Based on Whitley's “national business systems” (NBS) institutional framework, we theorize about and empirically investigate the impact of nation-level institutions on firms’ corporate social performance (CSP). Using a sample of firms from 42 countries spanning seven years, we construct an annual composite CSP index for each firm, based on social and environmental metrics. We find that the political system, followed by the labor and education system, and the cultural system are the most important NBS categories of institutions that impact CSP. Interestingly, the financial system appears to have a relatively less significant impact. We discuss implications for research, practice and policymaking.
This is a preview of subscription content, access via your institution.
Buy single article
Instant access to the full article PDF.
Price excludes VAT (USA)
Tax calculation will be finalised during checkout.
We thank an anonymous reviewer for suggesting this point and this example to us.
Adi, B. C., Amaeshi, K. M., Amao, O. O., & Ogbechie, C. 2006. Corporate social responsibility in Nigeria: Western mimicry or indigenous influences? Journal of Corporate Citizenship, 24 (1): 83–99.
Aguilera, R. V., Ganapathi, J., Rupp, D. E., & Williams, C. A. 2007. Putting the S back in corporate social responsibility: A multilevel theory of social change in organizations. Academy of Management Review, 32 (3): 836–863.
Aguilera, R. V., & Jackson, G. 2003. The cross-national diversity of corporate governance: Dimensions and determinants. Academy of Management Review, 28 (3): 447–465.
Aguinis, H., & Henle, C. A. 2003. The search for universals in cross-cultural organizational behaviour. In J. Greenberg (Ed), Organizational behavior, (2nd edn): 373–411. Mahwah, NJ: Erlbaum.
Aupperle, K. E., Carroll, A. B., & Hatfield, J. D. 1985. An empirical examination of the relationship between corporate social responsibility and profitability. Academy of Management Journal, 28 (2): 446–463.
Aupperle, K. E. 1991. The use of forced-choice survey procedures in assessing corporate social orientation. In J. E. Post (Ed), Research in corporate social performance and policy: 269–280. Greenwich, CT: JAI Press.
Baker, H. K., Nofsinger, J. R., & Weaver, D. G. 2002. International cross-listing and visibility. Journal of Financial and Quantitative Analysis, 37 (3): 495–521.
Becchetti, L., Ciciretti, R., & Hasan, I. 2009. Corporate social responsibility and shareholder's value: An event study analysis, Working paper, http://papers.ssrn.com/papers.cfm?abstract_id=928557.
Bhushan, R. 1989. Firm characteristics and analyst following. Journal of Accounting and Economics, 11 (2–3): 255–274.
Bizjak, J. M., Brickley, J. A., & Coles, J. L. 1993. Stock based incentive compensation and investment behavior. Journal of Accounting and Economics, 16 (1–3): 349–372.
Botero, J. C., Djankov, S., La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. 2004. The regulation of labor. Quarterly Journal of Economics, 119 (4): 1339–1382.
Bowman, E. H., & Haire, M. 1975. A strategic posture toward corporate social responsibility. California Management Review, 18 (2): 49–58.
Buchholtz, A. K., Amazon, A. C., & Rutherford, M. A. 1999. Beyond resources: The mediating effects of top management discretion and values on corporate philanthropy. Business and Society, 38 (2): 167–187.
Campbell, J. L. 2004. Institutional change and globalization. Princeton, NJ: Princeton University Press.
Campbell, J. L. 2007. Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility. Academy of Management Review, 32 (3): 946–967.
Campbell, J. L., Hollingsworth, J. R., & Lindberg, L. N. 1991. Governance of the American economy. New York: Cambridge University Press.
Carl, D., Gupta, V., & Javidan, M. 2004. Power distance. In R. J. House, P. J. Hanges, M. Javidan, P. W. Dorfman, & V. Gupta (Eds), Culture, leadership, and organizations: The GLOBE study of 62 societies: 513–563. Thousand Oaks, CA: Sage.
Chapple, W., & Moon, J. 2005. Corporate social responsibility (CSR) in Asia: A seven-country study of CSR web site reporting. Business and Society, 44 (4): 415–441.
Chatterji, A. K., & Toffel, M. W. 2010. How firms respond to being rated. Strategic Management Journal, 31 (9): 917–945.
Christmann, P., & Taylor, G. 2006. Firm self-regulation through international certifiable standards: Determinants of symbolic versus substantive implementation. Journal of International Business Studies, 37 (6): 863–878.
