csr and stakeholder managment.pdf - J Bus Ethics(2015...

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Developing CSR Giving as a Dynamic Capability for Salient Stakeholder Management John Ehsman Cantrell Elias Kyriazis Gary Noble Received: 4 November 2013 / Accepted: 14 May 2014 / Published online: 11 June 2014 Ó Springer Science+Business Media Dordrecht 2014 Abstract In this paper, we draw upon the emerging view of strategic cognition and issue salience and show that CSR giving has evolved into more than an altruistic response to being asked for support, to one which is embedded in the strategic frames of management and which supports orga- nizational identity. The managerial action as a result of such strategic cognition suggests that modern organizations are seeking to develop CSR giving processes that provide them with a competitive advantage. We draw on the resource- based view of organizations and the VRIO framework to provide the theoretical foundations for our argument that CSR implementation in the form of corporate giving to charities can be developed as a dynamic capability. This can provide a competitive advantage by allowing organiza- tions to manage key stakeholder relationships (external and internal) more effectively with benefits which could lead to increased organizational productivity and the ability to execute strategy more effectively. We interview CSR implementation managers from large organizations in Australia and find that the CSR giving process in many firms is evolving into a more sophisticated and strategically motivated process with expectations of a return. Central to this evolution is the appointment of a CSR implementation manager who acts as a boundary spanner between the organization and its key stakeholders. We posit that this corporate investment in their role and supporting structures can lead to the better management of stakeholders by organizations through the dynamic capability of the CSR giving process. We develop a table of best practise to help guide managers entering this sphere. Keywords Corporate philanthropy Á CSR Á CSR giving Á Dynamic capability Á Giving manager Á Issue salience Á RBV Á Stakeholders Á Stakeholder management Á VRIO Introduction Current research suggests that companies are increasingly seeing themselves as social enterprises (c.f. Birch and Littlewood 2004 ; Thorne et al. 2011 ) and their stakeholders are increasingly calling on them to create behaviours in business that are seen as socially responsible (Smith 2009 ; Carroll and Shabana 2010 ; Thorne et al. 2011 ). This growing stakeholder influence on the organizations behaviour and in particular how it manifests itself in the organizations CSR policy is ‘‘an inescapable reality for business leaders in every country’’ (Porter and Kramer 2006 , p. 1). The increasing pressure from stakeholders (both internal and external) for social responsibility has meant many corporate giving programs have been subsumed into, are reported as, and included in modern research on organi- zational CSR, as corporations need to be seen to be socially responsible (c.f. Navarro 1988 ; Sharfman 1994 ; Burke and Logsdon 1996 ; Campbell et al.
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