Corporate responsibility research: past – present – future

The concept of corporate responsibility (CR) has moved a long way over the past six decades, since Bowen’s book titled Social Responsibilities of the Businessman marked a modern era of business and society research. In this article, we trace the development of business and society literature to provide contextual background to contemporary studies of CR. As well as looking backward, however, we also project forward arguing that fundamental changes in the current business environment are likely to propel CR to new heights in the future. In particular, we explore the mechanisms by which CR affects stakeholder behavior and suggest ways in which scholars and practitioners may want to apply advances from psychology to link CR strategy to human motivation and the notion of balance in organizations and society.

The expression of the Cenomanian-Turonian oceanic anoxic event in Tibet

The Gongzha section of Tibet, China is located at the northern margin of the Indian Plate (SE Tethys) and is characterized by hemipelagic grey marls and marly limestones, light grey limestones and silty limestones, but no organic-rich sediments. High-resolution biostratigraphy reveals an expanded Cenomanian–Turonian (CT) boundary interval and the δ13C record includes the main features of the classical positive carbon-isotope excursion that characterizes the CT oceanic anoxic event. The biotic response inferred from the foraminifera suggests that oxic to dysoxic conditions prevailed, except for a short interval marked by peak abundance of Heterohelix that indicates a significantly dysoxic environment during the δ13C “b” peak excursion. The overall decreasing trend in redox-sensitive trace elements (RSTE) during the maximum δ13C excursion confirms the absence of significant longer-lasting anoxia in the Gongzha section. Enrichments in RSTE are linked to phases of increased detrital input. Chemical weathering indices suggest that the upper Cenomanian sediments accumulated under an increasingly hot and humid climate that culminated near the CT boundary. In the early Turonian lower weathering indices suggest a warm, drier climatic regime with reduced continental runoff. Phosphorus mass-accumulation rates show a significant peak at the onset of the positive δ13C excursion, followed by a decrease up to the basal Turonian. This pattern is positively correlated with the long-term decrease in detrital index as also observed in numerous other CT boundary sections (e.g., Eastbourne, Pueblo, and Whadi El Ghaib, Sinaï). Long-term phosphorus accumulation in the Gongzha section is therefore associated with changes in detrital input. The overall decreased detrital input can be explained by the increasingly remote continental sources due to the major transgression at the end of Cenomanian, coupled with changes in continental weathering intensity linked to increasingly more arid climate conditions.

Corporate governance in Fiji’s Native Land Trust Board

This article examines corporate governance in one of Fiji’s largest trust organisations, the Native Land Trust Board. The principal-agent framework is utilised to analyse the governance issue in this study. An examination of the annual reports and final accounts over the last three decades indicates that poor governance practices by the agent have resulted in the Board not delivering maximum returns to its principal, the landowners.

Second language influence on first language motion event encoding and categorization in Spanish-speaking children learning L2 English

Studies show cross-linguistic differences in motion event encoding, such that English speakers preferentially encode manner of motion more than Spanish speakers, who preferentially encode path of motion. Focusing on native Spanish speaking children (aged 5;00-9;00) learning L2 English, we studied path and manner verb preferences during descriptions of motion stimuli, and tested the linguistic relativity hypothesis by investigating categorization preferences in a non-verbal similarity judgement task of motion clip triads. Results revealed L2 influence on L1 motion event encoding, such that bilinguals used more manner verbs and fewer path verbs in their L1, under the influence of English. We found no effects of linguistic structure on non-verbal similarity judgements, and demonstrate for the first time effects of L2 on L1 lexicalization in child L2 learners in the domain of motion events. This pattern of verbal behaviour supports theories of bilingual semantic representation that postulate a merged lexico-semantic system in early bilinguals.

The drivers of corporate climate change strategies and public policy: a new resource-based view perspective

Effective public policy to mitigate climate change footprints should build on data-driven analysis of firm-level strategies. This article’s conceptual approach augments the resource-based view (RBV) of the firm and identifies investments in four firm-level resource domains (Governance, Information management, Systems, and Technology [GISTe]) to develop capabilities in climate change impact mitigation. The authors denote the resulting framework as the GISTe model, which frames their analysis and public policy recommendations. This research uses the 2008 Carbon Disclosure Project (CDP) database, with high-quality information on firm-level climate change strategies for 552 companies from North America and Europe. In contrast to the widely accepted myth that European firms are performing better than North American ones, the authors find a different result. Many firms, whether European or North American, do not just “talk” about climate change impact mitigation, but actually do “walk the talk.” European firms appear to be better than their North American counterparts in “walk I,” denoting attention to governance, information management, and systems. But when it comes down to “walk II,” meaning actual Technology-related investments, North American firms’ performance is equal or superior to that of the European companies. The authors formulate public policy recommendations to accelerate firm-level, sector-level, and cluster-level implementation of climate change strategies.

