Book contents
- Corporate Political Responsibility
- Reviews
- Corporate Political Responsibility
- Copyright page
- Contents
- Figures
- Tables
- Contributors
- Preface
- Section I Foundations of Corporate Political Responsibility: Metrics for Disclosure and Good Governance
- Section II Transparency: Causes and Consequences
- Section III Accountability: Linking Corporate Social Responsibility, Employee Relations, and Corporate Political Responsibility
- 6 Responsible Lobbyists?
- 7 License to Give
- 8 Multinational Companies as Responsible Political Actors in Global Business
- Section IV Responsibility: Corporate Political Responsibility and Climate
- Section V Implementing Corporate Political Responsibility: Opportunities and Challenges
- Index
- References
7 - License to Give
The Relationship between Organizational Reputation and Stakeholders’ Support for Corporate Political Activity
from Section III - Accountability: Linking Corporate Social Responsibility, Employee Relations, and Corporate Political Responsibility
Published online by Cambridge University Press: 16 November 2023
Edited by
Book contents
- Corporate Political Responsibility
- Reviews
- Corporate Political Responsibility
- Copyright page
- Contents
- Figures
- Tables
- Contributors
- Preface
- Section I Foundations of Corporate Political Responsibility: Metrics for Disclosure and Good Governance
- Section II Transparency: Causes and Consequences
- Section III Accountability: Linking Corporate Social Responsibility, Employee Relations, and Corporate Political Responsibility
- 6 Responsible Lobbyists?
- 7 License to Give
- 8 Multinational Companies as Responsible Political Actors in Global Business
- Section IV Responsibility: Corporate Political Responsibility and Climate
- Section V Implementing Corporate Political Responsibility: Opportunities and Challenges
- Index
- References
Summary
This chapter explores the relationship between a firm’s informal nonmarket strategy, reflected in its reputation for social responsibility, and stakeholders’ support for formal nonmarket strategy targeting government officials. We argue that a firm’s informal nonmarket performance shapes stakeholders’ willingness to enable its formal nonmarket strategy by funding its corporate political action committee. In this way, a reputation for social responsibility operates as a social license for a firm to politically engage. We examine how a firm's overall reputation and reputation for employee relations affect employees’ contributions to firms' PACs. Through analyses of a hand-collected dataset of employees’ contributions to corporate PACs, we find that a firm’s reputation for employee relations, but not its overall social reputation, is positively associated with employee support of a firm’s formal nonmarket strategy. These findings illustrate a link between a firm’s informal and formal nonmarket strategies and demonstrate a potential constraint on corporate political influence.
Keywords
- Type
- Chapter
- Information
- Corporate Political Responsibility , pp. 188 - 215Publisher: Cambridge University PressPrint publication year: 2023
References
Aguilera, R., Rupp, D., Williams, C., & Ganapathi, J. (2007). Putting the S Back in Corporate Social Responsibility: A Multilevel Theory of Social Change in Organizations. Academy of Management Review, 32(3), 836–63.Google Scholar
Ansolabehere, S., SnyderJr, J., & Tripathi, M. (2002). Are PAC Contributions and Lobbying Linked? New Evidence from the 1995 Lobby Disclosure Act. Business and Politics, 4(2), 131–55.Google Scholar
Benjamin, B., & Podolny, J. (1999). Status, Quality, and Social Order in the California Wine Industry. Administrative Science Quarterly, 44(3), 563–89.CrossRefGoogle Scholar
Bode, C., Singh, J., & Rogan, M. (2015). Corporate Social Initiatives and Employee Retention. Organization Science, 26(6), 1702–20.CrossRefGoogle Scholar
Burbano, V. (2016). Social Responsibility Messages and Worker Wage Requirements: Field Experimental Evidence from Online Labor Marketplaces. Organization Science, 27(4), 1010–28.Google Scholar
Burbano, V. (2021). The Demotivating Effects of Communicating a Social-Political Stance: Field Experimental Evidence from an Online Labor Market Platform. Management Science, 67(2), 1004–25.CrossRefGoogle Scholar
