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Board-level codetermination: A driving force for corporate social responsibility in German companies?

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  • Scholz, Robert
  • Vitols, Sigurt

Abstract

We examine the relationship between board-level codetermination and corporate social responsibility in German companies, engaging with two distinct literatures. Most quantitative studies of codetermination focus on its economic impact, with little attention to other outcomes. Studies of corporate social responsibility rarely consider the role of worker representatives. Our new measure of the strength of codetermination, the Mitbestimmungsindex (MB-ix), shows a positive relationship with ‘substantive’ policies such as the adoption of targets for reducing pollution, but not with ‘symbolic’ policies, such as membership of the UN Global Compact. We therefore shed new light on the role of codetermination and provide a more differentiated view of the spread of what has been termed ‘explicit’ corporate social responsibility in Germany.

Suggested Citation

  • Scholz, Robert & Vitols, Sigurt, 2019. "Board-level codetermination: A driving force for corporate social responsibility in German companies?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 25(3), pages 233-246.
    • Handle: RePEc:zbw:espost:214273
    DOI: 10.1177/0959680119830566
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    References listed on IDEAS

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    6. Scholz, Robert & Vitols, Sigurt, 2018. "Der MB-IX in börsennotierten Unternehmen: Verankerung der Mitbestimmung im letzten Jahrzehnt," Mitbestimmungsreport 43, Hans-Böckler-Stiftung, Düsseldorf.
    7. Laura Schons & Maria Steinmeier, 2016. "Walk the Talk? How Symbolic and Substantive CSR Actions Affect Firm Performance Depending on Stakeholder Proximity," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(6), pages 358-372, November.
    8. Gregory Jackson & Androniki Apostolakou, 2010. "Corporate Social Responsibility in Western Europe: An Institutional Mirror or Substitute?," Journal of Business Ethics, Springer, vol. 94(3), pages 371-394, July.
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    Cited by:

    1. Simon Jäger & Benjamin Schoefer & Jörg Heining, 2021. "Labor in the Boardroom," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(2), pages 669-725.
    2. Anna Shevyakova & Eleonorа Munsh & Malika Arystan, 2019. "Towards diversification of the economy of Kazakhstan via information support for the tourism industry," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 1(2), pages 138-154, June.
    3. Chyz, James A. & Eulerich, Marc & Fligge, Benjamin & Romney, Miles A., 2023. "Codetermination and aggressive reporting: Audit committee employee representation, tax aggressiveness, and earnings management," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 51(C).
    4. Laszlo Goerke, 2022. "Trade unions and corporate social responsibility," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 177-203, March.
    5. Vitols, Sigurt, 2021. "Board Level Employee Representation and Tax Avoidance in Europe," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Ahead-of-, pages 1-1.
    6. Andrea Bernardi, 2019. "Using the capability approach and organizational climate to study occupational health and safety," Post-Print hal-02163019, HAL.
    7. Vitols Sigurt, 2023. "Board Level Employee Representation and Tax Avoidance in Europe," Accounting, Economics, and Law: A Convivium, De Gruyter, vol. 13(4), pages 457-478, November.
    8. Scholz, Robert, 2021. "Labour in the Board and Good Work: How to Measure and Evidence From Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 32(3), pages 219-243.
    9. Andrea Bernardi, 2019. "Using the capability approach and organizational climate to study occupational health and safety," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 1(2), pages 155-170, June.
    10. Gregorič, Aleksandra, 2022. "Board-level worker representation," GLO Discussion Paper Series 1136, Global Labor Organization (GLO).
    11. Laszlo Goerke & Nora Paulus, 2024. "Collective Bargaining about Corporate Social Responsibility," IAAEU Discussion Papers 202401, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).

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