Hostname: page-component-586b7cd67f-t7fkt Total loading time: 0 Render date: 2024-11-25T20:07:17.780Z Has data issue: false hasContentIssue false

The effects of external stakeholder pressure and ethical leadership on corporate social responsibility in China

Published online by Cambridge University Press:  01 June 2015

Qing Tian
Affiliation:
School of Business, Macau University of Science and Technology, Macao, People’s Republic of China
Yan Liu*
Affiliation:
Economics and Management School, Wuhan University, Wuhan, Hubei, People’s Republic of China
Jianhong Fan
Affiliation:
Faculty of Law, University of Macau, Macau, People’s Republic of China
*
Corresponding author: [email protected]

Abstract

We examined how external stakeholder pressure and ethical leadership independently and interactively influence the implementation of corporate social responsibility. Based on data collected from 292 employees from 53 companies (Study 1) and from 224 middle-level managers from 40 companies (Study 2) in mainland China, we found that both ethical leadership and external stakeholder pressure have significant and positive impacts on corporate social responsibility implementation and the positive effect of external stakeholder pressure on corporate social responsibility weakens under a higher level of ethical leadership and strengthens under a low level of ethical leadership. The theoretical and practical implications of these findings are discussed.

Type
Research Article
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2015 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Adams, M., & Hardwick, P. (1998). An analysis of corporate donations: United Kingdom evidence. Journal of Management Studies, 35(5), 641654.Google Scholar
Agle, B. R., & Caldwell, C. B. (1999). Understanding research on values in business. Business and Society 38(3), 326387.Google Scholar
Aguilera, R. V., Rupp, D. E., Williams, C. A., & 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), 836863.Google Scholar
Aguinis, H., & Glavas, A. (2012). What we know and don’t know about corporate social responsibility: A review and research agenda. Journal of Management, 38, 932968.Google Scholar
Aiken, L. S., & West, S. G. (1991). Multiple regression: Testing and interpreting interactions. Thousand Oaks, CA: Sage.Google Scholar
Aldrich, H. E., & Auster, E. R. (1986). Even dwarfs started small: Liabilities of age and size and their strategic implications. In B. M. Staw, & L. L. Cummings (Eds.), Research in organizational behavior (Vol. 8, pp. 165198). Greenwich, CT: JAI.Google Scholar
Avey, J. B., Palanski, M. E., & Walumbwa, F. O. (2011). When leadership goes unnoticed: The moderating role of follower self-esteem on the relationship between ethical leadership and follower behavior. Journal of Business Ethics, 98, 573582.Google Scholar
Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16, 7494.Google Scholar
Baron, D. P. (2009). A positive theory of moral management, social pressure, and corporate social performance. Journal of Economics & Management Strategy, 18, 743.Google Scholar
Basu, K., & Palazzo, G. (2008). Corporate social responsibility: A process model of sense making. The Academy of Management Review, 33(1), 122136.Google Scholar
Belal, A. R., & Momin, M. (2009). Corporate social reporting (CSR) in emerging economies: A review and future direction. Research in accounting in emerging economies, 9, 119143.Google Scholar
Bono, J., & Judge, T. (2003). Self-concordance at work: Toward understanding the motivational effects of transformational leadership. Academy of Management Journal, 46, 554571.Google Scholar
Bowen, M. G., & Power, F. C. (1993). The moral manager: Communicative ethics and the Exxon-Valdez disaster. Journal of Business Ethics, 3, 97115.CrossRefGoogle Scholar
Brammer, S., & Millington, A. (2004). The development of corporate charitable contributions in the UK: A stakeholder analysis. Journal of Management Studies, 41(8), 14111434.Google Scholar
