Session 213

What is In It For Us? How Sustainability Matters for Firm Strategy

Track M

Date: Monday, September 22, 2014

Track X

Time: 11:00 – 12:15

Common Ground

Room: Moscu


Facilitator:

  • Flore Bridoux, University of Amsterdam

Title: Does Corporate Social Responsibility Reputation Spill Over? The Evidence from Korean Business Groups

Authors

  • Sang-Bum Park, Korea University
  • Hyerin Park, Technovalue
  • Hicheon Kim, Korea University

Abstract: We examine how a firm’s reputation for corporate social responsibility (CSR) is shared with other surrounding firms. We propose that CSR reputations shaped by the third-party’s endorsement can not only impact stock market responses to the listed firms in a social responsible investing (SRI) index, but can also spill over their group-affiliated firms within the same business group consists of legally independent companies, affecting their market reactions. Specifically, we analyze the effects of announcements of additions to and deletions from the SRI index on market responses of focal firms and their group affiliates. We find that firms that excluded from the SRI index and their group affiliates as well suffer negative abnormal stock returns, and this spillover becomes salient when industry and ownership are overlapped.

Title: Macro-Economic Crises and Corporate Sustainability Performance

Authors

  • Lorenzo Massa, IESE Business School
  • Emanuele Bettinazzi, EMLYON
  • Kerstin Neumann, University of Innsbruck
  • Maurizio Zollo, Bocconi University

Abstract: How do macroeconomic crisis affect firms’ orientation towards sustainability? Some firms might decide to reduce investments in sustainability drastically focusing resources on efficiency gains, while others might increase such investments to seize the opportunity to realize differentiation advantages. We examine evidence on the evolution of sustainability performance along the macro-economic crisis in a sample of 2,116 companies and find that the variance increases for some dimensions of sustainability and reduces in other dimensions. We examine the effects of strategic orientation and motives on these variations and we find evidence that the interplay between strategy and motives influence on firm’s willingness and capacity to respond to macro-economic crises by enhancing their commitment to sustainability on dimensions that are most conducive to potential gains from differentiation.

Title: Social Perception of Corporate Social Responsibility and Irresponsibility: Asymmetric Benefits and Penalties of CSR Strategy

Authors

  • Catherine Shea, Northwestern University
  • Olga Hawn, University of North Carolina at Chapel Hill

Abstract: This study examines the relationship between corporate social responsibility (CSR), social perception, and firm outcomes. Drawing from stereotype theory, we argue that CSR is influenced by two fundamental dimensions of social perception – warmth and competence – which mediate and moderate the effects of socially responsible and irresponsible (CSI) actions on firm outcomes. We propose that CSR is viewed as a corporate strategy that connotes increased perceptions of warmth, and firms with differing levels of warmth receive asymmetric benefits and penalties for their CSR and CSI behavior. Experiment 1 links CSR with perceptions of warmth and competence. Experiment 2 uses variation in warmth and competence perceptions of the firm’s home country to examine how CSR and CSI affect reputation and purchase intentions from different kinds of firms.

Title: The Institutionalization of the Corporate Sustainability Field: A Literature Review

Authors

  • Javier Delgado-Ceballos, University of Granada
  • Ivan Montiel, City University of New York
  • Raquel Antolin-Lopez, University of Almeria

Abstract: This article will provide a systematic categorization of the research conducted by management and strategy scholars in the corporate sustainability (CS) field. It will also analyze similarities and differences between the CS discussions in academic and practitioner forums. Finally, it will provide recommendations for the future that may help institutionalize the CS field. Our contribution in this study will be threefold: (i) organize the CS literature by classifying studies according to the topics and research questions addressed to shed light on the evolution of the CS field over the past twenty-five years, (ii) start building a bridge between the academic and practitioner management literatures devoted to CS topics, and (iii) outline potential ways for future advancement of the CS field from a strategic management perspective.

Title: The Transition to a Low Carbon Economy: The Dynamics of Environmental Stakeholder Networks

Authors

  • Polina Baranova, University of Derby
  • Maureen Meadows, Coventry University

Abstract: The transition to a low carbon economy demands new strategies for maintaining competitiveness and benefiting from ‘green growth’. A network of stakeholders offers opportunities for, as well as constraints to, organisational growth and successful low carbon strategies. This multiple-case study explores the relational dynamics between the case organisations and a range of stakeholders. We find that stakeholders with institutional power bases are seen as the most influential. Top management is also a critical stakeholder in providing stewardship for the organisation’s low carbon initiatives. The study highlights the growing influence of customers upon the success of business strategies aimed at exploiting low carbon opportunities. Intra- and inter-organisational strategy-making practices are emergent arenas for stakeholder management in the context of the low carbon economy.

