The convergence of corporate social responsibility practices
AbstractPurpose – This paper tries to explain why many socially-responsible firms appear to converge on a standard set of corporate social responsibility (CSR) practices instead of striving to differentiate themselves from rivals and achieve competitive advantage. Design/methodology/approach – Three explanations of this convergence are presented: herd behaviour, institutional isomorphism, and strategic cooperation. The different empirical predictions of these theories are laid down. The resulting framework is used to analyse a recent self-regulatory scheme launched by the steel industry, in which knowledge-sharing was used to stimulate poor performers to curb carbon dioxide emissions. Findings – Social practices of firms are very often driven by pressures to conform, instead of pressures to perform. Even firms that want to be innovative may be forced by stakeholder requests to adopt passive and imitative behaviour. Practical implications – The paper suggests that there are two types of CSR – convergent and divergent – and that firms need to establish which type of CSR best fits their needs before they address the issues raised by stakeholders. Originality/value – The literature on CSR focuses on the relationship between stakeholders and single firms. The paper tries to add to this literature by analysing the relationship between stakeholders and industries. The paper also contributes to the debate on the financial benefits of CSR by arguing that in industries where the convergent type of CSR is dominant researchers should not expect above-average returns for socially-responsible firms.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 25505.
Date of creation: 2010
Date of revision:
Publication status: Published in Management Research Review 7.33(2010): pp. 734-748
corporate social responsibility; strategy; institutional isomorphism; herd behaviour; cooperative behaviour; private regulation;
Find related papers by JEL classification:
- M14 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
- L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
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- Sushil Bikhchandani & David Hirshleifer & Ivo Welch, 2010.
"A theory of Fads, Fashion, Custom and cultural change as informational Cascades,"
Levine's Working Paper Archive
1193, David K. Levine.
- Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1992. "A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 992-1026, October.
- Thomas Laudal, 2011. "Drivers and barriers of CSR and the size and internationalization of firms," Social Responsibility Journal, Emerald Group Publishing, vol. 7(2), pages 234-256, July.
- Catalina Soriana SITNIKOV & Claudiu George BOCEAN, 2012. "Corporate Social Responsibility Through The Lens Of Iso Standards," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 2(4), pages 56-66, December.
- José María González González, 2010. "Determinants of socially responsible corporate behaviours in the Spanish electricity sector," Social Responsibility Journal, Emerald Group Publishing, vol. 6(3), pages 386-403, October.
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