Brislin, R. (1970). Back-translation for cross-cultural research. Journal of Cross-Cultural Psychology, 1(3), 186216.Google Scholar
Brockner, J. P., Siegel, J. P., Tyler, D. T., & Martin, C. (1997). When trust matters: The moderating effect of outcome favorability. Administrative Science Quarterly, 42, 558583.Google Scholar
Brown, M. E., & Treviño, L. K. (2006). Ethical leadership: A review and future directions. The Leadership Quarterly, 17, 595616.CrossRefGoogle Scholar
Brown, M. E., Treviño, L. K., & Harrison, D. (2005). Ethical leadership: A social learning perspective for construct development and testing. Organizational Behavior and Human Decision Processes, 97, 117134.Google Scholar
Campbell, J. L. (2007). Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility. Academy of Management Review, 32(3), 946967.Google Scholar
Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34, 3948.Google Scholar
Carroll, A. B. (2000). Ethical challenges for business in the new millennium: Corporate social responsibility and models of management morality. Business Ethics Quarterly, 10, 3342.Google Scholar
Carson, D. J., Cromie, S., McGowan, P., & Hill, J. (1995). Marketing and entrepreneurship in SMEs: An innovative approach. London: Prentice-Hall.Google Scholar
Carter, C. R., & Jennings, M. M. (2002). Social responsibility and supply chain relationships. Transportation Research, 38(1), 3752.Google Scholar
Chambers, E., Chapple, W., Moon, J., & Sullivan, M. (2003). CSR in Asia: A seven country study of CSR website reporting. Nottingham, UK: International Centre for Corporate Social Responsibility.Google Scholar
Chen, M. J., & Hambrick, D. C. (1995). Speed stealth and selective attack: How small firms differ from large firms in competitive behavior. Academy of Management Journal, 38(2), 453482.Google Scholar
Cheng, B. S., Chou, L. F., & Farh, J. L. (2000). A triad model of paternalistic leadership: The constructs and measurement. Indigenous Psychological Research in Chinese Societies, 14, 364. (in Chinese).Google Scholar
Christmann, P., & Taylor, G. (2001). Globalization and the environment: Determinants of firm self-regulation in China. Journal of International Business Studies, 32(3), 438458.Google Scholar
Christmann, P., & Taylor, G. (2006). Firm self-regulation through international certifiable standards: Determinants of symbolic versus substantive implementation. Journal of International Business Studies, 37, 863878.Google Scholar
Churchill, G. A. (1979). A paradigm for developing better measures of marketing constructs. Journal of Marketing Research, 16, 6473.Google Scholar
Commission of the European Communities (CEC) (2006). Green paper. Promoting a European framework for corporate social responsibility. Brussels, Belgium: CEC.Google Scholar
Commission of the European Communities (CEC) (2011). A renewed EU strategy 2011-14 for corporate social responsibility. Brussels, Belgium: CEC.Google Scholar
Cuesta González, M. d. l., & Valor Martinez, C. (2004). Fostering corporate social responsibility through public initiative: From the EU to the Spanish case. Journal of Business Ethics, 55, 275293.Google Scholar
Darnall, N., Henriques, I., & Sadorsky, P. (2010). Adopting proactive environmental practices: The influence of stakeholders and firm size. Journal of Management Studies, 47, 10721093.Google Scholar
Dartley-Baah, K., & Amponsah-Tawiah, K. (2011). Exploring the limits of western corporate social responsibility theories in Africa. International Journal of Business and Social Science, 2(18), 126137.Google Scholar
Davis, K. (1973). The case for and against business assumption of social responsibilities. Academy of Management Journal, 16, 312323.Google Scholar
Dean, J. W., Brandes, P., & Dharwadkar, R. (1998). Organizational cynicism. Academy of Management Review, 23, 341352.Google Scholar
De George, R. T. (2008). An American perspective on corporate social responsibility and the tenuous relevance of Jacques Derrida. Business Ethics: A European Review, 17(1), 7486.Google Scholar