Dorobantu, S., Kaul, A., & Zelner, B. (2017). Nonmarket Strategy Research through the Lens of New Institutional Economics: An Integrative Review and Future Directions. Strategic Management Journal, 38(1), 114–40.Google Scholar
Eesley, C., Eberhart, R., Skousen, B., & Cheng, J. (2018). Institutions and Entrepreneurial Activity: The Interactive Influence of Misaligned Formal and Informal Institutions. Strategy Science, 3(2), 393–407.Google Scholar
Evers-Hillstrom, K. (2018). Democrats Are Rejecting Corporate PACs: Does It Mean Anything? Open Secrets, December 7.Google Scholar
Favotto, A., Kollman, K., & McMillan, F. (2023). Responsible Lobbyists? CSR Commitments and the Quality of Corporate Parliamentary Testimony in the UK. In Lyon, T., ed., Corporate Political Responsibility. Cambridge, UK: Cambridge University Press.Google Scholar
FEC (2018). Corporations and Labor Organizations Campaign Guide. Federal Election Commission, January.Google Scholar
Flammer, C. (2018). Competing for Government Procurement Contracts: The Role of Corporate Social Responsibility. Strategic Management Journal, 39(5), 1299–324.CrossRefGoogle Scholar
Flammer, C., & Luo, J. (2017). Corporate Social Responsibility as an Employee Governance Tool: Evidence from a Quasi‐Experiment. Strategic Management Journal, 38(2), 163–83.CrossRefGoogle Scholar
Freed, B., Sandstrom, K., & Laufer, W. (2023). Targeting Private Sector Influence in Politics: Corporate Accountability as a Risk and Governance Problem. In Lyon, T., ed., Corporate Political Responsibility. Cambridge, UK: Cambridge University Press.Google Scholar
Grant, A. (2012). Leading with Meaning: Beneficiary Contact, Prosocial Impact, and the Performance Effects of Transformational Leadership. Academy of Management Journal, 55(2), 458–76.Google Scholar
Grant, A., Campbell, E., Chen, G., et al. (2007). Impact and the Art of Motivation Maintenance: The Effects of Contact with Beneficiaries on Persistence Behavior. Organizational Behavior and Human Decision Processes, 103(1), 53–67.Google Scholar
Greening, D., & Turban, D. (2000). Corporate Social Performance as a Competitive Advantage in Attracting a Quality Workforce. Business & Society, 39(3), 254–80.Google Scholar
Gupta, A., Briscoe, F., & Hambrick, D. (2017). Red, Blue, and Purple Firms: Organizational Political Ideology and Corporate Social Responsibility. Strategic Management Journal, 38(5), 1018–40.Google Scholar
Hadani, M., & Schuler, D. (2013). In Search of El Dorado: The Elusive Financial Returns on Corporate Political Investments. Strategic Management Journal, 34(2), 165–81.Google Scholar
Hall, R., & Wayman, F. (1990). Buying Time: Moneyed Interests and the Mobilization of Bias in Congressional Committees. American Political Science Review, 84(3), 797–820.CrossRefGoogle Scholar
Hertel-Fernandez, A. (2018). Politics at Work: How Companies Turn Their Workers into Lobbyists. Oxford, UK: Oxford University Press.Google Scholar
Hillman, A., & Hitt, M. (1999). Corporate Political Strategy Formulation: A Model of Approach, Participation, and Strategy Decisions. Academy of Management Review, 24(4), 825–42.CrossRefGoogle Scholar
Hillman, A., Keim, G., & Schuler, D. (2004). Corporate Political Activity: A Review and Research Agenda. Journal of Management, 30(6), 837–57.CrossRefGoogle Scholar
Hirsch, L. (2021). Charles Schwab to End All Political Donations and Shutter PAC. The New York Times, January 13.Google Scholar
Kalla, J. L., & Broockman, D. E. (2016). Campaign Contributions Facilitate Access to Congressional Officials: A Randomized Field Experiment. American Journal of Political Science, 60(3), 545–58.Google Scholar
Keim, G., & Zardkoohi, A. (1988). Looking for Leverage in PAC Markets: Corporate and Labor Contributions Considered. Public Choice, 58(1), 21–34.CrossRefGoogle Scholar
Kim, I. (2018). LobbyView: Firm-level Lobbying & Congressional Bills Database. Cambridge, MA: Unpublished manuscript, MIT.Google Scholar
Kim, J., & King, B. (2014). Seeing Stars: Matthew Effects and Status Bias in Major League Baseball Umpiring. Management Science, 60(11), 2619–44.Google Scholar
King, B. (2008). A Political Mediation Model of Corporate Response to Social Movement Activism. Administrative Science Quarterly, 53(3), 395–421.Google Scholar
