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Taming Trojan Horses: Identifying And Mitigating Corporate Social Responsibility Risks

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  • P. P. M. A. R. HEUGENS
  • N. A. DENTCHEV

Abstract

Organizations are exposed to increasing pressures from their constituents to integrate corporate social responsibility (CSR) principles into their ongoing business practices. But accepting new and potentially open-ended commitments is not a harmless exercise, and companies may well expose themselves to serious risks when embracing such principles. To identify these risks, we conducted two naturalistic studies: one exploratory, the other corroborative. The results show that CSR adoption is associated with at least seven different business risks, ranging from failing strategy implementation to legitimacy destruction. To alleviate these risks, we discuss a set of managerial mitigation strategies that have the potential to realign companies’ CSR activities with their strategic objectives.

Suggested Citation

  • P. P. M. A. R. Heugens & N. A. Dentchev, 2007. "Taming Trojan Horses: Identifying And Mitigating Corporate Social Responsibility Risks," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 07/434, Ghent University, Faculty of Economics and Business Administration.
    • Handle: RePEc:rug:rugwps:07/434
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    Cited by:

    1. Mohamed M. Ibrahim & Mohamed M. El Frargy & Khaled Hussainey, 2021. "The Impact of Corporate Social Responsibility as a Marketing Investment on Firms’ Performance: A Risk-Oriented Approach," JRFM, MDPI, vol. 14(11), pages 1-17, October.
    2. Swiatkiewicz Olgierd, 2017. "Linking CSR to Strategy: A Practical View," Foundations of Management, Sciendo, vol. 9(1), pages 299-316, October.
    3. Ana Nave & João Ferreira, 2019. "Corporate social responsibility strategies: Past research and future challenges," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(4), pages 885-901, July.
    4. Rosetta Lombardo, 2009. "Beyond Compliance: Firms’ Environmental Behaviour. A Survey," Working Papers 200918, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    5. Fiona MacPhail & Paul Bowles, 2009. "Corporate Social Responsibility as Support for Employee Volunteers: Impacts, Gender Puzzles and Policy Implications in Canada," Journal of Business Ethics, Springer, vol. 84(3), pages 405-416, February.
    6. Meyer, Margit & Waßmann, Jan, 2011. "Strategische Corporate Social Responsibility. Konzeptionelle Entwicklung und Implementierung in der Praxis am Beispiel 'dm-drogerie markt'," Research Papers on Marketing Strategy 3/2011, Julius-Maximilians-Universität Würzburg, Lehrstuhl für BWL und Marketing.
    7. Carmelo Cennamo & Pascual Berrone & Luis Gomez-Mejia, 2009. "Does Stakeholder Management have a Dark Side?," Journal of Business Ethics, Springer, vol. 89(4), pages 491-507, November.
    8. Jaehong Lee & Suyon Kim & Eunsoo Kim, 2022. "Environmental Responsibility, Social Responsibility, and Governance from the Perspective of Auditors," IJERPH, MDPI, vol. 19(19), pages 1-14, September.
    9. Swiatkiewicz Olgierd, 2017. "Linking Csr To Strategy: A Practical View," Foundations of Management, Sciendo, vol. 9(1), pages 299-316, October.

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    Keywords

    Corporate social responsibility; Corporate social responsibility risks; Managerial implications; Mitigation strategies; Strategy implementation; Trojan horses.;
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