Dima Jamali
American University of Beirut, Olayan School of Business, Department Member
Extant literature has highlighted that business schools have been accused of promoting an educational ethos that emphasizes shareholder value and the pursuit of short-term profits and thereby preparing overly competitive future... more
Extant literature has highlighted that business schools have been accused of promoting an educational ethos that emphasizes shareholder value and the pursuit of short-term profits and thereby preparing overly competitive future generations interested in profit maximization. This paper highlights the importance of integrating CSR into the mainstream of business schools' curricula, arguing for the responsible role that business schools should play but also emphasizing the strategic case for such integration. The paper analyzes the main challenges and opportunities that both hinder and facilitate mainstreaming of CSR at the heart of the business school curriculum and the role that the Principles of Responsible Management Education (PRME) can potentially play in this regard. The paper illustrates these drivers and constraints in the context of one specific business school in Lebanon that has successfully experimented with CSR mainstreaming, leading to a nuanced reflection on the possibilities of a real paradigmatic change in the context of higher management education at this critical juncture and what it is going to take to catalyze a real transformation beyond " bells and whistles " and mere rhetoric.
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Given rising interest in Corporate Social Responsibility (CSR) globally, its local expressions are as varied as they are increasingly visible in both developed and developing countries. We present in this paper a multilevel review of the... more
Given rising interest in Corporate Social Responsibility (CSR) globally, its local expressions are as varied as they are increasingly visible in both developed and developing countries. We present in this paper a multilevel review of the literature on CSR in developing countries, and highlight the key differentiators and nuanced CSR-related considerations that qualify it as a distinctive field of study. Our review entails a content analysis of 452 articles spanning two-and-a-half decades (1990-2015). Based on this comprehensive review, we identify the key differentiating attributes of the literature on CSR in developing countries in relation to depictions of how CSR is conceived or " CSR Thinking " and depictions of how CSR is practiced and implemented or " CSR Doing ". We synthesize from there five key themes that capture the main aspects of variation in this literature, namely: 1) complex institutional antecedents within the national business system (NBS); 2) complex macro-level antecedents outside of the NBS; 3) the salience of multiple actors involved in formal and informal governance; 4) hybridized and other nuanced forms of CSR expressions; and 5) varied scope of developmental and detrimental CSR consequences. We conclude by accentuating how the nuanced forms of CSR in the developing world are invariably contextualized and locally shaped by multi-level factors and actors embedded within wider formal and informal governance systems.
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This study examines corporate stakeholder orientation (CSO) across industries and over time prior to the introduction of mandatory CSR. We argue that CSO is a legitimacy signal consciously employed by firms to demonstrate their... more
This study examines corporate stakeholder orientation (CSO) across industries and over time prior to the introduction of mandatory CSR. We argue that CSO is a legitimacy signal consciously employed by firms to demonstrate their shareholder and specific non-shareholder orientations in the midst of institutional pressures emerging from country and industry contexts. Using a 7-code index of CSO on CEO–shareholder communications from India, we find that in general large firms in India exhibit a predominant , significant and rising trend of pro-shareholder orientation in the six-year period immediately preceding the CSR law. Yet, we uncover significant industry differences in CSO potentially driven by four key factors: the degree of competitive dynamics, nature of products and services, extent of negative externalities and social acti-vism, and exposure to international markets. Our findings support the view that while some minimum threshold of regulatory intervention is required to balance the interests of business with society, legislation raises questions in relation to the usefulness of a uniform one-size-fits-all CSR across all industries.
