCC, 2021).

This contribution raises awareness on the use of environmental management standards that are intended to support organizations of different types and sizes, including private entities, not-for-profits as well as governmental agencies, to improve their environmental performance credentials. A thorough review of the relevant literature suggests that, over the years many practitioners have utilized the International Standards Organization’s ISO 14001 environment management systems standard to assist them in their environmental management issues (Baek, 2018; Delmas & Toffel, 2008; Erauskin‐Tolosa, Zubeltzu‐Jaka, Heras‐Saizarbitoria & Boiral, 2020; Melnyk, Sroufe & Calantone, 2003).

Many academic commentators noted that several practitioners operating in different industry sectors, in various contexts, are implementing ISO 14001 requirements to obtain this standard’s certification (Boiral, Guillaumie, Heras‐Saizarbitoria & Tayo Tene, 2018; Para‐González & Mascaraque‐Ramírez, 2019; Riaz, & Saeed, 2020). Whilst several researchers contended about the benefits of abiding by voluntary principles and guidelines (Camilleri, 2018), others discussed about the main obstacles to obtaining impartial audits, assurances and certifications from independent standard setters (Hillary, 2004; Ma, Liu, Appolloni & Liu, 2021; Robèrt, Schmidt-Bleek, Aloisi De Larderel … & Wackernagel, 2002; Teng & Wu, 2018).

Hence, this research examines identifies the rationale for ISO 14001 certification (Carvalho, Santos & Gonçalves, 2020; Eltayeb, Zailani & Ramayah, 2011; Lee, Noh, Choi & Rha, 2017; Potoski & Prakash, 2005) that is supposedly intended to improve the organizations’ environmental performance and to enhance their credentials. Specifically, this contribution’s objectives are threefold. Firstly, it provides a generic background on voluntary instruments, policies and guidelines that are intended to promote corporate environmentally responsible behaviors. Secondly, it presents the results from a systematic review of academic articles that were focused on ISO 14001 – environment management systems. Thirdly, it synthesizes the findings from high impact papers and discusses about the benefits and costs of using this standard. In conclusion, it elaborates on the implications of this research, it identifies its limitations and points out future research avenues.

In sum, this contribution differentiates itself from previous articles, particularly those that sought to investigate the introduction and implementation of environment management systems in specific entities. This research involves a two-stage systematic analysis. It appraises a number of empirical investigations, theoretical articles, reviews, case studies, discursive/opinion papers, from 1995-2021. Afterwards, it scrutinizes their content to shed more light on the pros and cons of using ISO 14001 as a vehicle to improve corporate environmental performance.

This paper can be downloaded, in its entirety, through ResearchGate: https://www.researchgate.net/publication/358557458_The_rationale_for_ISO_14001_certification_A_systematic_review_and_a_cost-benefit_analysis

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Advancing community-based tourism approaches for sustainable destinations

This is an excerpt from one of my latest papers on sustainable tourism.

Suggested citation: Mtapuri, O., Camilleri, M.A. & Dłużewska, A. (2021). Advancing community-based tourism approaches for the sustainable development of destinations. Sustainable Development, 

https://onlinelibrary.wiley.com/doi/10.1002/sd.2257

Image adapted from TravelDailyNews.

Whilst mass tourism service providers, such as foreign owned properties including international hotel chains are associated with economic leakages (Garrigós et al., 2015), locally-owned, smaller businesses, are usually aligned to economic linkages.

Destinations can use community-based tourism (CBT) approaches to increase linkages by attracting high yield, affluent tourists to locally-owned companies (Butler, 2020; Prasiasa, et al., 2020). From a community-based perspective, the limitation of tourism figures can improve the destinations’ sustainability, whilst limiting the impacts on the natural environment (Saarinen, 2006:1129). Tourism businesses can contribute to reduce their impact on the environment by limiting the number of tourists. They can improve the quality of their services to appeal to high-end segments.

To be successful, the proponents of CBT ought to ensure that they retain specific principles and characteristics. Thus, CBT practitioners could differentiate themselves from other business models by offering authentic, local experiences to their guests. CBT can establish itself as a niche tourism product that appeals to lucrative market segments. Therefore, service providers are expected to deliver on their promises. They have to meet and exceed their customers’ expectations without lowering their standards of service.

CBT operators rely on their community’s local resources including environment/natural resources, heritage, culture as well as on knowledgeable human resources. Their employees should possess customer service skills, and ought to be trained about their local tourism products. Local businesses may usually engage native employees to improve their consumers’ experiences with their CBT product.

However, there may be instances where CBT operators may not find local employees in the labor market. In this case, they have to train their imported employees about local cultures and traditions in order to continue delivering authentic CBT experiences. The following figure presents a model for sustainable CBT that relies on the destinations’ effective management of their carrying capacities.

An ongoing evaluation of the destinations’ infrastructures as well as on their human and natural resources, particularly during their high season, is required to ensure that they do not exceed their specific carrying capacities. While each specific context will have its own specific performance indicators, this contribution suggests that destination marketers ought to consider the following issues:

• The participation of local businesses and individual in CBT.
• Local procurement of products (for accommodation establishments, hotels, restaurants, and to other tourism businesses).


It is in the interest of CBT operators to think locally and act globally (Hofstede, 1998). They should consider sourcing their requirements from their local communities, where possible. Hence, tourism planners could utilize local resources to reduce leakages from their economy.

