From Responsibility to Requirement: COVID, Cars, and the Future of Corporate Social Responsibility in Canada

Billedeau, D., Wilson, J., Samuel, N., 2022. From Responsibility to Requirement: COVID, Cars, and the Future of Corporate Social Responsibility in Canada. Sustainability. 14, 6658. doi.org/10.3390/su14116658.

Abstract:

The COVID-19 pandemic has caused significant impacts to the automotive manufacturing industry. Despite substantial financial uncertainty, disruptions to supply chains, and shutdowns of manufacturing operations, automotive firms supported crisis response efforts throughout the course of the pandemic. Drawing on interviews with all the consumer automotive manufacturing companies in Canada (Ford, General Motors, Honda, Stellantis, and Toyota) as well as the two largest global automotive parts suppliers operating in Canada (Linamar and Magna), we investigated whether voluntary corporate responses to COVID-19 will shape long-term corporate social responsibility programs or simply constitute one-off crisis management actions. Ultimately, we argue that while Canada’s pandemic response efforts have benefitted from the voluntary involvement of automotive manufacturing companies, the limited coordination between stakeholders underscores the need for greater public sector oversight of the relationship between society and the private sector. To ensure preparedness for meeting new challenges, such as climate change, we call for the era of voluntary corporate social responsibility programs to yield to a period of corporate social requirements.

Steeling the race: ‘Green steel’ as the new clean material in the automotive sector

Muslemani, H., Ascui, F., Liang, X., Kaesehage, K., Ascui, F., Wilson, J., 2022. Steeling the race: ‘Green steel’ as the new clean material in the automotive sector. Oxford Institute for Energy Studies. OIES Paper: ET 09. March 2022. ISBN 978-1-78467-196-9.

Abstract:

This paper aims to examine consumer behaviour towards, and the willingness to adopt, ‘green steel’ in the automotive sector. Semi-structured interviews were held with experts from global, regional and country-specific industry associations and automakers. This paper appraises potential demand for green steel within different vehicle types (based both on size and powertrain) and shows that manufacturers of electric heavy-duty vehicles are most likely to be the first adopters of green steel. A case for green advanced higher-strength steels (AHSS) can also be made in light-duty passenger vehicles, which may mitigate competition from alternative lightweight materials in terms of cost and greenness (depending on source and utilization regions). This work emphasizes a need to revisit current CO2 performance regulations, engage in educational green marketing campaigns, and explore innovative market-based mechanisms to bridge the gap between relatively-low carbon abatement costs of steelmaking and high abatement costs of vehicle manufacturing.

Micro-, meso- and macro-level determinants of stock price crash risk: a systematic survey of literature

Ali, W.,Wilson, J., Husnain, M., 2022. Micro-, meso- and macro-level determinants of stock price crash risk: a systematic survey of literature. Managerial Finance; doi 10.1108/MF-12-2021-0603

Abstract:

Purpose – This article conducts a thorough review and synthesis of the empirical research on the antecedents of stock price crash risk to ascertain the macro-, meso- and micro-level determinants contributing to stock price crashes.

Design/methodology/approach – The authors systematically reviewed 85 empirical papers published in ABS-ranked journals to assess the macro-, meso- and micro-level determinants causing stock price crashes.

Findings –The findings indicate that macroeconomic factors such as corporate governance, political and legal factors, socioeconomic indicators and religious beliefs have an effect on firm-level corporate behavior contributing to stock price crash risk. At a meso-level customer concentration, industry-level characteristics, media coverage, structural features of ownership and behavioral factors have a substantial effect on stock price crash risk. Finally, micro-level variables influencing stock market crash risk include CEO qualities and compensation, business policies, earnings management, financial transparency, managerial characteristics and firm-specific variables.

Research limitations/implications – Based on our analysis we identify priority areas for future research.

Originality/value – This is a seminal work using a multilevel framework to categorize the determinants of stock price crashes into micro-, meso- and macro-level factors.

Determinants/Motivations of Corporate Social Responsibility Disclosure in Developing Economies: A Survey of the Extant Literature

Ali, W.,Wilson, J., Husnain, M., 2022. Determinants/Motivations of Corporate Social Responsibility Disclosure in Developing Economies: A Survey of the Extant Literature. Sustainability; 14, 3474; doi.org/10.3390/su14063474

Abstract:

