Corporate Responsibility, Sustainability and Markets: How Ethical Organisations and Consumers Shape Markets

ISBN-13: 9783030796594 / Angielski / Twarda / 2021 / 198 str.

Cl?udia Simões; Alin Stancu; Georgiana Grigore

Spis treści

Introduction: an overview of the book, the importance of corporate responsibility and sustainability in the creation of various markets. A summary of every chapter, and how different chapters link together. Editorial team.

 

Section 1: Changing Market Systems

 

In this section, we provide chapters that explore changing market systems, including how these can be made more responsible and sustainable. The section includes: models of capitalism and institutions (Chapter 1), a systematic review of CSR and social enterprise literature (Chapter 2), ways to transform linear market systems from linear to circular structural arrangements (Chapter 3), corporate responsibilities towards minority stakeholders like indigenous people or remote communities (Chapter 4), and it ends with an intercultural study on whether consumers’ value systems impact sustainable consumption of groceries (Chapter 5). These chapters include both conceptual and empirical work.

 

Chapter 1. Models of Capitalism, Institutions and Corporate Social Responsibility

 

Robert Kudłak, Adam Mickiewicz University in Poznań

One of the intriguing research topics related to corporate social responsibility (CSR) concerns the noticeable discrepancies in terms of the level of CSR uptake across economies. These discrepancies are especially well noticeable among well developed countries such as the USA and Western European countries. The purpose of the paper is to show that the differences in the level of CSR involvement between countries result from the distinct institutional environments characteristic for the different models of capitalism, particularly, for different models of the welfare state. The respective models of welfare stare vary in terms of how the institutional arrangements determine the form and level of public delivery of social services such as health care, pensions, education, culture and social assistance. Using the comparison between Anglo-Saxon (USA) and Western European countries, it is argued that companies operating under stronger institutional pressure occurring in countries with an extensive welfare state model (such as Western European countries) are less likely to engage in voluntary provision of social services such as health care, pensions and education. In contrast, when companies operate in countries with a relatively minor role of the state in creating and redistributing well-being (e.g. the USA) and a relatively low institutional pressure in this regard, it increases the chances of their involvement in socially responsible activities.

Keywords: models of capitalism, welfare state, institutions, social services, corporate social responsibility

Chapter 2. ‘Fruits of the Same Tree’? A Systematic Review of Corporate Social Responsibility and Social Enterprise Literature

 

Sadaf Shariat, University of South Wales & Zahra Khamseh, University of Minho

This paper presents the first systematic review of the literature in the area of intersection between Corporate Social Responsibility (CSR) and Social Enterprise (SE). We have reviewed 50 scholarly articles in social entrepreneurship research focused on the comparative analysis of CSR and SE published during the period 2009 to 2019. Reviewing the selected articles, we identified different views regarding the overlap between SE and CSR. Social Enterprise may be viewed as a CSR model (Permana & Mursitama 2018), and one may argue that SE and CSR seem like ‘fruits of the same tree’ (Page & Kartz 2011), or that they are ‘both socially constructed societal processes’ (Grant & Plakshap 2018). Nevertheless, some critics find the differences between CSR and SE more striking than similarities or even ‘lamentable’ for some CSR proponents. It is argued that they receive support from different sources and that they embrace different social missions and intended beneficiaries (Page & Kartz 2011). This paper investigates the above arguments and many more issues regarding the overlap between the two concepts to shed light on the ambiguity in current SE and CSR literature. The novelty of this research is to develop a better understanding of the relationship between CSR initiatives and SE organisations and activities. The paper presents a comprehensive discussion of comparative studies of CSR and SE to identify future fields of research. Through a review of literature, we demonstrate the key questions and notions that are discussed in the literature, issues that have been previously assessed only to a very limited extent and a number of gaps and shortcomings that deserve further investigation. The results of this study would be beneficial for researcher or practitioners with an interest in CSR and SE.

Keywords: Corporate Social Responsibility, Social Enterprise, Social Impact, Literature review

Chapter 3. In Search of Morphogenetic Mechanisms to Transform Marketing Systems from Linear to Circular Structural Arrangements

 

Nicola Thomas, De Montfort University

 

Sustainability challenges the linear production and consumption model that currently shapes global marketing systems. In contrast, the Circular Economy (CE) seeks to transform market structures, resources and material flows from linear to circular arrangements. Despite CE’s broad appeal, its uptake remains low; scant theoretical attention is paid to how marketing systems transition and transform. This lack of theorising restrains society’s ability to shift towards a circular economy. This chapter explores the application of Archer’s social realist theory, The Morphogenetic Approach, to better understand how these systemic shifts could be better realised in the global fashion system. Four complex causal mechanisms are identified to illuminate how the system could be causally reconfigured to enable a circular transition. Systemic implications for theory, policy and practice are deliberated.