Governments can encourage tourism businesses to support local enterprises, for example, by purchasing local products, and by supporting the local communities. They may also incentivize businesses through financial instruments to pursue laudable activities. They can also provide support to tourism businesses, including small hotels and B&Bs to upgrade their services to attract lucrative tourists in their communities. At the same time, they have to maintain their destinations’ infrastructure and should offer suitable amenities to visitors.

These strategies are meant to foster an environment that promotes sustainable CBT approaches that are intended to increase economic linkages, whilst improving societal and the environmental outcomes in local communities. The following figure clarifies how tourism businesses can optimize the utilization of local resources through sustainable CBT strategies in order to improve their destination’s carrying capacity whilst reducing leakages from their economy.

The effectiveness of this proposed model for sustainable community-based tourism relies on a regular evaluation of the marketing environment. Tourism practitioners are expected to examine and re-examine their CBT strategies to ensure that they are still creating value to their business, to the local community and to the environment at large.

Sustainable CBT approaches can support the local economic development of destinations, however leakages can jeopardize the destinations’ competitiveness and growth prospects. While the degree and types of leakages may vary, according to specific characteristics of certain countries, it can be argued that the proper utilization of local resources can improve the national economies and the quality of life of different communities, including those from emerging economies.

The type of tourism planning and development that is adopted by certain destinations is another factor that can have an effect on their economic leakages or linkages. Based on the above, this contribution puts forward a theoretical model that is intended to address the limitations of the carrying capacities of various destinations. In sum, it suggests that sustainable CBT approaches that rely on the optimal utilization of local resources (including human and natural) may result in economic growth as well as in positive outcomes to local communities and their natural environments. This model is aimed at rebalancing leakages with linkages in the economy, whilst responding to challenges relating to the supply chains of different tourism businesses.

Indeed, there is scope for destinations to maximize the use of resources at their disposal (both human and natural). In a similar vein, companies should avail themselves of local resources, competences and capabilities. It is also in their interest to engage in strategic CSR and sustainable tourism practices to support local stakeholders and to safeguard their natural environment.

A sustainable CBT model would require tourism businesses to forge relationships with different stakeholders including with the government and its policymakers, suppliers, creditors, employees and customers, among others. The advancement of CBT would also necessitate that destination marketers and hospitality businesses work together, in tandem to improve their tourism product. Local stakeholders are expected to safeguard their natural environment, culture and traditions for the benefit of their communities, and for their valued tourists and visitors who would probably appreciate authentic destinations that offer unique experiences to them.

The full paper and the reference list is available here: https://www.researchgate.net/publication/355446004_Advancing_community-based_tourism_approaches_for_the_sustainable_development_of_destinations

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Why should hospitality businesses care about their stakeholders?

Image by Rob Monkman (React Mobile)

The following text was adapted from one of my latest articles that was published in Wiley’s Sustainable Development (Journal).

Suggested Citation: Camilleri, M.A. (2021). Strategic attributions of corporate social responsibility and environmental management: The business case for doing well by doing.  good! Sustainable Development. https://onlinelibrary.wiley.com/doi/full/10.1002/sd.2256

Introduction

The corporate social responsibility (CSR) notion became popularized during the latter part of 20th the century (Carroll, 2021; 1999; Moon, 2007). At the time, businesses were becoming more concerned on how their activities affected legitimate stakeholders and the development of society at large (Phillips, 2003; Freeman & Reed, 1983). Hence, various authors posited that CSR is a fertile ground for theory development and empirical analysis (McWilliams, Siegel & Wright, 2006).

Without doubt, the clarification of the meaning of CSR is a significant strand in the research agenda (Owen, 2005). CSR has developed as a rather vague concept of moral good or normative behaviors (Frederick, 1986). This construct was described as a relativistic measure of ‘the economic, legal, ethical and discretionary expectations that society had of organizations at a given point of time’ (Carroll, 1979). CSR tackled ‘social problem(s)’ to engender positive ‘economic benefit(s)’ to ensure ‘well paid jobs, and … wealth’ (Drucker, 1984).

CSR has continuously been challenged by those who expected businesses to engage in socially responsible behaviors with stakeholders, to adhere to ethical norms in society, and to protect the natural environment (Camilleri, 2015; Lindgreen & Swaen, 2010; Burke & Logsdon, 1996). Previous research reported that CSR practices can result in improved relationships with different stakeholders (Camilleri, 2017a; Moon, 2007; Sen, Bhattacharya & Korschun, 2006).

Various commentators contended that it is in the businesses’ interest to engage in responsible behaviors to forge closer ties with internal and external stakeholders (Ewan & Freeman, 1993; Freeman, 1984). In addition, many researchers reported that there is a causal relationship between the firms’ stakeholder engagement and their financial performance (Henisz, Dorobantu & Nartey, 2014 Pava & Krausz, 1996). This relationship also holds in the tourism and hospitality industry context (Rhou, Singal & Koh, 2016; Camilleri, 2012; Inoue, & Lee, 2011).

Various hotels and restaurants are increasingly communicating about their responsible activities that are having an effect on their stakeholders, including their employees, patrons, guests, suppliers, local communities, the environment, regulatory authorities and the community at large (Camilleri, 2020a). Like other businesses, tourism and hospitality enterprises are always expected to provide decent employment to locals and migrant workers, health and safety in their workplace environments, adequate compensation and recognition of all employees, ongoing training and development opportunities, work-life balance, and the like.

