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This article focuses on the company-stakeholder relationship between a large pulp and paper company and a small monastery and nature retreat center. The literature on stakeholder management and organizational legitimacy provides a theoretical foundation. The analysis demonstrates how organizational power and legitimacy can influence stakeholder legitimacy. The authors illustrate the ways that a company can manage the legitimacy of stakeholders through the use of political language and symbolic activity. The results contribute to a better understanding of stakeholder identification, salience, and the different contexts of legitimacy in the company-stakeholder relationship. Implications for stakeholder research and practice are also discussed. [ABSTRACT FROM AUTHOR]

Extant literature has noted that traditional paper-based reporting is becoming less timely and less useful to decision makers. Stakeholder pressure is making companies use communication channels other than paper-based reporting, such as the Internet. This article seeks to contribute to the literature by analyzing the extent to which firms are using the Internet to communicate their corporate environmental reporting as a transparency information policy to manage corporate legitimacy. Because utility and resource industries are considered sensitive industries with regard to their impact on the natural environment, these firms are expected to offer corporate environmental reporting on the Web to cope with prevailing stakeholders pressures. This article also explores the environmental online disclosures made by Spanish publicly listed companies. Although sample firms practice corporate environmental reporting on the Web, results indicate differences between sample industries' Internet disclosures and the lack of a standardized framework for corporate environmental reporting. [ABSTRACT FROM AUTHOR]

This essay addresses directions for the Social Issues in Management (SIM) Division from the perspective of "Back to the Future." The author was chair of the SIM Division in 1983 to 1984 and the 1989 recipient of the SIM Division's Sumner Marcus Distinguished Service Award. The essay reviews the general history of SIM during the 1960s and 1970s in which the University of California, Berkeley, played a key role in organizing conferences. The author explains his approach as an applied empiricist to research concerning SIM. The essentials are power, legitimacy, responsibility, rationality, and values, and understanding how they impact the ongoing day-to-day interactions within, between, and among business organizations, their leadership, and other sectors of society. SIM is a field of diverse inquiry which has been the recipient of perspectives and persons drawn not only from multiple disciplines, particularly from the social sciences, law, and management, but also from the humanities and sciences. SIM is patently multi- and inter-disciplinary. [ABSTRACT FROM AUTHOR]

Stories of firms that exceed local compliance requirements in their environmental performance appear routinely. However, we have limited theoretical explanations of what propels these firms to exceed compliance. Our theory suggests that global competitive and institutional pressures lead multinational firms to develop high-level, environmental management systems (EMS) that make them more competitive. For economic and other reasons, select firms make the choice to rationalize their collective environmental performance to the highest common denominator rather than the lowest. Regulations around the world differ widely and are a moving target in many settings. The need to comply with such myriad, shifting rules leads to firms creating EMS to help stay ahead of regulations worldwide. Using institutional and internationalization theories as our basis, we offer a propositional model concerning global competitive/institutional pressures and their effects on corporate environmental performance. We conclude the paper with a discussion of the implications of the model. [ABSTRACT FROM AUTHOR]

Although present research shows that ambitious corporate sustainability objectives improve employee engagement in business organizations, there is scarcity of research showing how employees engage in corporate sustainability objectives and become autonomous sustainability thinkers. We suggest that a strong, individual level of psychological ownership of corporate sustainability is a precondition for the development of sustainability thinking, and examine the factors that influence the emergence of such feelings of ownership. Our qualitative study, based on 29 interviews conducted in seven Finnish local business units from three different technology-oriented multinational enterprises (MNEs), shows that several key factors can have contradictory effects, both strengthening and hindering the routes to psychological ownership of corporate sustainability. While these contradictory effects may potentially lead to confusion among employees, our findings may help managers to avoid pitfalls in developing a more sustainability-oriented organizational culture. Moreover, by applying the theory of psychological ownership, our study contributes to the business sustainability research by providing new theoretical opportunities to understand the process of how individuals may become engaged in enhancing business sustainability. [ABSTRACT FROM AUTHOR]

An introduction to the journal is presented in which the editor discusses the importance to stimulate thinking and research regarding the future of business and society in the 21st century.

