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In this editorial to a collection of papers on ethics in small firms, the case is made for greater use of high quality empirical research on business ethics. Sociological perspectives have much to offer to the field of business ethics that continues to be dominated by normative, moral philosophy. The second contribution of the paper is to argue for a reorientation away from the large multi-national firm as a benchmark subject of business ethics research. One important point of view to be included is that of the small firm, which remains the dominant organisation form throughout all the OECD countries. [ABSTRACT FROM AUTHOR]

We show unintended consequences of quota regulations to get women on boards. Board members may have different characteristics, and even among women, there are variations. We assume that the characteristics of the board members have an influence on their contributions to boards, to businesses as well as to society. In this paper, we argue that different types of societal pressure to get women on boards have an influence on the social capital characteristics of the women getting multiple board memberships. The paper is drawing on institutional theory and social capital theory, and we distinguish between mimetic, normative, and coercive types of pressure. Through a cluster analysis of 58 Italian "golden skirts", we show that different types of societal pressure may lead to differences in social capital characteristics. The study has implications for the ongoing international debate about women and diversity on boards, and we propose developing a pressure theory for getting women on boards. [ABSTRACT FROM AUTHOR]

When this study was initiated in 2008, the concept of family social capital was new to the family business discipline. This paper summarizes in-depth qualitative research grounded in owning family experience to understand the nature and source of owning family social capital. Exploratory research began with roundtable discussions among family business owners, advisors, and researchers to understand how owning families sustain positive relationships characteristic of family social capital. These discussions revealed that some family business owners rely on their family faith to sustain and establish ethical norms. A follow-up review in the family studies literature revealed that many families rely on family faith practices and faith-based narratives to reinforce ethical norms that strengthen family relationships. Based on these findings, researchers developed hypotheses to guide additional research. Four owning families affiliated with different Christian denominations participated in in-depth qualitative research that supports hypotheses. Interviews and archival data revealed very similar faith-based practices, beliefs, and values across the four owning families. And additional qualitative evidence indicated positive connections between values-based family social capital and family owner succession, business performance, and community support. Theoretical relationships derived from qualitative data are summarized in a Faith-Based Values Theory of Family Business. [ABSTRACT FROM AUTHOR]

The role of affective ties and informal social networks in management practices is recognised across many parts of the world; guanxi in China, yongo in Korea, blat in Russia and wasta in the Arab World are some manifestations. This paper explores the role of such informal networks in Pakistan by studying the role of sifarish—the act of achieving ends on the basis of network connections—in hiring in Pakistan using thematic analysis of inductively collected qualitative data from 104 individuals from four large organisations. Using social network and social capital theory, the paper highlights the key characteristics of affective networks in Pakistan, comparing them to social networks in other cultural settings. Further, the concept of ethical relativism is used to create a distinction between ethical and unethical sifarish. Thus, the paper enhances understanding of HRM in Pakistan, and contributes towards the literature on cross-cultural HRM, social networks and ethical relativism. [ABSTRACT FROM AUTHOR]

The implementation of socially sustainable supply chain management (SSCM) practices (i.e. assessment and collaboration) to tackle suppliers' social deficiencies (e.g. the use of child labour) often requires a level of cooperation that can be difficult to establish. Despite this daunting challenge, scant scholarly attention has been paid to explore how the implementation of socially SSCM practices can be effectively facilitated and enhanced. Drawing on social capital theory, this study examines the individual impact of assessment and collaboration practices on suppliers' social performance and explores whether and how these effects can be moderated (strengthened) by the level of social capital (i.e. relational, cognitive, and structural) embedded in the buyer–supplier relationship. Based on a survey of 119 manufacturing companies in the UK, we found that assessment practices are less likely to influence suppliers to improve social performance compared to collaboration practices. However, when relational and structural capital are manifested in the relationship, assessment practices become significant in driving suppliers' social performance. We also found that the positive impact of collaboration practices is more pronounced when relational and cognitive capital are established in the relationship. This paper contributes to the growing socially SSCM literature by disentangling the vital and relative importance of social capital dimensions on the implementation of socially SSCM practices. [ABSTRACT FROM AUTHOR]

This paper explores the relationship between gift giving, guanxi and corruption through a study of the relationships between UK manufacturing companies in China and their local component suppliers. The analysis is based on interviews in the China-based operations of 49 UK companies. Interviews were carried out both with senior (often expatriate) staff and with local line managers who were responsible for everyday purchasing decisions and for managing relationships with suppliers. The results suggest that gift giving is perceived to be a significant problem in UK-owned companies in China. However the relationship between these payments and established understanding of gift giving within guanxi- networks appears to be weak. Gift giving appears to be associated with illicit payments, corruption and the pursuit of self-interest. Firms seek to reduce the incidence of illicit transactions by changing staff roles, instituting joint responsibilities, which include the separation of different aspects of sourcing/purchasing, increasing the involvement of senior staff in the process and through the education of employee and suppliers. [ABSTRACT FROM AUTHOR]