Various studies suggest that, in normal circumstances, when businesses engage in responsible human resources management (HRM), they will boost their employees’ morale, enhance their job satisfaction and reduce the staff turnover (Asimah, 2018). However, an unprecedented COVID-19 and its preventative measures have surely led to a significant reduction in their business activities.

The pandemic has had a devastating effect on the companies’ social metrics, including on their employees’ conditions of employment, financial remuneration and job security, among other issues (Kramer & Kramer, 2020). It has inevitably led to mass redundancies or resulted in the workers’ reduced wages and salaries. On the other hand, this situation has led to a decrease in the companies’ environmental impacts, such as their greenhouse gas emissions and other unwanted externalities.

Several businesses, including hospitality enterprises are becoming more concerned about their impact on the environment (Kim, Lee & Fairhurst, 2017; Elkington, 1998). In many cases, hotels and restaurants strive to reduce their environmental footprint by offering local, fresh, and sustainable food to their patrons. Very often, they are implementing sustainable models including circular economy systems to use and reuse resources, and to minimize their waste, where possible (Camilleri, 2020b). Alternatively, they are decreasing their electricity and water consumption in their properties, by investing in green technologies and renewable energy sources.

These sustainability initiatives could result in operational efficiencies and cost savings, higher quality, innovation and competitiveness, in the long term. As a matter of fact, many studies confirmed that there is a business case for CSR, as corporations engage in socially responsible and environmentally sound behaviors, to pursue profit-making activities (Porter & Kramer, 2011; 2019; Camilleri, 2012; Carroll & Shabana, 2010; Weber, 2008). Notwithstanding, CSR and sustainable practices can help businesses to improve their reputation, to enhance their image among external stakeholders and could lead to a favorable climate of trust and cooperation with internal stakeholders (Camilleri, 2019a).

In this light, this research builds on previous theoretical underpinnings that are focused on the CSR agenda and on its related stakeholder theory. However, it differentiates itself from other contributions as it clarifies that stakeholder attributions, as well as the corporations’ ethical responsibility, responsible human resources management and environmental responsibility will add value to society and to the businesses themselves.

This contribution addresses a knowledge gap in academia. For the time being, there is no other study that effects of stakeholders’ attributions on the companies’ strategic attributions, as depicted in Figure 1. In sum, this study clarifies that there is scope for businesses to forge strong relationships with different stakeholders. It clearly indicated that their engagement with stakeholders and their responsible behaviors were leading to strategic outcomes for their business and to society at large.

Figure 1. A research model that sheds light on the factors leading to strategic outcomes of corporate responsible behaviors

(Source: Camilleri, 2021)

Implications to academia

This research model suggests that the businesses’ socially and environmentally responsible behaviors are triggered by different stakeholders. The findings evidenced that stakeholder-driven attributions were encouraging tourism and hospitality companies to engage in responsible behaviors, particularly toward their employees. The results confirmed that stakeholders were expecting these businesses to implement environmentally friendly initiatives, like recycling practices, water and energy conservation, et cetera. The findings revealed that there was a significant relationship between stakeholder attributions and the businesses’ strategic attributions to undertake responsible and sustainable initiatives.

This contribution proves that there is scope for tourism and hospitality firms to forge relationships with various stakeholders. By doing so, they will add value to their businesses, to society and the environment. The respondents clearly indicated that CSR initiatives were having an effect on marketplace stakeholders, by retaining customers and attracting new ones, thereby increasing their companies’ bottom lines.

Previous research has yielded mixed findings on the relationships between corporate social performance and their financial performance (Inoue & Lee, 2011; Kang et al., 2010; Orlitzky, Schmidt, & Rynes, 2003; McWilliams and Siegel 2001). Many contributions reported that companies did well by doing good (Camilleri, 2020a; Falck & Heblich, 2007; Porter & Kramer, 2011). The businesses’ laudable activities can help them build a positive brand image and reputation (Rhou et al., 2016). Hence, there is scope for the businesses to communicate about their CSR behaviors to their stakeholders. Their financial performance relies on the stakeholders’ awareness of their social and environmental responsibility (Camilleri, 2019a).

Arguably, the traditional schools of thought relating to CSR, including the stakeholder theory or even the legitimacy theory had primarily focused on the businesses’ stewardship principles and on their ethical or social responsibilities toward stakeholders in society (Carroll, 1999; Evan & Freeman, 1993; Freeman, 1986). In this case, this study is congruent with more recent contributions that are promoting the business case for CSR and environmentally-sound behaviors (e.g. Dmytriyev et al., 2021; Carroll, 2021; Camilleri, 2012; Carroll & Shabana 2010; Falck & Heblich, 2007).

This latter perspective is synonymous with value-based approaches, including ‘The Virtuous Circles’ (Pava & Krausz 1996), ‘The Triple Bottom Line Approach’ (Elkington 1998), ‘The Supply and Demand Theory of the Firm’ (McWilliams & Siegel 2001), ‘the Win-Win Perspective for CSR practices’ (Falck & Heblich, 2007), ‘Creating Shared Value’ (Porter & Kramer 2011), ‘Value in Business’ (Lindgreen et al., 2012), ‘The Stakeholder Approach to Maximizing Business and Social Value’ (Bhattacharya et al., 2012), ‘Value Creation through Social Strategy’ (Husted  et al., 2015) and ‘Corporate Responsibility and Sustainability’ (Camilleri, 2018), among others.