This research investigates how two different types of nongovernmental organization (NGO)–business collaboration for green innovation impact consumers' purchase intentions. The authors carried out three studies, whose findings show that consumers prefer collaborations in which NGOs are integrated into the product development process (NGO co-development) over those that involve corporate giving to NGOs (sales-contingent donations). They show that green credibility works as a mediator, which explains why these two types of collaboration influence consumers' purchase intentions differently. They also identify aspirational talk about a company's future ambitions as an important boundary condition. These findings are important for literature on corporate social responsibility (CSR) communication, co-development, and co-branding and contribute to the discussion of the role of business in society. [ABSTRACT FROM AUTHOR]

Implementing corporate social responsibility (CSR) in supply chains is not a trivial task. In fact, many firms in recent years have publicly proclaimed that in order to keep their CSR commitments, they had to reduce reliance on external suppliers by vertically integrating their operations. Our aim in this article is to examine whether there is truly a relationship between a firm's CSR performance and its level of vertical integration. Drawing on a multi-industry sample of 2,715 firm-year observations, and after addressing endogeneity concerns, we demonstrate that firms with higher CSR performance tend to vertically integrate more (or, outsource less). We also demonstrate that this tendency is weaker for firms that have higher degrees of asset specificity or international diversification. Our core conclusion is that CSR performance and outsourcing are at odds, but firms can reconcile this tension by deepening their collaborations with suppliers. [ABSTRACT FROM AUTHOR]

A flourishing literature assesses how sustainable business models create and capture value in socio-ecological systems. Nevertheless, we still know relatively little about how the organization of sustainable business models—of which cross-sector partnerships represent a core and distinctive mechanism—can support socio-ecological resilience. We address this knowledge gap by taking a complex adaptive systems (CAS) perspective. We develop a framework that identifies the key strategic, institutional, and learning elements of partnerships that sustainable business models rely on to support socio-ecological resilience. With our analytical framework, we underpin the importance of assessing sustainable business initiatives in terms of their impact on resilience at the level of socio-ecological systems, not just of organizations. Therefore, we reveal how cross-sector partnerships provide the organizational support for sustainable business models to support socio-ecological resilience. By combining the key features of CAS and the key elements of partnerships, we provide insight into the formidable task of designing cross-sector partnerships so that they support socio-ecological resilience and avoid unintended consequences. [ABSTRACT FROM AUTHOR]

Extant research underlines the critical challenge for firms to rigorously and consistently evaluate their growing number of cross-sector partnerships for sustainability and suggests formalizing evaluation processes by introducing formal practices. However, empirical research is scant and inconclusive. This study aims to develop an empirically grounded understanding of how firms formalize the evaluation processes of such partnerships and of what drives this formalization, to complement the so far mostly conceptual literature. We inductively analyzed 31 semi-structured interviews with 33 experts from firms and their partnering nonprofits and further secondary data on organizations' partnerships. We contribute to the cross-sector partnership research by analyzing firms' practices related to the formalization of the internal as well as the joint partnership evaluation process with nonprofits. We propose a conceptual framework to explain why firms implement different formal practices to reduce the dependency on individuals' skills, experiences, or judgments in evaluating partnerships. [ABSTRACT FROM AUTHOR]

The article offers information on the new editor of "Business and Society," professor Duane Windsor, a distinguished colleague currently at Rice University. He is an excellent scholar and author. The author believes that under Windsor's leadership, the journal will move forward to greater heights. Further, the author calls members of the International Association for Business and Society to warmly congratulate Windsor for his acceptance of the editorship portfolio.