The main purpose of this study is to systematically analyse and synthesise the empirical literature on the drivers and motivations of CSR disclosure in developing countries. Previous studies on CSR disclosure have primarily investigated the accuracy of disclosure claims, impact on various actors, and the factors deriving CSR disclosure. While literature on CSR disclosure dates back to 1983, the number of studies have increased substantially in recent years, with 86% of studies being published in the last decade and a half. The results revealed that both internal and external factors influence the disclosure of CSR information. Internal factors influencing CSR disclosure include company characteristics such as size, industry, financial performance, corporate governance elements such as board size and board independence, and types of ownership. In addition, corporate polices and concerns also influence the disclosure of CSR-related information. External category factors influencing CSR disclosure include, regulatory pressures, government pressure, media concerns, social-cultural factors, and industry-level factors such as the level of industry competition, customers’ concerns, and multiple listing of a firm. Furthermore, global value chains, international buyers, international NGOs, and international regulatory bodies pressure companies in developing countries to disclose social and environmental information. In terms of motivations, companies disclose CSR information to improve their corporate reputation, improve their financial performance, access investment opportunities, and manage key stakeholders. The dominant theoretical frameworks used to explain the determinants of CSR disclosure include legitimacy theory and stakeholder theory.

BUSINESS RESILIENCE IN THE SUSTAINABLE DEVELOPMENT GOALS (SDGS) ERA: A CONCEPTUAL REVIEW

Ford, S., ElAlfy, A., Wilson, J., Weber, O., 2021. Business resilience in the Sustainable Development Goals (SDGs) era: A conceptual review. Corporate Governance and Sustainability Review, 5(4), 8–19.  doi.org/10.22495/cgsrv5i4p1.

Abstract:

Amidst the global COVID-19 pandemic, the term resilience has gained significant momentum in global news and management studies. Although scholars from different domains have investigated resilience, there is a need to provide clarity on its definitions and assessment (Anderson, 2015). This paper provides a conceptual review on resilience and explores business resilience as a framework to guide sustainability strategy by mitigating social and environmental risks. The study contributes to the literature on resilience and tabulates the key definitions of business resilience covered in a sample of 80 peer-reviewed articles and books (Hillmann & Guenther, 2021; McKnight & Linnenluecke, 2017). We challenge the existing literature on adaptive capacity models that are short in anticipating unprecedented operational disruptions. To build business resilience we argue for the adoption of the Sustainable Development Goals (SDGs). Given their strategic outlook until 2030, the SDGs offer a framework for corporate sustainability that helps decision-makers within organizations identify social and environmental risks and establish business strategies that build resilience and meet the expectations of a firm‘s diverse stakeholders.

Positioning Corporations as Sustainability Leaders: A Roadmap to Align Strategic Corporate Social Responsibility With the SDGs

Palaschuk, N., ElAlfy, A., Wilson, J., 2021. Positioning Corporations as Sustainability Leaders: A Roadmap to Align Strategic Corporate Social Responsibility with the SDGs. In Perez, A (Ed.), Future Advancements for CSR and the Sustainable Development Goals in a Post-COVID-19 World. IGI Global.; doi: 10.4018/978-1-7998-8065-3.ch002

Abstract:

This chapter explores the evolving field of corporate social responsibility (CSR) research and practices in the Sustainable Development Goals era. The authors introduce a contemporary definition of CSR reflective of the SDGs era. Section 1 provides an exploration of the conceptual and theoretical foundations underpinning the evolution of CSR approaches. Section 2 advocates for the SDGs framework in support of the proliferation of sustainability management across business settings. Section 3 delineates how adopting the SDGs as a framework for corporate sustainability can enhance corporate resilience towards economic shocks. Section 4 discusses strategic perspectives on corporate sustainability management and elaborates on the role of business in satisfying promises of sustainable development. Illuminating the legitimacy of the SDGs as a framework for positioning corporations as global sustainability leaders, this chapter serves as a roadmap outlining how business can advance their CSR strategies to align business goals with societal needs in a post-COVID-19 world.

COVID-19 and Corporate Social Responsibility: A Canadian Perspective

Billedeau, D. B., Wilson, J., 2021. COVID-19 and Corporate Social Responsibility: A Canadian Perspective. In W. Leal Filho (Ed.), COVID-19: Paving the Way for a More Sustainable World. Springer Publishing.

Abstract:

Starting in June 2020—three months after the World Health Organization declared COVID-19 a pandemic—a series of interviews were started with representatives of large firms operating in Canada to address two primary questions: (1) How have corporations in Canada supported COVID-19 response efforts? (2) Will the COVID-19 pandemic result in increased responsibilities for, and societal expectations of, corporations? In response to the first query, it is concluded that many large firms have been successfully leveraging existing CSR programs to support COVID-19 response efforts. The companies assessed in this study are not indicative of corporate COVID-19 responses across Canada; however, the participants serve to demonstrate best practices for supporting pandemic relief and response efforts in tandem with continued operations. In response to the second query, it is concluded that the COVID-19 pandemic has created increased pressures for corporations within Canada to leverage their resources to advance and protect societal interests. Most notably, some industry leaders have recognized increasing requirements to maintain their social licence to operate and are thus seeking to expand CSR programs in a time of financial uncertainty brought about by the pandemic. As many civil society organizations continue to experience financial and operational pressures due to COVID-19, there is significant pressure on corporations to bolster their community advancement initiatives. This study provides insights into how leading firms in Canada have supported COVID-19 response as well as the future of CSR in Canada.

