Thoughts without content are empty; institutions without concepts are blind (Kant, 1787).
In the first volume of the series, Critical Studies on Corporate Responsibility, Governance and Sustainability, the editors (Sun et al., 2010) report an alarming systemic failure of corporate social responsibility (CSR) practices and suggested that, in fact, CSR programs actually contributed to the 2008 financial crisis. Thus was born the current title under review, compiled and edited by Tench, Sun and Jones. This editorial collection of cases and theory describes corporate social irresponsibility (CSI) as the opposite of CSR on a continuum from sustainable and ethical behavior to severely unsustainable and/or unethical to illegal behavior. The authors clearly describe this continuum in terms of behavior in the “gray area”: i.e. behavior that is contextually dependent on society's collective interpretation and monitoring.
The literature review calls CSR a failure in theory and practice primarily from the perspective of stakeholder theory, business ethics theory and the shareholder business theory model. As the definition of CSR typically suggests, CSR is “a program of actions intended to reduce externalized costs and avoid distributional conflict.” CSR in practice is operationalized through management decisions and is implemented with considerable opportunity to select programs that primarily support the firm's business strategy and may actually mask their socially irresponsible behavior (p. 6). Several recent global scandals are used as examples, such as the phone hacking incident at News International and Barclays inter-bank rate fixing in 2011. For years, Barclays portrayed an image of the “good corporate citizen,” spending millions on advertising and sponsorships.
If the concept of CSI is a questionable concept and different than illegal behavior, consider the definition by McWilliams et al. (2006). They suggest that an important concept of CSI is the exploitation of negative externalities – the impact on the bystander. Examples of the cost to the bystander or society are noted through history by energy companies and auto manufacturers’ resistant to environment and fuel conservation. This volume is dedicated to defining, explaining and demonstrating CSI practices.
Tench et al. try to explain why journalists pay great attention to CSI through breaking news stories, yet academicians have shown less interest in researching the causes, effects and linkages among theories and factual accounts of CSI practices. Nunn's article on the, “Contradictions and constraints of corporate responsibility” suggests that CSI “appeals more to the critics of capitalism” (p. 67). Nunn also argues, “inter-capitalist competition is also a key structural feature of capitalist relations” (p. 70). Many firms use CSR in their brand image/marketing strategy. This theme fosters the perspective that CSI is the result of self-interest and profit maximization. Trent illustrates in the early chapters a foundation for using the CSI concept as a tool for analysis of changing business practices - both good and bad. Hindery and Weeden (2008) in a rare business article report, “When companies forsake their broadly defined social responsibilities or use spin to construct a deliberately overinflated image of their corporate citizenship, the end result is a private sector and a civil society out of balance.”
A subsequent contribution by Stokes brings forth the notion of “micro-moments” in CSR. Micro-moments rather than macro-moments focus on individual behavior rather than organizational strategic plans. At the micro level, employees receive preferential treatment, take credit for work not done, ignore e-mails and, essentially, make “bad choices.” Put together, negative micro-moments create a culture of CSI. The valuable lesson here is the important role management has in driving the culture of CSR not CRI.
Volume 4 reveals the practice of CSI systemically through three case studies in global incidents such as the BP oil spill in the Gulf, a mining case in Canada and an oil company's folly in Nigeria. All cases lead to a similar conclusion: lacking a strategic CRS strategy and crisis management plan can have devastating effects on all stakeholders. CRS policies can lead to resolving social and environmental problems when communicated and implemented in an open, honest ethical manner.
Chatterji and Listokin suggest that progressives end their fixation with CSR and focus on reform. Is this book a valuable read? Academics who teach the CRS concept will find it valuable. It is an anthology about what not to do and gives thought provoking case studies that are valuable lessons in critical thinking and decision making.