Clarkson, M. B. E. 1991. Defining, evaluating, and managing corporate social performance: The stakeholder management model. In J.E. Post (Ed), Research in corporate social performance and policy, Vol. 12: 331–358. Greenwich, CT: JAI Press.
Clotfelter, C. 1985. Federal tax policy and charitable giving. Chicago, IL: University of Chicago Press.
Cohen, J. R., Pant, L. W., & Sharp, D. J. 1996. A methodological note on cross-cultural accounting ethics research. International Journal of Accounting, 31 (1): 55–66.
Crilly, D. 2011. Predicting stakeholder orientation in the multinational enterprise: A mid-range theory. Journal of International Business Studies, 42 (5): 694–717.
Crossland, C., & Hambrick, D. C. 2011. Differences in managerial discretion across countries: How nation-level institutions affect the degree to which CEOs matter. Strategic Management Journal, 32 (8): 797–819.
Crouch, C. 2005. Capitalist diversity and change: Recombinant governance and institutional entrepreneurs. Oxford: Oxford University Press.
Davis, G., & Thompson, T. 1994. A social movement perspective on corporate control. Administrative Science Quarterly, 39 (1): 141–173.
Deeg, R., & Jackson, G. 2007. Towards a more dynamic theory of capitalist variety. Socio-economic Review, 5 (1): 149–180.
Dhaliwal, D. S., Li, O. Z., Tsang, A., & Yang, Y. G. 2011. Voluntary nonfinancial disclosure and the cost of equity capital: The initiation of corporate social responsibility reporting. The Accounting Review, 86 (1): 59–100.
Eccles, R., Ioannou, I., & Serafeim, G. 2011. The impact of a culture of sustainability on corporate behavior and performance, Harvard Business School and NBER Working Paper Series.
Elsbach, K. D., & Kramer, R. M. 1996. Members’ responses to organizational identity threats: Encountering and countering the Business Week rankings. Administrative Science Quarterly, 41 (3): 442–476.
Espeland, W. N., & Sauder, M. 2007. Rankings and reactivity: How public measures recreate social worlds. American Journal of Sociology, 113 (1): 1–40.
Fama, E. F., & French, K. R. 1997. Industry costs of equity. Journal of Financial Economics, 43 (2): 153–193.
Fombrun, C., & Shanley, M. 1990. What's in a name? Reputation building and corporate strategy. Academy of Management Journal, 33 (2): 233–258.
Foulkes, F. 1980. Personnel policies in large nonunion companies. Englewood Cliffs, NJ: Prentice Hall.
Freeman, R., Harrison, J., & Wicks, A. 2007. Managing for stakeholders: Survival, reputation, and success. New Haven, CT: Yale University Press.
Freeman, R., & Medoff, J. 1983. What do unions do? New York: Basic Books.
Friedman, M. 1970. The social responsibility of business is to increase its profits. The New York Times Magazine, 13 September.
Galaskiewicz, J. 1997. An urban grants economy revisited: Corporate charitable contributions in the Twin Cities, 1979–81, 1987–89. Administrative Science Quarterly, 42 (3): 445–471.
Gelfand, M. J., Bharwuk, D. P. S., Nishii, L. H., & Bechtold, D. J. 2004. Individualism and collectivism. In R. J. House, P. J. Hanges, M. Javidan, P. W. Dorfman, & V. Gupta (Eds), Culture, leadership, and organizations: The GLOBE study of 62 societies: 437–451. Thousand Oaks, CA: Sage.
Graves, S. B., & Waddock, S. A. 1994. Institutional owners and corporate social performance. Academy of Management Journal, 37 (4): 1034–1046.
Greening, D. W., & Turban, D. B. 2000. Corporate social performance as a competitive advantage in attracting a quality workforce. Business and Society, 39 (3): 254–280.
Habisch, A., Jonker, J., Wegner, M., & Schmidpeter, R. (Eds) 2004. Corporate social responsibility across Europe. Berlin: Springer.
Hall, P., & Soskice, D. 2001 (Eds). An introduction to varieties of capitalism. Varieties of capitalism: The institutional foundations of comparative advantage: 1–70. Oxford: Oxford University Press.
Hambrick, D. C., & Finkelstein, S. 1987. Managerial discretion: A bridge between polar views of organizational outcomes. In B. Staw & L. L. Cummings (Eds), Research in organizational behavior, Vol. 9: 369–406. Greenwich, CT: JAI Press.