A large body of literature looks at how firms develop and maintain their reputation. Little is known, however, about factors leading to a damaged corporate reputation. In this article, the authors compare two sets of predictors of reputational damage following a reported breach of norms: the characteristics of the breach and the characteristics of the actor reporting the breach. Theoretically, the authors argue that the latter is likely to prevail over the former. The authors test this proposition in the highly normative context of corporate social responsibility (CSR). Building on a global data set of over 8,600 CSR-related norm breaches, directed against 451 firms on the Fortune ranking reputation over the 2006-2009 period, the authors find empirical support for the idea that reputation damage is not really driven by the severity and novelty of the allegation, but by the type of source reporting the issue as well as the credibility of this source. Hence, these results lend some support to a socially constructed view of reputational damage, in which being portrayed by prominent actors as deviating from the norm is more important than the actual deviation from the goal of the norm itself. [ABSTRACT FROM AUTHOR]

Research on corporate political activity has considered a number of antecedents to a firm's engagement in politics. The majority of this research has focused on either industry or firm-level motivations that lead to corporate political activity, leaving the role of the firm's leader noticeably absent in such scholarship. This article combines ideas from Upper Echelons Theory with research in corporate political activity to bridge this important gap. More specifically, this research utilizes CEO demographic characteristics to determine (a) whether a firm will invest in political activity and (b) how these characteristics influence the particular approach to political activity the firm undertakes. Considering 27 years of data from large U.S. firms, we find that a CEO's age, tenure, functional, and educational backgrounds influence whether and how the firm invests in political activity. [ABSTRACT FROM AUTHOR]

This article examines the effects on cost stickiness of firms' involvement in corporate social responsibility (CSR) activities. Cost stickiness represents asymmetric cost behavior whereby the magnitude of cost increases in response to an increase in the activity level is greater than the magnitude of cost decreases with a decrease in the activity level. We hypothesize that CSR involvement requires ongoing investments in value-creating activities; hence, it is difficult to scale down committed resources instantly even when the activity declines. We use two different CSR proxies and find support for the CSR-related cost stickiness hypothesis. We further decompose CSR into strategic and tactical CSR and find that cost stickiness is more pronounced for strategic CSR. Finally, we examine the CSR-related cost behavior pattern across business cycles and find some evidence of cost stickiness during an expansionary phase of the economy and cost anti-stickiness during a recessionary phase but only for the tactical CSR component. [ABSTRACT FROM AUTHOR]

There are relatively few empirical studies on the impacts of corporate social responsibility (CSR) policies and programs. This article addresses the research gap by analyzing the incidence of, and the conditions that affect, decoupling (defined as divergence) among CSR policies, implementation of CSR programs, and CSR impacts for various environmental and social issues. Complete decoupling is a condition of full divergence among policies, programs, and impacts amounting to purely ceremonial CSR. Using ratings from a sustainability rating agency on a sample of about 1,000 large companies in 24 countries, the authors find empirical evidence not supporting a conclusion of complete decoupling. The empirical evidence suggests four levels of nondivergence in the sample. First, for most CSR issues examined, CSR policies of high quality (as measured by scope and level of detail) do have relatively strong effects on CSR implementation. Second, CSR programs of high quality (as measured by scope, the use of targets, and the use of strict deadlines) do have relatively strong effects on CSR impacts. Third, for most CSR issues, even low-quality CSR policies enforce the incidence and quality of programs in comparison with having no policy at all. Fourth, weak programs have more impact on the realization of CSR goals than having no program at all. The authors also find that the quality of CSR reporting (as measured by the implementation level of Global Reporting Initiative guidelines) and locating the responsibility for CSR at the board level reduce decoupling by strengthening the quality of CSR programs. [ABSTRACT FROM AUTHOR]

Firms are central to wealth creation and distribution, but their role in economic inequality in a society remains poorly studied. In this essay, we define and distinguish value distribution from value creation and value appropriation. We identify four value distribution mechanisms that firms engage in and argue that shareholder wealth maximization approach skews the value distribution toward shareholders and top executives, which in turn contributes to rising economic inequalities around the world. We call on organizational scholars to study the value distribution role of firms and its consequences for society, and introduce the articles in this volume of the special issue on economic inequality, business, and society. [ABSTRACT FROM AUTHOR]

