IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v33y2024i5p4598-4612.html
   My bibliography  Save this article

Corporate purpose and early disaster response: Providing evidence of dynamic materiality?

Author

Listed:
  • Diego Arias
  • Xabier Barriola
  • Cristian R. Loza Adaui

Abstract

This paper examines the relationship between corporate purpose and disaster response. To that aim, we use a unique dataset generated by Just Capital's COVID‐19 response tracker that characterizes the early responses of 928 companies included in the Russell 1000 Index generated by the COVID‐19 pandemic. We marry this data to the Business Roundtable Statement on the Purpose of a Corporation (BRT‐CPS) signatories list, which includes 210 firms that declared “a fundamental commitment to all stakeholders” as their corporate purpose. We estimate the differential impact of BRT‐CPS signees on the rest. After controlling our results with financial indicators and environmental, social, and governance (ESG) data, we convey that BRT‐CPS signees were more likely to develop strategies that benefited their surrounding communities and other stakeholders. Moreover, corporations with high ESG were less likely to have an early response that directly benefited stakeholders other than shareholders, except for layoffs and unpaid leave. Finally, we discuss the outcomes considering the symbolic management theory, corporate purpose literature, and its relation to stakeholder management.

Suggested Citation

  • Diego Arias & Xabier Barriola & Cristian R. Loza Adaui, 2024. "Corporate purpose and early disaster response: Providing evidence of dynamic materiality?," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4598-4612, July.
    • Handle: RePEc:bla:bstrat:v:33:y:2024:i:5:p:4598-4612
    DOI: 10.1002/bse.3707
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.3707
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.3707?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Riccardo Torelli & Federica Balluchi & Katia Furlotti, 2020. "The materiality assessment and stakeholder engagement: A content analysis of sustainability reports," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 470-484, March.
    2. Nopparat Wongsinhirun & Pattanaporn Chatjuthamard & Pornsit Jiraporn & Piyachart Phiromswad, 2022. "Do takeover threats influence corporate social responsibility? Evidence from hostile takeover vulnerability," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1203-1213, September.
    3. Gerardo Patriotta, 2021. "The Future of the Corporation," Journal of Management Studies, Wiley Blackwell, vol. 58(3), pages 879-886, May.
    4. Alessandro Zattoni & Amedeo Pugliese, 2021. "Corporate Governance Research in the Wake of a Systemic Crisis: Lessons and Opportunities from the COVID‐19 Pandemic," Journal of Management Studies, Wiley Blackwell, vol. 58(5), pages 1405-1410, July.
    5. Eduardo Schiehll & Sam Kolahgar, 2021. "Financial materiality in the informativeness of sustainability reporting," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 840-855, February.
    6. Alejo Sison & Joan Fontrodona, 2013. "Participating in the Common Good of the Firm," Journal of Business Ethics, Springer, vol. 113(4), pages 611-625, April.
    7. Colin Mayer, 2021. "The Future of the Corporation and the Economics of Purpose," Journal of Management Studies, Wiley Blackwell, vol. 58(3), pages 887-901, May.
    8. Carol A. Adams & Frank Mueller, 2022. "Academics and policymakers at odds: the case of the IFRS Foundation Trustees’ consultation paper on sustainability reporting," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 13(6), pages 1310-1333, May.
    9. Rebecca Henderson, 2021. "Innovation in the 21st Century: Architectural Change, Purpose, and the Challenges of Our Time," Management Science, INFORMS, vol. 67(9), pages 5479-5488, September.
    10. Peter Tashman & Valentina Marano & Tatiana Kostova, 2019. "Walking the walk or talking the talk? Corporate social responsibility decoupling in emerging market multinationals," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(2), pages 153-171, March.
    11. Christopher Marquis & Cuili Qian, 2014. "Corporate Social Responsibility Reporting in China: Symbol or Substance?," Organization Science, INFORMS, vol. 25(1), pages 127-148, February.
    12. Giorgio Mion & Cristian R. Loza Adaui, 2020. "Understanding the purpose of benefit corporations: an empirical study on the Italian case," International Journal of Corporate Social Responsibility, Springer, vol. 5(1), pages 1-15, December.
    13. Dror Etzion & Fabrizio Ferraro, 2010. "The Role of Analogy in the Institutionalization of Sustainability Reporting," Organization Science, INFORMS, vol. 21(5), pages 1092-1107, October.
    14. Alvaro Lleo & Miquel Bastons & Carlos Rey & Fernando Ruiz-Perez, 2021. "Purpose Implementation: Conceptualization and Measurement," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    15. Claudine Gartenberg & Andrea Prat & George Serafeim, 2019. "Corporate Purpose and Financial Performance," Organization Science, INFORMS, vol. 30(1), pages 1-18, February.
    16. Gerald F. Davis, 2021. "Corporate Purpose Needs Democracy," Journal of Management Studies, Wiley Blackwell, vol. 58(3), pages 902-913, May.
    17. Yining Zhou & Geoff Lamberton & Michael B. Charles, 2023. "An Explanatory Model of Materiality in Sustainability Accounting: Integrating Accountability and Stakeholder Heterogeneity," Sustainability, MDPI, vol. 15(3), pages 1-22, February.