Haxhi, I., & van Ees, H. 2010. Explaining diversity in the worldwide diffusion of codes of good governance. Journal of International Business Studies, 41 (4): 710–726.
Hillman, A. J., & Keim, G. D. 2001. Shareholder value, stakeholder management, and social issues: What's the bottom line? Strategic Management Journal, 22 (2): 125–139.
Hofstede, G. 1997. Cultures and organizations: Software of the mind. London: McGraw-Hill.
Hofstede, G. 2001. Culture's consequences: Comparing values, behaviors, institutions, and organizations across nations, 2nd edn. Thousand Oaks, CA: Sage.
Hong, H. G., Kubik, J. D., & Scheinkman, J. A. 2011. Financial constraints on corporate goodness, Working paper, Princeton University.
House, R. J., Hanges, P. J., Javidan, M., Dorfman, P. W., & Gupta, V. (Eds) 2004. Culture, leadership and organizations: The GLOBE study of 62 societies. Thousand Oaks, CA: Sage.
Huntington, S. 1969. Political order in changing societies. New Haven, CT: Yale University Press.
Ioannou, I., & Serafeim, G. 2010. The impact of corporate social responsibility on investment recommendations, SSRN Working Paper Series.
Jackson, G., & Apostolakou, A. 2010. Corporate social responsibility in Western Europe: An institutional mirror or substitute? Journal of Business Ethics, 94 (3): 371–394.
Jackson, G., & Deeg, R. 2008. Comparing capitalisms: Understanding institutional diversity and its implications for international business. Journal of International Business Studies, 39 (4): 540–561.
Jamali, D., Sidani, Y., & El-Asmar, K. 2009. A three country comparative analysis of managerial CSR perspectives: Insights from Lebanon, Syria and Jordan. Journal of Business Ethics, 85 (2): 173–192.
Jarrell, G., Lehn, K., & Marr, W. 1985. Institutional ownership, tender offers, and long-term investments. Washington, DC: Office of the Chief Economist, Securities and Exchange Commission.
Jensen, M. C. 2002. Value maximization, stakeholder theory, and the corporate objective function. Business Ethics Quarterly, 12 (2): 235–256.
Jones, J. 1991. Earnings management during import relief investigations. Journal of Accounting Research, 29 (2): 193–228.
Jones, M. T. 1999. The institutional determinants of social responsibility. Journal of Business Ethics, 20 (2): 163–170.
Koerber, C. P., & Griffin, J. J. 2011. Do industry characteristics matter when managing stakeholder relations?, Working paper, George Washington University.
Kolko, G. 1963. The triumph of conservatism. New York: Simon and Schuster.
Lacy, P., Cooper, T., Hayward, R., & Neuberger, L. 2010. A new era of sustainability: UN Global Compact – Accenture CEO study 2010. http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture_A_New_Era_of_Sustainability_CEO_Study.pdf., accessed 16 February 2012.
Lang, M. H., Lins, K. V., & Miller, D. P. 2003. ADRs, analysts and accuracy: Does cross listing in the United States improve a firm's information environment and increase market value? Journal of Accounting Research, 41 (2): 317–345.
Langlois, C. C., & Schlegelmilch, B. B. 1990. Do corporate ethics reflect national character? Evidence from Europe and the United States. Journal of International Business Studies, 21 (4): 519–539.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. 1998. Law and finance. Journal of Political Economy, 106 (6): 1113–1155.
La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. 2006. What works in securities laws? Journal of Finance, 61 (1): 1–32.
Lipset, S. M., & Rokkan, S. 1967. Party systems and voter alignments. New York: Free Press.
Lodge, G. C. 1990. Comparative business-government relations. Englewood Cliffs, NJ: Prentice Hall.
Luo, Y. 2006. Political behavior, social responsibility, and perceived corruption: A structuration perspective. Journal of International Business Studies, 37 (6): 747–766.
Lydenberg, S. D., Marlin, A. T., & Strub, S. O. B. 1986. Rating America's corporate conscience: A provocative guide to the companies behind the products you buy every day. Reading, MA: Addison Wesley Publishing Company.
Mackey, A., Mackey, T., & Barney, J. 2007. Corporate social responsibility and firm performance: Investor preferences and corporate strategies. Academy of Management Review, 32 (3): 817–835.
Maignan, I. 2001. Consumers’ perceptions of corporate social responsibilities: A cross-cultural comparison. Journal of Business Ethics, 30 (1): 57–72.
