Ideology and the Micro-foundations of CSR: Why Executives Believe in the Business Case for CSR and how this Affects their CSR Engagements

Hafenbrädl, Sebastian; Waeger, Daniel

doi:10.5465/amj.2014.0691

Cited by 190 publications

(182 citation statements)

References 102 publications

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“…A large proportion of BOD and TMT members with law degrees permits an inference that firms were ineffective at avoiding, unwilling to avoid, or overconfident in their ability to avoid irresponsible initiatives (Godfrey et al, 2009; Sniezek & Henry, 1989) and may substantiate the belief that firms bear the burden of responsibility. Investors may also even believe these BOD and TMT members lack strong moral emotions towards ethical problems and hence are less willing to address irresponsible corporate activities (Hafenbrädl & Waeger, 2017). Investors will accordingly punish such firms for failing to detect or remedy behavior that leads to negative impacts.…”

Section: Investor Reactions To Csimentioning

confidence: 99%

Firms behaving badly? Investor reactions to corporate social irresponsibility

Kanuri

Houston

Andrews

2020

Business and Society Review

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Corporate social irresponsibility (CSI) and other questionable business incidents that appear to harm stakeholders frequently afflict firms yet draw disparate investor reactions. We address this disparity by investigating the association between firm legal orientation and investor reactions to CSI. We hypothesize the proportion of board members and top management team (TMT) executives with law degrees affects investor perceptions of firm foresight, and in turn, their judgment of blame and consequent punishment. Based on abnormal returns to 629 announcements of CSI and 308 publicly traded S&P 500 firms, we find that both too small and too large a proportion of board of directors and TMT members with law degrees lead investors to mete out harsher punishment. This inverted u‐shaped link is further affected by firm size, firm risk, and industry competition. Our investigation sheds light on the link between executive education and financial performance in the context of CSI and investor perceptions of foresight.

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Section: Investor Reactions To Csimentioning

confidence: 99%

Firms behaving badly? Investor reactions to corporate social irresponsibility

Kanuri

Houston

Andrews

2020

Business and Society Review

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“…For example, studies of CEO's and other corporate actors revealed that-in good economic times as well as bad-corporations led by liberals were more likely than those led by conservatives to promote environmental sustainability-as well as human rights, income equality, gender parity, diversity initiatives, product quality, and positive employee and community relations (Briscoe & Joshi, in press;Chin, Hambrick, & Treviño, 2013;Chin & Semadeni, 2017;Gupta, Briscoe, & Hambrick, 2017). Because conservative managers are more system-justifying than liberal managers, they may experience weaker emotional reactions to ethical transgressions and seem to be less interested in corporate social responsibility overall (Hafenbrädl & Waeger, 2016; see also Tan, Liu, Huang, & Zheng, 2016). Likewise, research in financial economics shows that mutual fund managers who make campaign donations to Democratic (vs. Republican) political candidates are less likely to invest in companies that are deemed socially irresponsible, such as purveyors of guns, tobacco, or military weapons, as well as companies with poor employee relations and a lack of attention to diversity concerns (Hong & Kostovetsky, 2012).…”

Section: Implications For Persuasion Framing and Advertisingmentioning

confidence: 99%

The marketplace of ideology: “Elective affinities” in political psychology and their implications for consumer behavior

2017

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An abundance of research in political psychology demonstrates that leftists and rightists (or liberals and conservatives) diverge from one another in terms of: (a) personality characteristics; (b) cognitive processing styles; (c) motivational interests and concerns; (d) the prioritization of personal values; and (e) neurological structures and physiological functions. In this article, I summarize these findings and discuss some of their implications for persuasion, framing, and advertising; consumer choice, judgment, decision‐making, and behavior; and customer satisfaction/dissatisfaction and politically motivated boycotts. I conclude that the theory and practice of consumer psychology will be enriched by taking into account ideological asymmetries and the ways in which human behavior both reflects and gives rise to left–right divergence in political orientation—not only in terms of beliefs, opinions, and values but also in terms of underlying psychological processes.

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“…There is a pervasive, and sometimes unfounded, belief that corporate-level decisions to invest in CSR initiatives rest entirely on the presence of a compelling “business case” (Hafenbrädl and Waeger, 2016). We believe that, in reality, corporate decisions to invest in CSR are often more nuanced than most people probably assume.…”

Section: Fulfilling a “Quid Pro Quo”: Implications For Multilevel Csrmentioning

confidence: 99%

When Corporate Social Responsibility (CSR) Meets Organizational Psychology: New Frontiers in Micro-CSR Research, and Fulfilling a Quid Pro Quo through Multilevel Insights

2017

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Researchers, corporate leaders, and other stakeholders have shown increasing interest in Corporate Social Responsibility (CSR)—a company’s discretionary actions and policies that appear to advance societal well-being beyond its immediate financial interests and legal requirements. Spanning decades of research activity, the scholarly literature on CSR has been dominated by meso- and macro-level perspectives, such as studies within corporate strategy that examine relationships between firm-level indicators of social/environmental performance and corporate financial performance. In recent years, however, there has been an explosion of micro-oriented CSR research conducted at the individual level of analysis, especially with respect to studies on how and why job seekers and employees perceive and react to CSR practices. This micro-level focus is reflected in 12 articles published as a Research Topic collection in Frontiers in Psychology (Organizational Psychology Specialty Section) titled “CSR and organizational psychology: Quid pro quo.” In the present article, the authors summarize and integrate findings from these Research Topic articles. After describing some of the “new frontiers” these articles explore and create, the authors strive to fulfill a “quid pro quo” with some of the meso- and macro-oriented CSR literatures that paved the way for micro-CSR research. Specifically, the authors draw on insights from the Research Topic articles to inform a multilevel model that offers multiple illustrations of how micro-level processes among individual stakeholders can explain variability in meso (firm)-level relationships between CSR practices and corporate performance. The authors also explore an important implication of these multilevel processes for macro-level societal impact.

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Ideology and the Micro-foundations of CSR: Why Executives Believe in the Business Case for CSR and how this Affects their CSR Engagements

Cited by 190 publications

References 102 publications

Firms behaving badly? Investor reactions to corporate social irresponsibility

Firms behaving badly? Investor reactions to corporate social irresponsibility

The marketplace of ideology: “Elective affinities” in political psychology and their implications for consumer behavior

When Corporate Social Responsibility (CSR) Meets Organizational Psychology: New Frontiers in Micro-CSR Research, and Fulfilling a Quid Pro Quo through Multilevel Insights

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