    18. Joan Fontrodona & Alejo Sison, 2006. "The Nature of the Firm, Agency Theory and Shareholder Theory: A Critique from Philosophical Anthropology," Journal of Business Ethics, Springer, vol. 66(1), pages 33-42, June.
    19. Julia Rosen, 2021. "Pandemic upheaval offers a huge natural experiment," Nature, Nature, vol. 596(7870), pages 149-151, August.
    20. Hafenbrädl, Sebastian & Waeger, Daniel, 2021. "The business case for CSR: A trump card against hypocrisy?," Journal of Business Research, Elsevier, vol. 129(C), pages 838-848.
    21. Cesar Saenz, 2019. "Creating shared value using materiality analysis: Strategies from the mining industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1351-1360, November.
    22. Sandrine Frémeaux & Grant Michelson, 2017. "The Common Good of the Firm and Humanistic Management: Conscious Capitalism and Economy of Communion," Journal of Business Ethics, Springer, vol. 145(4), pages 701-709, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ricardo Zózimo & Miguel Pina e Cunha & Arménio Rego, 2023. "Becoming a Fraternal Organization: Insights from the Encyclical Fratelli Tutti," Journal of Business Ethics, Springer, vol. 183(2), pages 383-399, March.
    2. Bianca Alves Almeida Machado & Lívia Cristina Pinto Dias & Alberto Fonseca, 2021. "Transparency of materiality analysis in GRI‐based sustainability reports," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 570-580, March.
    3. Nikolai Brosch, 2023. "Corporate purpose: from a ‘Tower of Babel’ phenomenon towards construct clarity," Journal of Business Economics, Springer, vol. 93(4), pages 567-595, May.
    4. Francesca Collevecchio & Gianluca Gionfriddo, 2023. "Adopting a social purpose in for-profit firms: the role of the board of directors," International Entrepreneurship and Management Journal, Springer, vol. 19(3), pages 1467-1499, September.
    5. Gregor Bouville & Jocelyne Barreau, 2021. "Les Utopies Du Travail Et Le Management : Du 19e Au 21e Siecles," Post-Print halshs-03403834, HAL.
    6. Joan Enric Ricart & Carlos Rey, 2022. "Purpose in Corporate Governance: The Path towards a More Sustainable World," Sustainability, MDPI, vol. 14(8), pages 1-11, April.
    7. Imperiale, Francesca & Pizzi, Simone & Lippolis, Stella, 2023. "Sustainability reporting and ESG performance in the utilities sector," Utilities Policy, Elsevier, vol. 80(C).
    8. Rekha Rao-Nicholson & Htwe Htwe Thein & Yifan Zhong, 2024. "A thematic analysis of the links between multinational enterprises’ corporate social responsibility and the Sustainable Development Goals in Myanmar," Journal of International Business Policy, Palgrave Macmillan, vol. 7(2), pages 203-223, June.
    9. Dayuan Li & Jialin Jiang & Lu Zhang & Chen Huang & Ding Wang, 2023. "Do CEOs with Sent-Down Movement Experience Foster Corporate Environmental Responsibility?," Journal of Business Ethics, Springer, vol. 185(1), pages 147-168, June.
    10. Federica Nieri & Luciano Ciravegna & Ruth V. Aguilera & Elisa Giuliani, 2019. "Larger, more internationalized, better behaved? A configurational study of em erging market multinational enterprises' involvement in corporate wrongdoing," Discussion Papers 2019/255, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    11. Na Yang & Jue Wang & Xiaming Liu & Lingyun Huang, 2022. "Home-country institutions and corporate social responsibility of emerging economy multinational enterprises: The belt and road initiative as an example," Asia Pacific Journal of Management, Springer, vol. 39(3), pages 927-965, September.
    12. Yihao Guo & Yanwen Song & Yimin Wang, 2024. "Happy troubles? CSR awards and CSR report quality," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 2989-3005, July.
    13. X. Xingnan Xue & L. Wang & N. Nan Hu, 2024. "Economic Policy Uncertainty and Corporate Social Responsibility Disclosure Similarity——Evidence from China," Post-Print hal-04699553, HAL.
    14. Sandrine Frémeaux & Thibaut Bardon & Clara Letierce, 2020. "How To Be a ‘Wise’ Researcher: Learning from the Aristotelian Approach to Practical Wisdom," Post-Print hal-03232780, HAL.
    15. Rong Ma & Rakesh B. Sambharya, 2024. "International diversification and corporate social responsibility disclosure quality: Employee versus environmental dimensions," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4248-4264, September.
    16. Garanina, Tatiana & Kim, Oksana, 2023. "The relationship between CSR disclosure and accounting conservatism: The role of state ownership," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 50(C).
    17. Kyoko Sasaki & Wendy Stubbs & Megan Farrelly, 2023. "The relationship between corporate purpose and the sustainable development goals in large Japanese companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2475-2489, September.
    18. Jodi L. Short & Michael W. Toffel & Andrea R. Hugill, 2016. "Code Contingencies: Designing Monitoring Regimes to Promote Improvement in Supply Chain Working Conditions," Harvard Business School Working Papers 17-001, Harvard Business School, revised Mar 2019.
    19. Grueso Gala, Melanie & Camisón Zornoza, César, 2022. "A bibliometric analysis of the literature on non-financial information reporting: Review of the research and network visualization," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    20. Wang, Ding & Wei, Jiang & Noorderhaven, Niels & Liu, Yang, 2023. "Signaling effects of CSR performance on cross-border alliance formation," Other publications TiSEM 8216bc26-81cb-4d2a-b81a-4, Tilburg University, School of Economics and Management.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:33:y:2024:i:5:p:4598-4612. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.