Session 103

CSR and Environmental Issues in Emerging Markets

Track A

Date: Friday, March 11, 2011


Time: 11:30 – 12:45


Room: Room 1-013

Session Chair:

  • Erica Salvaj, University of Desarrollo

Title: Using Voluntary Management Standards as Signals in Corrupt Environments: Effects of Genearl and Policy-Specific Corruption


  • Ivan Montiel, City University of New York
  • Bryan Husted, Technological Institute of Monterrey
  • Petra Christmann, Rutgers University

Abstract: We distinguish two types of corruption to reconcile opposing theoretical effects of corruption on firms’ decisions to obtain certification to voluntary environmental standards. On the one hand, corruption erodes trust in government efforts to regulate firms’ environmental conduct, which increases the signaling value of voluntary certifications. On the other hand, corruption can erode trust in non-governmental certification systems, which reduces the value of voluntary certifications as signals of firms’ environmental responsibility. Results, based on 433 automotive plants in Mexico, show that corruption specific to environmental policies increases the likelihood that firms obtain ISO 14001Environmental Management System certification, while general corruption decreases certification likelihood.

Title: Voluntary Environmental Reporting and the Reduction of Moral Hazard – Impacts on Firm Performance in Brazil


  • Bruno de Goes, Temple University
  • Debora Masullo de Goes, PG & Sons Consulting

Abstract: In this paper we explore the role of voluntary environmental reporting initiatives as a way to reduce information asymmetry between firms and investors. Furthermore, we study how Brazilian firms have developed in terms of these environmental postures and the impact this has had in their overall performance. We then lay out a few research propositions.

Title: What Drives Corporate Social Performance? International Evidence from Social, Environmental and Governance Scores


  • Ioannis Ioannou, London Business School
  • George Serafeim, Harvard University

Abstract: We investigate the institutional drivers of Corporate Social Performance (CSP) by focusing on its three fundamental components: social, environmental and governance performance. Using a large cross-section of firms from 42 countries over 7 years, we are able to explain 41, 46 and 63% of the variation in social performance, environmental performance, and corporate governance respectively, with observable firm, industry and institutional factors. More specifically, we hypothesize that country institutions have a profound influence on CSP. We find that political institutions, followed by legal and labor market institutions are the most important country determinants of social and environmental performance. In contrast, legal institutions, followed by political institutions are the most important country determinants of governance. Capital market institutions appear to be less important drivers of CSP.

All Sessions in Track A...

Fri: 11:30 – 12:45
Session 103: CSR and Environmental Issues in Emerging Markets
Session 111: Performance Issues
Session 114: Internationalization Strategies
Session 117: Learning in Emerging Markets
Session 120: The Characteristics and Effects of the BRIC Economies as Hubs for Regional Economic Development
Fri: 14:15 – 15:30
Session 102: Resources in Emerging Markets
Session 106: Multilatina FDI Strategies
Session 110: Global Competition
Session 112: CSR and Environmental Issues
Session 124: Research Methods for the Study of Competitive Advantage
Fri: 15:30 – 16:45
Session 101: Institutions in Emerging Markets
Session 104: Alliances and Networks
Session 105: Knowledge and Innovation
Session 108: Knowledge and Resources
Session 115: Developing Country Firms
Sat: 10:45 – 12:00
Session 107: Multilatina Performance
Session 113: CEOs and Other Human Resources
Session 123: Banks and their Influence
Session 125: Reviewing Latin America’s Strategic Role in Global Development
Session 126: Publishing and Not Perishing: Strategies for Publishing in Top Journals
Sat: 15:45 – 17:00
Session 100: Entrepreneurship in Emerging Markets
Session 109: Social Issues and Local Development
Session 116: Emerging Market Institutional Reform
Session 118: Management Innovation in Emerging Markets
Session 127: Teaching in Latin America

Strategic Management Society

Rio De Janeiro