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How do Companies Invest in Corporate Social Responsibility? An Ordonomic Contribution for Empirical CSR Research

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  • Matthias Georg Will

    (School of Economics and Business, Martin-Luther-University Halle-Wittenberg, Grosse Steinstrasse 73, 06108 Halle, Germany)

  • Stefan Hielscher

    (School of Economics and Business, Martin-Luther-University Halle-Wittenberg, Grosse Steinstrasse 73, 06108 Halle, Germany)

Abstract

This paper takes both a conceptual and an empirical approach to answer the question as to how Corporate Social Responsibility (CSR) can be connected to the company’s role as an agent of social value creation when it operates within an imperfect institutional framework of market competition. To develop a functional design for an empirical study, we draw on the concept of ordonomics, which provides a heuristics for responsible business activities in society. Drawing on ordonomics, we devise three questions: Referring to action responsibility we ask in which CSR activities companies do invest in their day-to-day business. Referring to governance responsibility we ask as to how companies realize win-win solutions through strategic commitments. In addition, with regard to discourse responsibility we ask in which stakeholder dialogues companies engage in order to discuss and find functional rules for organizing win-win solutions. In our empirical study, we reveal insights into the micro-level analysis of the CSP-CFP link and generate several new questions to be the subject of future research.

Suggested Citation

  • Matthias Georg Will & Stefan Hielscher, 2014. "How do Companies Invest in Corporate Social Responsibility? An Ordonomic Contribution for Empirical CSR Research," Administrative Sciences, MDPI, vol. 4(3), pages 1-23, July.
    • Handle: RePEc:gam:jadmsc:v:4:y:2014:i:3:p:219-241:d:38386
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    References listed on IDEAS

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    1. Ingo Pies & Markus Beckmann & Stefan Hielscher, 2010. "Value Creation, Management Competencies, and Global Corporate Citizenship: An Ordonomic Approach to Business Ethics in the Age of Globalization," Journal of Business Ethics, Springer, vol. 94(2), pages 265-278, June.
    2. Stephen Brammer & Andrew Millington, 2008. "Does it pay to be different? An analysis of the relationship between corporate social and financial performance," Strategic Management Journal, Wiley Blackwell, vol. 29(12), pages 1325-1343, December.
    3. Lin-Hi, Nick & Müller, Karsten, 2013. "The CSR bottom line: Preventing corporate social irresponsibility," Journal of Business Research, Elsevier, vol. 66(10), pages 1928-1936.
    4. Clyde Eiríkur Hull & Sandra Rothenberg, 2008. "Firm performance: the interactions of corporate social performance with innovation and industry differentiation," Strategic Management Journal, Wiley Blackwell, vol. 29(7), pages 781-789, July.
    5. Stefan Hielscher & Ingo Pies & Vladislav Valentinov, 2012. "How to Foster Social Progress: An Ordonomic Perspective on Progressive Institutional Change," Journal of Economic Issues, Taylor & Francis Journals, vol. 46(3), pages 779-798.
    6. Timo Busch & Bryan T. Stinchfield & Matthew S. Wood, 2011. "A Triptych Inquiry: Rethinking Sustainability, Innovation, and Financial Performance," Tinbergen Institute Discussion Papers 11-026/2/DSF 9, Tinbergen Institute.
    7. José Allouche & Patrice Laroche, 2005. "A Meta-analytical investigation of the relationship between corporate social and financial performance," Post-Print hal-00923906, HAL.
    8. Paul C. Godfrey & Craig B. Merrill & Jared M. Hansen, 2009. "The relationship between corporate social responsibility and shareholder value: an empirical test of the risk management hypothesis," Strategic Management Journal, Wiley Blackwell, vol. 30(4), pages 425-445, April.
    9. Pies, Ingo & Hielscher, Stefan & Beckmann, Markus, 2009. "Moral Commitments and the Societal Role of Business: An Ordonomic Approach to Corporate Citizenship," Business Ethics Quarterly, Cambridge University Press, vol. 19(3), pages 375-401, July.
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    Cited by:

    1. Rajesh, R. & Rajeev, A. & Rajendran, Chandrasekharan, 2022. "Corporate social performances of firms in select developed economies: A comparative study," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    2. Shyam Singh & Nathalie Holvoet & Vivek Pandey, 2018. "Bridging Sustainability and Corporate Social Responsibility: Culture of Monitoring and Evaluation of CSR Initiatives in India," Sustainability, MDPI, vol. 10(7), pages 1-19, July.
    3. Hielscher, Stefan & Winkin, Jan & Pies, Ingo, 2016. "NGO credibility as private or public good? A governance perspective on how to improve NGO advocacy in public discourse," Discussion Papers 2016-03, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.

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