De Hoogh, A. H. B., & Den Hartog, D. N. (2008). Ethical and despotic leadership, relationships with leader’s social responsibility, top management team effectiveness and subordinates’ optimism: A multi-method study. The Leadership Quarterly, 19, 297311.Google Scholar
Delmas, M. (2002). The diffusion of environmental management standards in Europe and in the United States: An institutional perspective. Policy Sciences, 35(1), 1119.Google Scholar
Den Hartog, D. N., & De Hoogh, A. H. B. (2009). Empowering behaviour and leader fairness and integrity: Studying perceptions of ethical leader behaviour from a levels-of-analysis perspective. European Journal of Work and Organizational Psychology, 18(2), 199230.Google Scholar
Desai, A. B., & Rittenburg, T. (1997). Global ethics: An integrative framework for MNEs. Journal of Business Ethics, 16(8), 791800.Google Scholar
Detert, J. R., Treviño, L. K., Burris, E. R., & Andiappan, M. (2007). Managerial modes of influence and counterproductivity in organizations: A longitudinal business-unit-level investigation. Journal of Applied Psychology, 92(4), 9931005.Google Scholar
DiMaggio, P. J., & Powell, W. (1983). The iron cage revisited institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48, 147160.Google Scholar
Doh, J. P., & Guay, T. R. (2006). Corporate social responsibility, public policy, and NGO activism in Europe and the United States: An institutional-stakeholder perspective. Journal of Management Studies, 43(1), 4773.CrossRefGoogle Scholar
Dowling, J., & Pfeffer, J. (1975). Organizational legitimacy: Social values and organizational behavior. Pacific Sociological Review, 18(1), 122136.Google Scholar
Drumwright, M. E. (1994). Socially responsible organizational buying: Environmental concern as a noneconomic buying criterion. Journal of Marketing, 58, 119.Google Scholar
Eisenbeiss, S. A. (2012). Re-thinking ethical leadership: An interdisciplinary integrative approach. The Leadership Quarterly, 23, 791808.Google Scholar
Enquist, B., Johnson, M., & Skålén, P. (2006). Adoption of corporate social responsibility-incorporating a stakeholder perspective. Qualitative Research in Accounting & Management, 3, 188207.Google Scholar
Fanelli, A., & Misangyi, V. (2006). Bringing out charisma: CEO charisma and external stakeholders. The Academy of Management Review, 31(4), 10491061.Google Scholar
Farh, J. L., & Cheng, B. S. (2000). A cultural analysis of paternalistic leadership in Chinese organizations. In J. T. Li., A. S. Tuis, & E. Weldon (Eds.), Management and organizations in the Chinese context, 84127, London: Macmillan.Google Scholar
Ferdig, M. A. (2007). Sustainability leadership: Co-creating a sustainable future. Journal of Change Management, 7, 2535.CrossRefGoogle Scholar
Fligstein, N. (1990). The transformation of corporate control. Cambridge, MA: Harvard University Press.Google Scholar
Fligstein, N. (2001). The architecture of markets. Princeton, NJ: Princeton University Press.Google Scholar
Florida, R., & Davison, D. (2001). Gaining from green management: Environmental management systems inside and outside the factory. California Management Review, 43, 6484.Google Scholar
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 3950.Google Scholar
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston, MA: Pittman Publishing Company.Google Scholar
Frooman, J. (1999). Stakeholder influence strategies. Academy of Management Review, 24(2), 191205.Google Scholar
González-Benito, J., & González-Benito, O. (2006). The role of stakeholder pressure and managerial values in the implementation of environmental logistics practices. International Journal of Production Research, 44(7), 13531373.Google Scholar
Grossman, G. M., & Helpman, E. (2001). Special interest politics. MIT Press.Google Scholar
Groves, K. (2014). Examining leader-follower congruence of social responsibility values in transformational leadership. Journal of Leadership & Organizational Studies, 21(3), 227243.Google Scholar