Business and society research has increasingly moved from the margins to the mainstream. Although this progression has benefited from advances in empirical research, the field continues to suffer from considerable methodological challenges that hamper its development. In this introductory article to the special issue, we review how far our field has come in advancing methods and methodologies in business and society research. We also highlight the methods and methodologies covered by the contributors to this special issue and how they help address key shortcomings in our field. Finally, we suggest some promising research methodologies that can address important business and society research challenges going forward. [ABSTRACT FROM AUTHOR]

One of the key debates in the literature on small and medium enterprises (SMEs) and corporate social responsibility (CSR) in developing countries has to do with the role that local industrial districts, or so-called industrial clusters, play in the promotion of CSR in those countries. While there is now an embryonic literature on this subject, we lack systematic, integrated analytical frameworks that can improve our understanding of the role that governance of clusters play in addressing CSR concerns in SMEs in developing countries. This article develops such a conceptual framework drawing on the literatures on cluster governance, CSR, SMEs, and environmental management (EM) as they relate to the developing countries. The authors argue that environmental improvements in SME clusters can be achieved through three basic types of cluster governance: legal enforcement, supply chain pressure, and voluntary engagement in CSR. The proposed framework is an attempt to show how each type of cluster governance is likely to induce different responses in cluster-based SMEs. These responses are related to stages of CSR in which SMEs engage, the barriers to EM they face, the types of EM practices they use, the climate change strategy types they use, and the kinds of benefits that accrue to SMEs from engagement in CSR. The authors put foward a framework that can be useful for both academics and practitioners as they seek to reflect on the interconnectedness of these themes from a research, policy, and practice perspective. [ABSTRACT FROM AUTHOR]

Anti-sweatshop activists have turned global production networks (GPNs) into contested organizational fields. Although this contest has triggered the growth of an extensive literature on contested GPNs, the scholarly conversation is still limited in two important ways: First, it ignores or dismisses the role of small and medium-sized enterprises (SMEs) in GPNs and, second, it assumes that firms are driven solely by rational profit-maximizing motives. Based on a study of a Swedish SME’s payment of living wages at its Indian supplier, this article addresses these limitations by demonstrating how SMEs’ peculiarities allow them to assume a distinct role in contested GPNs. Furthermore, this article contributes to the scholarly conversation about living wages by providing a much-needed move beyond conceptual discussions into empirical studies of the underlying trade-offs of paying living wages. [ABSTRACT FROM AUTHOR]

The article analyzes societal issue on business and interplay between issues of business and society. Topics discussed include issues related to business and management, studies of commercial activity in various contexts with special reference to social enterprise and social venturing, impact of study of a social issue or practice on businesses.

Literature on corporate social responsibility (CSR) has tended to treat economic benefits to the firm as unintentional spillovers that result from laudable CSR behavior. Empirical studies of the relationship between CSR and corporate financial performance (CFP) have reported mixed findings. This article shifts the conceptual and empirical focus to investigate the conditions under which intentional profit-seeking through corporate social action projects can create economic value for the firm. The article uses resource-dependency theory and the resource-based view to define the firm’s external and internal environments respectively. From that perspective, the article looks at how corporate social action creates economic value through strategic social planning and strategic social positioning. A survey instrument was developed and applied to 110 large Spanish firms. In that sample, munificence and continuous innovation positively affect social positioning, while nongovernmental organization salience and social responsibility orientation positively affect social planning. Both social positioning and social planning in turn contribute to corporate ability to create value. The article concludes with a discussion of the research and managerial implications of these findings. [ABSTRACT FROM PUBLISHER]