 

Keywords: circular economy, marketing systems, systems change, morphogenesis, transition

 

 

 

 

 

 

Chapter 4. Transnational Activism on Minority Stakeholder Saliency: CSR in the Developing Region Context

 

Kamala Vainy Kanapathi Pillai, Open University Malaysia (OUM)

While corporate social responsibility (CSR) discourse continues to gain more attention in developing regions, corporate responsiveness tends to primarily revolve around key stakeholder groups like customers, shareholders and employees. What about CSR towards minority stakeholders like indigenous peoples or remote communities? The study expounds on corporate practice involving mega projects in the era of Sustainable Development Goals (SDGs). Did you know that tropical rainforests, represents the earth’s carbon sink? Deforestation of the tropical rainforests contributes to more than 15% greenhouse gas emissions, posing a grand challenge to SDGs. In the advent of mega hydroelectric dams as renewable energy resource, thousands of hectares of rainforest areas are being deforested; leading to displacement of Indigenous peoples, accelerated loss of biodiversity and ecological impact. Corporate responsibility towards social and environmental concerns has never been more pressing. A striking phenomenon is the emergence of non-governmental (NGOs) initiatives through transnational activism, driving heightened governance and corporate practice towards sustainability. This paper expounds on insights from a longitudinal, five-year study with mixed methods approach in examining prevalent CSR practices, influence of transnational activism and implication on management and leadership in a developing region context. The case study revolves on Malaysia and the Borneo Rainforest. Theoretical foundation: This study is guided by the stakeholder theory and stakeholder identification salience model.
Contribution of Study: The insights contribute to theoretical extension of the stakeholder identification and salience model for CSR with a socio-cultural perspective and leadership approach for adaptation in a developing region context.

Keywords: CSR, transnational activism; developing region; Borneo; stakeholder theory

Chapter 5. Do Consumers’ Value Systems Impact their Consumption of Sustainable Groceries? An Intercultural Study

 

Udo Wagner & Sophie Strobl, University of Vienna

 

This research aims to reveal cultural discrepancies in the purchase motives of

groceries with environmentally friendly product attributes. For the purpose of measuring

cultural influences, we chose interculturally validated values as explanatory variables. The conceptual model builds, on the one hand, on Schwartz’s value theory (1992)—especially on the altruism vs. selfishness dimension; on the other hand, the Value-Belief-Norm model from Stern, Dietz, and Guagnao (1995) provides a means to explain how consumers’ values affect their behaviors (via opinions and norms). Based on theoretical reasoning, we offer two research hypotheses, namely, that altruistic persons are more inclined to purchase groceries with ecological or social product attributes than are selfish persons, and that micro- and macroenvironments are important drivers of consumer behavior. These hypotheses were qualitatively tested by means of expert interviews and focus group discussions. Research was conducted in the two culturally distinct countries of Austria and Sri Lanka. Results imply a positive effect of biospherical, altruistic, and egoistic values on the purchase of sustainable groceries. These observations seem to hold true irrespective of culture, but the strength of the relationship between the variables is moderated by country-specific factors, such as product price and availability, as well as individual factors, such as awareness of ecological and social issues and trust in certification.

 

Keywords: sustainable groceries, value system, industrialized vs. emerging economies

 

Section 2: Making Market Sectors Responsible

 

In this section, we focus on ways in which various market sectors can be made more responsible and sustainable. These chapters therefore contribute to knowledge on sector specific CSR. It includes chapters on sustainability and omnichannel strategies in the Italian wine industry (Chapter 6), competency management for integrating sustainability in the vocational education of German butchers (chapter 7) and a CSR map in the case of Spanish professional football league (Chapter 8). Finally, the section ends with two chapters that discuss the banking sector in Poland and Portugal: and an exploration about risk of unethical behaviour in the Polish financial sectors (Chapter 9) and banks non-financial reporting in Portugal (Chapter 10).