In sum, the proponents of these value-based theories sustain that there is a connection between the businesses’ laudable behaviors and their growth prospects. Currently, there are still a few contributions, albeit a few exceptions, that have focused their attention on the effects of stakeholder attributions on CSR and responsible environmental practices in the tourism and hospitality context.

This research confirmed that the CSR initiatives that are directed at internal stakeholders, like human resources, and/or environmentally friendly behaviors that can affect external stakeholders, including local communities are ultimately creating new markets, improving the companies’ profitability and strengthening their competitive positioning. Therefore, today’s businesses are encouraged to engage with a wide array of stakeholders to identify their demands and expectations. This way, they will be in a position to add value to their business, to society and the environment.

Managerial Implications

The strategic attributions of responsible corporate behaviors focus on exploiting opportunities that reconcile differing stakeholder demands. This study demonstrated that tourism and hospitality employers were connecting with multiple stakeholders. The respondents confirmed that they felt that their employers’ CSR and environmentally responsible practices were resulting in shared value opportunities for society and for the businesses themselves, as they led to an increased financial performance, in the long run.

In the past, CSR was associated with corporate philanthropy, contributions-in-kind toward social and environmental causes, environmental protection, employees’ engagement in community works, volunteerism and pro-bono service among other responsible initiatives. However, in this day and age, many companies are increasingly recognizing that there is a business case for CSR. Although, discretionary spending in CSR is usually driven by different stakeholders, businesses are realizing that there are strategic attributions, in addition to stakeholder attributions, to invest in CSR and environmental management practices (Camilleri, 2017a).

This contribution confirmed that stakeholder pressures were having direct and indirect effects on the businesses’ strategic outcomes. This research clearly indicated that both internal and external stakeholders were encouraging the tourism business to invest in environmentally friendly initiatives. This finding is consistent with other theoretical underpinnings (He, He & Xu, 2018; Graci & Dodds, 2008).

Recently, more hotels and restaurants are stepping in with their commitment for sustainability issues as they comply with non-governmental organizations’ regulatory tools such as process and performance-oriented standards relating to environmental protection, corporate governance, and the like (Camilleri, 2015).

Many governments are reinforcing their rules of law and directing businesses to follow their regulations as well as ethical principles of intergovernmental institutions. Yet, certain hospitality enterprises are still not always offering appropriate conditions of employment to their workers (Camilleri, 2021; Asimah, 2018; Janta et al., 2011; Poultson, 2009). The tourism industry is characterized by its seasonality issues and its low entry, insecure jobs.

Several hotels and restaurants would usually offer short-term employment prospects to newcomers to the labor market, including school leavers, individuals with poor qualifications and immigrants, among others (Harkinson et al., 2011). Typically, they recruit employees on a part-time basis and in temporary positions to economize on their wages. Very often, their low-level workers are not affiliated with trade unions. Therefore, they are not covered by collective agreements. As a result, hotel employees may be vulnerable to modern slavery conditions, as they are expected to work for longer than usual, in unsocial hours, during late evenings, night shifts, and in the weekends.

In this case, this research proved that tourism and hospitality employees appreciated their employers’ responsible HRM initiatives including the provision of training and development opportunities, the promotion of equal opportunities when hiring and promoting employees and suitable arrangements for their health and safety. Their employers’ responsible behaviors was having a significant effect on the strategic attributions to their business.

Hence, there is more to CSR than ‘doing well by doing good’. The respondents believed that businesses could increase their profits by engaging in responsible HRM and in ethical behaviors. They indicated that their employer was successful in attracting and retaining customers. This finding suggests that the company they worked for, had high credentials among their employees. The firms’ engagement with different stakeholders can result in an improved reputation and image. They will be in a better position to create economic value for their business if they meet and exceed their stakeholders’ expectations.  

In sum, the objectives of this research were threefold. Firstly, the literature review has given an insight into mainstream responsible HRM initiatives, ethical principles and environmentally friendly investments. Secondly, its empirical research has contributed to knowledge by adding a tourism industry perspective in the existing theoretical underpinnings that are focused on strategic attributions and outcomes of corporate responsibility behaviors. Thirdly, it has outlined a model which clearly evidences how different stakeholder demands and expectations are having an effect on the businesses’ responsible activities.

On a lighter note, it suggests that Adam Smith’s ‘invisible hand’ is triggering businesses to create value to society whilst pursuing their own interest. Hence, corporate social and environmental practices can generate a virtuous circle of positive multiplier effects.

Therefore, there is scope for the businesses, including tourism and hospitality enterprises to communicate about their CSR and environmental initiatives through different marketing communications channels via traditional and interactive media. Ultimately, it is in their interest to promote their responsible behaviors through relevant messages that are clearly understood by different stakeholders.

Limitations and future research

This contribution raises awareness about the strategic attributions of CSR in the tourism and hospitality industry sectors. It clarified that CSR behaviors including ethical responsibility, responsible human resources management and environmental responsibility resulted in substantial benefits to a wide array of stakeholders and to the firm itself. Therefore, there is scope for other researchers to replicate this study in different contexts.

Future studies can incorporate other measures relating to the stakeholder theory. Alternatively, they can utilize other measures that may be drawn from the resource-based view theory, legitimacy theory or institutional theory, among others. Perhaps, further research may use qualitative research methods to delve into the individuals’ opinions and beliefs on strategic attributions of CSR and on environmentally-sound investments, including circular economy systems and renewable technologies.