Business scholars pay increasing attention to the expanded influence of stakeholders on firm strategies, legitimacy, and competitiveness. At the same time, analysts have noted that the transformed regulatory and legislative environments of recent decades have encouraged firms to become much more politically active. Surprisingly, relatively little research has tied together these two trends. The present study integrates perspectives on stakeholder management with research on corporate political activity to develop an understanding of the structural sources of stakeholder mobilization in professional grassroots lobbying campaigns. This study employs a unique, original data source to consider how the adoption of grassroots lobbying by a firm relates to its industry, degree of inside lobbying, partisan PAC contributions, and more. This research shows that corporate grassroots lobbying is shaped most significantly by a firm’s degree of inside lobbying, as highly active firms take a diversified strategy for gaining influence. Firms in industries with a heavy public presence as well as those concerned with taxation, government appropriations, and economic development also adopt these strategies readily. PAC contributions to Republican, but not Democratic, candidates also heighten firms’ propensity to lobby the public. [ABSTRACT FROM AUTHOR]

Growing concerns about corporations' business and accounting practices have contributed to increased scrutiny and the adoption of new laws to govern corporate behavior. Nonprofit nongovernmental organizations (NGOs) have also come under investigation for their activities, especially when engaging in social venturing. Because NGOs are largely supported by taxpayer dollars and private donations, their existence is strongly based on fulfilling their social purpose mission. In this study, NGOs reported on this increased scrutiny and how it was especially important for them to act as good corporate citizens, which, in corporate citizenship theory, means being economically responsible, abiding by the law, engaging in ethical and moral management, and ensuring the philanthropy of the social venture. The authors find that these components are key to the sustainability of the ventures and the organizations themselves. Based on study findings, the authors propose "community citizenship behavior" as a broader model for application in social ventures. [ABSTRACT FROM AUTHOR]

Corporate community responsiveness relates to business activities that are integral parts of a firm's operations and are designed to benefit the firm through benefiting the local communities. Using data from commercial banks in the United States between 1997 and 2000, the authors measured banks' corporate community responsiveness by their Community Reinvestment Act (CRA) lending activities and their performance ratings by CRA examiners. The authors developed and tested eight hypotheses on the influence of contextual (community income, minority population, and competition) and organizational (age, profitability, risk, institutional ownership, and mergers and acquisitions) factors on the two measures of corporate community responsiveness. The authors found a negative effect for minority population; a positive effect for banks' profitability; and partial support for community income, competition, and risk factors. The results show no effects for institutional ownership or mergers and acquisitions. The implications of these results for the instrumental aspect of stakeholder theory are discussed. [ABSTRACT FROM AUTHOR]

This article examines the relational characteristics of firm-regulator interactions. Many political economists have focused on the relevance, costs, processes, and beneficiaries of regulation. Alternatively, most management researchers treat regulation as one of many environmental factors firms must consider in developing strategy. This article extends management research by examining the subjective, relational components of firm-regulator interactions. Using social exchange and relational governance theories, hypotheses are developed to examine how firms' interactions with their regulators affect both the frequency with which they are monitored and the evaluation they receive. A within-industry (i.e., banking), within-region (i.e., the Northeast) sample is used to examine the relational characteristics of firm-regulator interactions concerning the Community Reinvestment Act. The results indicate that relational characteristics explain a significant amount of incremental variance in predicting the frequency of monitoring and evaluation, over that explained by objective measures and prior performance. [ABSTRACT FROM AUTHOR]

This article extends the literature of organizational citizenship behavior in the context of environmental efforts. The authors provide support for the development of the construct, organizational citizenship behavior directed toward the environment (OCBE). They define OCBE as environmental efforts that are discretionary acts, within the organizational setting, not rewarded or required from the organization. This study also identifies key determinants of OCBE, including environmental concern, organizational commitment, perceived supervisory support for environmental efforts, and perceived corporate social performance. Directions for further research and implications for managers are provided. [ABSTRACT FROM AUTHOR]

