No abstract

Stakeholder theory suggests a relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) because certain stakeholders reward certain types of CSR. This argument assumes that stakeholders attend to firms' CSR activities-an assumptionthat has yet to be examined. We fill this gap by extending stakeholder theory to the context of stakeholder attention to firm CSR and exploring the antecedents and consequences of stakeholder attention to corporate disaster relief CSR. We test the resulting hypotheses on a sample of public companies that engaged in natural disaster relief efforts, finding that stakeholder attention partially mediated the relationship between disaster relief and CFP and that stakeholder attention to corporate disaster relief was driven by the legitimacy, urgency, and enactment of disaster relief CSR initiatives.

The stated purpose of the investigations that invariably follow industrial, transportation, and mining disasters is to learn from those tragedies to prevent future tragedies. But does prior experience with disaster make organizations more capable of preventing future disasters? Do organizations learn from disasters experienced by other organizations? Do organizations learn differently from rare disasters than they do from common minor accidents? In its present state, the organizational safety literature is poorly equipped to answer these questions. The present work begins to address this gap by empirically examining how prior organizational experience with disaster affects the likelihood that organizations will experience future disasters. It approaches the issue in the context of fatal U.S. coal mining accidents from 1983 to 2006. The analysis demonstrates that organizations do learn to prevent future disasters through both direct and vicarious experience with disaster. It also indicates that the mechanisms through which organizations learn from disasters differ from those through which they learn from minor accidents.

No abstract

The term ''corporate transparency'' is frequently used in scholarly discussions of business ethics and corporate social responsibility (CSR); however, it remains a volatile and imprecise term, often defined incompletely as ''information disclosure'' accomplished through standardized reporting. Based on the results of empirical studies of organizational behaviors, this paper identifies a new set of managerial practices based on the use of information and communication technologies (ICT) and particularly Internet-based tools. These practices are resulting in what can be termed ''dynamic transparency.'' ICT allows for an informational environment characterized by two-way exchange between corporations and their stakeholders, which fosters a more collaborative marketplace. It is proposed that such dynamic information sharing, conducted by means of ICT, drives organizations to display greater openness and accountability, and more transparent operations, which benefit both the corporations and their constituents. One of the most important outcomes that will accrue to consumers and other individuals is the ''right to know,'' especially about corporate strategies and activities that might directly affect their quality of life. This paper demonstrates that dynamic transparency is more desirable and more effective than the more common ''static transparency'' where firms' information disclosure is oneway, usually in response to government regulation. We present three ethical arguments to justify the implementation by business firms of dynamic transparency and demonstrate that their doing so is related to CSR and to augment and complement stakeholder engagement and dialogue. The paper concludes with a summary of the possible limits to and the problems involved in the implementation of dynamic transparency for corporations, and suggests some strategies to counter them.