A free-prepublication version of this paper is available (in its entirety) through ResearchGate.

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Filed under Business, Corporate Social Responsibility, Corporate Sustainability and Responsibility, COVID19, CSR, Hospitality, Human Resources, human resources management, Marketing, Strategic Management, Strategy, Sustainability, sustainable development, tourism

What was the employees’ state of mind during COVID-19?

This is an excerpt from my latest open-access research that was accepted for publication in Sustainability (IF: 2.576)

Citation: Camilleri, M.A. (2021). The Employees’ State of Mind during COVID-19: A Self-Determination Theory Perspective. Sustainability, 13, 3634. https://doi.org/10.3390/su13073634


Academic Implications

This empirical research has presented a critical review of the self-determination theory and its key constructs, as well as on other theoretical underpinnings that were drawn from business ethics and tourism literature. It shed light on the employees’ job security as well as on their extrinsic and intrinsic motivations in their workplace environment. Moreover, it explored their perceptions on their employers’ CSR practices during COVID-19. The study hypothesized that the employees’ identified motivations, introjected motivations, external motivations, job security and their firms’ socially responsible behaviors would have a positive and significant effect on their intrinsic motivations and organizational performance. The findings confirmed that the employees’ intrinsic motivations were predicting their productivity. This relationship was highly significant. Evidently, the employees were satisfied in their job, as they fulfilled their self-determination and intrinsic needs for competence, autonomy and relatedness [15,48,56]. Their high morale in their workplace environment has led to positive behavioral outcomes, including increased organizational performance.

The results reported that there were highly significant effects between the employees’ identified motivations and intrinsic motivations, and between their perceptions on their firms’ socially responsible practices and their intrinsic motivations. The mediation analysis indicated that these two constructs were indirectly affecting the employees’ job performance. These results suggest that although previous studies reported that extrinsic factors could undermine the intrinsic motivations of individuals [35–37], this study found that the research participants have internalized and identified themselves with their employers’ extrinsically motivated regulations, as they enabled them to achieve their self-defining goals. In this case, the respondents indicated that they were willing to perform certain tasks, as they perceived that their utilitarian values were also sustaining their psychological well-being and self-evaluations. The employees also identified motivations that led as an incentive to increase their organizational performance. The empirical results have proved that the employees were motivated to work for firms that reflected their own values [60,77]. This research is consistent with other contributions on CSR behaviors [32,78,88,90,91]. The respondents suggested that their employers had high CSR credentials. The findings revealed that the businesses’ CSR practices enhanced their employees’ intrinsic motivations and satisfied their psychological needs of belongingness and relatedness. Evidently, the firms’ socially responsible behaviors were enhancing their employees’ productivity and performance in their workplace environment.

The participants’ beliefs about their job security were also found to be a significant antecedent of their intrinsic motivations. Their perceptions on their job security were affecting their morale at work, in a positive manner [22,61]. During COVID-19, many employees could have experienced reduced business activities. As a result, many businesses could have pressurized their employees in their organizational restructuring and/or by implementing revised conditions of employment, including reduced working times, changes in sick leave policies, et cetera, particularly during the first wave of the pandemic. However, despite these contingent issues, the research participants indicated that they perceived that there will be job continuity for them in the foreseeable future. This study indicated that many employees were optimistic about their job prospects during the second wave.

The findings suggest that employees are attracted by and motivated to work for trustworthy, socially responsible employers [43,62,66,75]. On the other hand, they reported that the participants’ introjected and external motivations were not having a significant effect on their intrinsic motivations and did not entice them to engage in productive behaviors during the COVID-19 crisis. A plausible justification for this result is that the participants were well aware that their employers did not have adequate and sufficient resources during COVID-19. Their employers were not in a position to reward or incentivize their employees due to financial constraints that resulted from their reduced business activities or were never prepared to deal with such an unprecedented contingent situation. Hence, external motivations were not considered as stable forms of regulation [36]. Many researchers noted that extrinsic motivations will not necessarily influence the individuals’ behaviors, as their perceived locus of control is external to them. Therefore, their actions will not be autonomous and self-determined [35,52].

Managerial Implications
Businesses are continuously affected by ongoing challenges arising from their macro environment. The pandemic has exacerbated their transformation on behavioral, cultural and organizational levels. The first wave of COVID-19 was devastating for many businesses, in different contexts. The social-distancing procedures have led to changes in their working conditions and diminished communications. Many of the non-essential businesses were expected to follow their government’s preventative measures to slow the spread of the pandemic and to close the doors to their customers. Moreover, several employees have experienced their employers’ cost cutting exercises, as they reduced salaries and wages. These uncertainties have affected their employees’ psychological capital and caused them anxiety and frustration [99]. Notwithstanding, many employees were concerned about their job security and long-term prospects. During the work-from-home scenario, employers had to finds new ways to manage their employees’ performance. The change in their working environment allowed them to do their work, whilst also attending to personal needs. Very often, employees found themselves taking other responsibilities including parenting/schooling their children.