Gugler, P., & Shi, J. Y. J. (2009). Corporate social responsibility for developed country multinational corporations: Lost war in pertaining global competitiveness? Journal of Business Ethics, 87(Supplement), 324.Google Scholar
Harms, R., Wagner, M., & Glauner, W. (2010). Relating personal, firm-based and environmental factors to the monetary and temporal engagement in corporate social responsibility in German Gazelles. Journal of Small Business and Entrepreneurship, 23, 195210.Google Scholar
Hart, S. L., & Sharma, S. (2004). Engaging fringe stakeholders for competitive imagination. Academy of Management Executive, 18(1), 718.Google Scholar
Helmig, B., Spraul, K., & Ingenhoff, D. (2013). Under positive pressure: How stakeholder pressure affects corporate social responsibility implementation. Business & Society, 0007650313477841.Google Scholar
Henriques, I., & Sadorsky, P. (1996). The tetermines of an environmentally responsive firm: An empirical approach. Journal of Environment Economics and Management, 30(3), 381395.Google Scholar
Hoffman, A. J. (2001). Linking organizational and field level analyses: The diffusion of corporate environmental practice. Organization & Environment, 14(2), 133156.Google Scholar
Ip, P. K. (2009). The challenge of developing a business ethics in China. Journal of Business Ethics, 88, 211224.Google Scholar
James, L. R. (1982). Aggregation bias in estimates of perceptual agreement. Journal of Applied Psychology, 67, 219229.Google Scholar
Johnson, R. A., & Greening, D. W. (1999). The effects of corporate governance and institutional ownership types on corporate social performance. Academy of Management Journal, 42, 564577.Google Scholar
Jones, T. M. (1995). Instrumental stakeholder theory: A synthesis of ethics and economics. Academy of Management Review, 20(2), 404437.Google Scholar
Kalshoven, K., Den Hartog, D. N., & De Hoogh, A. H. B. (2011). Ethical leadership at work questionnaire (ELW): Development and validation of a multidimensional measure. The Leadership Quarterly, 22(1), 5169.Google Scholar
Kanungo, R. N. (2001). Ethical values of transactional and transformational leaders. Canadian Journal of Administrative Sciences, 18, 257265.Google Scholar
Kanungo, R. N., & Mendonça, M. (1996). Ethical dimensions of leadership. London: Sage.Google Scholar
Kapstein, E. B. (2001). The corporate ethics crusade. Foreign Affairs, 80(5), 105119.Google Scholar
Kark, R., Shamir, B., & Chen, G. (2003). The two faces of transformational leadership: Empowerment and dependency. Journal of Applied Psychology, 2, 246255.Google Scholar
Kassinis, G., & Vafeas, N. (2006). Stakeholder pressures and environmental performance. Academy of Management Journal, 49, 145159.Google Scholar
Katamba, D., Kazooba, C. T., Mpisi, S. B., Nkiko, C. M., Nabatanzi-Muyimba, A. K., & Kekaramu, J. H. (2012). Corporate social responsibility management in Uganda: Lessons, challenges, and policy implications. International Journal of Social Economics, 39(6), 375390.Google Scholar
King, A. A., & Lenox, M. J. (2000). Industry self-regulation without sanctions: The chemical industry’s responsible care program. Academy of Management Journal, 43(4), 698716.CrossRefGoogle Scholar
King, B. G. (2008). A political mediation model of corporate response to social movement activism. Administrative Science Quarterly, 53, 395421.Google Scholar
Kolk, A., Hong, P., & Van Dolen, W. (2008). Corporate social responsibility in China: An analysis of domestic and foreign retailers’ sustainability dimensions. Business Strategy and the Environment, 19(5), 289303.CrossRefGoogle Scholar
Kotabe, M., Martin, X., & Domoto, H. (2003). Gaining from vertical partnerships: Knowledge transfer, relationship duration, and supplier performance improvement in the U.S. and Japanese automotive industries. Strategic Management Journal, 24, 293316.Google Scholar
Kraisornsuthasinee, S., & Swierczek, F. (2006). Interpretations of CSR in Thai companies. Journal of Corporate Citizenship, 22, 5365.Google Scholar
