Toward Integrative Corporate Citizenship This page intentionally left blank Toward Integrative Corporate Citizenship Research Advances in Corporate Social Performance Marc Orlitzky Associate Professor of Management, Pennsylvania State University Altoona, USA. and Diane L. Swanson Professor of Management, Kansas State University, USA. © Marc Orlitzky and Diane L. Swanson 2008 Softcover reprint of the hardcover 1st edition 2008 978-0-230-20187-3 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6-10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2008 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN 978-1-349-30005-1 ISBN 978-0-230-59470-8 (eBook) DOI 10.1057/9780230594708 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data Orlitzky, Marc, 1970– Toward integrative corporate citizenship : research advances in corporate social performance / Marc Orlitzky and Diane L. Swanson. p. cm. Includes index. 1. Social responsibility of business. I. Swanson, Diane L. II. Title. HD60.O75 2008 658.4’08–dc22 2008020652 10 9 8 7 6 5 4 3 2 1 17 16 15 14 13 12 11 10 09 08 In memoriam Erika Orlitzky (1920–2000) and Charlotte Swanson (1888–1972) This page intentionally left blank Contents List of Tables ix List of Figures x List of Abbreviations xi Acknowledgments xii Introduction 1 Part I Theories of Corporate Social Performance: 7 Toward a New Vision of Theoretical Integration of Value-Based Business Leadership Chapter 1 Addressing a Lack of Theoretical Integration in 11 Corporate Social Performance Chapter 2 Toward an Integrative Theory of Value-based 35 Leadership Chapter 3 Value Attunement: Exploring the Potential for 63 Responsible Executive Decision Making Part II Empirical Research Integration: Business Social 79 Performance, Risk, and Financial Performance Chapter 4 Corporate Social and Financial Performance: 83 An Integrative Review Chapter 5 Corporate Social Performance and Business Risk 121 Chapter 6 Organizational Size, Corporate Social 147 Performance, and Business Performance Chapter 7 Doing Well by Doing Good: Objective Findings, 164 Subjective Assumptions, or Selective Amplification? Part III Implications for Measurement and 189 Implementation: Toward an Integrative Perspective on Corporate Citizenship Chapter 8 Corporate Social Performance, Stakeholder 192 Satisfaction, and Generalizability Theory vii viii Contents Chapter 9 Normative Myopia, Executives’ Personality, and 212 Preference for Pay Dispersion: Implications for Corporate Social Performance Chapter 10 Prospects for Integrative Citizenship in Research 242 and Practice Index 255 List of Tables 1.1 A Classification of Corporate Social Performance 15 4.1 Overall Meta-Analytic Findings (Hypothesis 1) 97 4.2a Good Management Theory and Slack Resources Theory 99 (Hypothesis 2, All Measures of CSP, Incl. Environmental Performance) 4.2b Hypothesis 2 ‘Purely Social’ CSP Measures Only 99 4.3 Subset Meta-Analysis: Reputation Theory and Internal 101 Skills Theory of CSP (Hypothesis 3) 4.4a Subset Meta-Analysis of Operationalization Moderator 103 Effects (Hypothesis 4b) 4.4b Further Subset Analyses of CSP in Terms of Social Audits, 106 Corp. Behavior, Processes, and Outcomes with CFP (Hypothesis 4b) 5.1 Relationship between CSP and Firm Risk 134 6.1 Meta-Analysis of CSP-Size Correlations 154 7.1 Meta-Analysis of Publication Outlet Moderator Effects 174 8.1 Illustration of Generalizability Theory (Examples) 202 8.2 Hypothetical Data 203 8.3 Estimated Variance Components for a Hypothetical CSP 204 Rating Example: Crossed, Two-Facet, Random Design 8.4 Estimated Variance Components for a Hypothetical CSP 205 Rating Example: Mixed Design with Items as Fixed Facet 9.1 Rotated Factor Matrix of Final 12 Items Measuring 221 Normative Myopia 9.2 Descriptive Statistics: Means, Standard Deviations, and 224 Correlations 9.3 Predictors of Preference for Compensation Systems with 225 Relatively High Levels of Pay Differentiation (PD1) 9.4 Agreeableness as a Predictor of Normative Myopia 226 ix