Do multi-stakeholder initiatives make for better CSR?

• DOI: https://doi.org/10.1108/CG-08-2018-0267
• Pages: 704-716
• Date: 25 June 2019
• Published date: 25 June 2019
• Author: Kanji Tanimoto
• Subject Matter: Strategy

Do multi-stakeholder initiatives

make for better CSR?

Kanji Tanimoto

Abstract

Purpose –This paper aimsto examine the significance and challenges of corporatesocial responsibility

(CSR) initiativesorganized by multi-stakeholders and to clarify the functionof CSR initiatives: What is the

significance of multi-stakeholder initiatives (MSIs)? What conditions are required for CSR initiatives to

work satisfactorily?How do CSR standards function effectivelyin companies?

Design/methodology/approach –The significance and challengesof multi-stakeholder CSR initiatives

are clarifiedtheoretically, based on previous literaturefrom relevant research fields.

Findings –MSIs are beyondthe ‘‘dichotomy’’ of two traditional approachesto CSR, namely, voluntary vs

mandatory. However MSIs do not automatically ensure good performance. We shoulddiscuss not only

the legitimacy of MSIsbut external monitoring and evaluation systemsfor responsible companies in the

market,as well as organizational efforts to incorporateCSR standards into managerial processes.

Social implications –This paper shows that an MSI is an important platform for establishing and

promotinga CSR standard, and further that market maturityand stakeholder engagement arerequired to

make CSR work.

Originality/value –The study explains that ceremonial compliance with CSR standards may be

inevitable evenwhere the legitimacy of an MSI is secured, and that weshould recognize that monitoring

and sanction systems in the market and an organizational approach to the incorporation of CSR in

managementpractices are required.

Keywords Legitimacy, Global Governance, Stakeholder engagement, CSR initiative,

Market maturity, Multi-stakeholder

Paper type Conceptual paper

1. Introduction

Corporate social responsibility (CSR) has been globally discussed and popularized over

the past couple of decades. CSR is basically defined as a responsible business to

incorporate social and environmental concerns into the management process, with fulfilling

accountability to stakeholders.In actual practice, many companies tend to apply CSR to the

business by their own understanding and styles with imitating leading companies’ cases

(Tanimoto, 2016;Davidson et al., 2018). Hence, common ground rules –CSR standards

and codes of conducts –have been required anddeveloped along with CSR movements to

overcome the problems of selective or arbitrary adaptation of CSR. The regulatory

approach is a traditional method. However, legal rules have intrinsically both validity and

limitations. They are subject to set a minimal requirement, and a single government’s rules

cannot cover the transnationalissues of the wider field of CSR.

Recently a collaborative approach with relevant stakeholders has been developed and

drew international attention to tackle them. CSR initiatives organized by multi-stakeholder

partnerships have been expanding. Governments, international institutions, non-

governmental organizations (NGOs) and also business entities have worked collaboratively

to establish new platforms to define and set international CSR standards and norms, such

as SAI (Social Accountability International), GRI (Global Reporting Initiative), FSC (Forest

Kanji Tanimoto is Professor

of School of Commerce at

Waseda University, Tokyo,

Japan.

Received 6 August 2018

Revised 4 February 2019

11 February 2019

Accepted 19 February 2019

PAGE 704 jCORPORATE GOVERNANCE jVOL. 19 NO. 4 2019, pp. 704-716, ©Emerald Publishing Limited, ISSN 1472-0701 DOI 10.1108/CG-08-2018-0267