Cross-sector Alliances for Corporate Social Responsibility Partner Heterogeneity Moderates Environmental Strategy Outcomes

Present day companies put quite some emphasis on economic, social and environmental sustainability which is ultimately termed as the Corporate Social Responsibility of a company. It is relatively easier to make Corporate Social Responsibility decision for an independent company. But it gets tougher and more convoluted when there is partner heterogeneity, cross sector alliances, cross or same industry alliances, etc.

Now days we see more and more corporations using strategic alliances to address different social aspects and more importantly environmental issues. It is crucial for a company to strategically choose its alliance/partners and they are generally judged by their alliances and associations. This paper helps explain how partner heterogeneity moderates an alliance’s ability to advance corporate social responsibility goals.

Strategic alliances have been growing at a rate of 25% annually, over the past decade and are expected to increase as organizations grow globally and what will ultimately seem like a global village. The author finds that in an alliance, there tends to be more innovative orientation and the partner with the alliance experience tends to moderate the alliance’s Corporate Social Responsibility decisions. The paper also has supporting data to prove that strategic alliances have more access to varied resources and that they are attempting to address more complex social, environmental and of late political goals. The author develops a cross sector partner diversity index and also an environmental strategy typology index which helps show that cross sector partners are generally associated with more proactive environmental outcomes.

Corporate Social Responsibility through alliances helps foster innovation which is aligned in some way to societal needs. The paper helps provide a new mechanism by testing a theory and hypotheses, of finding the driving factors that will help motivate a company or firm to seek more heterogeneous partners to form an alliance and how this ultimately influences the overall alliance’s Corporate Social Responsibility. Alliances definitely help develop and ensure open coalitions of cooperation and an enabling environment for joint Corporate Social Responsibility.

Resources:

Article: “Cross-sector Alliances for Corporate Social Responsibility Partner Heterogeneity Moderates Environmental Strategy Outcomes.” 

Article Source: Journal of Business Ethics; Oct2012, Vol. 110 Issue 2, p219-229, 11p, 1 Color Photograph, 1 Diagram, 2 Charts

ISSN: 01674544             DOI: 10.1007/s10551-012-1423-2          Accession Number: 80235138

Database: Business Source Complete