Keywords Corporate social responsibility · COVID-19 · Sustainability · Best practices · Philanthropy

Framework for establishing a sustainable medical facility: a case study of medical tourism in Jordan

Darwazeh, D., Clarke, A., Wilson, J., 2021. Framework for establishing a sustainable medical facility: a case study of medical tourism in Jordan. World, 2, 351-375; doi.org/10.3390/world2030022.

Abstract:

A significant number of studies have assessed the impact of medical tourism from economic, technological and social perspectives. Few studies, however, have explored the development of the medical tourism sector from a sustainability perspective. This research brings a sustainability lens to medical tourism by extending Hart and Milstein’s framework (2003) for creating sustainable business value to advance the development of sustainable medical tourism facilities. To inform the analysis, the study conducted nine semi‐structured interviews with members of the Jordan Medical Tourism Network (JMTN). Interview results confirmed the primary factors that motivate medical tourists, and characteristics of a sustainable medical tourism facility. The research provides insights on how sustainability is a driver of medical tourists’ decisions and a core aspect to be managed. The study also provides direction to advance sustainable medical tourism facilities in Jordan with replicability in other jurisdictions. The research proposes a path for medical tourism facilities to play further roles in their contribution to sustainable development by introducing a framework that aims to integrate four business strategies for establishing sustainable value through the integration of stakeholders’ interests and environmental practices.

Opportunities and challenges for decarbonizing steel production by creating markets for ‘green steel’ products

Muslemani, H., Liang, X., Kaesehage, K., Ascui, F., Wilson, J., (2021). Opportunities and challenges for decarbonizing steel production by creating markets for ‘green steel’ products. Journal of Cleaner Production, 315; doi.org/10.1016/j.jclepro.2021.128127.

Abstract:

The creation of a market for steel produced by less carbon-intensive production processes, here called ‘green steel’, has been identified as a means of supporting the introduction of breakthrough emission reduction technologies into steel production. However, numerous details remain under-explored, including exactly what ‘green’ entails in the context of steelmaking, the likely competitiveness of green steel products in domestic and international markets, and potential policy mechanisms to support their successful market penetration. This paper addresses this gap through qualitative research with international sustainability experts and commercial managers from leading steel trade associations, research institutes and steelmakers. We find that there is a need to establish a common understanding of what ‘greenness’ means in the steelmaking context, and to resolve various carbon accounting and assurance issues, which otherwise have the potential to lead to perverse outcomes and opportunities for greenwashing. We identify a set of potential demand-side and supply-side policy mechanisms to support green steel production, and highlight a need for a combination of policies to ensure successful market development and avoid unintended consequences for competition at three different levels: 1) between products manufactured through a primary vs secondary steelmaking route, 2) between ‘green’ and traditional, ‘brown’ steel, and 3) with other substitutable materials. The study further shows that the automotive industry is a likely candidate for green steel demand, where a market could be supported by price premiums paid by willing consumers, such as those of high-end luxury and heavy-duty vehicles.

The System of Economic Development and its Complexity

Giesinger, K. & Wilson, J. (2021). The System of Economic Development and its Complexity. Journal of Economic Development.

Abstract:

A local economy is a highly networked complex system made up of stakeholders, actors, and influencers. The very nature of a system is that its behaviour is anchored by its state, which is made up of a series of parameters and characteristics. If the mechanisms of a complex system are adequately understood, they can be manipulated to produce change within a community. The role of the economic developer and city planner comes in the form of targeted interventions to achieve positive autocatalytic changes in communities. In this article, commonly used complexity analysis tools, Systems Maps, and Causal Loop Diagrams are redeveloped for the application of economic development. Then, two case studies, Detroit, Michigan, and Kitchener, Ontario, are presented to assess the feasibility of applying complex systems techniques to inform economic development decision making. Also, to extract lessons to advance broader integration of systems analysis techniques into city planning efforts.

Key findings from the analysis include the importance of utilizing feedback loops and identifying direct connections that could prevent or catalyze progress. Overall, there is value in using complexity sciences for the pursuit of positive system change.

Keywords: complexity; economic development; planning; complex system; system map; causal loop diagram

Scoping the Evolution of Corporate Social Responsibility (CSR) Research in the Sustainable Development Goals (SDGs) Era

ElAlfy, A., Palaschuk, N., El-Bassiouny, D., Wilson, J., & Weber, O. (2020). Scoping the Evolution of Corporate Social Responsibility (CSR) Research in the Sustainable Development Goals (SDGs) Era. Sustainability, 12(14), 5544.

