Sustaining the Financial Value of Global CSR: Reconciling Corporate and Stakeholder Interests in a Less Regulated Environment

In this article we examine the association between corporate social responsibility (CSR) and firm value. This line of research is important since firms continue to invest in CSR even though past studies reveal a limited linkage between financial value and CSR. However, the business case for CSR or “doing good while making a profit,” appears to be advancing within the business ethics literature as a preferred conception of CSR. We conjecture that the greater unification and refinement of both profit maximization and stakeholder interests through corporate acts, not statements alone, will sustain the financial value of CSR in a less regulated global business environment. We study the triangle of what companies say, what companies do, and firm financial performance. We analyze Fortune 250 firms and find a positive association between what companies do based on KLD Research and Analytics, Inc. (KLD) ratings, and what companies state about ethics in their CSR statements. We then employ regression analysis and find that companies’ socially responsible acts are positively associated with overall firm value and financial performance. Yet we do not find a statistically significant association between what companies say regarding ethics in their CSR statements and their financial outcomes. These results suggest that firm value and financial performance is associated with what companies do and not what they say. Our results seem to be driven by multinational corporations (MNCs) and not by non‐MNCs. This is possibly because MNCs generally operate in a less regulated global business environment that often necessitates strong ethical corporate leadership to further stakeholder interests. Overall, these results help reconcile corporate and stakeholder objectives since evidence of a link between financial performance and doing good sustains global CSR.     

Using an alternative evaluation measure for assessing juvenile diversion programs

This paper describes the effectiveness of six juvenile diversion programs in the metropolitan area of Denver, Colorado. Program success was measured by recidivism reduction. However, by using a one-for-one statistical client-baseline matching method and a variable definition of recidivism, we managed to overcome drawbacks that often occur when using recidivism as an outcome indicator. Together, program participants showed a 26% reduction in recidivism rate over that of a matched baseline sample. Although four of the six programs studied accounted for the overall success rate, we explain why two of the programs showed no significant reductions in recidivism rates.     

ESTIMATING CAPITAL EFFICIENCY SCHEDULES WITHIN PRODUCTION FUNCTIONS

I estimate capital efficiency schedules within a production function, allowing the data to reveal how the efficiency of capital goods evolves as they age. A parameterized investment stream is used as a capital variable in a production function, and the parameters of the production function are estimated simultaneously with the parameters of the investment stream. Plant-level panel data for steel plants employing a common technology are used to estimate the model. I find that the estimated efficiency schedules appear to follow a geometric pattern, which is consistent with the estimates of economic depreciation of Hulten and Wykoff [1981].     

Talk Is Cheap: The Value of Language in the World Economy-Illustrations from the United States and Quebec

Global economic restructuring modifies the traditional material value of language skills and stands to increasingly fragment labor along class and ethnic lines. Language deskilling, brought about by the international mobility of capital and technological change, has diminished the value of traditionally skilled labor. Yet labor, though weakened economically and politically, is not powerless. Two contrasting instances, examined through a common political-economic perspective, are considered: the U.S. meatpacking industry as exemplified in a Lexington, Nebraska, plant and the labor movement in the national economy of Quebec. These two cases illustrate the unity and diversity found in the contingent and uncertain process of global economic change. The Lexington example illustrates the process by which the language abilities of both immigrant and indigenous labor have been successfully deskilled. The Quebec instance illustrates the capacity of labor to utilize a common language and culture as a mobilization resource to diminish the devaluation of language and secure material gains. Possible future directions of change are considered in each instance.     

Popular and Rejected Children's Reasoning Regarding Negative Emotions in Social Situations: The Role of Gender

Two studies compared popular and rejected children's reasoning regarding social interactions involving negative emotions. The first study, with 23 rejected and 23 popular 10‐ to 11‐year‐olds, involved hypothetical social scenarios where a classmate ‘victim’ was likely to experience a negative emotion. Although popular and rejected children both recognized negative emotions and were equally likely to suggest helping behaviour to aid the victim, there were gender effects on the type of helping behaviour suggested. Specifically, popular girls were significantly more likely to offer comforting behaviour than advice whereas popular boys offered advice more than comfort; no such preferences were exhibited by the rejected children. Furthermore, popular girls were significantly more likely than other children to refer to emotional states when justifying their helping response. In the second study, 30 popular and 30 rejected eight‐ to 10‐year‐olds identified the motives behind story characters' efforts to mask negative emotions. Popular girls were more likely to identify the target motives than rejected girls, but no such difference was apparent for the boys. The results are discussed in the light of evidence regarding gender differences in peer interaction patterns.     

Risk Assessment for Invasive Species

Although estimates vary, there is a broad agreement that invasive species impose major costs on the U.S. economy, as well as posing risks to nonmarket environmental goods and services and to public health. The domestic effort to manage risks associated with invasive species is coordinated by the National Invasive Species Council (NISC), which is charged with developing a science-based process to evaluate risks associated with the introduction and spread of invasive species. Various international agreements have also elevated invasive species issues onto the international policy agenda. The World Trade Organization (WTO) Sanitary and Phytosanitary (SPS) Agreement establishes rights and obligations to adhere to the discipline of scientific risk assessment to ensure that SPS measures are applied only to the extent required to protect human, animal, and plant health, and do not constitute arbitrary or unjustifiable technical barriers to trade. Currently, however, the field of risk assessment for invasive species is in its infancy. Therefore, there is a pressing need to formulate scientifically sound methods and approaches in this emerging field, while acknowledging that the demand for situation-specific empirical evidence is likely to persistently outstrip supply. To begin addressing this need, the Society for Risk Analysis Ecological Risk Assessment Specialty Group and the Ecological Society of America Theoretical Ecology Section convened a joint workshop to provide independent scientific input into the formulation of methods and processes for risk assessment of invasive species to ensure that the analytic processes used domestically and internationally will be firmly rooted in sound scientific principles.     

Public Opposition to a Proposed Nuclear Waste Repository in Canada: An Investigation of Cultural and Economic Effects

Residents of four northern communities were surveyed about Atomic Energy of Canada Limited's proposal to site an underground repository for high-level nuclear waste somewhere in the Canadian Shield. Opposition to the repository was relatively strong in all communities, but was strongest among aboriginal respondents. Path analysis revealed that trust in nuclear regulators, faith in science and technology, and anticipated net costs were important mediators of this effect. Aboriginals were less trusting, exhibited less faith in science and technology, and perceived the costs associated with the repository to be higher than their nonaboriginal counterparts. No support was found for the hypothesis that, after controlling for aboriginal status, financially insecure individuals would display greater support for the nuclear waste repository than financially secure individuals. Policy implications for balancing perceived risks and siting needs are discussed.