Maignan, I., & Ralston, D. A. 2002. Corporate social responsibility in Europe and the US: Insights from businesses’ self-presentations. Journal of International Business Studies, 33 (3): 497–515.
Margolis, J. D., & Walsh, J. P. 2003. Misery loves companies: Rethinking social initiatives by business. Administrative Science Quarterly, 48 (2): 268–305.
Matten, D., & Moon, J. 2008. “Implicit” and “explicit” CSR: A conceptual framework for a comparative understanding of corporate social responsibility. Academy of Management Review, 33 (2): 404–424.
McCraw, T. 1984. Prophets of regulation. Cambridge, MA: Belknap Press of Harvard University Press.
McGahan, A. M., & Porter, M. E. 1997. How much does industry matter, really? Strategic Management Journal, 18 (S1): 15–30.
McGahan, A. M., & Porter, M. E. 2002. What do we know about variance in accounting profitability? Management Science, 48 (7): 834–851.
McGuire, J. B., Sundgren, A., & Schneeweis, T. 1988. Corporate social responsibility and firm financial performance. Academy of Management Journal, 31 (4): 854–872.
McWilliams, A., & Siegel, D. 2001. Corporate social responsibility: A theory of the firm perspective. Academy of Management Review, 26 (1): 117–127.
Meek, G. K., Roberts, C. B., & Gray, S. J. 1995. Factors influencing voluntary annual report disclosures by US, UK and continental European multinational corporations. Journal of International Business Studies, 26 (3): 555–572.
Mills, D. Q. 1994. Labor-management relations. New York: McGraw-Hill.
Navarro, P. 1988. Why do corporations give to charity? Journal of Business, 61 (1): 65–93.
North, D. C. 1990. Institutions, institutional change and economic performance. New York: Cambridge University Press.
de Oliveira, J. A. P. 2006. Corporate citizenship in Latin America. Journal of Corporate Citizenship, 21 (1): 17–20.
Oliver, C. 1991. Strategic responses to institutional processes. Academy of Management Review, 16 (1): 145–179.
Orlitzky, M., Schmidt, F. L., & Rynes, S. L. 2003. Corporate social and financial performance: A meta-analysis. Organization Studies, 24 (3): 403–441.
Porter, M. 1985. On competition. Boston, MA: Harvard Business School Press.
Porter, M., & Kramer, M. 2006. Strategy and society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84 (12): 78–93.
Prahalad, C. K., & Hammond, A. 2002. Serving the world's poor, profitably. Harvard Business Review, 80 (9): 48–59.
Preston, L. E., & O’Bannon, D. P. 1997. The corporate social-financial performance relationship: A typology and analysis. Business and Society, 36 (4): 419–429.
Ramasamy, B., & Ting, H. W. 2004. A comparative analysis of corporate social responsibility awareness: Malaysian and Singaporean firms. Journal of Corporate Citizenship, 13: 109–123.
Riley, P. 1983. A structurationist account of political culture. Administrative Science Quarterly, 28 (3): 414–437.
Ringov, D., & Zollo, M. 2007. The impact of national culture on corporate social performance. Corporate Governance, 7 (4): 476–485.
Rock, M. 2003. Public disclosure of the sweatshop practices of American multinational garment/shoe makers/retailers: Impacts on their stock prices. Competition and Change, 7 (1): 23–38.
Rodriguez, P., Uhlenbruck, K., & Eden, L. 2005. Government corruption and the entry strategies of multinationals. Academy of Management Review, 30 (2): 383–396.
Roe, M. J. 2003. Political determinants of corporate governance: Political context, corporate impact. New York: Oxford University Press.
Ruf, B., Muralidhar, K., & Paul, K. 1993. Eight dimensions of corporate social performance: Determination of relative importance using the analytic hierarchy process. Academy of Management, Best Paper Proceedings, 326–330.
Rumelt, R. P. 1991. How much does industry matter? Strategic Management Journal, 12 (3): 167–185.
Schneiberg, M. 1999. Political and institutional conditions for governance by association: Private order and price controls in American fire insurance. Politics and Society, 27 (1): 67–104.
Seifert, B., Morris, S. A., & Bartkus, B. R. 2004. Having, giving and getting: Slack resources, corporate philanthropy, and firm financial performance. Business and Society, 43 (2): 135–161.
Sen, S., & Bhattacharya, C. B. 2001. Does doing good always lead to doing better? Consumer reactions to corporate social responsibility. Journal of Marketing Research, 38 (2): 225–243.
