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The Institutionalization of the Domain of Corporate Social Responsibility

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Corporate Social Responsibility and Corporate Change

Part of the book series: Ethical Economy ((SEEP,volume 57))

Abstract

Corporate social responsibility (CSR) is not just a dimension of an ethical management system. It is now a major institutional field that has emerged over several decades. The CSR institutional field and movement are sustained by a very large international network of individuals and organizational actors. Business organizations face globalization processes and related economic competition, technological change as well as new cultural models, notably, those related to sustainable development, the dynamics of social networks and the knowledge society. They are not only at the forefront of numerous social transformations but are also compelled to change their own perspectives and to integrate, either voluntarily or under external pressure, new concerns, such as CSR and sustainable development, which are now widely recognized at the international level. The first section of this chapter identifies the main sources of CSR institutionalization since the beginning of the nineties, the individual and corporate actors involved, and, as a result of this dynamic process, the structural components of the CSR institutional field such as the cognitive (i.e., academic production) and normative referents (i.e., principles and standards) and procedural elements for CSR implementation (i.e., codes of conduct, certification and audits). The second section provides an overview of the different chapters and their contributions to our understanding of (1) several theoretical issues and debates; (2) new forms of involvement by international and national public and private organizations; (3) corporate strategies in the face of new issues; and finally, (4) CSR implementation processes and the roles of a variety of social actors.

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Notes

  1. 1.

    On the one hand, the increase in the number of professionals and managers with advanced university education; and on the other hand cheap workforce at the base of the pyramid (BOP), as noted by Jordis Grimm and Dirk Ulrich Gilbert in Chap. 9.

  2. 2.

    Which leads to Elkington’s Triple Bottom Line Principle for a Sustainable Business (1997): Profit and Economic Prosperity, People and Social Justice, Planet, Environmental Bottom Line.

  3. 3.

    The authors discuss each of the following categories: purely economic, purely legal, purely ethical; economic/ethical, economic/legal, legal/ethical; economic/legal/ethical.

  4. 4.

    In addition to the often neglected regulation of profits, thereby guaranteeing company operations over the long term.

  5. 5.

    ‘Companies can become socially responsible by: following the law; integrating social, environmental, ethical, consumer, and human rights concerns into their business strategy and operations.’ See http://ec.europa.eu/growth/industry/corporate-social-responsibility_en (Consulted May 2018).

  6. 6.

    As noted by Scherer and Palazzo (2011: 907), ‘Along their supply chains, MNCs are asked to take responsibility for more and more social and environmental externalities to which they are connected.’

  7. 7.

    The legal fiction of the ‘impersonal corporation’ is what underscores the belief that a ‘juristic person could substitute functionally for a natural person’ (Coleman, 1990: 537). For a more in depth discussion, see Sales (2012: 65–68).

  8. 8.

    This distinction resulted in two main advantages for the unfolding of social life: The first was to free natural persons from fixed estates and functional positions, allowing them to be mobile, especially in relation to their functional positions. The second, on the basis of the ‘abstract and intangible corporate actor’, is to provide institutions and organizations with ‘structural continuity and stability’, provided that those successively in charge have the capacity to do so (Coleman, 1990; Sales, 2012: 65–68).

  9. 9.

    Designed by engineers, the software was knowingly approved by engine executives, i.e., Jens Adler and Richard Dorenkamp. In total, ‘six Volkswagen executives and employees were indicted in connection with conspiracy to cheat US emissions tests’ while ‘Volkswagen AG agreed to plead guilty and pay $4.3 billion in criminal and civil penalties’ (US Department of Justice 2017). The total cost of the fraud for VW was $30 billion (Schwartz & Bryan, 2017).

  10. 10.

    Didier Larion, Principal, Global Economic Crime and Fraud Survey Leader, PwC US, underlined that ‘24% of reported internal frauds were committed by senior management’ in the PwC’s 2018 Global Economic Crime and Fraud Survey.

  11. 11.

    Here, we interpret specific configurations, incorporating human agents, as active structures. ‘Rather than holding to the idea of an abstract and ‘cadaverous’ structure (or institution) consisting of only rules and resources, we need to return to the interpretation of ethnologist Radcliffe-Brown who used ‘the term “social structure” to denote [a] network of actually existing relations’ (1952: 190). By ‘active reticular structure’, I mean an integrated network of human actors and corporate actors tied within a systemic logic by common interests, that promote a model, a vision of the world (Sales, 2012: 79).

  12. 12.

    As in the case of architecture,  fundamental scientific principles and knowledge  (i.e. in geometry, geology, and on building materials), models, esthetics and technologies  needed to design and build complex structures.

  13. 13.

    Following Gurvitch who used the French words of ‘œuvres de civilisation’, I defined these works as the ‘Structural heritage of humanity constituted by major works and cognitive resources linked to every field of activity and created by ancient and contemporary generations. A number of these works are selectively attached to specific societies and form part of their identity, but many others are imbued with a universal character. They are at the foundation of many institutions and play an important role in social reproduction processes and creativity’ (Sales, 2012: 88 and 71–74).

  14. 14.

    William C. Frederick passed away at the age of 92 in March 2018. He is credited with helping found the business and society field of management studies in the USA. He served as President of the Society for the Advancement of Socioeconomics and the Society for Business Ethics (Source: SASE Web site: https://sase.org/uncategorized/memoriam-william-c-frederick/).

  15. 15.

    Founder of socioeconomics as a field of scholarship.

