The impact of business on society: exploring CRS adoption and alleged human rights abuses by large corporations
Management research on Corporate Social Responsibility (CSR) focuses almost exclusively on the impact of CSR on profitability or corporate value. A largely neglected question is whether CSR impacts positively on society. We address this gap in the literature by exploring the relationship between CSR adoption (as reflected by corporate declarations to adopt CSR policies) and corporate involvement in alleged human rights abuses. Using information on 140 large advanced country corporations, we find that there is a relationship between CSR and alleged human rights abuses, but that the nature of this relationship varies according to the type of abuse: firms that declare to be CSR-adopters appear less likely to be involved than non-adopters in the worst of the abuses (i.e. jus cogens abuses), but more likely than non-adopters to be involved in other types of "less serious" abuse (i.e. no-jus cogens abuses). Also, over time, the adoption of CSR reduces corporate involvement in direct abuses allegedly committed by management, or by a subsidiary, but not indirect abuses allegedly committed by complicit third parties (e.g. suppliers, clients, etc.). Our analyses contribute to the theory on the impact of business on society and have some normative implications for corporate abuses of human rights.
|Date of creation:||21 Jun 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Piazza dei Martiri della Liberta, 33, 56127 Pisa|
Web page: http://www.lem.sssup.it/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Velasquez, Manuel, 2000. "Globalization and the Failure of Ethics," Business Ethics Quarterly, Cambridge University Press, vol. 10(01), pages 343-352, January.
- Croissant, Yves & Millo, Giovanni, 2008. "Panel Data Econometrics in R: The plm Package," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 27(i02).
- Jensen, Michael C., 2002. "Value Maximization, Stakeholder Theory, and the Corporate Objective Function," Business Ethics Quarterly, Cambridge University Press, vol. 12(02), pages 235-256, April.
- Jeffrey M. Wooldridge, 2001.
"Econometric Analysis of Cross Section and Panel Data,"
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 0262232197, December.
- Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
- Suk-Jun Lim & Joe Phillips, 2008. "Embedding CSR Values: The Global Footwear Industry’s Evolving Governance Structure," Journal of Business Ethics, Springer, vol. 81(1), pages 143-156, August.
- Leisinger, Klaus M., 2005. "The Corporate Social Responsibility of the Pharmaceutical Industry: Idealism without Illusion and Realism without Resignation," Business Ethics Quarterly, Cambridge University Press, vol. 15(04), pages 577-594, October.
- Julia Roloff & Michael Aßländer, 2010. "Corporate Autonomy and Buyer–Supplier Relationships: The Case of Unsafe Mattel Toys," Journal of Business Ethics, Springer, vol. 97(4), pages 517-534, December.
- Markus Kitzmueller & Jay Shimshack, 2012. "Economic Perspectives on Corporate Social Responsibility," Journal of Economic Literature, American Economic Association, vol. 50(1), pages 51-84, March.
- Sprinkle, Geoffrey B. & Maines, Laureen A., 2010. "The benefits and costs of corporate social responsibility," Business Horizons, Elsevier, vol. 53(5), pages 445-453, September.
- Campbell, Tom, 2006. "A Human Rights Approach to Developing Voluntary Codes of Conduct for Multinational Corporations," Business Ethics Quarterly, Cambridge University Press, vol. 16(02), pages 255-269, April.
- Gond, Jean-Pascal & Palazzo, Guido & Basu, Kunal, 2009. "Reconsidering Instrumental Corporate Social Responsibility through the Mafia Metaphor," Business Ethics Quarterly, Cambridge University Press, vol. 19(01), pages 57-85, January.
- Cragg, Wesley, 2012. "Ethics, Enlightened Self-Interest, and the Corporate Responsibility to Respect Human Rights: A Critical Look at the Justificatory Foundations of the UN Framework," Business Ethics Quarterly, Cambridge University Press, vol. 22(01), pages 9-36, January.
- Vanessa M Strike & Jijun Gao & Pratima Bansal, 2006. "Being good while being bad: social responsibility and the international diversification of US firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 850-862, November.
- Xiaomin Yu, 2008. "Impacts of Corporate Code of Conduct on Labor Standards: A Case Study of Reebok’s Athletic Footwear Supplier Factory in China," Journal of Business Ethics, Springer, vol. 81(3), pages 513-529, September.
- Aaronson, Susan Ariel, 2007. "Seeping in slowly: how human rights concerns are penetrating the WTO," World Trade Review, Cambridge University Press, vol. 6(03), pages 413-449, November.
- J.P. Gond & A. El Akremi & J. Igalens & V. Swaen, 2011. "A corporate social responsibility," Post-Print hal-00826426, HAL.
- Weaver, Gary R. & Trevino, Linda Klebe, 1994. "Normative And Empirical Business Ethics: Separation, Marriage Of Convenience, Or Marriage Of Necessity?," Business Ethics Quarterly, Cambridge University Press, vol. 4(02), pages 129-143, April.
- Lisa Calvano, 2008. "Multinational Corporations and Local Communities: A Critical Analysis of Conflict," Journal of Business Ethics, Springer, vol. 82(4), pages 793-805, November.
- Wettstein, Florian, 2012. "Silence as Complicity: Elements of a Corporate Duty to Speak Out Against the Violation of Human Rights," Business Ethics Quarterly, Cambridge University Press, vol. 22(01), pages 37-61, January.
- Muchlinski, Peter, 2012. "Implementing the New UN Corporate Human Rights Framework: Implications for Corporate Law, Governance, and Regulation," Business Ethics Quarterly, Cambridge University Press, vol. 22(01), pages 145-177, January.
When requesting a correction, please mention this item's handle: RePEc:ssa:lemwps:2011/13. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.