Siegel, D. 1999. Skill-biased technological change: Evidence from a firm-level survey. Kalamazoo, MI: Upjohn Institute Press.
Smith, J., Adhikari, A., & Tondkar, R. H. 2005. Exploring differences in social disclosures internationally: A stakeholder perspective. Journal of Accounting and Public Policy, 24 (2): 123–151.
Sparkes, R., & Cowton, C. 2004. The maturing of socially responsible investment: A review of the developing link with corporate social responsibility. Journal of Business Ethics, 52 (1): 45–57.
Stanwick, P. A., & Stanwick, S. D. 1998. The relationship between corporate social performance and organizational size, financial performance and environmental performance: An empirical examination. Journal of Business Ethics, 17 (2): 195–204.
Teoh, S., Welch, I., & Wong, T. 1998a. Earnings management and the long-run market performance of initial public offerings. Journal of Finance, 53 (6): 1935–1974.
Teoh, S., Welch, I., & Wong, T. 1998b. Earnings management and the underperformance of seasoned equity offerings. Journal of Financial Economics, 50 (1): 63–100.
Triandis, H. C. 1994. Cross-cultural industrial and organizational psychology. In H. C. Triandis, M. D. Dunnette & L. M. Hough (Eds), Handbook of industrial and organizational psychology, Vol. 4: 103–172. Palo Alto, CA: Consulting Psychologists Press.
Turban, D. B., & Greening, D. W. 1997. Corporate social performance and organizational attractiveness to prospective employees. Academy of Management Journal, 40 (3): 658–672.
van Tulder, R., & Kolk, A. 2001. Multinationality and corporate ethics: Codes of conduct in the sporting goods industry. Journal of International Business Studies, 32 (2): 267–283.
Waddock, S. A., & Graves, S. B. 1997. The corporate social performance-financial performance link. Strategic Management Journal, 18 (4): 303–319.
Waldman, D. A., Sully de Luque, M., Washburn, N., House, R. J., Adetoun, B., Barrasa, A., Bobina, M., Bodur, M., Chen, Y. J., & Debbarma, S. 2006a. Cultural and leadership predictors of corporate social responsibility values of top management: A GLOBE study of 15 countries. Journal of International Business Studies, 37 (6): 823–837.
Waldman, D., Siegel, D., & Javidan, M. 2006b. Components of CEO transformational leadership and corporate social responsibility. Journal of Management Studies, 43 (8): 1703–1725.
Weaver, G. R., Trevino, L. K., & Cochran, P. L. 1999. Integrated and decoupled corporate social performance: Management commitments, external pressures, and corporate ethics practices. Academy of Management Journal, 42 (5): 539–552.
Weigelt, K., & Camerer, C. 1988. Reputation and corporate strategy: A review of recent theory and applications. Strategic Management Journal, 9 (5): 443–454.
Weinstein, J. 1968. The corporate ideal in the liberal state, 1900–1918. Boston, MA: Beacon Press.
Welford, R. 2004. Corporate social responsibility in Europe and Asia: Critical elements and best practice. Journal of Corporate Citizenship, 13: 31–47.
Westphal, J. D., & Zajac, E. J. 1994. Substance and symbolism in CEOs’ long-term incentive plans. Administrative Science Quarterly, 39 (3): 367–390.
Whitley, R. 1997. Business systems. In A. Sorge & M. Warner (Eds), The IEBM handbook of organizational behaviour: 173–186. London: International Thomson Business Press.
Whitley, R. 1999. Divergent capitalisms: The social structuring and change of business systems. Oxford: Oxford University Press.
Whitley, R. 2005. How national are business systems? The role of states and complementary institutions in standardizing systems of economic coordination and control at the national level. In G. Morgan, R. Whitley, & E. Moen (Eds), Changing capitalisms? Internationalization, institutional change, and systems of economic organization: 190–234. Oxford: Oxford University Press.
Wokutch, R. E., & McKinney, E. W. 1991. Behavioral and perceptual measure of corporate social performance. In J. E. Post (Ed), Research in corporate social performance and policy, Vol. 12: 309–330. Greenwich, CT: JAI Press.
Wolfe, R. 1991. The use of content analysis to assess corporate social responsibility. In J. E. Post (Ed), Research in corporate social performance and policy, Vol. 12: 281–308. Greenwich, CT: JAI Press.
Wolfe, R., & Aupperle, K. 1991. Introduction to corporate social performance: Methods for evaluating an elusive construct. In J. E. Post (Ed), Research in corporate social performance and policy, Vol. 12: 265–268. Greenwich, CT: JAI Press.
