Culture and Leadership Predictor of Corporate Social Responsibility Values of Top Management: a Global Study of 15 Countries

Topics: Culture, Sociology, Management Pages: 4 (1337 words) Published: October 16, 2012
1. What is the main argument being made by the paper you have reviewed?

This paper examines cultural and leadership variables associated with CSR values that managers apply to their decision-making. It has been argued that some cultural dimensions may foster, while others may diminish CSR values in managers. In addition to that, studies have also found that leadership can influence the emergence of values and thus, it will also be used as a predictor of managerial CSR values. The key points such as cultural dimension of institutional collectivism, power distance and the leadership of top management team members are used to predict the social responsibility values in various firms. There are two dimensions of collectivism which are institutional and in-group collectivism. Power distance values will also reflect on the values of CSR when it comes to decision-making. For example, high power distance values in a culture will be negatively related to the shareholder, stakeholder relations and the state welfare CSR values. Leadership will also affect CSR values as a good and effective leader will provide a sense of mission and purpose and they will also serve the interests of followers rather than their own interest. These dimensions of CSR is believed to provide favorable image or relationship of an organization with their constituent groups. Although most academic attention on CSR focuses on its linkage to performance, it is possible for firms to engage in CSR on largely moral or ethical grounds, without clear strategic rationale. The globalization of firms is encouraging the spread of CSR practices. When framed in terms of managerial decision-making values, CSR appears to be a multidimensional construct, focusing on shareholder/owners, stakeholders and the community/state welfare.

2. How does this argument fit with the other literature reviewed in the paper?

The literature reviewed in the paper fits the argument above whereby cultural values and their...
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