Remote working has served as a reminder to managers that there are a number of non-work-related factors that can affect their employees’ mindsets and engagement levels. Hence, many employers set virtual meetings with their human resources to inject a sense of purpose in them. During the first wave of the pandemic, the employees’ intrinsic motivations have declined with the decreasing visibility of their management or colleagues. The lack of motivation could have led to a decrease in their productivity levels [3]. Therefore, employers were expected to look after their employees and to foster a culture of trust and recognition to improve their motivations and performance at work [64]. This study was carried out during the second wave, when many governments had eased their preventative restrictions to restart their economy. As a result, many employees were returning to work. They were encouraged to work in a new normal, where they were instructed to follow their employers’ health and safety policies as well as hygienic and sanitizing practices in their premises. They introduced hygienic practices, temperature checks and expected visitors to wear masks to reduce the spread of the virus.

Many businesses, including SMEs and startups, were benefiting of their governments’ financial assistance. Resources were allocated to support them in their cashflow requirements, to minimize layoffs and to secure the employment of many employees. These measures instilled confidence in employers, as they provided their employees with a sense of relatedness, competence and autonomy in their workplace environments. Evidently, employers were successful in fostering a cohesive culture where they identified their employees’ values and their self-determined goals [45]. In sum, this contribution revealed that employees felt a sense of belonging in their workplace environment. The results confirmed that their intrinsic motivations were enhancing their productivity levels and organizational performance.

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What is Corporate Citizenship?

The corporate citizenship term was typically used to describe the corporations that can contribute to the ethical, philanthropic and societal goals. Therefore, this notion is rooted in political science as it directs corporations to respond to non-market pressures.

Throughout the years, the corporate citizenship agenda has been wrought from distinctive corporate social responsibility (CSR) theories and approaches. Its conceptual foundations can be found in the CSR literature (e.g., Carroll, 1979), corporate social responsiveness (e.g., Clarkson, 1995), corporate social performance (e.g., Albinger & Freeman, 2000), the theory of the firm” (McWilliams & Siegel, 2001), stakeholder engagement (Strand & Freeman, 2013); and other enlightened ‘self-interest’ theories; as corporate citizenship can be a source of opportunity, innovation and competitive advantage (Camilleri, 2017a, 2017b; Porter & Kramer, 2006). For this reason, this concept continues to receive specific attention, particularly by those responsible businesses that are differentiating themselves through responsible and sustainable behaviours.

 

Literature Review

The multinational corporations (MNCs) have been (and still are) under pressure to exhibit “good corporate citizenship” in every country or market from where they run their business. MNCs are continuously monitored by their stakeholders, including regulatory authorities, creditors, investors, customers and the community at large. They are also being scrutinised by academic researchers. Several empirical studies have explored the individuals’ attitudes and perceptions toward corporate citizenship. Very often, their measurement involved quantitative analyses that investigated the corporations’ responsible behaviours (Camilleri, 2017a; 2017b). Other research has focused on the managerial perceptions about corporate citizenship (e.g., Basu & Palazzo, 2008). A number of similar studies have gauged corporate citizenship by adopting Fortune’s reputation index (Flanagan, O’Shaughnessy, & Palmer, 2011; Melo & Garrido‐Morgado, 2012), the KLD index (Dupire & M’Zali, 2018; Fombrun, 1998; Griffin & Mahon, 1997) or Van Riel and Fombrun’s (2007) Reptrak. Such measures expected the surveyed executives to assess the extent to which their company behaves responsibly toward the environment and the community (Fryxell and Wang, 1994).

Despite the wide usage of such measures in past research, the appropriateness of these indices still remains doubtful. For instance, Fortune’s reputation index failed to account for the multidimensionality of the corporate citizenship construct; as it is suspected to be more significant of management quality than of corporate citizenship (Waddock & Graves, 1997). Fortune’s past index suffered from the fact that its items were not based on theoretical arguments as they did not appropriately represent the economic, legal, ethical, and discretionary dimensions of the corporate citizenship construct.

Pinkston and Carroll (1994) identified four dimensions of corporate citizenship, including; orientations, stakeholders, issues and decision-making autonomy. They argued that by observing orientations, one may better understand the inclinations or the posturing behaviours of organisations with respect to corporate citizenship. Pinkston and Carroll (1994) sought to identify the stakeholder groups that are benefiting from the businesses’ corporate citizenship practices. They argued that the businesses’ decision-making autonomy determined at what organisational level they engaged in corporate citizenship. In a similar vein, Griffin and Mahon (1997) combined four estimates of corporate citizenship: Fortune’s reputation index, the KLD index, the Toxic Release Inventory (TRI), and the rankings that are provided in the Directory of Corporate Philanthropy.

Singh, De los Salmones Sanchez and Rodriguez del Bosque (2007) adopted a multidimensional perspective on three domains, including; commercial responsibility, ethical responsibility and social responsibility. Firstly, they proposed that the commercial responsibility construct relates to the businesses’ responsibility to develop high quality products and truthful marketing communications of their products’ attributes and features among customers. Secondly, they maintained that ethical responsibility is concerned with the businesses fulfilling their obligations toward their shareholders, suppliers, distributors and other agents with whom they make their dealings. Singh et al. (2007) argued that ethical responsibility involves the respect for the human rights and norms that are defined in the law when carrying out business activities. They hinted that respecting ethical principles in business relationships has more priority than achieving superior economic performance. Their other domain, social responsibility is concerned about with corporate citizenship initiatives that are characterised by the businesses’ laudable behaviors (Camilleri, 2017c). The authors suggest that the big businesses could allocate part of their budget to the natural environment, philanthropy, or toward social works that supported the most vulnerable groups in society. This perspective supports the development of financing social and/or cultural activities and is also concerned with improving societal well-being (Singh et al., 2007).