This paper examines informal networks that support the British Asian[SUP1] business community. Ethnic communities have been crucial to facilitating the economic development of their migrant members, as they make the transition from economic refugees to citizens. The basis of this informal support is the notion of social capital offered to kinsmen who arrived with finite resources. However, as successive generations have become more integrated with the wider community reliance on these resources is forecast to decrease. Research has shown that subsequent Asian generations are developing complex relations in their attitudes and reliance towards their ethnic community (Janjuha-Jivraj and Woods, 2002). It is still an area that is very active in providing crucial informal business support. There is however, a distinct difference in attitudes between first and second generations in terms of accepting business support from the ethnic community. This issue is further compounded by difficulties among external support agencies in penetrating ethnic businesses. This leads to the following questions: • What forms of social capital are evident and how important are they in sustaining relationships within the religious-ethnic community? • How crucial is the ethnic community in providing an infrastructure to offer support? This paper is based on a network of businesses that are members of a sub-group across Greater London. It is anticipated that the findings will help to unravel the impact of migratory bonds on community members. This in turn will provide useful information for service providers when considering how to successfully target ethnic businesses. [ABSTRACT FROM AUTHOR]

In recent years, the microfinance industry has received a substantial amount of cross-border funding from both public and private sources. This funding reflects the increasing interest in microfinance as part of a more general trend towards socially responsible investments. In order to be able to secure sustained interest from these investors, it is important that the microfinance industry can show evidence of its contribution to reducing poverty at the bottom of the pyramid. For this, it is crucial to understand under what conditions microfinance institutions (MFIs) are able to reduce poverty. This paper contributes to this discussion by investigating the relationship between the extent to which social capital formation is facilitated within different societies and the financial and social performance of MFIs. This focus on social capital formation is important, because in many cases MFIs use group loans with joint liability to incentivize asset-poor borrowers to substitute the lack of physical collateral by their social capital. Hence, the success of a large part of the loan relationship between MFIs and their borrowers depends on the social capital those borrowers can bring into the contract. We carry out a cross-country analysis on a dataset containing 100 countries and identify different social dimensions as proxies for how easy social capital can be developed in different countries. We hypothesize that microfinance is more successful, both in terms of their financial and social aims, in societies that are more conducive to the development of social capital. Our empirical results support our hypothesis. [ABSTRACT FROM AUTHOR]

With the emergence of participative social media, the ways in which stakeholders may interact with companies are changing. Social media and Web 2.0 technologies change gatekeeping mechanisms and the distribution of information. In consequence, organizations must realize that they are structurally embedded in online networks of interconnected and equitable actors. In this paper, we analyze how this change in today’s information and communication technologies may affect Corporate Social Responsibility (CSR) action. We utilize social network analysis to investigate the CSR blogs of three IT firms: Google, Hewlett-Packard, and Intel. The analysis reveals that their Internet-enabled social networks exhibit patterns of power law distribution and an uneven distribution of structural social capital among the actors involved, especially on the corporate side, which fails to fully engage with the network. We conclude by indicating the research implications of shifting social capital dynamics and by deriving implications for management and practice. [ABSTRACT FROM AUTHOR]

So far, most ethical consumerism research has been contained within Western countries, thus limiting our understanding of the concept in emerging markets. Given the call for extending empirical-based knowledge for a better understanding of peculiarities, dynamics and country-level variations (i.e. social, cultural) in the context of ethical consumerism in emerging markets, this research cross-examines the interactive nature of individual- and country-level predictors of ethical consumerism in emerging and developed markets, employing a multilevel approach. At the individual level, we posit that ethical consumerism is motivated by social and cultural capital. In contrast, at the contextual level, we choose country-level affluence as an influential factor that might impact the relationship between socio-cultural capital and ethical consumerism. The study uses the International Social Survey Programme's (ISSP) 2014 citizenship module data set (including 34 countries) for investigating individual-level predictors (of social and cultural capital). The GDP per capita data from the International Monetary Fund's (IMF) Economic Outlook database was used to examine the cross-level interactions between individual-level predictors and country-level affluence. The findings suggest that social and cultural capitals positively influence ethical consumerism in emerging and developed markets. Further, country-level affluence moderates the relationship between socio-cultural capital and ethical consumerism for both markets. However, cultural capital proved to be a stronger predictor of ethical consumerism as country-level affluence increases. The research findings highlight meaningful cross-country-level interactions that help further understand the basis of ethical consumerism from a global perspective. [ABSTRACT FROM AUTHOR]