  16. 16.

    (a) From national to global governance; (b) from hard law to soft law; (c) from liability to social connectedness; (d) from cognitive and pragmatic legitimacy to moral legitimacy; (e) from liberal democracy to deliberative democracy.

  17. 17.

    It is important to underline that the 1990’s normative work was not related with the financial scandals of Enron (2001), Worldcom (2002), Adelphia (2002), Nortel (2001–2003), Xerox (2002) as they happened at the beginning of the 2000s.

  18. 18.

    These Guidelines have been revised five times: 1979, 1982, 1984, 1991, 2000 and 2011. For the most recent version, see OECD (2011).

  19. 19.

    http://www.canadianchemistry.ca/responsible_care/index.php/en/our-commitment.

  20. 20.

    http://www.canadianchemistry.ca/responsible_care/index.php/en/responsible-care-codes.

  21. 21.

    http://www.ethicalconsumer.org/researchhub/ethicalaccreditation.aspx. See also Visser and Tolhurst (2010) for short descriptions of some of these organizations.

  22. 22.

    Deregulation began in the late 1970s.

  23. 23.

    With entirely private governance.

  24. 24.

    At the same time, the Commission invite(d) all large European enterprises to make a commitment by 2014 to take account of at least one of three sets of principles and guidelines when developing their approach to CSR: ISO 26000, the United Nations Global Compact, or the Guidelines for Multinational Enterprises developed by the Organisation for Economic Co-operation and Development (OECD).

  25. 25.

    The EU commission decided ‘to monitor the commitments made by European enterprises with more than 1000 employees to take account of internationally recognized CSR principles and guidelines and of the ISO 26000 guidance standard on social responsibility in their operation.’

  26. 26.

    A majority of the UNGC Board are business representatives (12 members), as compared with four representatives of Civil Society and Labor and 5 ‘Key Stakeholders’.

  27. 27.

    Executive director of the UNGC between 2000 and 2015.

  28. 28.

    See also Chap. 6 by Karin Buhmann in this volume.

  29. 29.

    The authors note: ‘Fourth, and most important for this paper, despite a common focus on stakeholder relations, in none of these initiatives can one find an elaborated concept of how to actually perform such stakeholder dialogues and how to justify their normative basis (Gilbert & Rasche, 2007: 209)’.

  30. 30.

    http://www.saasaccreditation.org/accredcertbodies. On Certification, see Bartley (2007).  On Reporting, see Levy, Brown and de Jong (2009), Brown (2011), Sethi, Rovenpor and Demir (2017).

  31. 31.

    Signed by Audi CEO Rupert Stadler. https://www.volkswagenag.com/en/group/compliance-and-risk-management/compliance.html.

  32. 32.

    (1) Social or embedded liberalism; (2) Classical liberalism; (3) Neoliberalism; and (4) Re-embedded liberalism.

  33. 33.

    ‘Property rights do not refer to relations between men and things but, rather, to the sanctioned behavioral relations among men that arise from the existence of things and pertain to their use. Property rights assignments specify the norms of behavior with respect to things that each and every person must observe in his interactions with other persons or bear the cost for nonobservance. The prevailing system of property rights in the community can be described, then, as the set of economic and social relations defining the position of each individual with respect to the utilization of scarce resources’ (Furubotn & Pejovich, 1972).

  34. 34.

    Beginning with Dodd (1932), Selznick (1957), or Touraine (1969, 1977). The polysemous nature of the concept of the institution must however be considered.

  35. 35.

    Price Waterhouse Coopers, Global Economic Crime Survey (2003), http://www.pwcglobal.com/gx/eng/cfr/gecs/PwC_GECS03_global%20report.pdf, 19.

  36. 36.

    Such as the Commission of Inquiry on Public Contracts in the Construction Industry of the Province of Quebec, Canada (2011–2015).

  37. 37.

    In the political realm, as soon as Emmanuel Macron, the President of France took office he called for a law that would restore ‘confidence in our democratic life’ and raise ethical standards in French political life, which has been tarnished by shady dealings among major political leaders.

  38. 38.

    Ethics have been and are being undermined in major scandals affecting a host of companies, the most recent case being Volkswagen, and more broadly a major part of the automobile industry.

  39. 39.

    Proposed by Brown and Trevino (2014).

  40. 40.

    Such as the United Nations Human Rights (2011Guiding Principles on Business and Human Rights for Implementing the United Nations ‘Protect, Respect and Remedy’ Framework.

  41. 41.

    Specifically by way of the United Nations Global Compact (2010) Blueprint for Corporate Sustainability Leadership.

  42. 42.

    This concentration of organizations, as in the case of the United Nations for Human Rights, included governments, enterprises, workers’ unions, consumer associations, non-governmental organizations, consultants and specialists from academia.

  43. 43.

    Christoph Stamm also conducted comparative research in Canada.

  44. 44.

    With a general political dimension as categorized by Rasche (2009).

  45. 45.

    Conference of the Parties (or “COP21”) to the United Nations Framework Convention on Climate Change (UNFCCC).

  46. 46.

    https://www.globalreporting.org/information/about-gri/grihistory/Pages/GRI’shistory.aspx.

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Sales, A. (2019). The Institutionalization of the Domain of Corporate Social Responsibility. In: Sales, A. (eds) Corporate Social Responsibility and Corporate Change. Ethical Economy, vol 57. Springer, Cham. https://doi.org/10.1007/978-3-030-15407-3_1

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