 

Chapter 6. Sustainability and Omnichannel Strategies in the Italian Wine Industry

 

Marta Galli, Roberta Sebastiani & Alessia Anzivino, Università Cattolica del Sacro Cuore

The sustainability issue in the Italian wine industry is increasingly gaining momentum. The general principles about sustainability, given by the Organisation of vine and Wine (OIV) in the 2016, are about environmental, social, economic and cultural stances. Indeed, sustainability is not only the respect of the environment, the reduction of wastes and pollution and the biodiversity, but it is also linked to social, cultural and economic dimensions. The intangible aspects such as the culture, the landscape, the history, the traditions and the human capital that is contained in a bottle of wine are the basis for sustainable quality, from the vineyards to the wine. Wineries today leverage on sustainability in order to obtain a competitive advantage, efficiency and brand image. However, consumers are still not always aware about the characteristics of a sustainable product and thus they are not always willing to pay a higher price for it. The aim of the paper is to investigate how in particular small and medium Italian wineries implement sustainable practices and the impact of omnichannel strategies on the communication of sustainability issues to consumers. In order to pursue this, aim we collected data through a survey involving more than 100 Italian small and medium wineries and 15 direct in-depth interviews to wineries’ managers and key informants. Findings suggest that the sustainability challenge is becoming a “must have” for small and medium Italian wineries and that their focus is increasingly on the relationship with the different stakeholders but in particular with the consumers in order to co-define and a co-create value.
Wineries still prefer to communicate the nature of their products through the physical contact and for this reason they organize activities in the cellar and promote the discovery of the “terroir” with winery tours, wine tastings and lunches with local products. Nevertheless, the most advanced ones have started to introduce the use of social media and have launched e-commerce platforms. Interestingly, the integration of off-line and on- line strategies is impacting both on the development of sustainable practices and their diffusion among consumers through the creation of a unique and seamless experience.

Keywords: Sustainability, Omnichannel strategy, Wine industry, SME

Chapter 7. Trans-Sustain - Transversal Competency Management for Integrating Sustainability in the Vocational Education of German Butchers

 

Carolin Ermer, Julia Schwarzkopf & Kai Reinhardt, HTW Berlin Business School, Hochschule für Technik und Wirtschaft Berlin

 

The food industry is in a state of flux, and with it not least the butchery trade. The profession of the butcher is one of the oldest traditionally grown trades. But this profession has changed dramatically in recent years. The professional role of the butcher itself has changed from traditionally pure slaughter and sausage production to the creation and refinement of meat-based products. Besides, this profession experienced a noticeable loss of image, which is also reflected in the declining number of employees. The decrease in the number of employees further accelerates by the persistence lack of applicants in the butchery sector. In addition, there is a lack of modern and state-of-the-art concepts in vocational training for butchers. In this respect, sustainability is one of the most pressing topics that should be covered and understood in and by this occupational field. In this paper we therefore discuss a systemic approach to vocational training for buchters: transversal competency management. This concept links the world of knowledge acquisition of apprentices in the profession with the context of sustainability, which might lead to a far more “osmotic” learning behavior within the butcher's profession.

 

Keywords: Sustainability, Vocational Education, Competency Management, Butchers

 

Chapter 8. The map of Social Responsibility of the clubs of the Spanish Professional Football League

 

Roberto Fernández-Villarino & José Andrés Domínguez-Gómez, University of Huelva

For many years, football has not only been an industry with a high economic impact, but also with an undoubted social impact. This is evident both in the specialized literature and in the normative references themselves. As an example, the Resolution of the European Parliament of 29 March 2007 on the future of professional football in Europe (2006/2130 (INI), section B) states: "football plays an important social and educational role and it is an effective instrument of social inclusion and multicultural dialogue". The purpose of this paper will be to develop a descriptive diagnosis of the state of Social Responsibility of the clubs belonging to the Professional Football League of Spain. We will try to identify elements such as the type and scope of their activities and projects, degree of collaboration or participation with other entities, level of relationship and dialogue with their stakeholders or the link between their social projects and the problems perceived by society. These results will offer us, where appropriate, a framework for comparison with the data we have from other leagues in Europe. The objective will be to identify: a) possible tendencies of evolution and social performance in the field of contemporary Professional Football; b) common patterns or habits of social performance based on territorial issues; c) to know the strategies of approaching followers and fans, in order to analyze if the consumers of the football industry (especially those who consume football on television) show greater closeness or rejection to the clubs according to their Social Responsibility strategy.