The concept of corporate social responsibility (CSR) has been widely investigated, but a generally accepted theoretical framework does not yet exist. This paper argues that the idiosyncrasies of large firms and SMEs explains the different approaches to CSR, and that the notion of social capital is a more useful way of understanding the CSR approach of SMEs, whereas stakeholder theory more closely addresses the CSR approach of large firms. Based on the extant literature, we present a comparison of large firm and SME idiosyncrasies suggesting that both consolidated and emerging strategic orientations toward responsible behaviours exist. Idiosyncrasies of large firms and SMEs are also discussed to provide an assessment of the firm’s strategic CSR orientation, suggesting the key drivers upon which CSR strategies must be based. A twofold consideration emerges. First, the CSR–SME relationship could be better explained if the notion of social capital is taken into account, but this should also be accompanied by a stakeholder view of the SME; second, social capital and stakeholder theory should be taken as alternative ways of explaining CSR in both large firms and SMEs. [ABSTRACT FROM AUTHOR]

There is a need of further research to understand how social capital in the organization can be fostered. Existing literature focuses on the design of reciprocity norms, procedures and stability employment practices as the main levers of social capital in the workplace. Complementary to these mechanisms, this paper explores the impact of ethical managerial behaviour on the development of social capital. We argue that a managerial behaviour based on the true concern for the well-being of employees, as well as their motivational and ethical development, can be particularly important for the generation of social capital in the organization. It is suggested that manager’s behaviour should be based on three principles: following exemplary behaviour, helping the employees to value the consequences of their actions in other persons, and not betraying employee’s trust. When the manager conforms to those principles, he can ease the process through which employees develop associability and identification-based trust with the firm, the two main components of 'Organizational Social Capital’. Bringing ethics into the debate of social capital creation seems to us fundamental, as social capital in the firm is likely to be influenced by the ethical and motivational development of its members. [ABSTRACT FROM AUTHOR]

Corporate social responsibility (CSR) has acquired an unquestionably high degree of relevance for a large number of different actors. Among others, academics and practitioners are developing a wide range of knowledge and best practices to further improve socially responsible competences. Within this context, one frequent question is according to what theory should general knowledge of CSR be developed, and in particular the relationship between CSR and small and medium-size enterprises (SMEs). This paper suggests that research on large firms should be based on stakeholder theory, while research on CSR among SMEs should be based on the concept of social capital. This paper first provides a theoretical and practical perspective on CSR today; the focus then shifts to the specific literature on CSR and SMEs; some data and information follow on SMEs in Europe and Italy; finally, some conclusions and questions for future research are suggested. [ABSTRACT FROM AUTHOR]

Managers in ethnic businesses are confronted with ethical dilemmas when taking action based on ethnic ties; and often as a result, they increase the already vulnerable positions of these businesses and their stakeholders. Many of these dilemmas concern the capital that is generated (or the lack of it) through variations in the use of ethnic stakeholder social ties. The purpose of this paper is to suggest a stakeholder-based model of social capital formation, mediated by various forms of ethnic ties, to explore the duality of ethnicity: it can aid and hinder an ethnic business. Drawing upon the social capital/economic development, stakeholder salience, ethnic businesses literatures, and (to some extent) on social identity theory, we develop a cyclical model of relationships among ethnic business stakeholder attributes (ethnic kinship-based power, ethnic-moral legitimacy, and ethnic-critical urgency) and social capital, as mediated by three-way (triadic) Simmelian bonding and bridging ties, which then, in turn, affects the ethnic stakeholder attributes. We argue that the development of bridging yet strong ties through this cyclical process is relevant for the improvement of the positions of ethnic businesses in terms of both economic success and social responsibility. Specifically, we suggest that, given the duality of ethnicity in business, managers can prioritize stakeholder relationships based upon how these stakeholder ties affect social capital. [ABSTRACT FROM AUTHOR]

Interest in the drivers of firms' corporate social responsibility (CSR) is growing. However, little is known about the influence of a CEO's childhood experience of natural disasters on CSR. Using archival data, we explore this relationship by offering three mechanisms that may account for how the CEO's childhood experience of natural disaster is related to their CSR. More specifically, while prior research has established a positive relationship based on the post-traumatic growth theory, we show that the dual mechanisms of prosocial values and a CEO's risk aversion explain the positive relationship. We further find that the positive relationship is stronger (1) when CEOs have longer career horizons and (2) when community social capital is high. This study contributes to both research and managerial implications on the topics of CEO's childhood experience and CSR. In particular, this study advances the upper echelon theory by revealing that a CEO's childhood experience of natural disaster is a useful yet relatively underexplored variable that can help explain the substantial variations in firms' CSR. Moreover, we emphasize that a CEO's career horizons and level of community social capital are important variables that further amplify the effect of a CEO's childhood experience of natural disaster on the firm's CSR commitment. [ABSTRACT FROM AUTHOR]