Abstract:

Amidst a contemporary culture of climate awareness, unprecedented levels of transparency and visibility are forcing industrial organizations to broaden their value chains and deepen the impacts of Corporate Social Responsibility (CSR) initiatives. While it may be common knowledge that the 2030 agenda cannot be achieved on a business-as-usual trajectory, this study seeks to determine to what ends the United Nations Sustainable Development Goals (SDGs) have impacted CSR research. Highlighting linkages and interdependencies between the SDGs and evolution of CSR practice, this paper analyzes a final sample of 56 relevant journal articles from the period 2015–2020. With the intent of bridging policy and practice, thematic coding analysis has supported the identification and interpretation of key emergent research themes. Using three descriptive categorical classifications (i.e., single-dimension, bi-combination of dimensions, sustainability dimension), the results of this paper provide an in-depth discussion into strategic community, company, consumer, investor, and employee foci. Furthermore, the analysis provides a timely and descriptive overview of how CSR research has approached the SDGs and which ones are being prioritized. By deepening the understanding of potential synergies between business strategy, global climate agendas and the common good, this paper contributes to an increased comprehension of how CSR and financial performance can be improved over the long-term.

Business Models for Carbon Capture, Utilization and Storage Technologies in the Steel Sector: A Qualitative Multi-Method Study

Muslemani, H.; Liang, X.; Kaesehage, K.; Wilson, J. Business Models for Carbon Capture, Utilization and Storage Technologies in the Steel Sector: A Qualitative Multi-Method Study. Processes 2020, 8, 576.

Abstract:

Carbon capture, utilization, and storage (CCUS) is a combination of technologies capable of achieving large-scale reductions in carbon dioxide emissions across a variety of industries. Its application to date has however been mostly limited to the power sector, despite emissions from other industrial sectors accounting for around 30% of global anthropogenic CO2 emissions. This paper explores the challenges of and requirements for implementing CCUS in non-power industrial sectors in general, and in the steel sector in particular, to identify drivers for the technology’s commercialization. To do so we first conducted a comprehensive literature review of business models of existing large-scale CCUS projects. We then collected primary qualitative data through a survey questionnaire and semi-structured interviews with global CCUS experts from industry, academia, government, and consultancies. Our results reveal that the revenue model is the most critical element to building successful CCUS business models, around which the following elements are structured: funding sources, capital & ownership structure, and risk management/allocation. One promising mechanism to subsidize the additional costs associated with the introduction of CCUS to industry is the creation of a ‘low-carbon product market’, while the creation of clear risk-allocation systems along the full CCUS chain is particularly highlighted. The application of CCUS as an enabling emission reduction technology is further shown to be a factor of consumer and shareholder pressures, pressing environmental standards, ethical resourcing, resource efficiency, and first-mover advantages in an emerging market. This paper addresses the knowledge gap which exists in identifying viable CCUS business models in the industrial sector which, with the exception of a few industry reports, remains poorly explored in the academic literature.

Business Models for Carbon Capture, Utilization and Storage Technologies in the Steel Sector: A Qualitative Multi-Method Study

Muslemani, H., Liang, X., Kaesehage, K., Wilson, J., 2020. Business Models for Carbon Capture, Utilization and Storage Technologies in the Steel Sector: A Qualitative Multi-Method Study. Processes, 8, 576; doi:10.3390/pr8050576

Abstract:

Carbon capture, utilization, and storage (CCUS) is a combination of technologies capable of achieving large-scale reductions in carbon dioxide emissions across a variety of industries. Its application to date has however been mostly limited to the power sector, despite emissions from other industrial sectors accounting for around 30% of global anthropogenic CO2 emissions. This paper explores the challenges of and requirements for implementing CCUS in non-power industrial sectors in general, and in the steel sector in particular, to identify drivers for the technology’s commercialization. To do so we first conducted a comprehensive literature review of business models of existing large-scale CCUS projects. We then collected primary qualitative data through a survey questionnaire and semi-structured interviews with global CCUS experts from industry, academia, government, and consultancies. Our results reveal that the revenue model is the most critical element to building successful CCUS business models, around which the following elements are structured: funding sources, capital & ownership structure, and risk management/allocation. One promising mechanism to subsidize the additional costs associated with the introduction of CCUS to industry is the creation of a ‘low-carbon product market’, while the creation of clear risk-allocation systems along the full CCUS chain is particularly highlighted. The application of CCUS as an enabling emission reduction technology is further shown to be a factor of consumer and shareholder pressures, pressing environmental standards, ethical resourcing, resource efficiency, and first-mover advantages in an emerging market. This paper addresses the knowledge gap which exists in identifying viable CCUS business models in the industrial sector which, with the exception of a few industry reports, remains poorly explored in the academic literature.