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Islamic Financial Institutions (IFIs) have recently witnessed remarkable growth driven by their holistic business model. The key differentiator of IFIs is their Shari’a-based business proposition which often requires some financial... more
Islamic Financial Institutions (IFIs) have recently witnessed remarkable growth driven by their holistic business model. The key differentiator of IFIs is their Shari’a-based business proposition which often requires some financial sacrifices, e.g. being ethical, responsible and philanthropic. It also requires them to refrain from investments in tobacco, alcohol, pornography or earning interest. For IFIs’ sponsors and managers, however, the key motivational factor for entering the Islamic financial market is not the achievement of Shari’a objectives through the holistic business model, but rather the urge to tap this highly profitable market where customers are inclined to pay a premium for Shari’a compliance. In order for IFIs to be accepted by the market, their financial instruments need to be approved by Shari’a scholars, known for their integrity and expertise in Shari’a. One can therefore expect potential tensions between IFIs’ managers and Shari’a scholars. The purpose of this research is to probe the hidden struggle between managers and Shari’a scholars in pursuit of their respective objectives. The study investigates this phenomenon using grounded theory as a methodological framework based on data collected from three IFIs from two countries. The findings reveal that Shari’a scholars and managers of IFIs have divergent objectives, which creates incongruence of objectives at the strategic level. The findings illustrate the tension and latent struggle for Shari’a compliance, which has been termed as ‘Fatwa Repositioning’ resulting in four possible consequences: deep, reasonable, minimum and superficial Shari’a compliance. Fatwa Repositioning is the core category of this study, which exhibits how managers and Shari’a scholars struggle to position the Shari’a compliance of their institutions so as to best serve their respective objectives. Interestingly, Shari’a scholars are seemingly not always in control of what they are supposed to be controlling, i.e. Shari’a compliance.
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This article examines joint action initiatives among small- and medium-sized enterprises (SMEs) in the manufacturing industries in developing countries in the context of the ascendancy of corporate social responsibility (CSR) and the... more
This article examines joint action initiatives among small- and medium-sized enterprises (SMEs) in the manufacturing industries in developing countries in the context of the ascendancy of corporate social responsibility (CSR) and the proliferation of a variety of international accountability tools and standards. Through empirical fieldwork in the football manufacturing industry of Jalandhar in North India, the article documents how local cluster- based SMEs stay coupled with the global CSR agenda through joint CSR initiatives focusing on child labor. Probing further, however, also reveals patterns of selective decoupling in relation to core humanitarian and labor rights issues. Through in-depth interviews with a wide range of stakeholders involved in the export-oriented football manufacturing industry of Jalandhar in North India, the article highlights the dynamics of coupling and decoupling taking place, and how developing country firms can gain credit and traction by focusing on high visibility CSR issues, although the plight of workers remains fundamentally unchanged. The authors revisit these findings in the discussion and concluding sections, highlighting the main research and policy
implications of the analysis.
implications of the analysis.
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Research Interests:
Formulating and translating corporate social responsibility (CSR) strategy into actual managerial practices and outcome values remain ongoing challenges for many organizations. This paper argues that the human resource management (HRM)... more
Formulating and translating corporate social responsibility (CSR) strategy into actual managerial practices and outcome values remain ongoing challenges for many organizations. This paper argues that the human resource management (HRM) function can potentially play an important role in supporting organizations to address this challenge. We argue that HRM could provide an interesting and dynamic support to CSR strategy design as well as implementation and delivery. Drawing on a systematic review of relevant strategic CSR and HRM literatures, this paper highlights the important interfaces between CSR and HRM and develops a conceptual model, the CSR-HRM co-creation model, which accounts for the potential HRM roles in CSR and identifies a range of outcome values resulting from a more effective integration of the role of HRM within CSR. The paper concludes with relevant theoretical and managerial recommendations that advance our understanding of the potential interfaces between HRM and CSR and how HRM can support a systematic and progressive CSR agenda.
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Demographic characteristics of socially responsible investors (SRIs) are likely to play a significant role in shaping their perceptions and behaviour concerning corporate social responsibility (CSR). This paper identifies demographic... more
Demographic characteristics of socially responsible investors (SRIs) are likely to play a significant role in shaping their perceptions and behaviour concerning corporate social responsibility (CSR). This paper identifies demographic characteristics of SRIs and explores the relationship of these characteristics with their CSR attitudes. We analyse, using generalized ordered logistic regression, the questionnaire responses of 2464 SRIs from 20 countries. The results demonstrate that younger and female SRIs are more likely to believe that a company’s social and environmental performance is as important as its financial performance. Female SRIs and those with high incomes are the most likely to believe that companies should be as responsible to their shareholders as to the broader society. In addition, younger SRIs, those with high incomes and those who have attained higher education levels regard socially responsible companies as at least as profitable as other companies. The benefits which companies can derive from understanding the demographic profile of SRIs are examined, including a potentially lower cost of capital, improved CSR rankings and business policy formulation and communication consistent with CSR views held by specific groups of SRIs.