This paper builds on London and Hart’s critique that Prahalad’s best-selling book prompted a unilateral effort to find a fortune at the bottom of the pyramid (BoP). Prahalad’s instrumental, firm-centered construction suggests, perhaps unintentionally, a buccaneering style of business enterprise devoted to capturing markets rather than enabling new socially entrepreneurial ventures for those otherwise trapped in conditions of extreme poverty. London and Hart reframe Prahalad’s insight into direct global business enterprise toward “creating a fortune with the base of the pyramid” (p. xi) rather than at the BoP. This shift in language requires a recalibration of strategic focus, we argue, and will necessitate implementation of “moral imagination” to formulate new mental models that can frame the possibility of local entrepreneurs working collaboratively and discursively with development partners drawn from civil society, corporate, and government sectors. Successful partnerships will arise from interactive processes of emergent, co-creative learning within a shared problem domain or “community of practice”. We call attention to three related pluralist framings of situated learning within such communities of practice: (1) decentered stakeholder networks; (2) global action networks; and (3) a focus on “faces and places” as a cognitive lens to humanize and locally situate diverse inhabitants within base of the pyramid partnership projects. [ABSTRACT FROM AUTHOR]

This paper investigates links between social capital and symbolic capital and responsible entrepreneurship in the context of small and medium enterprises (SMEs). The source of the primary data was 144 ‘Business Profiles’, written by the owner-managers of small businesses in application for a Small Business Awards competition in 2005. Included in each of these narratives were claims relating to the firms’ contributions to wider society, relationships with customers, employees and stakeholders. These narratives were coded and classified in a framework drawn from Nahapiet and Ghoshal’s (1998, Academy of Management Review 23(2), 242–266) categorisation of social capital. The analysis revealed a range of strategic orientations towards the development of social and symbolic capital, along a conceptual continuum ranging from being responsible for oneself to being responsible for others. Overall, the evidence demonstrates the significance of the power inherent in the social relations of SMEs as a force for ethical behaviour, and suggests that normative theories of the development of social capital may provide ‘competitive advantage’ through responsible behaviour for small business in the global economy. [ABSTRACT FROM AUTHOR]

Within the limited, but growing, literature on small business ethics almost no attention has been paid to the issue of social responsibility within ethnic minority businesses. Using a social capital perspective, this paper reports on an exploratory and qualitative investigation into the attitudinal and behavioural manifestations of CSR within small and medium-sized Asian owned or managed firms in the U.K., with particular reference to the distinctive factors motivating organisational responses. It offers alternative explanations of entrepreneurial behaviour and suggests areas for further research. [ABSTRACT FROM AUTHOR]

Globalization processes have resulted in greater complexity, interdependence and limited resources. Consequently, no one sector can effectively respond to today's business or wider challenges and opportunities. Non-government organizations and corporations are increasingly engaging each other in recognition that shareholder and societal value are intrinsically linked. For both sectors, these partnerships can create an enabling environment to address social issues and can generate social capital. Located in the Australian context, this paper explores the dimensions of community organization capacity building as an aspect of business-community organization partnerships. An Australian case study is used to demonstrate the benefits to business, community organizations and ultimately the communities in which the corporation is embedded and which are serviced by the community organization. [ABSTRACT FROM AUTHOR]

In this paper we report on empirical research which investigates social capital of Small and Medium Sized Enterprises (SMEs). Bringing an international perspective to the work, we make a comparison between 30 firms located in West London and Munich in the sectors of food manufacturing/production, marketing services and garages. Here we present 6 case studies, which we use to illustrate the early findings from this pilot project. We identify differences in approach to associational membership in Germany and the U.K., with a greater propensity to "belong" to an official group in Germany. We distinguish clear sectoral similarities across the countries, and indications that certain personality types will seek out engagement and find time beyond busy work life schedules, often merging work/home/leisure life and friends. Some of our cases illustrate that formal institutions, networks and mutual relationships can develop social capital for the SME, although we should take care not to assume a universal win-win situation for those who are engaged and contribute to the common good. Some of the obstacles to cooperation and civic engagement are outlined. [ABSTRACT FROM AUTHOR]

