Institutional isomorphism and corporate social responsibility: towards a conceptual model
DOI:
https://doi.org/10.12775/JPM.2017.007Keywords
corporate social responsibility, institutional theory, isomorphismAbstract
Purpose: The paper proposes the conceptual framework for understanding the impact of corporate social responsibility (CSR) on companies viewed as the source of institutional pressure. According to the neo-institutional approach the response to institutional change leads to the organizational isomorphism, which means that companies adopt new rules and design and in result become similar following the same managerial practice. The adoption of new designs and practice represents the case of the diffusion and institutionalization of change in formal organization structure.
Methodology/approach: The study is of theoretical character. It adopts the contribution proposed by the neo-institutional theory and CSR literature.
Findings: The paper ties diffusion process of different CSR modes – defensive, charitable, promotional, strategic, systemic – and strategies with three isomorphism mechanisms - mimetic, coercive and normative. Further the study outlines future research opportunities.
Practical implications: We argue that the most mature CSR practice represented by systemic mode is institutionalized from within organization through normative isomorphic pressures rather than as a result of coercive power or mimetic efforts.
References
Aoki, M. (2007), "Endogenizing Institutions and Institutional Changes", Journal of Institutional Economics, Vol. 3 No. 1, pp. 1–39. DOI: 10.1017/S1744137406000531
Aprile, R., Magnaghi, E. (2012), "Integrated reporting: a theoretical perspective on this critical issue", paper presented at The 8th Interdisciplinary Workshop on "Intangibles, Intellectual Capital & Extra-Financial Information", 27-28 September 2012, Grenoble, France.
Becker-Olsen, K.L. (2014), "The CSR Conundrum: Understanding Consumer Response to Corporate Social Responsibility", in: Hill, R.L., Langan, R. (Eds.), Handbook of Research on Marketing and Corporate Social Responsibility, Edward Elgar Publishing, Cheltenham, pp. 149-174.
Berger, P. L., Luckmann, T. (1967), The Social Construction of Reality, New York: Doubleday, New York.
Bondy, K. (2009), "Isomorphism in the Practice of Corporate Social Responsibility: Evidence of an Institution and its Decline", University of Bath School of Management Working Paper Series, No. 10, pp. 1-43.
Boons, F.M., Lüdeke-Freund, F. (2013), "Business Models for Sustainable Innovation: State-of-the art and Steps Towards a Research Agenda", Journal of Cleaner Production, Vol. 45, pp. 9–19.
Brown, J., Dillard, J. (2014), "Integrated Reporting: On the Need for Broadening Out and Opening Up", Accounting, Auditing & Accountability Journal, Vol. 27 No. 7, pp. 1120–1156. DOI: 10.1108/AAAJ-04-2013-1313
Carroll, A.B. (1979), "Three-Dimensional Conceptual Model of Corporate Performance", The Academy of Management Review, Vol. 4 No. 4, pp. 497–505.
Charan, R., Freeman, R.E. (1980), "Planning for the Business Environment of the 1980s", Journal of Business Strategy, Vol. 1 No. 2, pp. 9–19. DOI: 10.1108/eb038895
Chhabra, E. (2014), "Corporate Social Responsibility: Should It Be A Law?", Forbes, available at: https://www.forbes.com/sites/eshachhabra/2014/04/18/corporate-social-responsibility-should-it-be-a-law/#d282d9137363 (accessed 5 June 2017).
Chizema, A. (2008), "Institutions and Voluntary Compliance: The Disclosure of Individual Executive Pay in Germany", Corporate Governance: An International Review, Vol. 16 No. 4, pp. 359–374. DOI: 10.1111/j.1467-8683.2008.00689.x
COM (2011) 681: Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: A renewed EU strategy 2011-14 for Corporate Social Responsibility, Brussels.
Dahlsrud, A. (2008), "How Corporate Social Responsibility is Defined: an Analysis of 37 Definitions", Corporate Social Resposibility and Environmental Management, Vol. 15, pp. 1–13. DOI: 10.1002/csr.132
Deephouse, D.L. (1996), "Does Isomorphism Legitimate?", Academy of Management Journal, Vol. 39 No. 4, pp. 1024–1039. DOI: 10.2307/256722
DiMaggio, P.J., Powell, W.W. (1983), "The Iron Cage
Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields", American Sociological Review, Vol. 48 No. 2, p. 147. DOI: 10.2307/2095101
Doane, D. (2001), "Taking Flight: The rapid Growth of Ethical Consumerism. New Economics Foundation", available at: http://b.3cdn.net/nefoundation/dcca99d756562385f9_xtm6i6233.pdf (accessed 5 June 2017).