Title: To Be Special, To Be Responsible: How Specialty Product Affects Corporate Social Responsibility

Authors

  • Yi Tang, Hong Kong Polytechnic University
  • Rui Shen, Nanyang Technological University
  • Ying Zhang, Erasmus University-Rotterdam

Abstract: Grounded in the risk-management perspective of CSR research, this study establishes a link between specialty product and corporate social responsibility (CSR). We first develop the theoretical argument that specialty product is positively related to a firm’s socially responsible activities. We then explore the boundary conditions under which this relationship is moderated by external environmental conditions. With a longitudinal dataset of 2,196 US public firms for the period of 2001–2010, we find that the positive relationship between specialty product and CSR are strengthened when the firm’s external environment is more uncertainty and less munificent; while the positive relationship weakens when the market becomes more competitive. Finally we discuss the implications of our findings for the CSR research.

All Sessions in Track M...

Sun: 08:00 – 09:15
Session 220: Applying Stakeholder Analysis in the Classroom
Sun: 09:30 – 10:45
Session 221: Global Stakeholder Networks
Sun: 11:15 – 12:30
Session 222: The Questions Stakeholder Theory Does or Could Answer Best
Sun: 15:45 – 17:00
Session 215: Yikes: What Now (Reloaded)?: Firm Responses to Stakeholder Activism
Sun: 17:15 – 18:30
Session 609: Stakeholder Strategy IG Business Meeting
Mon: 11:00 – 12:15
Session 213: What is In It For Us? How Sustainability Matters for Firm Strategy
Mon: 16:30 – 17:45
Session 216: What should we say? The benefits and risks of communication with stakeholders.
Tue: 08:00 – 09:15
Session 218: Willing and able to engage? Firm interactions with their stakeholders.
Tue: 11:00 – 12:15
Session 217: Value creation for whom? Stakeholder management and shareholder interests.
Tue: 15:30 – 16:45
Session 219: Managing or resolving stakeholder issues? Of governments, politics and scandals.
Tue: 17:15 – 18:30
Session 214: Can-do stakeholders? How stakeholders impact CSR and sustainability management.

All Sessions in Track X...

Sun: 13:45 – 14:30
Session 295: Keynote: Lifetime Achievement Award
Sun: 14:30 – 15:15
Session 471: Keynote: CK Prahalad Award
Sun: 15:45 – 17:00
Session 203: Acquisition Implementation
Session 215: Yikes: What Now (Reloaded)?: Firm Responses to Stakeholder Activism
Session 398: Corporate Strategy and Corporate Finance: Continuing the Research Conversation
Mon: 08:00 – 09:15
Session 260: IPRs, Appropriability and Innovation
Session 338: Making Strategy, Strategic Change and the Role of Sensemaking and Sensegiving
Mon: 09:30 – 10:30
Session 296: How Social Networks Create Competitive Advantage: The Microfoundations Reputation
Mon: 11:00 – 12:15
Session 213: What is In It For Us? How Sustainability Matters for Firm Strategy
Session 352: CEO Decision Making
Session 405: Multi-Sided Platform Strategies
Mon: 13:30 – 14:30
Session 4: Business Models in their Competitive Context
Session 5: Building Strategic States
Session 298: Using Networks to Shape Strategy
Session 299: Dealing with the Euro Area Economic Crisis: Strategic Adjustment in the Period of Turmoil
Session 300: Methodological and Conceptual Frontiers in the New World of Networks
Mon: 14:45 – 16:00
Session 368: Firm Scope and Industry Competition
Session 375: Changing External Environments: How do Multinationals Respond?
Mon: 16:30 – 17:45
Session 245: Human Capital Complementarities
Session 344: Paradoxical Tensions and Innovative Strategies
Tue: 08:00 – 09:15
Session 409: Increasing the Relevance of Strategy Research
Session 446: Empirical Studies and Case Studies of Business Models
Tue: 09:30 – 10:30
Session 297: Granularity of Profit
Tue: 11:00 – 12:15
Session 469: M&As and Innovation
Tue: 14:15 – 15:15
Session 301: Strategy Frameworks: In Quest of Relevance in a Turbulent World
Session 302: Directing Strategy: The Process Challenges of Formulating and Implementing Strategy in a World of Networks
Session 470: Governance Challenges in Globalized Networks
Session 473: Rethinking the Architecture of Global Corporations
Tue: 15:30 – 16:45
Session 208: Interactions, Recombination and Adaptation Processes
Session 346: Management and Strategy Practices Reconsidered
Tue: 17:15 – 18:30
Session 441: Funding Entrepreneurial Ventures: Sources and Successes


Strategic Management Society

Madrid