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Purpose – This paper aims to analyze the potential and limitations of donor-financed management tools that seek to promote corporate social responsibility (CSR) in small and medium-sized enterprises (SMEs) in developing countries. Drawing... more
Purpose – This paper aims to analyze the potential and limitations of donor-financed management tools that seek to promote corporate social responsibility (CSR) in small and medium-sized enterprises (SMEs) in developing countries. Drawing on key insights from three streams of literature relating to institutional theory, critical perspectives on CSR in developing countries and the literature on CSR and SMEs in the developing world, the potential and limits of donor-financed management tools aimed at promoting CSR in developing country SMEs are analyzed.
Design/methodology/approach – Using official UN and Organization of Economic Cooperation and Development lists of all multilateral and bilateral donor agencies, 38 donors that might have produced such CSR tools were identified. The authors contacted them via e-mail and/or telephone, and conducted an extensive Internet search with the aim of identifying whether they had developed management tools aimed at promoting CSR in SMEs in developing countries. The authors then scrutinized the contents of the 11 tools identified and examined the extent to which these tools accord attention to contextual differences and specific peculiarities of institutional environments in developing countries; the extent to which these tools account for the silent or sunken aspects of CSR which have been prominently highlighted in the SME – CSR literature; and the extent to which these tools accord attention to the paramount concern for poverty alleviation in developing countries.
Findings – Overall, the analysis testifies to the continued predominant orientation of these tools to the context of larger firms in developed countries, with insufficient tailoring or customization to the specific realities of SMEs in the South.
Research limitations/implications – In-depth interviews with aid agency personnel, SMEs, workers or community members were not conducted. Hence, this study should be seen as an initial, exploratory desk study of the potential and limits of management tools aimed at promoting CSR in SMEs in the developing world.
Practical implications – It is suggested that donor agencies could develop such tools in a bottom-up fashion by first mapping the silent CSR practices of SMEs in developing countries and then use this as a basis for strengthening existing CSR activities in SMEs instead of trying to impose new priorities from the outside. This might enhance the local relevance and applicability of these management tools. Originality/value – The study is likely to be the first analysis of the potential and limits of management tools that are developed by donor agencies with the aim of promoting CSR in SMEs in developing countries.
Design/methodology/approach – Using official UN and Organization of Economic Cooperation and Development lists of all multilateral and bilateral donor agencies, 38 donors that might have produced such CSR tools were identified. The authors contacted them via e-mail and/or telephone, and conducted an extensive Internet search with the aim of identifying whether they had developed management tools aimed at promoting CSR in SMEs in developing countries. The authors then scrutinized the contents of the 11 tools identified and examined the extent to which these tools accord attention to contextual differences and specific peculiarities of institutional environments in developing countries; the extent to which these tools account for the silent or sunken aspects of CSR which have been prominently highlighted in the SME – CSR literature; and the extent to which these tools accord attention to the paramount concern for poverty alleviation in developing countries.
Findings – Overall, the analysis testifies to the continued predominant orientation of these tools to the context of larger firms in developed countries, with insufficient tailoring or customization to the specific realities of SMEs in the South.
Research limitations/implications – In-depth interviews with aid agency personnel, SMEs, workers or community members were not conducted. Hence, this study should be seen as an initial, exploratory desk study of the potential and limits of management tools aimed at promoting CSR in SMEs in the developing world.
Practical implications – It is suggested that donor agencies could develop such tools in a bottom-up fashion by first mapping the silent CSR practices of SMEs in developing countries and then use this as a basis for strengthening existing CSR activities in SMEs instead of trying to impose new priorities from the outside. This might enhance the local relevance and applicability of these management tools. Originality/value – The study is likely to be the first analysis of the potential and limits of management tools that are developed by donor agencies with the aim of promoting CSR in SMEs in developing countries.