Lam, K. C. (2002). A study of the ethical performance of foreign-investment enterprises in the China labor market. Journal of Business Ethics, 37, 349365.Google Scholar
Lamberton, B., Mihalek, P. H., & Smith, C. S. (2005). The tone at the top and ethical conduct connection. Strategic Finance, 86(9), 3640.Google Scholar
Lepoutre, J., & Heene, A. (2006). Investigating the impact of firm size on small business social responsibility: A critical review. Journal of Business Ethics, 67, 257273.CrossRefGoogle Scholar
Li, S. M., Fetscherin, M., Alon, I., Lattemann, C., & Yeh, K. (2010). Corporate social responsibility in emerging markets – The importance of the governance environment. MIR: Management International Review. Journal of International Business, 50(5), 635654.Google Scholar
Logsdon, J. M., Thomas, D. E., & van Buren, H. J. III (2006). Corporate social responsibility in large Mexican firms. Journal of Corporate Citizenship, 21, 5160.Google Scholar
Mahoney, L. S., & Thorne, L. (2005). Corporate social responsibility and long-term compensation: Evidence from Canada. Journal of Business Ethics, 57, 241253.Google Scholar
Maignan, I., Ferrell, O. C., & Ferrell, L. (2005). A stakeholder model for implementing social responsibility in marketing. European Journal of Marketing, 39(9/10), 956977.Google Scholar
Marquis, C., & Qian, C. (2014). Corporate social responsibility reporting in China: Symbol or substance? Organization Science, 25, 127148.Google Scholar
Marquis, C., Zhang, J., & Zhou, Y. (2011). Regulatory uncertainty and corporate responses to environmental protection in China. California Management Review, 54, 3963.Google Scholar
Matten, D., & Moon, J. (2008). ‘Implicit’ and ‘Explicit’ CSR: A conceptual framework for a comparative understanding of corporate social responsibility. Academy of Management Review, 33, 404424.Google Scholar
Mayer, D. M., Kuenzi, M., Greenbaum, R., Bardes, M., & Salvador, R. (2009). How does ethical leadership flow? Test of a trickle-down model. Organizational Behavior and Human Decision Processes, 108, 113.Google Scholar
McWilliams, A., & Siegel, D. (2001). Corporate social responsibility: A theory of the firm perspective. Academy of Management Review, 26(1), 117127.Google Scholar
McWilliams, A., Siegel, D., & Wright, P. (2006). Corporate social responsibility: Strategic implications. Journal of Management Studies, 43, 118.Google Scholar
Meyer, J. W., & Rowan, B. (1977). Institutionalized organizations: Formal structure as myth and ceremony. American Journal of Sociology, 83, 340363.Google Scholar
Miller, R. L., & Lewis, W. F. (1991). A stakeholder approach to marketing management using the value exchange models. European Journal of Marketing, 25(8), 5568.Google Scholar
Minkes, A. L., Small, M. W., & Chatterjee, S. R. (1999). Leadership and business ethics: Does it matter? Implications for management. Journal of Business Ethics, 20(4), 327335.CrossRefGoogle Scholar
Mohr, L. A., & Webb, D. J. (2005). The effects of corporate social responsibility and price on consumer responses. Journal of Consumer Affairs, 39(1), 121147.Google Scholar
Moon, J., & Shen, X. (2010). CSR in China research: Salience, focus and nature. Journal of Business Ethics, 94, 613629.Google Scholar
Muller, A., & Kolk, A. (2010). Extrinsic and intrinsic drivers of corporate social performance: Evidence from foreign and domestic firms in Mexico. Journal of Management Studies, 47(1), 126.Google Scholar
Murillo-Luna, J. L., Garcés-Ayerbe, C., & Rivera-Torres, P. (2008). Why do patterns of environmental response differ? A stakeholders’ pressure approach. Strategic Management Journal, 29, 12251240.Google Scholar
Nooteboom, B. (1994). Innovation and diffusion in small firms: Theory and evidence. Small Business Economics, 6, 327347.Google Scholar
Prout, J. (2006). Corporate responsibility in the global economy: A business case. Society and Business Review, 1(2), 184191.Google Scholar
Quinn, D., & Jones, T. (1995). An agent morality view of business policy. Academy of Management Review, 20, 2242.Google Scholar