Donaldson, T. (1982), Corporations and Morality, New York: Prentice-Hall, New York.
Donaldson, T., Preston, L. (1995), "The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications", The Academy of Management Review, Vol. 20 No. 1, pp. 65–91.
Enrione, A., Mazza, C., Zerboni, F. (2006), "Institutionalizing Codes of Governance", American Behavioral Scientist, Vol. 49 No. 7, pp. 961–973. DOI: 10.1177/0002764205285175
Faust, C. (2006), What’s Wrong with Corporate Social Responsibility?, Corporate Watch Report, Oxford.
Fleming, P., Jones, M.T. (2013), The End of Corporate Social Responsibility. Crisis and Critique, Sage Publications.
Freeman, R.E. (1999), "Divergent Stakeholder Theory", The Academy of Management Review, Vol. 24 No. 2, pp. 233–236.
Freeman, R.E., McVea, J. (2001), "A Stakeholder Approach to Strategic Management", SSRN Electronic Journal, January. DOI: 10.2139/ssrn.263511
Freeman, R.E., Reed, D.L. (1983), "Stockholders and Stakeholders: A New Perspective on Corporate Governance", California Management Review, Vol. 25 No. 3, pp. 88–106.
Frias-Aceituno, J.V., Rodríguez-Ariza, L., Garcia-Sánchez, I.M. (2014), "Explanatory Factors of Integrated Sustainability and Financial Reporting", Business Strategy and the Environment, Vol. 23 No. 1, pp. 56–72. DOI: 10.1002/bse.1765
Garriga, E., Melé, D. (2004), "Corporate Social Responsibility Theories: Mapping the Territory", Journal of Business Ethics, Vol. 53 No. 1/2, pp. 51–71. DOI: 10.1023/B:BUSI.0000039399.90587.34
Greenwood, R., Hinings, C.R. (1996), "Understanding Radical Organizational Change: Bringing together the Old and the New Institutionalism", The Academy of Management Review, Vol. 21 No. 4, pp. 1022–1054. DOI: 10.2307/259163
Greenwood, R., Hinings, C.R., Suddaby, R. (2002), "Theorizing Change: The Role of Professional Associations in the Transformation of Institutionalized Fields", Academy of Management Journal, Vol. 45 No. 1, pp. 58–80. DOI: 10.2307/3069285
Greif, A. (2006), Institutions and the Path to the Modern Economy, Cambridge University Press, Cambridge.
Greve, H.R. (2003), Organizational Learning from Performance Feedback: A Behavioral Perspective on Innovation and Change, Cambridge University Press, Cambridge.
Hernandez, J., Mendibil, K., Ion, B. (2007), "Coporate Social Responsibility as a Fundamental Discipline: Our Reposnse to Mainstream IT in SMEs", in: Bohemia, E.,
Hilton, K., McMahon, C., Clarke, A. (Eds.), Proceedings of 9th International Conference on Engineering and Product Design Education, Northumbria University, Newcastle Upon Tyne, United Kingdom, pp. 21-26.
Husted, B.W., Salazar, J. (2006), "Taking Friedman Seriously: Maximizing Profits and Social Performance", Journal of Management Studies, Vol. 43 No. 1, pp. 75–91. DOI: 10.1111/j.1467-6486.2006.00583.x
Jepperson, R.L. (1991), "Institutions, Institutional Effects, and Institutionalism", in: Powell W.W.,
DiMaggio, P.J. (Eds.), The New Institutionalism in Organizational Analysis, University of Chicago, Chicago, pp. 143-163.
Lantos, G.P. (2002), "The Ethicality of Altruistic Corporate Social Responsibility", Journal of Consumer Marketing, Vol. 19 No. 3, pp. 205–232. DOI: 10.1108/07363760210426049
Marrewijk, M. (2003), "Concepts and Definitions of CSR and Corporate Sustainability: Between Agency and Communion", Journal of Business Ethics, Vol. 44 No. 2–3, pp. 95–105. DOI: 10.1023/A:1023331212247
Martin, R. (2002), "The Virtue Matrix: Calculating the Return on Corporate Responsibility", Harvard Business Review, Vol. 80 No. 3, pp. 68–75.