Businesses play an important social role in society that goes beyond their traditional economic role. The way in which these roles are carried out and communicated to the stakeholders can influence the company's corporate reputation. The first step in constructing a corporate reputation is corporate visibility. The mass media plays an important role in developing corporate visibility. Media visibility has a significant influence on public opinion and contributes strongly to forming companies' corporate reputation. The main aim of this article is to test the level of visibility of companies in the media as well as the attributes (economic and/or social) assigned to the companies. The author presents the results of the research done on the media visibility of companies belonging to the Spanish Stock Exchange in the four most important newspapers in Spain. Two basic results were obtained: Larger companies, with good reputations and oriented to mass consumption, have more visibility in newspapers, and companies are basically presented as economic and not social actors in society. [ABSTRACT FROM AUTHOR]

The authors give a critical reading of the research interests of state-of-the-art corporate political activity (CPA) literature. They demonstrate that a noncritical tendency in the literature to view CPA as a strategic activity, aimed at making profit, may encourage firms to sociopathic behavior in their political activities. Using psychiatric literature, the authors explore the nature of sociopathic CPA. They draw on a recent discussion initiated by virtue theorists, exploring firm moral agency in order to suggest the opening of several new research areas, within CPA literature, more sensitive to moral questions. [ABSTRACT FROM AUTHOR]

Corporate social responsibility orientation (CSRO) remains an important topic of researchers. However, one aspect of CSRO that has not been well researched is how it relates to behaviors and goals of managers. In this article, the authors explore that relationship, testing whether emphasis on a particular domain of social responsibility affects time spent dealing with specific stakeholder groups and whether firm size affects that relationship. Results from a survey of small business owners indicate that the emphasis a manager places on a domain does affect behavior and that firm size has little impact on this relationship. Implications of these findings are discussed. [ABSTRACT FROM AUTHOR]

The purpose of this article is to investigate to what extent is business and society literature idealistic as it advocates the adoption of high moral norms for business performance. The author discusses the central theses of mainstream themes in this literature—corporate social responsibility, corporate social responsiveness, social issues, corporate social performance, stakeholder management, corporate citizenship, business ethics, sustainable development, and corporate sustainability—and evaluates their descriptive accuracy, normative validity, and instrumental power. Poor description of reality, underdeveloped business logic, and questionable prescriptions are indicative of the idealism of these themes. This study reveals many realistic and achievable propositions, which dilute the concern that business and society literature is idealistic. However, three elements in the field—its (rhetorical) criticism of corporate conduct, the predominantly normative notions of its concepts, and its underdeveloped instrumental ideas—underline its idealistic orientation. [ABSTRACT FROM AUTHOR]

This study examines the relationship between pension fund ownership of companies and corporate social performance using a unique database of more than 500 publicly listed U.K. companies. The empirical analysis emphasizes the heterogeneous character of pension fund holdings and the multidimensional nature of corporate social performance. The results highlight that the characteristics of pension fund management are significant drivers of preferences for social performance and that employee-related aspects of social performance are preferred by pension funds. [ABSTRACT FROM AUTHOR]

In the field of business and society, several complementary frameworks appear to be in competition for preeminence. Although debatable, the primary contenders appear to include (a) corporate social responsibility, (b) business ethics, (c) stakeholder management, (d) sustainability, and (e) corporate citizenship. Despite the prevalence of the five frameworks, difficulties remain in understanding what each construct really means, or should mean, and how each might relate to the others. To address the confusion, the authors propose three core concepts—value, balance, and accountability—that might be used to better integrate the five frameworks and potentially provide the basis for further discussion and theoretical development of the business and society field. [ABSTRACT FROM AUTHOR]