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A theory of planned behavior (TPB) framework was employed to investigate the impact of corporate social responsibility (CSR) perceptions on the job choice intentions of American, Chinese, and Lebanese college students. Attitudes toward... more
A theory of planned behavior (TPB) framework was employed to investigate the impact of corporate social responsibility (CSR) perceptions on the job choice intentions of American, Chinese, and Lebanese college students. Attitudes toward CSR, subjective norm, and perceived behavioral control explained moderate levels of the variance in job choice intention in all three countries. Attitudes toward CSR, which entailed individual evaluations of CSR, were positively related to job choice intentions among Lebanese and American respondents, but not Chinese respondents. Subjective norm, the importance accorded the views of significant others, was most strongly related to job choice intentions among Chinese respondents. Perceived behavioral control, the perceived degree of control over one’s actions and outcomes, had the strongest relationship to job choice intentions among American respondents. The authors concluded that respondents in the three countries did not differ in the extent to which they intend to work for socially responsible firms but tended to derive their intentions in different ways. Implications for tailoring CSR and recruitment efforts across countries are derived based on the findings.
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Research summary: Building on economic geography and institutional theory, we develop and test theory relating geographic variables to the strength of corporate social responsibility (CSR) engagement and the cost of equity capital. For a... more
Research summary: Building on economic geography and institutional theory, we develop and test theory relating geographic variables to the strength of corporate social responsibility (CSR) engagement and the cost of equity capital. For a large sample of US firms over the period 1998- 2009, we find strong and robust evidence that firms located in areas characterized by high levels of local CSR density score higher in CSR engagement. In addition, firms located close to major cities and financial centers exhibit higher CSR engagement compared to firms located in more remote areas. Moreover, the effect of CSR engagement on reducing equity financing costs is even greater for firms in high CSR density areas than for firms in low CSR density areas.
Managerial summary: Does the location of CSR engagement by firms affect the strength of CSR engagement by their neighbors? Does the geography of engagement have an impact on financial performance? Our findings show that a firm’s CSR engagement increases in areas where there is dense CSR engagement and when it is located near large cities. In these areas, norms, values, and knowledge related to CSR are transmitted to firms through face-to-face meetings and frequent social interactions with groups such as peers, labor unions, news media, universities, and community organizations, which tend to be concentrated in large cities. Our findings further highlight that CSR engagement reduces equity financing costs for firms in areas where CSR is widely practiced.
Managerial summary: Does the location of CSR engagement by firms affect the strength of CSR engagement by their neighbors? Does the geography of engagement have an impact on financial performance? Our findings show that a firm’s CSR engagement increases in areas where there is dense CSR engagement and when it is located near large cities. In these areas, norms, values, and knowledge related to CSR are transmitted to firms through face-to-face meetings and frequent social interactions with groups such as peers, labor unions, news media, universities, and community organizations, which tend to be concentrated in large cities. Our findings further highlight that CSR engagement reduces equity financing costs for firms in areas where CSR is widely practiced.
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This paper focuses on innovation in the context of business–non-governmental organization (NGO) partnerships for corporate social responsibility (CSR). While different aspects of business–NGO partnerships have been studied, the role of... more
This paper focuses on innovation in the context of business–non-governmental organization (NGO) partnerships for corporate social responsibility (CSR). While different aspects of business–NGO partnerships have been studied, the role of innovation and its potential implications for partnership outcomes have so far not been systematically explored. The paper defines innovation in simple and concrete terms and synthesizes from the literature what can be considered as critical ingredients to foster social alliance innovation. The paper posits in turn that these ingredients correspond closely to the conception of social capital and offers a consolidated framework that helps in probing around these ingredients and social capital in accounting for innovative partnership outcomes. The empirical part consists of a comparative analysis of six case studies of business–NGO collaboration in the context of CSR in the United Kingdom. The evidence presented makes it clear that strategic partnerships are more readily capable of innovation and that social capital as an umbrella concept is very promising in explaining the differential success and performance of social alliances and central to understanding the dynamics of social alliance innovation and value creation.