Using data from China's public debt markets, we study the value of corporate reputation and how it interacts with legal and cultural forces to assure accountability. Exploring lawsuits that change corporate reputation, we find that firms involved in lawsuits experience a decrease in bond values and a tightening of borrowing terms. Using the heterogeneities in legal and social capital environments across Chinese provinces, we find the effects are more pronounced for private firms, firms headquartered in provinces with low legal protections, and firms headquartered in provinces with high social capital. The results show that lawsuits that allege misconduct are associated with reputational penalties and that such penalties serve as substitutes for legal protections and as complements to cultural forces to provide ex post accountability and motivate ex ante trust. [ABSTRACT FROM AUTHOR]

We show that social capital has a strong mitigating effect on financial adviser misconduct in the United States. Moreover, advisers who have committed misconduct are also more likely to relocate to counties with a relatively lower level of social capital than that of his previously residing county. These findings provide support for both the deterrence and displacement effects of social capital on financial adviser misconduct, and are robust to tests that address potential endogeneity concerns. Our results shed new light on social capital as an informal governing and monitoring mechanism against individual unethical behavior. [ABSTRACT FROM AUTHOR]

We study the relationship between corporate social performance and financial performance by comparing the portfolio returns of firms with changes in corporate social responsibility (CSR) intensity. Using an extensive US sample from the MSCI ESG database, we find that improvement in the overall CSR is generally value enhancing. The relationship varies with CSR dimensions. More importantly, the relationship shifts differently for various CSR dimensions during the crisis period when trust in the society is low and financial resource is limited. Improvement in environment, human rights, and product characteristics shows higher financial returns during the financial crisis period, whereas the value enhancement of improvement in employee relations is more pronounced during the non-crisis period. [ABSTRACT FROM AUTHOR]

A growing body of research looks into business-led efforts to create social value by improving the socio-economic well-being of Base of the Pyramid (BoP) communities. Research shows that businesses that pursue these strategies—or BoP businesses—face distinct sets of challenges that require unique capabilities. There is, however, limited effort to synthesize current evidence on the mechanisms through which these businesses create social value. We systematically review the literature on BoP businesses, covering 110 studies published in business and management journals. We start by using bibliographic analysis to map the broad contours of the literature in terms of its common theoretical and empirical approaches, intellectual core, and evolution in time. We subsequently conduct a qualitative content analysis on the identified articles to synthesize their main findings. The analysis leads to a conceptual framework that explicates the antecedents, constraints, capabilities, and contingencies that drive social value creation. In addition to providing a rich and systematically organized account of the evidence, our analysis provides a critical reflection on the ethical dilemmas of social value creation efforts for the BoP, and outlines promising avenues for future research. [ABSTRACT FROM AUTHOR]

The aim of this work is to analyse the influence of sociocultural factors on corruption levels. Taking as starting point Husted (J Int Bus Studies 30:339-359, ) and Graeff (In: Lambsdorff J, Taube M, Schramm M (eds) The new institutional economics of corruption. Routledge, London, ) proposals, we consider both the interrelation between cultural dimensions and the diverse expressions of social capital with corruption. According to our results, the universalistic trust (linking and bridging social capital) constitutes a positive social capital that is negatively linked to corruption. In contrast, the particularistic levels of trust (bonding) can constitute a negative social capital directly related to corruption levels. Furthermore, cultures which are favourable to the legitimation of dependency relations and the formation of closed particularistic groups (power-distance and community factors) create a breeding ground for the development of these amoral rent-seeking structures. [ABSTRACT FROM AUTHOR]

We study the impact of social capital and perceptions about corporate ethical behaviour on the use of collateral in corporate borrowing. Using a dataset of more than 17,500 firms operating in over 100 transition and developing countries, we find evidence that country-level social capital and better perceptions about corporate ethical behaviour are negatively associated with the likelihood to pledge collateral. In addition, these country-level characteristics influence the value of collateral relative to the loan value. [ABSTRACT FROM AUTHOR]

This study investigates how social capital affects managers' use of corporate resources. We find that for firms located in U.S. counties with a high level of social capital, (i) corporate cash holdings have higher marginal value, (ii) the contribution of capital expenditures to shareholder value is higher, and (iii) acquirers experience higher announcement-period abnormal stock returns. We further find that social capital decreases both over- and under-investment, and thus improves ex post corporate investment efficiency. Our evidence suggests that in communities with a high level of social capital, strong social norms and dense social networks constrain unethical corporate behavior, which induces more efficient use of corporate resources. [ABSTRACT FROM AUTHOR]