Conclusion

There are several actors within a society, including the government and policy makers, businesses, marketplace stakeholders and civil society organisations among others (Camilleri, 2015). It is within this context that a relationship framework is required to foster corporate citizenship practices in order to enhance the businesses’ legitimacy amongst stakeholders (Camilleri, 2017; Camilleri, 2018). The corporate citizenship practices including socially responsible and environmentally sustainable practices may be triggered by the institutional and/or stakeholder pressures.

 

References

Albinger, H.S. & Freeman, S.J. (2000). Corporate social performance and attractiveness as an employer to different job seeking populations. Journal of Business Ethics, 28(3), 243-253.

Basu, K. & Palazzo, G. (2008). Corporate social responsibility: A process model of sensemaking, Academy of Management Review, 33(1), 122-136.

Camilleri, M. A. (2015). Valuing stakeholder engagement and sustainability reporting. Corporate Reputation Review18(3), 210-222.

Camilleri, M. A. (2017a). Corporate citizenship and social responsibility policies in the United States of America. Sustainability Accounting, Management and Policy Journal, 8(1), 77-93.

Camilleri, M. A. (2017b). Corporate Social Responsibility Policy in the United States of America. In Corporate Social Responsibility in Times of Crisis (pp. 129-143). Springer, Cham.

Camilleri, M. A. (2017c). Corporate sustainability and responsibility: creating value for business, society and the environment. Asian Journal of Sustainability and Social Responsibility2(1), 59-74.

Camilleri, M. A. (2018). Theoretical insights on integrated reporting: The inclusion of non-financial capitals in corporate disclosures. Corporate Communications: An International Journal. 23(4) 567-581.

Carroll, A.B. (1979). A three-dimensional conceptual model of corporate performance. Academy of Management Review, 4(4), 497-505.

Dupire, M., & M’Zali, B. (2018). CSR strategies in response to competitive pressures. Journal of Business Ethics148(3), 603-623.

Flanagan, D. J., O’shaughnessy, K. C., & Palmer, T. B. (2011). Re-assessing the relationship between the Fortune reputation data and financial performance: overwhelming influence or just a part of the puzzle?. Corporate Reputation Review14(1), 3-14.

Fombrun, C.J. (1998). Indices of corporate reputation: An analysis of media rankings and social monitors’ ratings. Corporate Reputation Review, 1(4), 327-340.

Griffin J.J. & Mahon, J.F. (1997). The corporate social performance and corporate financial performance debate twenty-five years of incomparable research. Business & Society, 36(1), 5-31.

McWilliams, A. & Siegel, D. (2001). Corporate social responsibility: A theory of the firm perspective, Academy of Management Review, 26(1), 117-127.

Melo, T., & Garrido‐Morgado, A. (2012). Corporate reputation: A combination of social responsibility and industry. Corporate social responsibility and environmental management19(1), 11-31.

Pinkston, T.S. & Carroll, A.B. (1994). Corporate citizenship perspectives and foreign direct investment in the US. Journal of Business Ethics, 13(3), 157-169.

Porter, M. E., & Kramer, M. R. (2006). The link between competitive advantage and corporate social responsibility. Harvard business review84(12), 78-92.

Strand, R. & Freeman, R.E. (2013). Scandinavian cooperative advantage: The theory and practice of stakeholder engagement in Scandinavia, Journal of Business Ethics, 127(1), 65-85.

Singh, J. & Del Bosque, I.R. (2008). Understanding corporate social responsibility and product perceptions in consumer markets: A cross-cultural evaluation. Journal of Business Ethics, 80(3), 597-611.

Van Riel, C.B. & Fombrun, C.J. (2007). Essentials of corporate communication: Implementing practices for effective reputation management, Routledge, Oxford, UK and New York, USA.

Waddock, S.A. & Graves, S.B. (1997). The corporate social performance-financial performance link, Strategic Management Journal, 18(4), 303-319.


This is an excerpt from one of my contributions that will appear in Springer’s Encyclopedia of Sustainable Management.

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Announcing a Call for Chapters (for Springer)

Strategic Corporate Communication and Stakeholder Engagement in the Digital Age

 

Abstract submission deadline: 30th September 2019
Full chapters due: 31st December 2019

 

Background

The latest advances in technologies and networks have been central to the expansion of electronic content across different contexts. Contemporary communication approaches are crossing boundaries as new media are offering both challenges and opportunities. The democratisation of the production and dissemination of information via the online technologies has inevitably led individuals and organisations to share content (including images, photos, news items, videos and podcasts) via the digital and social media. Interactive technologies are allowing individuals and organisations to co-create and manipulate electronic content. At the same time, they enable them to engage in free-flowing conversations with other online users, groups or virtual communities (Camilleri, 2017). Innovative technologies have empowered the organisations’ stakeholders, including; employees, investors, customers, local communities, government agencies, non-governmental organisations (NGOs), as well as the news media, among others. Both internal and external stakeholders are in a better position to scrutinise the organisations’ decisions and actions. For this reason, there is scope for the practitioners to align their corporate communication goals and activities with the societal expectations (Camilleri, 2015; Gardberg & Fombrun, 2006). Therefore, organisations are encouraged to listen to their stakeholders. Several public interest organisations, including listed businesses, banks and insurance companies are already sharing information about their financial and non-financial performance in an accountable and transparent manner. The rationale behind their corporate disclosures is to develop and maintain strong and favourable reputations among stakeholders (Camilleri, 2018; Cornelissen, 2008). The corporate reputation is “a perceptual representation of a company’s past actions and future prospects that describe the firm’s overall appeal to all of its key constituents when compared to other leading rivals” (Fombrun, 1996).

