How To Understand Corporate Social Responsibility

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1 A Handbook of Corporate Governance and Social Responsibility Edited by GULER ARAS and DAVID CROWTHER GOWER

2 Contents List of Figures List of Tables About the Editors About the Contributors IX xi xiii xv 1 Overview PART I THEORETICAL OVERVIEW 15 2 A Luhmannian in the Playground: Corporate Social Responsibility from a Systems-Theoretic Perspective fuliane Riese 3 What is 'Good' Corporate Governance? Dominique Bessire, Celine Chatelin and Stephane Onnee 4 Redefining Sustainability The Social Contract of Business in Society Sandra Waddock The Shifting Meaning of Sustainability Mary A Kaidonis, Natalie P Stoianoff and Jane Andrew Corporate Social Responsibility and Accounting Stuart Cooper Responsible Practices in Small and Medium Enterprises Antonio Vives PART II APPLYING CORPORATE GOVERNANCE Trends in Corporate Governance Wallace N. Davidson III, Sameh Sakr and Hongxia Wang 10 Corporate Governance - Responsibilities of the Board Maria Aluchna

Dominique Bessire, Celine Chatelin and Stephane Onnee 4 Redefining Sustainability The Social Contract of Business in Society Sandra Waddock The Shifting Meaning of Sustainability Mary A Kaidonis,

3 vi A Handbook of Corporate Governance and Social Responsibility 11. Shareholder Rights and Stakeholder Rights in Corporate Governance 171 Mirella Damiani 12 The Regulatory and Legal Framework of Corporate Governance 191 Hillary Shaw 13 The Agency Problem and Corporate Governance Auditing, Product Certification and Corporate Social Responsibility 233 Charles Elad 15 Decisive Risk Management for Corporate Governance 249 Kurtay Ogunc i ' 16 Corporate Social Responsibility: A Broader View of Corporate Governance 265 PART III APPLYING CORPORATE SOCIAL RESPONSIBILITY The Social Responsibility of Major Shareholders 287 Marc Goergen and Luc Renneboog 18 External Agencies and Corporate Social Responsibility 307 David Birch 19 How Globalization is Affecting Corporate Social Responsibility: Dynamics of the Interaction Between Corporate Social Responsibility and Globalization 323 Ozer Ertuna and Bengi Ertuna 20 Responsibility and Performance: Social Actions of Firms in a Transitional Society 341 Deniz Erden and Muzaffer Bodur 21 Feasibility of Corporate Social Responsibility Activities Practiced by SME's in Uzbekistan: A Stakeholders' Perspective 365 Bokhodir Ayupov and Iroda Komilova 22 Education for Ethics and Socially Responsible Behaviour 379 Kumba fallow 23 Socially Responsible Investment Funds 395 Luc Renneboog, fenke Ter Horstand Chendi Zhang

Corporate Governance 211 14 Auditing, Product Certification and Corporate Social Responsibility 233 Charles Elad 15 Decisive Risk Management for Corporate Governance 249 Kurtay Ogunc i ' 16 Corporate

4 Contents vii 24 Corporate Reporting Frameworks 413 Antonio Tencati 25 Corporate Reputation and Corporate Social Responsibility 437 Stephen J. Brammer and Stephen Pavelin 26 Corporate Social Responsibility Rating 449 Henry Schdfer PART IV DEALING WITH STAKEHOLDERS Business and Environmental Responsibility 471 Ian Worthington 28 Corporate Social Responsibility in the Creation of Shareholder Value ' ' 489 Stephan Heblich 29 Employer Duties 509 Stella Vettori Whistleblowing: Perennial Issues and Ethical Risks 521 Wim Vandekerckhove Framing the Social Responsibility of Business: The Role of Pressure Groups - Paradigmatic Feuds 539 Alvaro de Regil Castilla Corporate Environmental Responsibility From the Perspective of Systematic and Dialectical Science 559 Wang Hong and Wang Xiaoli Why People Do Good: Promoting Responsible Behaviours: The Myth or Reality of Persuasion in Fundraising Letters 571 Cubie Lau PART V EXPERIENCE IN PRACTICE Royal Ahold: The Role of Corporate Governance 595 Abe de Jong, Douglas V. De)ong, Gerard Mertens and Peter Roosenboom 35 Embedding Corporate Social Responsibility into the Day-to- Day Life of Organisations: A Practical System Thinking Approach 621 Rob Peddle, Ian Rosam and Pavel Castka

Corporate Social Responsibility in the Creation of Shareholder Value ' ' 489 Stephan Heblich 29 Employer Duties 509 Stella Vettori 30 31 32 33 Whistleblowing: Perennial Issues and Ethical Risks 521

5 viii A Handbook of Corporate Governance and Social Responsibility 36 Istiqbol Dilnoza: A Corporate Social Responsibility Study of a Micro/Small Business in Tashkent 633 Rowan E. Wagner 37 Lessons Learned from Washington State's Sustainable Business Program 641 Kimberly Goetz 38 Esh Added Value: A Case Study in Indigenous Corporate Social Responsibility 653 Riham Rizk and Suzanne Gregory 39 A Case Study on the Tobacco Industry, Social Responsibility and Regulation 665 Julia j. A. Shaw Index 683

Wagner 37 Lessons Learned from Washington State's Sustainable Business Program 641 Kimberly Goetz 38 Esh Added Value: A Case

Schneps, Leila; Colmez, Coralie. Math on Trial : How Numbers Get Used and Abused in the Courtroom. New York, NY, USA: Basic Books, 2013. p i.

Schneps, Leila; Colmez, Coralie. Math on Trial : How Numbers Get Used and Abused in the Courtroom. New York, NY, USA: Basic Books, 2013. p i. New York, NY, USA: Basic Books, 2013. p i. http://site.ebrary.com/lib/mcgill/doc?id=10665296&ppg=2 New York, NY, USA: Basic Books, 2013. p ii. http://site.ebrary.com/lib/mcgill/doc?id=10665296&ppg=3 New