Rettab, B., Brik, A. B., & Mellahi, K. (2009). A study of management perceptions of the impact of corporate social responsibility on organizational performance in emerging economies: The case of Dubai. Journal of Business Ethics, 89, 371390.Google Scholar
Robin, D. P., & Reidenbach, R. E. (1987). Social responsibility, ethics and marketing strategy: Closing the gap between concept and application. Journal of Marketing, 51, 4458.Google Scholar
Roe, M. J. (1994). Strong managers, weak owners: The political roots of American corporate finance. Princeton, NJ: Princeton University Press.Google Scholar
Sarkis, J., Gonzalez-Torre, P., & Adenso-Diaz, B. (2010). Stakeholder pressure and the adoption of environmental practices: The mediating effect of training. Journal of Operations Management, 28(2), 163176.Google Scholar
Schwartz, M., & Carroll, A. B. (2003). Corporate social responsibility: A three-domain approach. Business Ethics Quarterly, 13, 503530.Google Scholar
Scott, W. R. (1995). Institutions and organizations. Thousand Oaks, CA: Sage.Google Scholar
See, G. (2009). Harmonious society and Chinese CSR: Is there really a link?. Journal of Business Ethics, 89, 122.Google Scholar
Sharma, S., & Henriques, I. (2005). Stakeholder influences on sustainability practices in the Canadian forest products industry. Strategic Management Journal, 26, 159180.Google Scholar
Sims, R. R., & Brinkman, J. (2002). Leaders as moral role models: The case of John gut freund at Salomon Brothers. Journal of Business Ethics, 35(4), 327339.Google Scholar
Spence, L. J., & Rutherfoord, R. (2003). Small business and empirical perspectives in business ethics: Editorial. Journal of Business Ethics, 47(1), 15.Google Scholar
Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20, 571610.Google Scholar
Teoh, H. Y., & Thong, G. (1984). Another look at corporate social responsibility and reporting: An empirical study in a developing country. Accounting & Organizations and Society, 9(2), 189206.Google Scholar
Thompson, J. K., & Smith, H. L. (1991). Social responsibility and small business: Suggestions for research. Journal of Small Business Management, 29, 3044.Google Scholar
Toor, S., & Ofori, G. (2009). Ethical leadership: Examining the relationships with the full range leadership model, employee outcomes, and organizational culture. Journal of Business Ethics, 90(4), 533547.Google Scholar
Treviño, L. K., Brown, M., & Hartman, L. P. (2003). A qualitative investigation of perceived executive ethical leadership: Perceptions from inside and outside the executive suite. Human Relations, 55, 537.Google Scholar
Treviño, L. K., Hartman, L. P., & Brown, M. (2000). Moral person and moral manager: How executives develop a reputation for ethical leadership. California Management Review, 42, 128142.Google Scholar
Tu, Y. D., & Lu, X. X. (2013). How ethical leadership influence employees’ innovative work behavior: A perspective of intrinsic motivation. Journal of Business Ethics, 116(2), 441455.Google Scholar
Turker, D. (2009). Measuring corporate social responsibility: A scale development study. Journal of Business Ethics, 85(4), 411427.Google Scholar
Waldman, D. A., Siegel, D. S., & Javidan, M. (2006). Components of CEO transformational leadership and corporate social responsibility. Journal of Management Studies, 43(8), 17031725.Google Scholar
Walumbwa, F. O., Hartnell, C. A., & Oke, A. (2010). Servant leadership, procedural justice climate, service climate, employee attitudes, and organizational citizenship behavior: A cross-level investigation. Journal of Applied Psychology, 95, 517529.Google Scholar
Wood, D. J. (1991). Corporate social performance revisited. Academy of Management Review, 16(4), 691718.Google Scholar
Zhu, Q., & Sarkis, J. (2007). The moderating effects of institutional pressures on emergent green supply chain practices and performance. International Journal of Production Research, 45(18–19), 43334355.Google Scholar