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Implementing corporate social responsibility (CSR) in supply chains is not a trivial task. In fact, many firms in recent years have publicly proclaimed that in order to keep their CSR commitments, they had to reduce reliance on external suppliers by vertically integrating their operations. Our aim in this article is to examine whether there is truly a relationship between a firm’s CSR performance and its level of vertical integration. Drawing on a multi-industry sample of 2,715 firm-year observations, and after addressing (...) endogeneity concerns, we demonstrate that firms with higher CSR performance tend to vertically integrate more (or, outsource less). We also demonstrate that this tendency is weaker for firms that have higher degrees of asset specificity or international diversification. Our core conclusion is that CSR performance and outsourcing are at odds, but firms can reconcile this tension by deepening their collaborations with suppliers. (shrink) No categories | |
In this introductory article we explore the relationship between statehood and governance, examining in more detail how non-state actors like MNCs, international NGOs, and indigenous authorities, often under conditions of extreme economic scarcity, ethnic diversity, social inequality and violence, take part in the making of rules and the provision of collective goods. Conceptually, we focus on the literature on Areas of Limited Statehood and discuss its usefulness in exploring how business-society relations are governed in the global South, and beyond. Building (...) on insights from this literature, among others, the four articles included in this special issue provide rich illustrations and critical reflections on the multiple, complex and often ambiguous roles of state and non-state actors operating in contemporary Syria, Nigeria, India and Palestine, with implications for conventional understandings of CSR, stakeholders, and related conceptualizations. (shrink) | |
Voluntary environmental programs (VEPs) have gained popularity in recent times as stakeholders strengthen pressure on private firms to address the climate crisis. In this article, I analyze a type of VEP with increasing importance within the private sector: environmental coalitions. Focusing on US publicly traded firms, I show that the firms that join a green coalition are greener than others and that they were also greener before becoming members. I apply a difference-in-differences design, using the fact that different firms became (...) members at different points in time, and find no effect of membership on different measures of environmental performance. Why, then, do firms incur the costs of creating and maintaining these coalitions? I show that shareholder pressure, in particular from liberal and active individual shareholders, can explain this behavior. Taken together, the findings suggest that membership in a green coalition can be a tool for firms to signal their environmental credentials when faced with pressure from pro-environmental stakeholders. (shrink) No categories |
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