Keywords: Social Performance, Corporate Social Responsibility, Social impact, local stakeholders, professional Football, ethics and sustainable business

Chapter 9. ‘Taming wolves’: The High Risk of Unethical Behavior in the Polish Financial Sector and Possible Solution

 

Marta Kightley, Warsaw School of Economics

The purpose of this paper is to show that very low financial knowledge and very high trust in the banking sector in Poland in the light of low level of ethics pose high risk of misconduct towards the retail customers. Recent examples of financial scams ill-advised or mis-sold financial products such as: Amber Gold Ponzi scheme, Swiss franc denominated mortgages or GetBack corporate bonds prove the case. The author looks into the mechanism behind unethical behavior in financial industry. She also shows that post-crisis regulatory framework takes into account common behavior bias that make it often difficult for retail customers to make fully rational decisions. Given the evidence the author argues that current financial consumer protection architecture in Poland is flowed. She argues that financial consumer protection should be among top priorities for Polish Financial Supervision Authority, at the same time splitting prudential supervision with financial conduct supervision might be recommended.

Key words: Ethics in financial services, Financial knowledge, Trust in banking sector

Chapter 10. Banks’ Non-Financial Reporting: Empirical Evidence from Portugal

 

Aldina Lopes Santos, Escola de Economia e Gestão & Lúcia Lima Rodrigue, Universidade do Minho

Non-financial reporting is based on the construction of a more inclusive society and a more sustainable economy, so that societies increasingly require companies, banks included, to act responsibly and transparently. Directive 2014/95/EU about non-financial reporting was transposed in Portugal by the Decree-Law 89/2017, which is part of the Portuguese legislation concerning the non-financial statement. This decree-law establishes that all large companies which are public-interest entities and which, at the balance sheet date, exceed an average of 500 employees during the year, must include a non-financial statement in their management report. The non-financial statement should contain enough information for an understanding of the evolution, performance, position and impact of the company's activities, with at least environmental, social and worker issues, equality between women and men, non-discrimination, respect for human rights, anti-corruption and bribery, including: brief description of the business model of the company; policies followed by the company, including due diligence procedures applied; results of such policies; associated risks; and key performance indicators relevant to your specific activity. The purpose of this study is to evaluate compliance with these regulations by banks in Portugal, in the first year of application (2017). Collected data indicate that the regulations were mainly fulfilled, since the main topics are disclosed. However, the information disclosed shows that there are differences among banks in terms of communication, detail and specificity. Overall results suggest that regulations should advance more in the standardization of the information, to improve comparability between banks.

Keywords: Banks, Disclosures, Directive 2014/95/EU, Non-financial reporting, Portugal

Conclusion: concluding thoughts from the editors and key recommendations for practitioners and academics, based on the contribution of the authors. Editorial team.

O autorze

Cláudia Simões is a Professor of Management (Marketing and Strategy area) and Dean of the School of Economics and Management at the University of Minho in Portugal. 

Alin Stancu is Professor of Corporate Social Responsibility and Public Relations in the Department of Marketing from The Bucharest University of Economic Studies, Romania.

Georgiana Grigore is Associate Professor in Marketing at University of Leicester, School of Business. She is also chair of an annual international conference in 'Social Responsibility, Ethics and Sustainable Business', which she co-founded in 2012. 

Blurb

This book explores the interaction between sustainability, corporate responsibility, consumers, and the market. It aims to discover if consumers are seeking out small, ethical, socially responsible firms to buy from rather than large corporations; if markets and organisations are supported by a new sensitivity to social responsibility and sustainability ideas; if the integration of corporate responsibility strategies and practices change how market sectors are assembled.

Bringing together international case studies – including research on the Italian wine industry, German butchers, Spanish football, Polish marketing and the Portuguese financial sector – this book is valuable reading for scholars working on corporate social responsibility, sustainability, and good governance.

Cláudia Simões is a Professor of Management (Marketing and Strategy area) and Dean of the School of Economics and Management at the University of Minho in Portugal. 

Alin Stancu is Professor of Corporate Social Responsibility and Public Relations in the Department of Marketing from The Bucharest University of Economic Studies, Romania.

Georgiana Grigore is Associate Professor in Marketing at University of Leicester, School of Business. She is also chair of an annual international conference in 'Social Responsibility, Ethics and Sustainable Business', which she co-founded in 2012.