Business and Management INK

Why Some Corporations Choose To Be Socially Responsible

July 2, 2014 951

clean-home-2-1193877-mDo you know what makes your pans non-stick or your toothpaste and hand soap fight bacteria? According to the European Commission Department for Health and Consumers, products like these can contain chemicals such as pesticides that cause cancer, reproductive and developmental issues, endocrine disruption, and environmental issues. While the EU has developed Registration, Evaluation and Authorization of Chemicals (REACH) to address this issue, the United States Government Accountability Office has made no recommendations for creating a similar program. So why would a company then choose to create their own regulations for their products? Authors Caroline E. Scruggs and Harry J. Van Buren III investigate in their article “Why Leading Consumer Product Companies Develop Proactive Chemical Management Strategies” from Business and Society.

The abstract:

Scholars have studied the various pressures that companies face related to socially responsible behavior when stakeholders know the particular social issues under consideration. Many have examined social responsibility in the context of BAS_v50_72ppiRGB_powerpointenvironmental responsibility and the general approaches companies take regarding environmental management. The issue of currently unregulated, but potentially hazardous, chemicals in consumer products is not well understood by the general public, but a number of proactive consumer product companies have voluntarily adopted strategies to minimize use of such chemicals. These companies are exceeding regulatory requirements by restricting from their products chemicals that could harm human or environmental health, despite the fact that these actions are costly. They do not usually advertise the details of their strategies to end consumers. This article uses interviews with senior environmental directors of 20 multinational consumer product companies to investigate why these companies engage in voluntary chemicals management. The authors conclude that the most significant reasons are to achieve a competitive advantage and stay ahead of regulations, manage relationships and maintain legitimacy with stakeholders, and put managerial values into practice. Many of the characteristics related to the case of chemicals management are extendable to other areas of stakeholder management in which risks to stakeholders are either unknown or poorly understood.

Click here to read “Why Leading Consumer Product Companies Develop Proactive Chemical Management Strategies” from Business and Society. This article is Open Access and free for viewing and sharing! Want to know about all the latest research like this from Business and Society? Click here to sign up for e-alerts!

Business and Management INK puts the spotlight on research published in our more than 100 management and business journals. We feature an inside view of the research that’s being published in top-tier SAGE journals by the authors themselves.

View all posts by Business & Management INK

Related Articles

Sometimes, We Do Need a Narcissist
Business and Management INK
May 21, 2024

Sometimes, We Do Need a Narcissist

Read Now
From Collision to Collaboration: Bridging University and Industry Relationships
Business and Management INK
May 17, 2024

From Collision to Collaboration: Bridging University and Industry Relationships

Read Now
Motivation of Young Project Professionals: Their Needs for Autonomy, Competence, Relatedness, and Purpose
Business and Management INK
May 14, 2024

Motivation of Young Project Professionals: Their Needs for Autonomy, Competence, Relatedness, and Purpose

Read Now
A Complexity Framework for Project Management Strategies
Business and Management INK
May 10, 2024

A Complexity Framework for Project Management Strategies

Read Now
Bringing Theories into Conversation to Strategize for a Better World

Bringing Theories into Conversation to Strategize for a Better World

In this article, Ann Langley, Rikkie Albertsen, Shahzad (Shaz) Ansari, Katrin Heucher, Marc Krautzberger, Pauline Reinecke, Natalie Slawinski, and Eero Vaara reflect on the inspiration behind their research article, “Strategizing Together for a Better World: Institutional, Paradox and Practice Theories in Conversation,” found in the Journal of Management Inquiry.

Read Now
Exploring Discrimination Faced by Asian Nationals in the U.S. Labor Market

Exploring Discrimination Faced by Asian Nationals in the U.S. Labor Market

Amit Kramer, Kwon Hee Han, Yun Kyoung Kim, and Yun Kyoung Kim reflect on the hypotheses and observations that led to their article, “Inefficiencies and bias in first job placement: the case of professional Asian nationals in the United States.”

Read Now
Interorganizational Design for Collaborative Governance in Co-Owned Major Projects: An Engaged Scholarship Approach

Interorganizational Design for Collaborative Governance in Co-Owned Major Projects: An Engaged Scholarship Approach

Large projects co-owned by several organizations with separate, perhaps competing, interests and values are characterized by complexity and are not served well […]

Read Now
0 0 votes
Article Rating
Subscribe
Notify of
guest

This site uses Akismet to reduce spam. Learn how your comment data is processed.

0 Comments
Inline Feedbacks
View all comments
tiffany267

Reblogged this on Tiffany's Non-Blog and commented:
Capitalism is the only means to a more sustainable world. “The issue of currently unregulated, but potentially hazardous, chemicals in consumer products is not well understood by the general public, but a number of proactive consumer product companies have voluntarily adopted strategies to minimize use of such chemicals. These companies are exceeding regulatory requirements by restricting from their products chemicals that could harm human or environmental health, despite the fact that these actions are costly.”