McWilliams, A., Siegel, D.S., Wright, P.M. (2006), "Corporate Social Responsibility: Strategic Implications", Journal of Management Studies, Vol 43 No. 1, pp. 1–18. DOI: 10.1111/j.1467-6486.2006.00580.x
Meyer, J.W., Rowan, B. (1977), "Institutionalized Organizations: Formal Structure as Myth and Ceremony on JSTOR", American Journal of Sociology, Vol. 83 No. 2, pp. 340–363.
Mizruchi, M.S., Fein, L.C. (1999), "The Social Construction of Organizational Knowledge: A Study of the Uses of Coercive, Mimetic, and Normative Isomorphism", Administrative Science Quarterly, Vol. 44 No. 4, pp. 653-683. DOI: 10.2307/2667051
Mullerat, R. (2010), International Corporate Social Responsibility: The Role of Corporations in the Economic Order of the 21st Century, Kluwer Law International, Alphen aan den Rijn.
North, D. (1990). Institutions, Institutional Change and Economic Performance, Cambridge University Press, Cambridge.
Oliver, C. (1991), "Strategic Responses to Institutional Processes", The Academy of Management Review, Vol. 16 No. 1, pp. 145-179. DOI: 10.2307/258610
Porter, M.E., Kramer, M.R. (2002), "The Competitive Advantage of Corporate Philanthropy". Harvard Business Review, December, pp. 56-69.
Porter, M.E., Kramer, M.R. (2006), "Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility", Harvard Business Review, December, pp. 78-92.
Porter, M.E., Kramer, M.R. (2011), "Creating Shared Value", Harvard Business Review, January-February, pp. 62-77.
Rok, B. (2004), Odpowiedzialny biznes w nieodpowiedzialnym świecie, Akademia Rozwoju Filantropii, Forum Odpowiedzialnego Biznesu, Warszawa.
Scott, R.W. (2014), Institutions and Organizations. Ideas, Interests, Identities, Sage Publications, London.
Scott, W.R. (1987), "The Adolescence of Institutional Theory", Administrative Science Quarterly, Vol. 32 No. 4, pp. 493–511. DOI: 10.2307/2392880
Selznik, P. (1957), Leadership in Administration, Harper & Row, New York.
Sethi, R. (1975), "Dimensions of Corporate Social Performance: An Analytical Framework", California Management Review, Vol. 17 No. 3, pp. 58–64.
Sherif, S.F. (2015), "The Role of Higher Education Institutions in Propagating Corporate Social Responsibility Case Study: Universities in the Middle East", International Journal of Education and Research, Vol. 3 No. 1, pp. 217–226.
Tolbert, P., Zucker, L. (1983), "Institutional Sources of Change in the Formal Structure of Organizations: The Diffusion of Civil Service Reform, 1880-1935", available at: http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1132&context=articles (accessed 15 September 2017).
Visser, W. (2012), The Age of Responsibility: CSR 2.0 and the New DNA of Business, Willey, London.
Wartick, S.L., Cochran, P.L. (1985), "The Evolution of the Corporate Social Performance Model", The Academy of Management Review, Vol. 10 No. 4, pp. 758–769.
Wood, D.J. (1991), "Corporate Social Performance Revisited", The Academy of Management Review, Vol. 16 No. 4, pp. 691–718.
Yunus, M. (2007), Creating a World Without Poverty: Social Business and the Future of Capitalism, PublicAffairs, New York.
Downloads
Published
How to Cite
Issue
Section
License
Copyright
Articles submitted to the journal should not have been published before in their current or substantially similar form, or be under consideration for publication with another journal. Authors submitting articles for publication warrant that the work is not an infringement of any existing copyright and will indemnify the publisher against any breach of such warranty. For ease of dissemination and to ensure proper policing of use, papers and contributions become the legal copyright of the publisher unless otherwise agreed.
Plagiarism and ghostwriting
In response to the issue of plagiarism and ghostwriting the editors of the Journal of Positive Management has introduced the following rules to counteract these phenomena:
1. Contributors should be aware of their responsibility for a content of manuscripts.
2. Collective authors are obliged to reveal the contribution and an affiliation of each author (i.e. who is an author of specified part of a paper).
3. Any act of dishonesty will be denounced, the editors will inform appropriate institutions about the situation and give evidence of all cases of misconduct and unethical behaviour.
4. The editors may ask contributors for financial disclosure (i.e. contribution of specified institutions).
Stats
Number of views and downloads: 4215
Number of citations: 0