Corporate strategic responses to foreign entry: insights from prospect theory

Purpose – The purpose of this paper is to address how firms adapt their product and geographic diversification as a response to foreign rivals penetrating their domestic market by adopting a behavioral perspective to understand firm-level strategic responses to foreign entry. Design/methodology/approach – The study proposes that strategic responses to foreign entry selected by domestic incumbents have both a framing component and a related, strategic choice component, with the latter including changes in product and geographic market diversification (though other more business strategy-related responses are also possible, e.g. in product pricing and marketing). This study tests a set of hypotheses building on panel data of large US firms. Findings – The study finds, in accordance with our predictions, that domestic incumbents reduce their product and geographic diversification when facing an increase in import penetration. However, when increased market penetration by foreign firms takes the form of FDI rather than imports, the corporate response appears to be an increase in product and geographic diversification, again in line with our predictions. Originality/value – The study develops a new conceptual framework that is grounded in prospect theory, but builds on recent insights from mainstream international strategic management studies (Bowen and Wiersema, 2005; Wiersema and Bowen, 2008).

Learning CSR for sustainable corporate advantage

Corporate Social Responsibility (CSR) has become a strategic and operational reality of the business and academic world. Not that the principles of CSR are always respected or that its practice is consistently applied. Bearing in mind the multi-faceted nature of both CSR and the corporate environment, as well as the paradox of what is taught in Higher Education and what is practised within its own walls, this paper provides a learning cyclical pathway to sustainable CSR implementation and progress review. As well as highlighting the role that Higher Education has to play, the paper emphasises that in order to embed CSR within the corporate environment, questions need to be raised concerning on-going CSR improvement in order to both protect and engage a wide range of stakeholders towards sustainable corporate advantage.

Spirit of corporate social responsibility transforming from corporatism to socialized capitalism

This paper offers a critique of current corporate social responsibility (CSR) practices in context of global trends. The legitimate modelling of CSR has yet to engage firm and political decision making with wider Society stakeholders. There is urgent need to transform towards socialized capitalism in which separate CSR board may focus on social and environmental concerns and offer more collaborative solutions to global/local CSR issues. This is underpinned with a need for returning to original moral purpose of CSR that has become eroded by narrower short term rational justifications.

Stakeholder perceptions of event attribution in the loss and damage debate

In 2013 the Warsaw International Mechanism (WIM) for loss and damage (L&D) associated with climate change impacts was established under the United Nations Framework Convention on Climate Change (UNFCCC). For scientists, L&D raises ques- tions around the extent that such impacts can be attributed to anthropogenic climate change, which may generate complex results and be controversial in the policy arena. This is particularly true in the case of probabilistic event attribution (PEA) science, a new and rapidly evolving field that assesses whether changes in the probabilities of extreme events are attributable to GHG emissions. If the potential applications of PEA are to be considered responsibly, dialogue between scientists and policy makers is fundamental. Two key questions are considered here through a literature review and key stakeholder interviews with representatives from the science and policy sectors underpinning L&D. These provided the opportunity for in-depth insights into stakeholders’ views on firstly, how much is known and understood about PEA by those associated with the L&D debate? Secondly, how might PEA inform L&D and wider climate policy? Results show debate within the climate science community, and limited understanding among other stakeholders, around the sense in which extreme events can be attributed to climate change. However, stake- holders do identify and discuss potential uses for PEA in the WIM and wider policy, but it remains difficult to explore precise applications given the ambiguity surrounding L&D. This implies a need for stakeholders to develop greater understandings of alternative conceptions of L&D and the role of science, and also identify how PEA can best be used to support policy, and address associated challenges.

The effects of corporate and country sustainability characteristics on the cost of debt: an international investigation

We investigate the relationship between corporate and country sustainability on the cost of bank loans. We look into 470 loan agreements signed between 2005 and 2012 with borrowers based in 28 different countries across the world and operating in all major industries. Our principal findings reveal that country sustainability, relating to both social and environmental frameworks, has a statistically and economically impactful effect on direct financing of economic activity. An increase of one unit in a country's sustainability score is associated with an average decrease in the cost of debt by 64 basis points. Our international analysis shows that the environmental dimension of a country's institutional framework is approximately twice as impactful as the social dimension, when it comes to determining the cost of corporate loans. On the other hand, we find no conclusive evidence that firm-level sustainability influences the interest rates charged to borrowing firms by banks. Our main findings survive a battery of robustness tests and additional analyses concerning subsamples, alternative sustainability metrics and the effects of financial crisis.