Examining how new forms of currencies diffuse is important to uncover their impact on the organization of communities, and thus motivates our study of community currencies. Community currencies provide a medium of exchange by using alternative banknotes or electronic money, which circulates only within particular communities, allowing members to trade goods, increase social cohesion, and achieve collective goals. In this study, we examine how community currencies help facilitate social commons by serving as a setting for building community relationships and a catalyst for other social activities beyond market relations. We analyze cases of community banks that provide microfinance and issue community currencies in Brazil. We find that microfinance entrepreneurs who involve a greater diversity of stakeholders from public, private, and nonprofit sectors in decision making even prior to startup, while also facilitating the formation of supportive social capital from diverse cross-sector stakeholders, increase opportunities for developing new community currencies. By exploring the implications of entrepreneurial actions that promote inclusive participation of diverse stakeholders for accomplishing collective goals, our findings are relevant for other activities that create a common pool of resources while also developing the vitality of the community, including initiatives that use cryptocurrencies and other emerging forms of currencies for building social commons. [ABSTRACT FROM AUTHOR]

Scholarship on Corporate Social Responsibility (CSR) has progressed to encompass a variety of theoretical frameworks. The adoption of Stakeholder Theory is prominent with regard to CSR among big businesses but its applicability towards micro and small businesses is contested. Micro and small businesses possess distinct differences most notably their less formal structure and more pronounced indigenous cultural diversity. To expand scholarship on CSR, this research explores the relatively less studied realm of micro businesses or informal businesses. Due to their rudimentary structure, micro businesses normally operate with other organizations, institutions, and each other, and are thus intricately linked with the local community. Hence, this research explores a locality and institution where micro businesses thrive—Jelutong wet market in Penang, Malaysia. This research offers a rare and arguably novel perspective. Firstly, the micro businesses are operating alongside and constantly interacting with each other within the institutional setting of a wet market ("Wet markets" in Malaysia are akin to farmers' markets in America. They are usually established and operated by the local city or municipal council. Wet markets typically consist of a main market building and the surrounding roads and open areas. Meats, poultry, seafood, and vegetables are usually sold in the main market building that is sheltered. Slaughtering and de-feathering of poultry, and butchering of pork, beef, and lamb are usually conducted at the building premise and the floor is frequently wet hence the term "wet market." The surrounding roads and open areas usually sell vegetables, fruits, hardware, clothing, toys, street hawker food, economy rice, savories, and a plethora of other goods and services.). Secondly, the said wet market is located in Penang, Malaysia that is highly diverse in terms of ethnicity, culture, religion, language, age, and socio-economics. The fieldwork employs multiple local languages for a high degree of authenticity and richness in data. Thirdly, this research adopts the methodology of phenomenology with a multi-layered approach. The fieldwork consists of thirty (30) primary interviews followed by five (5) verification interviews all conducted in local languages the respondents are most comfortable in expressing themselves, fifteen (15) non-participant observations, and ten (10) participant observations. An abductive research strategy is adopted and first-order constructs in the form of everyday typifications are adduced. The first-order constructs are analyzed along the layers of Carroll's Pyramid of CSR. Subsequently, the second-order constructs are iteratively analyzed and three (3) typologies on CSR among micro businesses emerged. Finally, the findings from the second-order constructs are superimposed back onto the Pyramid of CSR. A different Pyramid of CSR emerges with fresh insights on the phenomenon of CSR among micro businesses. Retroductive reflection, reasoning, and analysis reveal Social Capital Theory as the most suitable theoretical framework and the implications for CSR scholarship are discussed. [ABSTRACT FROM AUTHOR]

Drawing on social exchange theory, this study examines a mechanism, namely organizational social capital (OSC), through which self-sacrificial leadership is related to two types of employee behaviours: organizational citizenship behaviours (OCBs) and counterproductive behaviours (CPBs). The results of two different studies (a field study and an experimental study) in Egypt showed that self-sacrificial leadership is positively related to OSC which, in turn, is positively related to OCBs and negatively related to CPBs. Overall, the findings suggest that self-sacrificial leaders are more likely to achieve desirable employee behaviours through improving the quality of social relationships among employees. [ABSTRACT FROM AUTHOR]

I examine social capital's impact on financial reports. Based on the social capital literature, I predict that the quality of the financial reports is higher when a firm is headquartered in a region with high social capital. Consistent with this prediction, I find that the firms that are headquartered in this type of region in the USA have a lower probability of committing fraud by misrepresenting financial information. Further, I find that the firms in regions with high social capital have lower levels of discretionary accruals and much more readable annual reports. [ABSTRACT FROM AUTHOR]