Li, Z. (2018). How Internal Constraints Shape Interest Group Activities: Evidence from Access-Seeking PACs. American Political Science Review, 112(4), 792–808.Google Scholar
Lux, S., Crook, T., & Woehr, D. (2011). Mixing Business with Politics: A Meta-analysis of the Antecedents and Outcomes of Corporate Political Activity. Journal of Management, 37(1), 223–47.CrossRefGoogle Scholar
Lyon, T., & Maxwell, J. (2004). Astroturf: Interest Group Lobbying and Corporate Strategy. Journal of Economics & Management Strategy, 13(4), 561–97.Google Scholar
McDonnell, M-H., & Cobb, J. (2020). Take a Stand or Keep Your Seat: Board Turnover after Social Movement Boycotts. Academy of Management Journal, 63(4), 1028–53.Google Scholar
McDonnell, M-H., & Darnell, S. (2022). Profiting from Protest: A Contingency Model of the Effects of Anti-corporate Activism. Working Paper.Google Scholar
McDonnell, M. H., & King, B. (2013). Keeping Up Appearances: Reputational Threat and Impression Management after Social Movement Boycotts. Administrative Science Quarterly, 58(3), 387–419.Google Scholar
McDonnell, M-H., & King, B. (2018). Order in the Court: The Influence of Firm Status and Reputation on the Outcomes of Employment Discrimination Suits. American Sociological Review, 83(1), 61–87.CrossRefGoogle Scholar
McDonnell, M-H., King, B., & Soule, S. (2015). A Dynamic Process Model of Private Politics: Activist Targeting and Corporate Receptivity to Social Challenges. American Sociological Review, 80(3), 654–78.CrossRefGoogle Scholar
McDonnell, M-H., & Werner, T. (2016). Blacklisted Businesses: Social Activists’ Challenges and the Disruption of Corporate Political Activity. Administrative Science Quarterly, 61(4), 584–620.Google Scholar
Mellahi, K., Frynas, J., Sun, P., & Siegel, D. (2016). A Review of the Nonmarket Strategy Literature: Toward a Multi-theoretical Integration. Journal of Management, 42(1), 143–73.Google Scholar
Microsoft Corporate Blogs. (2021). Transcript: Brad Smith’s Remarks at an Employee Meeting Thursday. Microsoft, January 22.Google Scholar
Public Affairs Council. (2019). 2019 Corporate PAC Benchmarking Report. Public Affairs Council, October 9. pac.org/wp-content/uploads/2019-Corporate-PAC-Benchmarking-Webinar-1.pdfGoogle Scholar
Qian, C., Crilly, D., Wang, K., & Wang, Z. (2020). Why Do Banks Favor Employee-Friendly Firms? A Stakeholder-Screening Perspective. Organization Science, 32(3), 605–24.Google Scholar
Rindova, V., Williamson, I., Petkova, A., & Sever, J. (2005). Being Good or Being Known: An Empirical Examination of the Dimensions, Antecedents, and Consequences of Organizational Reputation. Academy of Management Journal, 48(6), 1033–49.Google Scholar
Scherer, A., & Voegtlin, C. (2023). MNCs as Responsible Political Actors in Global Business: Challenges and Implications for Human Resource Management. In Lyon, T., ed., Corporate Political Responsibility. Cambridge, UK: Cambridge University Press.Google Scholar
Schuler, D., Rehbein, K., & Cramer, R. (2002). Pursuing Strategic Advantage through Political Means: A Multivariate Approach. Academy of Management Journal, 45(4), 659–72.CrossRefGoogle Scholar
Scott, W. R. (1995). Institutions and Organizations: Ideas, Interests, and Identities. Thousand Oaks, CA: Sage Publications.Google Scholar
Shanor, A., McDonnell, M-H., & Werner, T. (2021). Corporate Political Power: The Politics of Reputation & Traceability. Emory Law Journal, 71(2): 153–216.Google Scholar
Turban, D, & Greening, D. (1997). Corporate Social Performance and Organizational Attractiveness to Prospective Employees. Academy of Management Journal, 40(3), 658–72.Google Scholar
Walker, E. (2012). Putting a Face on the Issue: Corporate Stakeholder Mobilization in Professional Grassroots Lobbying Campaigns. Business & Society, 51(4), 561–601.Google Scholar
Werner, T. (2015). Gaining Access by Doing Good: The Effect of Sociopolitical Reputation on Firm Participation in Public Policymaking. Management Science, 61, 1989–2011.Google Scholar
Werner, T. (2017). Investor Reaction to Covert Corporate Political Activity. Strategic Management Journal, 38(12), 2424–43.CrossRefGoogle Scholar
Yue, L. (2015). Community Constraints on the Efficacy of Elite Mobilization: The Issuance of Currency Substitutes during the Panic of 1907. American Journal of Sociology, 120(6), 1690–735.Google Scholar