This study explores the impact of publicly traded founding family firms (FFF5) on their propensity for corporate political activity (CPA) and their choice of political approaches. Based on the behavior and characteristics of publicly traded FFFs, the author expected a positive association between FFFs and corporate political activity and a preference for relational, or long- term, over transactional, or short-term, corporate political activity. It was found that publicly traded FFFs are more likely to engage in CPA only when the firm's founder is in an executive position. Furthermore, publicly traded FFFs show a preference for relational versus transactional corporate political activity. These findings are examined in light of FFF and corporate political strategy literatures. [ABSTRACT FROM AUTHOR]

Businesses and societies face increasingly complex problems. Collaborative relationships are needed to leverage the differences among participants and to balance stakeholder concerns. The article takes a discursive, constructionist approach in exploring the relations of five factions involved in resolving a town-gown conflict. The case data are narratives collected during a pivotal community-wide meeting in which the town-gown factions participated. The findings underscore the characteristics and roles of language in constructing and organizing meanings. In particular, the focal data reveal the influence of ‘contraversation’—that is, dialectical and dialogical conversation particularly and publicly directed against one faction, in constructing antagonisms and thwarting collaboration. The focal findings added insight into the demographic and historical characteristics of the factions, the socially embedded understandings, and the role of conversations in developing discursive resources that create collective identities and translate them into integrating rather than disintegrating intergroup performance in facing problematic concerns. [ABSTRACT FROM AUTHOR]

Thousands of facilities worldwide have certified to International Organization for Standardization (ISO) 14001, the international environmental management system standard, and previous research typically has studied these certification decisions at the facility level. However, significant anecdotal evidence indicates that firms may have a strong role, and if so, prior studies may be drawing inappropriate conclusions about the rationale for ISO 14001 certification. Drawing on institutional theory and the resource-based view of the firm, this study offers a conceptual framework that explains why parent companies would mandate—rather than simply encourage—their operational units to certify to ISO 14001. The framework is tested using survey data of corporate environmental managers. The results show that firms have a central role in nearly half of all facility-level certifications and that firms that mandate ISO 14001 endure greater external pressures and have stronger complementary resources and capabilities that support their organization-wide ISO 14001 policies. [ABSTRACT FROM AUTHOR]

This study examines the influence of women in business using a sample of firms on Fortune's ‘100 Best Companies to Work For’ list and is an extension of Bernardi et al.'s work. We use the data from Bernardi et al. to determine whether a higher representation of women on a board signals an increased commitment of a firm to a quality environment and employment characteristics necessary to establish the firm on Fortune's ‘100 Best Companies to Work For’ list. Our findings include a significant increase in the number of female directors on Fortune 500 companies between 1977 and 2001. The initial analysis of the 27 firms appearing on both Fortune's ‘100 Best Companies to Work For’ list and the Fortune 500 in 2001 indicates a positive correlation between the number of female directors and a company's appearance on the ‘100 Best Companies to Work For’ list. [ABSTRACT FROM AUTHOR]

Do environmental policy statements accurately represent corporate commitment to environmental sustainability? Because companies are not required by law to publish environmental policy statements or to verify that these statement's are true using independent third parties, external stakeholders often wonder when a published commitment to a policy translates into actual policy implementation. The authors analyzed two independent databases to predict the circumstances under which large, leading-edge corporations in industry sectors will commit to and/or implement proactive corporate environmental policies and when it is unlikely they will do so. The authors found that commitment to specific environmental policies does not vary greatly between industry sectors; however, policy implementation does. [ABSTRACT FROM AUTHOR]

All three corporate governance systems in North America are currently embroiled in fundamental transformations. Most of Mexico's corporations are run by a small group of controlling shareholders and operate in an economic system rife with corruption. Recent political reforms and a desire to tap global equity markets have heightened their interest in improving corporate governance structures. United States corporations face a dispersed ownership base that has tended toward inattentiveness, allowing such infamous scandals as Enron to rock the global investing community. A backlash against the ensuing, restrictive Sarbanes-Oxley legislation is now underway. Like Mexico's, Canada's major corporations are led by a handful of controlling shareholders, but corruption is uncommon. New corporate governance guidelines are under debate, and the Ontario Securities Commission is wresting control from the Toronto Stock Exchange. Although these three corporate governance systems vary in terms of ownership dispersion, level of corruption, and legislative intervention, they currently share a common focus on fundamental reform. [ABSTRACT FROM AUTHOR]