Wood, D. J. 1991. Corporate social performance revisited. Academy of Management Review, 16 (4): 691–718.
Woolridge, J. R. 1988. Competitive decline and corporate restructuring: Is a myopic stock market to blame? Journal of Applied Corporate Finance, 1 (1): 26–36.
Woolridge, J. R., & Snow, C. C. 1990. Stock market reaction to strategic investment decisions. Strategic Management Journal, 11 (5): 353–363.
We thank ASSET4 (Thompson Reuters) for providing us with the data for this paper, and we are particularly grateful to Dr Christopher Greenwald and Ms Caroline Harrison at ASSET4 for their help and cooperation. We thank Costas Markides, Donal Crilly, Sandra Waddock and Olga Hawn for valuable comments. We also thank participants at the Cass International Strategy Workshop 2011. Ioannou acknowledges financial support from the Research and Materials Development Fund (RAMD) at the London Business School. All errors remain our own.
Accepted by Ishtiaq Mahmood, Area Editor, 17 August 2012. This paper has been with the authors for three revisions.
Description of Asset4 Pillars and Categories
Description of ASSET4 Categories (from ASSET4 Documents)
Environmental performance pillar
The resource reduction category measures a company's management commitment and effectiveness towards achieving an efficient use of natural resources in the production process. It reflects a company's capacity to reduce the use of materials, energy or water, and to find more eco-efficient solutions by improving supply chain management.
The emission reduction category measures a company's management commitment and effectiveness towards reducing environmental emission in the production and operational processes. It reflects a company's capacity to reduce air emissions (greenhouse gases, F-gases, ozone-depleting substances, NOx and SOx, etc.), waste, hazardous waste, water discharges, spills or its impacts on biodiversity, and to partner with environmental organizations to reduce the environmental impact of the company in the local or broader community.
The product innovation category measures a company's management commitment and effectiveness towards supporting the R&D of eco-efficient products or services. It reflects a company's capacity to reduce the environmental costs and burdens for its customers, thereby creating new market opportunities through new environmental technologies and processes or eco-designed, dematerialized products with extended durability.
Social performance pillar
The workforce employment quality category measures a company's management commitment and effectiveness towards providing high-quality employment benefits and job conditions. It reflects a company's capacity to increase its workforce loyalty and productivity by distributing rewarding and fair employment benefits, and by focusing on long-term employment growth and stability by promoting from within, avoiding lay-offs and maintaining relations with trade unions.
The workforce health and safety category measures a company's management commitment and effectiveness towards providing a healthy and safe workplace. It reflects a company's capacity to increase its workforce loyalty and productivity by integrating into its day-to-day operations a concern for the physical and mental health, well-being and stress level of all employees.
The workforce training and development category measures a company's management commitment and effectiveness towards providing training and development (education) for its workforce. It reflects a company's capacity to increase its intellectual capital, workforce loyalty and productivity by developing the workforce's skills, competences, employability and careers in an entrepreneurial environment.
The workforce diversity and opportunity category measures a company's management commitment and effectiveness towards maintaining diversity and equal opportunities in its workforce. It reflects a company's capacity to increase its workforce loyalty and productivity by promoting an effective life–work balance, a family-friendly environment and equal opportunities regardless of gender, age, ethnicity, religion or sexual orientation.
The society human rights category measures a company's management commitment and effectiveness towards respecting the fundamental human rights conventions. It reflects a company's capacity to maintain its license to operate by guaranteeing the freedom of association and excluding child, forced or compulsory labor.
The society community category measures a company's management commitment and effectiveness towards maintaining the company's reputation within the general community (local, national and global). It reflects a company's capacity to maintain its license to operate by being a good citizen (donations of cash, goods or staff time, etc.), protecting public health (avoidance of industrial accidents, etc.) and respecting business ethics (avoiding bribery and corruption, etc.).
The customer/product responsibility category measures a company's management commitment and effectiveness towards creating value-added products and services upholding the customer's security. It reflects a company's capacity to maintain its license to operate by producing quality goods and services integrating the customer's health and safety, and preserving its integrity and privacy also through accurate product information and labeling.
Rights and permissions
About this article
Cite this article
Ioannou, I., Serafeim, G. What drives corporate social performance? The role of nation-level institutions. J Int Bus Stud 43, 834–864 (2012). https://doi.org/10.1057/jibs.2012.26
- corporate social responsibility
- business in society
- markets and institutions