Business and media practitioners ought to be cognisant about the strategic role of corporate communication in leveraging the organisations’ image and reputation among stakeholders (Van Riel & Fombrun, 2007). They are expected to possess corporation communication skills as they need to forge relationships with different stakeholder groups (including employees, customers, suppliers, investors, media, regulatory authorities and the community at large). They have to be proficient in specialist areas, including; issues management, crises communication as well as in corporate social responsibility reporting, among other topics. At the same time, they should be aware about the possible uses of different technologies, including; artificial intelligence, augmented and virtual reality, big data analytics, blockchain and internet of things, among others; as these innovative tools are disrupting today’s corporate communication processes.

 

Objective

This title shall explain how strategic communication and media management can affect various political, economic, societal and technological realities. Theoretical and empirical contributions can shed more light on the existing structures, institutions and cultures that are firmly founded on the communication technologies, infrastructures and practices. The rapid proliferation of the digital media has led both academics and practitioners to increase their interactive engagement with a multitude of stakeholders. Very often, they are influencing regulators, industries, civil society organisations and activist groups, among other interested parties. Therefore, this book’s valued contributions may include, but are not restricted to, the following topics:

 

Artificial Intelligence and Corporate Communication

Augmented and Virtual Reality in Corporate Communication

Blockchain and Corporate Communication

Big Data and Analytics in Corporate Communication

Branding and Corporate Reputation

Corporate Communication via Social Media

Corporate Communication Policy

Corporate Culture

Corporate Identity

Corporate Social Responsibility Communications

Crisis, Risk and Change Management

Digital Media and Corporate Communication

Employee Communications

Fake News and Corporate Communication

Government Relationships

Integrated Communication

Integrated Reporting of Financial and Non-Financial Performance

Internet Technologies and Corporate Communication

Internet of Things and Corporate Communication

Investor Relationships

Issues Management and Public Relations

Leadership and Change Communication

Marketing Communications

Measuring the Effectiveness of Corporate Communications

Metrics for Corporate Communication Practice

Press and Media Relationships

Stakeholder Management and Communication

Strategic Planning and Communication Management

 

This publication shall present the academics’ conceptual discussions that cover the contemporary topic of corporate communication in a concise yet accessible way. Covering both theory and practice, this publication shall introduce its readers to the key issues of strategic corporate communication as well as stakeholder management in the digital age. This will allow prospective practitioners to critically analyse future, real-life situations. All chapters will provide a background to specific topics as the academic contributors should feature their critical perspectives on issues, controversies and problems relating to corporate communication.

This authoritative book will provide relevant knowledge and skills in corporate communication that is unsurpassed in readability, depth and breadth. At the start of each chapter, the authors will prepare a short abstract that summarises the content of their contribution. They are encouraged to include descriptive case studies to illustrate real situations, conceptual, theoretical or empirical contributions that are meant to help aspiring managers and executives in their future employment. In conclusion, each chapter shall also contain a succinct summary that should outline key implications (of the findings) to academia and / or practitioners, in a condensed form. This will enable the readers to retain key information.

 

Target Audience

This textbook introduces aspiring practitioners as well as under-graduate and post-graduate students to the subject of corporate communication – in a structured manner. More importantly, it will also be relevant to those course instructors who are teaching media, marketing communications and business-related subjects in higher education institutions, including; universities and colleges. It is hoped that course conveners will use this edited textbook as a basis for class discussions.

 

Submission Procedure

Senior and junior academic researchers are invited to submit a 300-word abstract on or before the 30th June 2019. Submissions should be sent to Mark.A.Camilleri@um.edu.mt. Authors will be notified about the editorial decision during July 2019. The length of the chapters should be between 6,000- 8,000 words (including references, figures and tables). These contributions will be accepted on or before the 31st December 2019. The references should be presented in APA style (Version 6). All submitted chapters will be critically reviewed on a double-blind review basis. The authors’ and the reviewers’ identities will remain anonymous. All authors will be requested to serve as reviewers for this book. They will receive a notification of acceptance, rejection or suggested modifications – on or before the 15th February 2020.

Note: There are no submission or acceptance fees for the publication of this book. All abstracts / proposals should be submitted via the editor’s email.

 

Editor

Mark Anthony Camilleri (Ph.D. Edinburgh)
Department of Corporate Communication,
Faculty of Media and Knowledge Sciences,
University of Malta, MALTA.
Email: mark.a.camilleri@um.edu.mt

 

Publisher

Following the double-blind peer review process, the full chapters will be submitted to Springer Nature for final review. For additional information regarding the publisher, please visit https://www.springer.com/gp. This prospective publication will be released in 2020.

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Filed under Business, Corporate Governance, Corporate Social Responsibility, Corporate Sustainability and Responsibility, CSR, digital media, ESG Reporting, Integrated Reporting, internet technologies, internet technologies and society, Marketing, online, Shared Value, Stakeholder Engagement, Sustainability