Corporate Governance and Corporate Social Responsibility Synergies and Interrelationships

Abstract

Manuscript Type: Empirical Research Questions/Issue: This paper seeks to explore the interrelationships between corporate governance (CG) and corporate social responsibility (CSR): first, theoretically, by reviewing the literature and surveying various postulations on offer; second, empirically, by investigating the conception and interpretation of this relationship in the context of a sample of firms operating in Lebanon. Accordingly, the paper seeks to highlight the increasing cross-connects or interfaces between CG and CSR, capitalizing on fresh insights from a developing country perspective. Research Findings/Results: A qualitative interpretive research methodology was adopted, drawing on in-depth interviews with the top managers of eight corporations operating in Lebanon, with the findings suggesting that the majority of managers conceive of CG as a necessary pillar for sustainable CSR. These findings are significant and interesting, implying that recent preoccupation with CG in developing countries is starting to be counterbalanced by some interest/attention to CSR, with growing appreciation of their interdependencies and the need to move beyond CG conformance toward voluntary CSR performance. Theoretical Implications: This study makes two important contributions. First, it suggests that there is a salient two-way relationship and increasing overlap between CG and CSR. While much previous literature has researched CG and CSR independently, this paper makes the case for considering them jointly and systematically. Second, the paper outlines a number of theoretical propositions that can serve as the basis for future research on the topic, particularly in developing countries, given that the data and theoretical propositions are both derived from and tailored to developing country contexts. Practical Implications: This study can potentially alert managers to the increasing overlap between the CG and CSR agendas and the need to exert diligent systematic efforts on both fronts. CG and CSR share more in common than previously assumed, and this needs to be accounted for by practitioners. The research can also alert policy makers in developing countries to the need to increase the vigilance and capacity of the regulatory and judicial systems in the context of CG reform and to increase institutional pressures, particularly of the coercive and normative variety to enhance CSR adoption.

Advancing the Sustainable Tourism Agenda Through Strategic CSR Perspectives

“…The process-oriented standards are applied in particular industries. While other performance-oriented standards are more generic in their approach as they focus on specific areas such as human rights, labour standards, environmental protection and the like (see Jamali, Safieddine, & Rabbath, 2008). Camilleri (2012) provides some examples of the most popular standards and reporting instruments in a global context.…”

Examining the Link Between Religion and Corporate Governance: Insights From Nigeria

“…But the implication of religion on economic policies such as corporate governance cannot be isolated. While religious principles can trigger good corporate governance (Jamali et al, 2008), our data suggests otherwise. E2 notes that:…”

“…In contrast, Sommer et al (2013) and Aldohni (2014) demonstrate that religion can undermine responsible corporate behaviour. Another strand of literature (Jamali et al, 2008;Hilary & Hui, 2009;El Ghoul et al, 2012) indicated that the relationship between religion and corporate governance is context-dependent. For instance, Kuran (2009) and Norris and Inglehart (2011) expressed that in less-religious countries, the relationship between religion and corporate governance is weak.…”

“…Likewise, the influence of Christianity (Blasco & Zølner, 2010) and Islam (Jamali, Safieddine, & Rabbath, 2008) on social responsibility is examined. It is also noteworthy that Jamali et al (2008) observed that managers consider corporate governance to be a crucial pillar for sustainable CSR. They, however, noticed that manager's orientation is rooted in religious principles, thereby enabling the emergence of a philanthropic perspective to CSR.…”

Social and Environmental Reporting as a Part of the Integrated Reporting

“…The relationship between stakeholder theory and environmental and social reporting is given attention within the accounting literature (Donaldson and Preston, 1995;Jamali et al, 2008) depicting the theory in two branches -normative/ ethical and managerial/ instrumental branch as per Mahadeo et al (2011). The ethical branch focuses on the responsibility of a company "to account for its actions", while the managerial branch concentrate around "the need to control stakeholders who are deemed to have a more direct and critical impact on the company" as per Mitchell, Agle and Wood, 1997;Roberts, 1992;Ullman, 1985in Mahadeo et al (2011.…”