Stakeholder engagement and dialogue have a central role in defining the relations between organisations and their internal and external interlocutors. Drawing upon the analysis of dialogic motifs, power-conflict dynamics and sociopolitical perspectives, and based on a set of interviews with the stakeholders of a consumer-owned cooperative, the research explores the dialogic potential of stakeholder engagement. The analysis revealed a fragmented picture where the co-design and co-implementation aspects were mainly related to the non-business areas of cooperative life, while business logic dominated the most central aspects. Stakeholder engagement was mainly related to consensus building, while dialogic engagement based on a pluralistic understanding was only partially considered and then neglected. The social capital in the local area, the growing size of the organisation and the related power structure embrace stakeholder engagement, influencing the orientation of the (un)dialogic dynamic. The analysis indicates that a dialogic exchange is a relative concept which depends on the interests involved and the topics discussed. It also reveals that the key factors in the democratisation of stakeholder engagement are a mutual understanding and long-term opportunities. Common sociopolitical aspects are also important, but they do not necessarily guarantee the creation of dialogism paths. The research contributes to the critical dialogic literature in revealing whether and how stakeholder engagement has been implemented in a specific setting. It also shows the limitations of voluntarist stakeholder engagement initiatives. [ABSTRACT FROM AUTHOR]

Extant research notes a tendency to propound the idea that female managers are secondary to men. Gender differences constitute an ethical issue and the discursive constructions of gender management are central to research in business ethics. Drawing on evidence gathered from a time-space intersection that has been widely neglected by research in this area, we address whether female business leaders develop gender-stereotypic management styles as well as their propensity to adopt masculine management patterns such as making risky decisions and implementing formal management systems (e.g. accounting reports). Our findings suggest that gender-stereotypic management styles are chosen strategically and target-driven, which implies a selective use of masculine and feminine management styles. Furthermore, as part of the masculine approach, female business owners adopt risk-taking decisions and implement formal management systems. Our results provide support for the argument that gender is context dependent and, hence, the findings of this study may be useful for contemporary jurisdictions featuring male-dominated societies and a strong intervention by the State in the economy. [ABSTRACT FROM AUTHOR]

We examine the influence of social capital in the municipal bond market. Defined as the norms and networks that encourage cooperation, social capital is a social construct which captures a region’s level of altruism, trustworthiness, and propensity to honor obligations. We expect that municipalities with high social capital are more trustworthy and likely to honor their debt obligations, which will result in lower bond yields. Our findings confirm that the bonds issued by municipalities located in high social capital counties exhibit lower yields compared to the municipalities located in low social capital counties. Our findings are also supported by bond prices in the secondary market, which shows that bonds from the municipalities located in high social capital regions have higher prices. Additional tests reveal that the influence of social capital is stronger for general obligation bonds, suggesting that social capital matters more for bonds where the willingness of municipalities to pay taxes is an important factor. Lastly, we document that the bonds of municipalities in high social capital areas are less likely to have insurance, suggesting that social capital may act as a substitute for bond insurance. [ABSTRACT FROM AUTHOR]

Recently, various studies have suggested that ethical leadership offers an important antecedent of fluid internal workplace relationships, which are conducive of internal social capital. Yet existing research has neither inquired into potential mediators of this relationship nor addressed the role of other distinct leadership strategies in encouraging such a valuable capital. This study advances previous research by examining if servant leadership, which seeks to put followers’ interests and needs first, can account for social capital variance within the work group, which is the building block of organizations. New to the literature, we also investigate whether group citizenship behavior mediates this relationship. A sample of 352 work groups, spanning 187 hotels located in Spain, reveal that group citizenship behavior partially mediates the positive influence of servant leadership on group social capital. Managers can use these findings to lead their businesses in a more socially friendly direction while also building group social capital, which can improve the competitiveness of their work groups, and the entire business. [ABSTRACT FROM AUTHOR]

Based on prior studies which show that firms headquartered in high religiosity counties exhibit high level of business ethics, this study examines whether these firms are associated with low audit risk, and therefore low audit fees. In investigating this relationship, we draw a distinction between intrinsic and extrinsic religiosity of auditees. Using a sample of 25,872 U.S. observations from 2003 to 2012, we find that intrinsic religiosity of the auditees is associated with low audit fees after controlling for auditee extrinsic religiosity, social capital, firm-specific characteristics, and county-specific characteristics. Furthermore, we find that external monitoring (institutional ownership and leverage) weakens the negative relationship between auditee intrinsic religiosity and audit fees. Finally, we conclude that the effect of auditor religiosity on audit fees is a regional effect that may affect the relationship between audit fees and auditee intrinsic religiosity. [ABSTRACT FROM AUTHOR]