This study provides preliminary empirical evidence that shareholder activists tar- get companies because of their size as well as specific stakeholder-related practices. The data show that shareholder activists target companies with shareholder resolutions demanding changes in corporate behaviors for companies producing problematic products and where environmental concerns exist Furthermore, companies in specific industries are targeted based on poor employee and community-related practices. Activists, that is, are selective in their targeting of companies, choosing the most visible (largest) companies and those whose practices raise specific issues of interest to society. [ABSTRACT FROM AUTHOR]

We argue that corporate social performance (CSP) has become a legitimizing identity (brand) for researchers in the business and society field, but it has not developed into a viable theoretical or operational construct. Because measuring CSP is contingent on the operational setting (industry, issues, etc.), it is difficult to produce worthwhile comparisons across studies or generalizing beyond the boundaries of a specific study. The authors suggest that researchers remove the CSP label from their operational variables, and instead narrowly define their studies in operational terms. They provide a working example of the proposed research direction by examining the theory underlying the popular CSP-financial performance (FP) debate. In the authors' conceptualization, stakeholder action provides the underlying logic connecting CSP-FP, and we recast the research question to investigate the conditions under which stakeholders will take action to influence the focal organization and when those actions will influence the CSP-FP link. [ABSTRACT FROM AUTHOR]

This article has two purposes. First, the author will provide a commentary on Donna Wood's article on theory, research, passion, and integrity in business and society. This is in response to an invitation to serve as a raconteur on Wood's article. In fulfilling this role, the author will provide summary comments and then remark on each major section of her article. She provides a helpful and engaging overview of the business and society field that provides a backdrop for a consideration of Corporate Social Performance (CSP) theory and measurement. Second, the author will present what he considers to be a few key questions or issues that need to be addressed as we seek to advance CSP measurement. [ABSTRACT FROM AUTHOR]

Three characteristic problems in the measurement of corporate social performance (CSP) center around the need to measure three "metrics": the metric of performance evaluation (M1), the metric of performance measurement (M2), and the metric of performance perception and belief (M3). The central issues in each metric are commitment, revelation, and belief, respectively. This article discusses each metric and provides sets of theoretical propositions under M2 and M3 describing behavior in those contexts. Some of the propositions in M2 form an explicit partial theory of factors affecting the likelihood of CSP measurement. Those under M3 are developed from more general ones in the theory of testaments. [ABSTRACT FROM AUTHOR]

This article draws from theories of business-government relations and Austrian economics to develop a model relating firm performance to the firm's market and nonmarket actions. Nonmarket actions represent one mechanism for the implementation of firm strategies. The model is tested using an original data set covering airlines serving international routes in the North Atlantic region. Results suggest that nonmarket actions have a positive and significant impact on performance, measured in three ways: profits, market share, and capacity utilization. [ABSTRACT FROM AUTHOR]

Moving toward a possible transatlantic free trade area (TAFTA), the European Union (EU) and the United States reached an accord in December 1995 to collaborate on 150 policy issues. Regional market integration arrangements involve the acceptance of international policy regimes defining conditions for cooperation and harmonization. Because multinational enterprises (MNEs) will likely increase in size and global scope, regional and global regime development efforts for defining corporate social responsibility and performance norms will be needed. In light of these trends, this article focuses on a case study of an emerging, global anti-corruption norm among countries of diverse cultures, interests, and values. Although, historically, a norm against the bribery of domestic public officials has been virtually universal, there was little prohibition against bribery by business of foreign public officials. Regionally adopted anticorruption norms require national implementation and enforcement, and they must operate globally to be effective. Implications for other norms are considered. [ABSTRACT FROM AUTHOR]