This study examines the effect of directors’ human and social capital (i.e. board capital) on the level of corporate social responsibility (CSR) disclosures by drawing on insights from a resource-based view. It also investigates the effect of chief executive officer (CEO) power on this relationship. Data were obtained from annual reports of companies listed on the Dhaka Stock Exchange in Bangladesh from 2005 to 2013. We employ outside directors’ experiences and expertise as a proxy for board capital and measure CEO power using a ‘power index’ that comprises CEO duality, ownership, tenure and family CEO status. Results show that board capital is positively associated with CSR disclosure levels; however, CEO power is negatively associated with CSR disclosures and reduces the effect of board capital on CSR disclosures. Thus, we conclude that although board capital can improve CSR practices, CEO power can also inhibit these practices. [ABSTRACT FROM AUTHOR]

Multinational companies (MNCs) frequently adopt corporate social responsibility (CSR) activities that are aimed at providing ‘public goods’ and influencing the government in policymaking. Such political CSR (PCSR) activities have been determined to increase MNCs’ socio-political legitimacy and to be useful in building relationships with the state and other key external stakeholders. Although research on MNCs’ PCSR within the context of emerging economies is gaining momentum, only a limited number of studies have examined the firm-level variables that affect the extent to which MNCs’ subsidiaries in emerging economies pursue PCSR. Using insights from resource dependence theory, institutional theory, and the social capital literature, we argue that MNCs’ subsidiaries that are critically dependent on local resources, have greater ties to managers of related businesses and to policymakers, and that those that are interdependent on the MNCs’ headquarters and other foreign subsidiaries, are more likely to be involved in PCSR. We obtain support for our hypotheses using a sample of 105 subsidiaries of foreign firms that operate in India. Our findings enhance our understanding of the factors that determine MNCs’ political CSR in emerging economies. [ABSTRACT FROM AUTHOR]

Small family businesses have generally been shown to exhibit significant concern for social responsibility, especially at the community level. Despite the reported heterogeneity of family firms in their preferences for and participation in social responsibility, the drivers of such differences are not agreed upon in the literature. We draw from enlightened self-interest and social capital theories by exploring their complementary and competing implications for the effect of duration and community satisfaction on participation in community-oriented social responsibility (CSR). Additionally, drawing on the association between gender and self-construal and evidence that gender shapes helping and giving behaviors, we assess the moderating role of the gender of the firm manager in these relationships. We test our hypotheses on a sample of 279 family businesses and find support that gender moderates the relationship between community duration and satisfaction and measures of CSR. [ABSTRACT FROM AUTHOR]

The existing analysis of heterogeneous social responsibility (SR) in small and medium enterprises (SMEs) has considered the effects of individual factors. However, no holistic analysis has been performed on how different factors of heterogeneity interact and how they collectively affect SR in SMEs. Here, we propose a new systemic approach-employing the social capital concept-with the aim of identifying how and why SR is built diversely in SMEs. In particular, we focus on a positive and holistic perspective that integrates the factors proposed in the literature into the social capital construct. Through a case study of four Spanish SMEs, this article proposes a systemic approach to the study of heterogeneous SR in SMEs. [ABSTRACT FROM AUTHOR]

The aims of this research were twofold: first, to compare the levels of organisational harmony between family and non-family firms and, second, to study the influence of organisational harmony on family firms' performance (profitability, longevity and group cohesion). Starting from a definition of organisational harmony as a value and considering the importance of the management of organisational values, we use the main topics indicated by the general literature (organisational climate, trust and participation) to analyse organisational harmony, as well as three other topics for performance (profitability, survival and group cohesion). Results indicate that family firms have higher levels of these three qualities than non-family firms, and that the levels of trust, participation and organisational climate have a positive and significant influence on the performance of family firms. These results can be understood as a consequence of the influence of family social capital on organisational social capital and so on the performance of family businesses. From the perspective of institutionalism, the higher levels of harmony existing in family businesses are a reflection of the pressures that the owning family as an institution exercises on the organisational social capital in its companies. [ABSTRACT FROM AUTHOR]

Results from three field network studies show that depending on individuals’ network positions (central or peripheral), experts and novices have varying ethical predispositions (EP). In particular, central experts (vs. peripheral experts) have higher EP, while novices in the same positions (vs. peripheral novices) have lower EP. Results demonstrate individuals’ relational-interdependent self-construal mediates these relationships. Importantly, this research suggests that the interaction between network and individual difference variables uniquely affect individuals’ ethical predisposition. Given the lack of research focus on the impact of structural positions on EP, this article demonstrates the importance of combining network and individual variables to investigate individuals’ EP. [ABSTRACT FROM AUTHOR]